A method for the electronic publication and distribution of customized educational materials comprises an educator compiling a set of customized educational course materials from selected segments of educational works stored in an educational materials database of available materials (150-180), and indexing the set of customized educational course materials in an electronic database where it is available for purchase in an electronic format by students (270, 277). Copyright infringement is discouraged by providing the educator the option of electronic testing and grading of only those students that have purchased the educational materials. Hence, only such students are eligible to receive a grade in the class (265, 280). The customized educational course materials are easily updated without the publisher incurring traditional printing and distribution costs, simultaneously reducing the time to market for new editions of educational materials.