Reader mail: Starting a video rental business
I am talking with some friends about opening a convenience sort of store. In addition to everything else we want to rent a small, but good selection of DVD's and Videos. Someone we spoke with said we could just go to our local record/video store, buy them and then rent them. I don't think this is true and that we need some sort of license to do this. What do you say?Good news, my friend—you're wrong! ;-)
There are no special licenses or copyright requirements for renting videos for general home use. Note, though, that they are licensed "for home use only", but you're renting them "for home use only". Now if someone turns around and shows that video to a large group, they have violated copyright law, but you haven't (unless, of course, you knowingly rented it to them for that purpose, in which case there might be a problem). Ultimately, though, it's up to them to get the license, not you.
The Motion Picture Licensing Corporation has an excellent summary of video rental copyright law. The MPLC article references Section 17 of the U.S. Code, which I've linked to for your convenience, should you want to read the original.
Good luck with it!
How about AudioBook rental business?
The same copyright laws apply to audio recordings as well as video.
Hi,
I am in the process of introducing foreign works (movies) in my video stores and in my overseas trips to foreign retailers, I have found copyright notices printed on DVD covers **explicitly** stating that these DVDs are to be used only in certain countries (US not included) and that **renting** them will violate copyright laws even in those countries where they could be used.
Would I be liable for copyright infringement if I purchase these DVDs and rent them out in the US?
Thanks.
is it legal for a video store to buy DVD’s from Wal-Mart and rent them? Do they have to use a video rental movie service?
It doesn’t matter where you buy it from, Glinda. The copyright issue is whether the performance is public/semi-public or in the home. So long as you’re renting for home use, and renting a legitimately purchased copy, i.e., not a bootleg, then you can rent it legally without owing anybody anything.
And yes, Frank — there is a legal issue there. Generally speaking, you can’t import a DVD licensed for use outside the U.S. and bring it into the U.S. and rent it. I’m not sure on the logic behind that, but I imagine that at least some part of it has to do with controlling piracy, i.e., we have tighter controls on it here in the U.S.
Hi,
with respect to Frank’s earlier question and to entrepreneur’s comment, how does one go around this problem then? Especially if that title is only available in certain parts of the world?
Hi, i think it is a good idea, but imperfect for legal license, etc. We have many business videos about products, our company and training courses on http://www.cycbiz.com ,nice free global e-commerce b2b btob website. It is effective for few days, but you should set outstanding keywords for convenient search for customers.
Hi there, my questions is to see if the guide lines stated in the above topic apply to canada as well? I am looking to open a video store but not sure were to start. thank you
Devon.
At first glance, the Canadian laws are worded more than just a little differently. I suggest just contacting the Copyright Board of Canada and I’m sure they’ll be able to answer that for you.
Ya canadian law requires you to have a licence,(in ontario anyway)you can find more info here
http://canadabusiness.ic.gc.ca/servlet/ContentServer?cid=1184867777214&lang=en&pagename=CBSC_FE%2Fdisplay&c=Regs
Legally, are there age restrictions for renting certain movies? Or is it OK to rent an R rated film to a 16 year old?
The MPAA rating system is done by a private organization, and compliance with it is (for the most part) voluntary and not legally obliged. Basically the MPAA decided to police itself so that the government wouldn’t feel the need to, and theaters and video rental stores comply with it so that they don’t raise the ire of parents. The last thing Blockbuster wants is a bunch of parents protesting outside their store (not to mention closing their accounts).
In fact, it’s common that in many places, teenagers can check out R-rated movies from the public library.
Where the law potentially comes in is that it is illegal to make obscenity or pornography available to minors. However, R-rated movies and even some NC-17 movies do not meet the legal criteria for obscene or pornographic.
But I did say “for the most part”. States and local jurisdictions can do whatever they want, and some local jurisdictions have attempted to pass laws about underage viewing of movie ratings. In at least a couple of cases I found, though, those attempts had been dropped, on the basis that using the ratings system of a private entity was unconstitutional.
Bottom line — there’s no federal law in the U.S., but check your local and state laws. Also, you need to consider what’s really the best long-term decision for your business. It might seem easier at first, but what happens when a couple of irate parents start making waves about it?
This is bogus advise. When you purchase a DVD/video at Wal-Mart you pruchase it for home use. In your own home. You violate the copyright by renting out because you are showing the video publicly for profit. The key here is that YOU BOUGHT IT, YOU OWN IT, SO YOU ARE LIABLE for only showing it in your home. Here’s an update to that MPLC link:
http://www.mplc.com/aboutLaw.php
Sorry, James, but you’re mistaken. This is a well-tested principle of copyright law known as “first-sale doctrine.” The video can’t be shown publicly. It can, however, be repeatedly shown in private homes. And the first purchaser of it can rent it out for showing in private homes.
For more on the specific legislation and case law supporting this, see the Entertainment Merchant Association (EMA) Major Legal and Legislative Victories.
I see, you are right. There is a loophole in US copyright law that affects video but not music (they are treated differently, which was my mistake).
This is one of the fall-outs of the Betamax VCR court case where the movie industry tried to ban VCRs. It opened the 1909 “first sale doctrine” (which allows transfer of legally purchased copyrighted content, including rental) to apply to audio-visual content while avoiding the special protection granted in 1976 to audio recordings. A bill came up in 1983 to fix this problem with rental but was shot down (”Consumer Video Sales/Rental Amendment of 1983″ H.R. 1029/S. 33, 98th Congress). Provisions that would have also addressed this in the 1998 Digital Millennium Copyright Act were gutted out by the same people who shot down the 1983 bill.
I was treating the A/V content the same as audio content, and they aren’t treated the same way under copyright law.
However I did find out a VERY IMPORTANT item of information that a potential video rental owner needs to know before hanging out a shingle.
Many states and local governments have closed this rental loophole themselves. While you may not be violating federal copyright law, you may be committing a crime at the local level.
Is it legal, however, to buy DVD’s in the U.S. and rent for home use outside the U.S.?
Generally, no. The copies sold in the U.S. are only licensed for showing in the U.S. The producers of each film enter into licensing agreements with foreign film distributors who sell different versions that are licensed for viewing outside the U.S.
While the prices may be similar or even the same, the companies have to track them differently, as the royalty payouts to actors, writers, etc., are significantly different for the foreign sales vs. U.S. sales.
Hello,
Where can i get copyright licences, for streamming movies over the internet?.
like netflix does!. obviously buying the movie legaly, and streamming a copy over the internet to a client’s home, and charging them for it.
please send me an email.
what about the films in the UK. And what about videogame consoles, games and accesories. Can one simply rent out a console they buy?
entrepreneurs…you use wikipedia as your basis for legal advice?
Hello everyone. I have recently decided to sale my video store. I have about 20,000 in movies alone and all of the shelving to hold these movies. The shelves alone are worth approximately 15,000. I am asking 15,000 for everything. A tanning bed is also included. If interested please email me and I will get back to you.