RE: [dvd-discuss] Interesting 1st sale-shrinkwrap-EULA-(c) infringementcase

["Michael A Rolenz" <Michael.A.Rolenz(at)aero.org>]

A non-profit corporation is not a corporation that does not make a profit. 
It must be incorporated by the state as such and has restrictions upon 
what it can and cannot do. If the state decides that your non-profit CD 
rental doesn't fit it's definition of non-profit you won't be incorporated 
as a nonprofit.




Noah silva <nsilva@atari-source.com>
Sent by: owner-dvd-discuss@eon.law.harvard.edu
11/02/01 08:16 AM
Please respond to dvd-discuss

 
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        Subject:        RE: [dvd-discuss] Interesting 1st sale-shrinkwrap-EULA-(c) 
infringementcase


> 
> > "Congress recognized the problem, and, in 1990, amended the first sale
> > doctribe as it applies to computer programs and phonorecords.  As 
amended,
> > the first sale doctrine permits only non-profit libraries and 
educational
> > institutions to lend or lease copies of software and phonorecords."
> > 
> > First of all, what was "the problem"?  (obviously people renting 
software,
> > but why was this a problem?!  You shouldn't be allowed to rent 
something
> > you own?)
> 
> The problem is that first sale grants software owners the right to use 
the
> software on "a" machine. If the software is the kind that installs 
itself onto
> your computer, then the software rental business has no way to verify 
that each
> purchased copy is only on one machine at a time, and we all know that it
> probably wouldn't be.

True, but if it isn't, then it is the renter who is at fault for not
deleting it.  Also, what if it runs from the CD?  I can rent out my book,
someone could copy it, but that wouldn't be my fault.

> > Secondly... couldn't anyone wanting to make a CD rental store just
> > organize it as an education institution or non-profit organization?
> 
> As long as this wasn't a sham.
> 
Well.. define sham.  Non-profit corperations don't turn a profit, but
their members get paid.  You could open a corperation that pays out all
it's revenues to its employees... am I mising something?

(also, this doesn't apply to videos?  Those are "licensed" to
blockbuster?)  Again, you could sell and accept returns minus a
"restocking" fee instead.

 -- noah silva