Legal Definitions - rental right

The rental right is a specific component of copyright law that grants the creator or owner of a copyrighted work the exclusive authority to control whether copies of their work can be rented out or otherwise made available for temporary use in exchange for payment or commercial benefit. This right applies even after those copies have been initially sold to someone else. It ensures that copyright holders can profit from the temporary commercial use of their creations, not just their initial sale.

Here are some examples illustrating the rental right:

• Example 1: Video Game Rental Service

  Imagine a company called GameShare that purchases multiple physical copies of the latest popular video games. Instead of selling these games to individual customers, GameShare offers a service where subscribers can rent a physical game disc for a week for a recurring fee. The video game developer holds the copyright to the game. Even though GameShare legally bought the physical game copies, the developer's rental right means they retain control over whether GameShare can then rent those copies out to the public for a fee. Without a specific license or permission from the game developer, GameShare would be infringing on this right.

• Example 2: Specialized Software for Temporary Projects

  Consider a business called CodeFlex Solutions that provides temporary access to highly specialized and expensive architectural design software. Instead of requiring clients to purchase full licenses for software they only need for short-term projects, CodeFlex Solutions installs the copyrighted software on powerful computer workstations and then rents out these workstations (with the software pre-installed and licensed for temporary use) to freelance architects for hourly or daily rates. The software company that created the architectural program holds the copyright. CodeFlex Solutions isn't selling the software itself, but it's offering temporary use of copies of the software (installed on their machines) to others for a commercial advantage (the rental fee for the workstation). The software company's rental right allows them to control this type of commercial exploitation of their software, typically requiring CodeFlex Solutions to obtain specific licensing agreements for such rental activities.

• Example 3: Digital Textbook Subscription for Students

  Suppose a platform called StudyStream offers university students a subscription service that provides temporary digital access to a vast library of copyrighted textbooks for the duration of a semester. Students pay a monthly fee to read and use these digital textbooks online, rather than purchasing permanent digital or physical copies. The publishers and authors of these textbooks hold the copyright. StudyStream is not selling permanent copies of the textbooks; instead, it is providing temporary access to digital copies for a fee (the subscription). The rental right (or an analogous licensing right for digital temporary access) allows the copyright holders to control and profit from this temporary commercial use of their educational works, ensuring that StudyStream pays for the privilege of offering this service.