Record Rental Amend­ment of 1984

PUBLIC LAW 98-450—OCT. 4, 1984 98 STAT. 1727
Public Law 98-450
98th Congress
An Act
To amend title 17 of the United States Code with respect to rental, lease, or lending of
sound recordings.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SHORT TITLE
SECTION 1. This Act may be cited as the "Record Rental Amend­
ment of 1984".
CONDITIONS ON RENTALS
SEC. 2. Section 109 of title 17, United States Code, is amended—
(1) by redesignating subsections (b) and (c) as subsections (c)
and (d), respectively; and
(2) by inserting after subsection (a) the following:
"O^Xl) Notwithstanding the provisions of subsection (a), unless
authorized by the owners of copyright in the sound recording and in
the musical works embodied therein, the owner of a particular
phonorecord may not, for purposes of direct or indirect commercial
advantage, dispose of, or authorize the disposal of, the possession of
that phonorecord by rental, lease, or lending, or by any other act or
practice in the nature of rental, lease, or lending. Nothing in the
preceding sentence shall apply to the rental, lease, or lending of a
phonorecord for nonprofit purposes by a nonprofit library or non­
profit educational institution.
"(2) Nothing in this subsection shall affect any provision of the
antitrust laws. For purposes of the preceding sentence, 'antitrust
laws' has the meaning given that term in the first section of the
Clajrton Act and includes section 5 of the Federal Trade Commis­
sion Act to the extent that section relates to unfair methods of
competition.
"(3) Any person who distributes a phonorecord in violation of
clause (1) is an infringer of copyright under section 501 of this title
and is subject to the remedies set forth in sections 502, 503, 504, 505,
and 509. Such violation shall not be a criminal offense under section
506 or cause such person to be subject to the criminal penalties set
forth in section 2319 of title 18.". Oct. 4, 1984
[S. 32]
Record Rental
Amendment of
1984.
Copyrights.
17 use 101 note.
15 use 12.
15 use 45.
18 use 2319.
COMPULSORY UCENSES; ROYALTIES
SEC. 3. Section 115(c) of title 17, United States Code, is amended by
redesignating paragraphs (3) and (4) as paragraphs (4) and (5),
respectively, and by adding after paragraph (2) the following new
paragraph:
"(3) A compulsory license under this section includes the right of
the maker of a phonorecord of a nondramatic musical work under
subsection (a)(1) to distribute or authorize distribution of such
phonorecord by rental, lease, or lending (or by acts or practices in 98 STAT. 1728 PUBLIC LAW 98-450—OCT. 4, 1984
the nature of rental, lease, or lending). In addition to any royalty
17 use 801 et payable under clause (2) and chapter 8 of this title, a royalty shall be
«^9 payable by the compulsory licensee for every act of distribution of a
phonorecord by or in the nature of rental, lease, or lending, by or
under the authority of the compulsory licensee. With respect to each
nondramatic musical work embodied in the phonorecord, the
royalty shall be a proportion of the revenue received by the compul­
sory licensee from every such act of distribution of the phonorecord
under this clause equal to the proportion of the revenue received by
the compulsory licensee from distribution of the phonorecord under
clause (2) that is payable by a compulsory licensee under that clause
Regulations. and under chapter 8. The Register of Copyrights shall issue regula­
tions to carry out the purpose of this clause.".
EFFECTIVE DATE
17 use 109 note. SEC. 4. (a) The amendments made by this Act shall take effect on
the date of the enactment of this Act.
(b) The provisions of section 109(b) of title 17, United States Code,
as added by section 2 of this Act, shall not affect the right of an
owner of a particular phonorecord of a sound recording, who
acquired such ownership before the date of the enactment of this
Act, to dispose of the possession of that particular phonorecord on or
after such date of enactment in any manner permitted by section
109 of title 17, United States Code, as in effect on the day before the
date of the enactment of this Act.
(c) The amendments made by this Act shall not apply to rentals,
leasings, lendings (or acts or practices in the nature of rentals,
leasings, or lendings) occurring after the date which is five years
after the date of the enactment of this Act.
Approved October 4, 1984.
LEGISLATIVE HISTORY—S. 32 (H.R. 5938):
HOUSE REPORT No. 98-987 accompanying H.R. 5938 (eomm. on the Judiciary).
SENATE REPORT No. 98-162 (eomm. on the Judiciary).
CONGRESSIONAL REOORD:
Vol. 129 (1983): June 28, considered and passed Senate.
Vol. 130 (1984): Sept. 11, H.R. 5938 considered and passed House; S.
amended, passed in lieu.
Sept. 21, Senate concurred in House amendment. 32,