Understanding the Computer Software Rental Amendments Act of 1990

Definition & Meaning

The Computer Software Rental Amendments Act of 1990 is a federal law in the United States that was enacted on December 1, 1990. This law prohibits individuals or businesses from leasing, renting, or lending computer software for commercial purposes. It introduced a "rental right" for copyright owners, which is an exception to the "first sale doctrine." This doctrine allows the owner of a legally obtained copy of a work to sell or transfer that copy without needing permission from the copyright holder. Additionally, the Act allows nonprofit libraries to lend software for nonprofit purposes, provided that the software packaging includes a copyright warning.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A public library lends out software titles to patrons for free, ensuring that the packaging includes a copyright warning, in compliance with the Act.

Example 2: A software company discovers that a local business is renting out copies of its software without permission, violating the Computer Software Rental Amendments Act. The company may pursue legal action to enforce its rights. (hypothetical example)

Comparison with related terms

Term Description Differences
First Sale Doctrine A legal doctrine allowing the owner of a copyrighted work to sell or transfer that work without permission. The Computer Software Rental Amendments Act creates exceptions to this doctrine specifically for software rentals.
Copyright Law Laws protecting the rights of creators over their original works. The Act specifically addresses rental rights, which are not typically covered under general copyright law.

What to do if this term applies to you

If you are considering renting or lending software, ensure you understand the restrictions set by the Computer Software Rental Amendments Act. If you are a nonprofit library, verify that you comply with the requirements for lending software. For assistance, explore US Legal Forms' templates for software rental agreements, or consult a legal professional for complex situations.

Quick facts

  • Enacted: December 1, 1990
  • Jurisdiction: United States federal law
  • Key Provisions: Prohibits commercial software rentals, allows nonprofit library lending under conditions
  • Potential Penalties: Legal action for copyright infringement

Key takeaways

Frequently asked questions

No, the Act prohibits renting software for commercial purposes without permission from the copyright owner.