Nahum, 

I misspoke when I summarized the law.

When you sell a copy, your right to control how the buyer disposes of that 
particular copy is exhausted. However, other rights remain with you.

The buyer does *not* get the right to make copies of the DVD, show it in public 
or on TV, or adapt it in some way. You control those rights. 

If you licensed PPR with the DVD, that license should specify whether the 
license is transferable or not. If it is not transferable, it cannot be given 
away or resold etc.  It is a contract to which, presumably, the purchasing 
institution or individual agreed at the time of sale. 

The physical DVD can be given away or loaned.  You can slap all the labels you 
want on it that say "for private home use only" but it is still subject to 
first sale (including loans or even rentals) and fair use.

The buyer and any subsequent legal owner, have rights  of fair use. For 
example, they could quote a bit of dialogue in a written review, or refer to 
factual material contained in the film, citing the source. If the DVD is not 
copy-protected, they could rip an image or a brief segment for purposes of 
illustration.  Also, they could show the entire film to a class. 

I realize you are frustrated because you believe very deeply that you ought to 
have the right to charge more to an institution which will allow many people to 
borrow the DVD and watch it at home, or watch it in a group in a class. 
However, American law allows libraries to lend any legally made copy they 
acquire, and schools to show any legally made copy in the classroom. They do 
not need any kind of license to do these things, and the right to do them is 
not changed by your saying that you want them to pay more for them. 

The tiered pricing system does not have to do with a difference between books 
and DVDs; in fact, there is a tiered pricing system for scholarly journals, 
which charge libraries a lot more for a subscription. The difference is between 
media that can make a lot of money by selling lots of copies for a smaller 
profit, and media that has a small market and needs to make a good profit on 
each sale.  A Hollywood film may cost $200,000,000 to make, but when it becomes 
available on DVD the library can buy a copy for $25, just like everybody else. 
Your film may have cost much less to make but your budget model depends on 
being able to sell X number of copies for $250 each to libraries, so the 
libraries have to include that amount in their budgets if they want to buy your 
films. 

And of course the library would probably have your film than 10 Spiderman films 
at $25 each.

But you can't blame a librarian for being delighted to have some expensive 
documentaries donated to the library.

As Jessica pointed out, if you keep track of the copies you send for previews, 
and arrange to have them returned, you will know those copies are not being 
used in ways you don't intend. 

Judy Shoaf 


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