{"id":3594,"date":"2004-09-26T12:30:33","date_gmt":"2004-09-26T16:30:33","guid":{"rendered":"http:\/\/blogs.law.harvard.edu\/cmusings\/2004\/09\/26\/ongo-bongos-cd-rental-service-and-fi"},"modified":"2004-09-26T12:30:33","modified_gmt":"2004-09-26T16:30:33","slug":"ongo-bongos-cd-rental-service-and-first-sale","status":"publish","type":"post","link":"https:\/\/archive.blogs.harvard.edu\/cmusings\/2004\/09\/26\/ongo-bongos-cd-rental-service-and-first-sale\/","title":{"rendered":"Ongo Bongo&#8217;s CD Rental Service and First Sale"},"content":{"rendered":"<p><a name='a799'><\/a><\/p>\n<p><P>Robert Young, having tracked <A href=\"http:\/\/blogs.law.harvard.edu\/cmusings\/2004\/07\/15#a722\">previous<\/A> <A href=\"http:\/\/blogs.law.harvard.edu\/cmusings\/2004\/09\/13#a777\">posts<\/A> about digital first sale, pointed me to <A href=\"http:\/\/www.ongobongo.com\">Ongo Bongo<\/A>.&nbsp; Apparently, the&nbsp;company is a&nbsp;CD rental service.&nbsp; The exact scope is a little unclear from the website, which only <A href=\"http:\/\/www.ongobongo.com\/page4.html\">mentions this service<\/A>&nbsp;while noting in the FAQ that no such service exists yet.&nbsp; However, <A href=\"http:\/\/www.macobserver.com\/article\/2004\/09\/23.7.shtml\">other<\/A> <A href=\"http:\/\/www.engadget.com\/entry\/6448012701267546\/\">sources<\/A> <A href=\"http:\/\/www.powerpage.org\/cgi-bin\/WebObjects\/powerpage.woa\/wa\/story?newsID=12414\">have<\/A> reported that the company will&nbsp;operate much&nbsp;like Netflix. (I couldn&#8217;t find any of that language on the site, but perhaps I just missed something in my quick look.)<\/P><br \/>\n<P>Unless they have a license from the sound recording copyright owners (that is, the record labels), a CD rental service&nbsp;of this sort&nbsp;is clearly infringing.&nbsp; As I have discussed, the <A href=\"http:\/\/www4.law.cornell.edu\/uscode\/17\/109.html\">first sale doctrine<\/A> is an exception to the exclusive right to distribute and generally allows people to sell, rent, loan, or give away lawfully made copies of copyrighted content; once Netflix buys the copy of the DVD, they can distribute that copy to others without it infringing the copyright.&nbsp; However, a few exceptions to first sale apply.&nbsp; The owner of a particular sound recording copy (a phonorecord) may not:<\/P><br \/>\n<BLOCKQUOTE><br \/>\n<P>&#8220;for the purposes of direct or indirect commercial advantage, dispose of, or authorize the disposal of, the possession of that phonorecord &#8230; 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 nonprofit educational institution.&#8221;<\/P><\/BLOCKQUOTE><br \/>\n<P dir=\"ltr\">So there you have it.&nbsp;First sale doesn&#8217;t cover music rental.&nbsp;I&#8217;m not sure what other sort of defense you could use.&nbsp; If Ongo Bongo is actually going through with this service, they better have a license.<\/P><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Robert Young, having tracked previous posts about digital first sale, pointed me to Ongo Bongo.&nbsp; Apparently, the&nbsp;company is a&nbsp;CD rental service.&nbsp; The exact scope is a little unclear from the website, which only mentions this service&nbsp;while noting in the FAQ that no such service exists yet.&nbsp; However, other sources have reported that the company will&nbsp;operate [&hellip;]<\/p>\n","protected":false},"author":72,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[84],"tags":[],"class_list":["post-3594","post","type-post","status-publish","format-standard","hentry","category-general-news"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/archive.blogs.harvard.edu\/cmusings\/wp-json\/wp\/v2\/posts\/3594","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/archive.blogs.harvard.edu\/cmusings\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/archive.blogs.harvard.edu\/cmusings\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/cmusings\/wp-json\/wp\/v2\/users\/72"}],"replies":[{"embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/cmusings\/wp-json\/wp\/v2\/comments?post=3594"}],"version-history":[{"count":0,"href":"https:\/\/archive.blogs.harvard.edu\/cmusings\/wp-json\/wp\/v2\/posts\/3594\/revisions"}],"wp:attachment":[{"href":"https:\/\/archive.blogs.harvard.edu\/cmusings\/wp-json\/wp\/v2\/media?parent=3594"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/cmusings\/wp-json\/wp\/v2\/categories?post=3594"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/cmusings\/wp-json\/wp\/v2\/tags?post=3594"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}