Originally Posted by LVNeptune
Whether they have the licenses or not is disputable...I doubt a small company like that can do it while a multi-million dollar company such as Netflix can not.http://www.fbi.gov/about-us/investig...pr/anti-piracy
"Warning: The unauthorized reproduction or distribution of this copyrighted work is illegal. Criminal copyright infringement, including infringement without monetary gain, is investigated by the FBI and is punishable by up to five years in federal prison and a fine of $250,000."
This is unauthorized distribution...
You can not buy a movie and re-rent it for profit, you need to pay royalties, royalties is what puts all the licenses, etc., on hold especially while they decide how much to charge for 3D content since it is still fairly new.
IANAL, but after perusing the web for a while and digging through the Motion Picture Licensing Corporation (MPLC) website, it appears, in the US at least, that it is perfectly legal to rent out your (legally obtained) DVDs and BDs, as long as the intent is for private home use only. If the renter does a public exhibition and you didn't know it, only the renter can be held accountable. If you knew they were renting for public exhibition, then you are in trouble...
That's why Redbox could legally buy DVDs in bulk from a retailer or distributors when the direct studio distribution was cut off during their "negotiations". The studios tried to strong arm the distributors, telling them to not sell to Redbox or else they would lose the ability to get any movies from the studios - the studios did not try to take Redbox to court for renting movies without a license, because no such requirement exists.
The FBI warning is a little strongly worded, and does not define "unauthorized distribution", hence you might think it applies to renting you personal copy to someone else for home use. It appears it does not apply, and that you do not need their authorization to rent movies out, but the studios aren't going to explicitly say that, are they?
"The unauthorized reproduction or distribution of this copyrighted work is illegal, but you are legally entitled to rent or lend this work for private home use."
Yeah, don't see them wanting to clarify that.
Again, IANAL, but that is how I see things. If you can provide a link to substantiate your claim that "You can not buy a movie and re-rent it for profit, you need to pay royalties" then that would be appreciated, because I'm not finding anything.