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9q49(bXi).
10 q 49(bXiii).

11 17 U.S.C. § 109(b).

form reach users, regardless of whether the sender or the recipient initiates the transfer, and regardless of whether the recipient stores the work permanently.

C. RENTAL RIGHT

We applaud the WIPO Secretariat's recognition of the vital importance of an exclusive rental right, not exhausted by transferring ownership 10 or possession of a copy, in order to protect the copyright owner's reproduction right in computer programs and other works in digital form. Since such works can be copied readily with no loss of quality, their unauthorized rental often becomes an avenue for illicit copying. We therefore strongly favor the inclusion of an exclusive rental right under 149(b)(i) and (iii), and oppose any reliance on ¶49(b)(iv), which would permit countries in some circumstances to substitute a mere right of remuneration.

D. PUBLIC LENDING RIGHT

In addition, we favor including the square-bracketed words in ¶ 49(b)(iii) (“[or public lending]"). Inclusion of those words would ensure that when a copyright owner transfers the ownership of a particular copy of a computer program or other work in digital form, the copyright owner does not exhaust the exclusive right to authorize or prohibit public lending of the copy.

The effect of public lending of works in digital form does not differ significantly from the effect of rental of such works. We urge the U.S. Government to support this position. The narrow circumstances under U.S. law where unauthorized public lending of computer programs is permitted 11 would fall within the scope of 149bXv). Thus U.S. law need not be changed to conform to the square-bracketed provisions in ¶49bXiii). We would not object to removing the brackets around 149(b)(v) to facilitate U.S. compliance.

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