Record Rental Amendment of 1984
PL 98-450 (S.32), enacted 10/04/1984

PUBLIC LAW 98-450—OCT. 4, 1984 
98 STAT. 1727 
Public Law 98-450 
98th Congress 
An Act 
To amend title 17 of the United States Code with respect to rental, lease, or lending of 
sound recordings. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SHORT TITLE 
SECTION 1. This Act may be cited as the "Record Rental Amend-
ment of 1984". 
CONDITIONS ON RENTALS 
SEC. 2. Section 109 of title 17, United States Code, is amended— 
(1) by redesignating subsections (b) and (c) as subsections (c) 
and (d), respectively; and 
(2) by inserting after subsection (a) the following: 
"O^Xl) Notwithstanding the provisions of subsection (a), unless 
authorized by the owners of copyright in the sound recording and in 
the musical works embodied therein, the owner of a particular 
phonorecord may not, for purposes of direct or indirect commercial 
advantage, dispose of, or authorize the disposal of, the possession of 
that phonorecord 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 non-
profit educational institution. 
"(2) Nothing in this subsection shall affect any provision of the 
antitrust laws. For purposes of the preceding sentence, 'antitrust 
laws' has the meaning given that term in the first section of the 
Clajrton Act and includes section 5 of the Federal Trade Commis-
sion Act to the extent that section relates to unfair methods of 
competition. 
"(3) Any person who distributes a phonorecord in violation of 
clause (1) is an infringer of copyright under section 501 of this title 
and is subject to the remedies set forth in sections 502, 503, 504, 505, 
and 509. Such violation shall not be a criminal offense under section 
506 or cause such person to be subject to the criminal penalties set 
forth in section 2319 of title 18.". 
Oct. 4, 1984 
[S. 32] 
Record Rental 
Amendment of 
1984. 
Copyrights. 
17 u s e 101 note. 
15 u s e 12. 
15 u s e 45. 
18 u s e 2319. 
COMPULSORY UCENSES; ROYALTIES 
SEC. 3. Section 115(c) of title 17, United States Code, is amended by 
redesignating paragraphs (3) and (4) as paragraphs (4) and (5), 
respectively, and by adding after paragraph (2) the following new 
paragraph: 
"(3) A compulsory license under this section includes the right of 
the maker of a phonorecord of a nondramatic musical work under 
subsection (a)(1) to distribute or authorize distribution of such 
phonorecord by rental, lease, or lending (or by acts or practices in 
98 STAT. 1728 
PUBLIC LAW 98-450—OCT. 4, 1984 
the nature of rental, lease, or lending). In addition to any royalty 
1
7 use 801 et 
payable under clause (2) and chapter 8 of this title, a royalty shall be 
«^9 
payable by the compulsory licensee for every act of distribution of a 
phonorecord by or in the nature of rental, lease, or lending, by or 
under the authority of the compulsory licensee. With respect to each 
nondramatic musical work embodied in the phonorecord, the 
royalty shall be a proportion of the revenue received by the compul-
sory licensee from every such act of distribution of the phonorecord 
under this clause equal to the proportion of the revenue received by 
the compulsory licensee from distribution of the phonorecord under 
clause (2) that is payable by a compulsory licensee under that clause 
Regulations. 
and under chapter 8. The Register of Copyrights shall issue regula-
tions to carry out the purpose of this clause.". 
EFFECTIVE DATE 
1
7 use 109 note. 
SEC. 4. (a) The amendments made by this Act shall take effect on 
the date of the enactment of this Act. 
(b) The provisions of section 109(b) of title 17, United States Code, 
as added by section 2 of this Act, shall not affect the right of an 
owner of a particular phonorecord of a sound recording, who 
acquired such ownership before the date of the enactment of this 
Act, to dispose of the possession of that particular phonorecord on or 
after such date of enactment in any manner permitted by section 
109 of title 17, United States Code, as in effect on the day before the 
date of the enactment of this Act. 
(c) The amendments made by this Act shall not apply to rentals, 
leasings, lendings (or acts or practices in the nature of rentals, 
leasings, or lendings) occurring after the date which is five years 
after the date of the enactment of this Act. 
Approved October 4, 1984. 
LEGISLATIVE HISTORY—S. 32 (H.R. 5938): 
HOUSE REPORT No. 98-987 accompanying H.R. 5938 (eomm. on the Judiciary). 
SENATE REPORT No. 98-162 (eomm. on the Judiciary). 
CONGRESSIONAL REOORD: 
Vol. 129 (1983): June 28, considered and passed Senate. 
Vol. 130 (1984): Sept. 11, H.R. 5938 considered and passed House; S. 
amended, passed in lieu. 
Sept. 21, Senate concurred in House amendment. 
32,