Jan 6 2009, 07:43 PM
first of all, if you are really serious about starting a legit business, i would suggest that you consult a lawyer with expertise in local IP laws. Reading about copyright laws on Wikipedia is ok if you're just browsing, but seriously dude, get PROFESSIONAL advice. don't bet all your money on wikipedia and university lecturers.
and re the first sale doctrine wiki, i dunno if its just me but i'm interpreting it in different way. Granted i'm no expert on local or US copyright laws, let's assume the info from the wiki link is correct for the sake of this argument ok?
let's examine this paragraph from the link:
"In 1909 the codification originally applied to copies that had been sold (hence the "first sale doctrine"), but in the 1976 Act it was made to apply to any "owner" of a lawfully made copy or phonorecord (recorded music) regardless of whether it was first sold. So, for example, if the copyright owner licenses someone to make a copy (such as by downloading), then that copy (meaning the tangible medium of expression onto which it was copied under license, be it a hard drive or removable storage medium) may lawfully be sold, lent, traded, or given away.
The doctrine of first sale does not include renting and leasing phonorecords and certain types of computer software, although private nonprofit archives and libraries are allowed to lend these items if a notice that the work may be copyrighted is on the copy."
re the first sentence highlighted in red. From my understanding, it means if the copyright holder (the people that owns the IP of the game in your case) didn't give you permission to make copies of the game, it's illegal to resell it, lent it to someone else, trade or give it away. I believe this is specifically to protect the consumer's right to do whatever they want with the legal copy after they bought it.
whats more interesting is the 2nd sentence highlighted in red. i don't know about you but this clearly says that the first sale doctrine does not grant you permission to profit through rentals.
like i said earlier, you need more information from professionals on what our local IP laws are when it comes to rentals. different country have different laws.
check this out. http://www.copyright.gov/reports/software_ren.html
i have no idea if console games fall under "computer programs" but if it does, this amendment clearly states that its illegal in the US to rent them out without permission from the copyright owners. (i'm just highlighting this for the sake of this argument.
)i believe that big chain stores like gamestop and EBgames in the US can rent out games because they work very closely with the publishers (read: they get a cut). unless you've got the same arrangement with the various publishers' games that you want rent out in Malaysia, i'm quite sure you are contravening copyright laws. the question is where/how does the rental of video games fall under the local copyright laws?
of course, we all know that copyright laws is not exactly strictly enforced all the time in Malaysia, especially in grey areas like intellectual software property, it's really up to you if you want to do a legit, by the book business or otherwise.
the unspoken norm is because Malaysia is so insignificant to most publishers, they really can't be bothered about what we do. unless your website takes off in a HUGE way (which is quite unlikely, sorry) and is getting a lot of attention, no one will really come and kacau you.
PS: oh no hard feelings, but unless your rental game service site has something really, really special to offer, i dont see why you deserve RM150K from MDeC. i would be very surprised if you got the funding honestly. the seed fund is about aiding local technopreneurs create made in malaysia IPs that is of value and marketable to the rest of the world. rental game service that only caters to malaysians? hmmm....
This post has been edited by thurtin: Jan 6 2009, 07:55 PM
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