Only the copyright owner — or a licensee — can commercially rent out software, films and sound recordings. But lending by non-profit libraries and educational institutions is expressly exempt. That balance is the heart of India’s rental-rights regime.
What rental rights are
Copyright is a bundle of exploitation rights, and rental rights — the right to rent out copies of a work — are part of it. Only the owner or an authorised licensee may exercise them.
How they entered Indian law
Rental rights were not in the original Copyright Act, 1957. They arrived via the 1994 amendment, which introduced “hire” into Section 14 to address authors’ economic rights — driven by India’s obligations under TRIPS (Art. 11), the WCT (Art. 7) and the WPPT (Art. 9) to protect computer programs and cinematograph films.
The 2012 reform: “commercial rental”
The 2012 amendment replaced “hire” with “commercial rental.” Under Section 2(fa), commercial rental excludes the rental, lease or lending of a lawfully acquired copy of a computer programme, sound recording, visual recording or cinematograph film for non-profit purposes by a non-profit library or non-profit educational institution — defined as those with government grants or income-tax exemption.
Scope of the right
Under Section 14(b), (d) and (e), the commercial rental right applies to computer programmes, cinematograph films and sound recordings. Non-commercial institutional lending remains exempt from licensing.
- Software: where the program is essential to the hardware, only the owner may rent it; software that merely accompanies machinery as a non-essential component is not rentable under this protection.
- Films: producers retain exclusive commercial rental and licensing rights; a theatre gets a limited exhibition licence, not broader exploitation rights. Renting pirated films is infringement.
- Sound recordings: protected in parallel with films; legal acquisition (authorised channels or purchase) is the lawful route.
Why it matters
- Rental is a distinct, licensable right. Renting out protected software, films or recordings commercially needs the owner’s authority.
- The non-profit carve-out is narrow. It covers genuine non-profit libraries and educational institutions lending lawfully acquired copies — not commercial rental dressed up as lending.
- Piracy has no exemption. Renting unlicensed or pirated content is straightforward infringement.
Frequently asked questions
Who can commercially rent out a film, software or sound recording in India? Only the copyright owner or an authorised licensee — commercial rental is an exclusive right under Section 14.
Are libraries and schools allowed to lend copies? Yes. Non-profit libraries and non-profit educational institutions lending lawfully acquired copies for non-profit purposes are exempt (Section 2(fa)).
Does the rental right cover all software? It covers programs essential to the hardware; software that merely accompanies machinery as a non-essential component is treated differently.
Is renting pirated films an offence? Yes. Renting unlicensed or pirated content is copyright infringement.
Useful official resources
- The Copyright Act, 1957
- Copyright Office, India