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Author Topic: Business of DVD Watching
Ryan Peters
Film Handler

Posts: 1
From: High Point, NC, USA
Registered: May 2006


 - posted 05-28-2006 02:28 PM      Profile for Ryan Peters   Email Ryan Peters   Send New Private Message       Edit/Delete Post 
New to the industry here, with a twist on the idea of the normal theater experience. My question will follow after I explain what I am looking to do.

I am looking to have a place of business in which I have 8-10 small sized rooms (maybe 20ftx15ft) set up as miniature theaters, like the kind you would find in someone's home. The seating capacity would be maybe up to 8, and the screen size no more than 100 inches. I want to rent the rooms out to people to watch DVDs in. It would not be a public room that anyone could walk into, it would be rented out by a group of no more than 8, for a showing to just them. This would be a for-profit business.

Question #1: Since they are renting it out as a private room, can they bring a DVD they personally own and watch it without infringing on any copyright laws?

Question #2: Would I be able to have, on hand, a supply of DVDs for them to choose from in their privately rented room?

I have read numerous posts in the forums concerning similar topics, but none have directly applied to what I am doing. I know that if I have to get licensing it would be through a company like SWANK or Criterion, but those licenses are good for only one showing. I need to be able to show a DVD without notice, numerous times if needed, sometimes even within the same night. Is my reasoning that they are renting the room so it would be a private showing correct, or is this wishful thinking? Please let me know if you need any further clarifications, and I look forward to your responses.

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Ben Wales
Jedi Master Film Handler

Posts: 602
From: Southampton. England
Registered: Jul 99


 - posted 05-28-2006 03:52 PM      Profile for Ben Wales   Email Ben Wales   Send New Private Message       Edit/Delete Post 
You would need to operate this as a commercial cinema and apply for Licences and comply with building regulations and to use DVD's from people's collections would be an copyright infringement issue as Domestic DVD's are not licenced for any form of public exhibition or charge been made.

Commercial DVD's licences and screenings can be made, but the terms are more expensive than the one hired from your local Blockbuster Video store.

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Dan Zastrow
Film Handler

Posts: 38
From: San Rafael,CA. USA
Registered: May 2006


 - posted 05-28-2006 04:57 PM      Profile for Dan Zastrow   Author's Homepage   Email Dan Zastrow   Send New Private Message       Edit/Delete Post 
I think that Title 17 of the Federal Copyright Act is very clear that, outside of home viewing, you must have a public performance license to screen copy righted material. Does not matter if they rent the DVD from you or they bring it with them. This applies even if you are not charging for the room or the DVD. What you describe is a public venue as sure as any theater.
You could say that you are just renting a DVD. And then, as a separate transaction, you are renting a screening facility but that won't fly. When we do off-hour screenings to groups here, and they 'four wall', we still make sure they go through the proper channels to get the film. Not worth it for us to get our butts in a sling over a rental.

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Larry Myers
Master Film Handler

Posts: 371
From: Herndon, VA, USA
Registered: Jan 2001


 - posted 05-29-2006 04:50 PM      Profile for Larry Myers         Edit/Delete Post 
I think the issue is the DVD can't leave the home. That also means you can't look at a DVD with those laptop players when sitting on the bus.

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Mike Heenan
Phenomenal Film Handler

Posts: 1896
From: Scottsdale, AZ, USA
Registered: Mar 2000


 - posted 05-29-2006 05:46 PM      Profile for Mike Heenan   Email Mike Heenan   Send New Private Message       Edit/Delete Post 
So how about DVD players and screens in cars? For those long roadtrips... those aren't people's homes.

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Larry Myers
Master Film Handler

Posts: 371
From: Herndon, VA, USA
Registered: Jan 2001


 - posted 05-29-2006 06:11 PM      Profile for Larry Myers         Edit/Delete Post 
For home use means For Home Use. Although, one could say the personal car is an extention of your home. I am sure a public bus is not.

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Dan Zastrow
Film Handler

Posts: 38
From: San Rafael,CA. USA
Registered: May 2006


 - posted 05-29-2006 06:43 PM      Profile for Dan Zastrow   Author's Homepage   Email Dan Zastrow   Send New Private Message       Edit/Delete Post 
The laptop and back seat of the MASSIVE SUV players are still for personal viewing. If you took that thinking to extremes then you couldn't have an iPod on the bus because some one might overhear it. [Eek!]
Renting a screening room and inviting a group to come watch a film is a bit different.

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Warren Smyth
Expert Film Handler

Posts: 158
From: Auckland ,New Zealand
Registered: Aug 2003


 - posted 05-29-2006 08:09 PM      Profile for Warren Smyth   Email Warren Smyth   Send New Private Message       Edit/Delete Post 
It is clear that with the emerging HD domestic technology and the wide variety of emerging delivery and display options, it's going to become very difficult for the film industry to define what is legitimate and what is not. The risk is, that too finer restriction may well impact on what is considered at the moment to be legitimate use.

People play DVDs to groups outside of their immediate family, they lend them, sell them and view them in in boats, caravans and rented holiday locations etc. No one would want to interfere with these rights as it would lead to reduced sales.

Ultimately, there are loopholes present in lots of legislation but a reasoned assessment of the degree of negative impact, results in the practices often being ignored. Basicly it is going to be impossible to police and create rules to cover every possible situation. The cost to the industry of trying, would not be worth it. The industry has much bigger fish to fry.

Another problem, is the lack of controls on the use of intellectual property in some parts of the world. Another complication, is the protection of consumer rights in some countries which may hamper repressive controls that film companies may wish to introduce.

One thing for sure, is that while the film companies continue to attempt to maximise their returns, we haven't heard the last of this subject.

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Mike Blakesley
Film God

Posts: 12767
From: Forsyth, Montana
Registered: Jun 99


 - posted 05-30-2006 12:59 AM      Profile for Mike Blakesley   Author's Homepage   Email Mike Blakesley   Send New Private Message       Edit/Delete Post 
Really, I don't know why the film companies are so damn picky about this. Just come up with a nice little "private showing in a public place" contract, set a flat REASONABLE fee based on the number of people attending, and let theatres show DVDs to small groups in their "party rooms." What's the big deal? The filmcos might get a little $ out of an area where they are getting diddly now.

If the music industry thought like the film industry does, there would be no nightclubs or radio stations.

[ 05-30-2006, 05:37 PM: Message edited by: Mike Blakesley ]

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Dave Williams
Wet nipple scene

Posts: 1836
From: Salt Lake City, UT, USA
Registered: Jan 2000


 - posted 05-31-2006 12:29 AM      Profile for Dave Williams   Author's Homepage   Email Dave Williams   Send New Private Message       Edit/Delete Post 
Depending on how you want to run this, you can actually do what you set out to do. There is a large disconnect between running screening rooms and running a club that has private lounges that happen to have full blown screening rooms.

Allowing someone to use a private room in a club would not constitute any violation of anything on your part if they brought a DVD from their own collection to view. This is not a public viewing.

If you are to take the "home use" or "personal use" to the virtual letter, then you may not even be able to remove the dvd from the bag it came in until you got home, then it must be chained to your audio visual center.

Take for instance, that I rented a hotel room, invited ten people over for drinks and we watched a movie that I purchased on DVD, there is no copyright infringement. I didn't charge anyone any money, they were my personal guests. The hotel didn't violate either, as they rented me a room in a hotel, which usually have tv's and such.

So you can operate this place, but it must be a night club with other amenities such as pool tables, texas holdem tourneys, a dj with music and tables to eat at, as well as several private lounges that are half a lounge and half a screening room, as long as you do not make available the DVD, nor do you advertize it for that purpose.

It could work. You just have to remember that it comes down to intentional use of your facilities for a sole purpose vs. a multi use facility that can also be used for one of many purposes.

Ciao

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Hillary Charles
Jedi Master Film Handler

Posts: 748
From: York, PA, USA
Registered: Feb 2001


 - posted 05-31-2006 04:18 PM      Profile for Hillary Charles   Email Hillary Charles   Send New Private Message       Edit/Delete Post 
This idea is almost identical to a place that used to operate in State College when I went to Penn State in the '80's. It was called Nickelodeon. In the "lobby" one would rent the VHS tape, and were then escorted to a private room in which they could watch the tape. The rooms were sized according to the number of people in your party.

I don't recall how long it was in operation before it was closed down for copyright violation. Even though the rooms were private, having the facilities to view the tapes on the premises constituted a public performance.

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Dave Williams
Wet nipple scene

Posts: 1836
From: Salt Lake City, UT, USA
Registered: Jan 2000


 - posted 06-01-2006 05:44 AM      Profile for Dave Williams   Author's Homepage   Email Dave Williams   Send New Private Message       Edit/Delete Post 
This is where things get technical. If you do make the dvd's available, and all you run is screening rooms, then yes, it can be construed as a public performance.

This is where "public performance" gets technical. For example, a hotel may advertise that it has 42 inch plasma screens with full surround sound and dvd player in the room, they cannot be held in violation of copyright infringement because they are renting "hotel rooms", and not "screening rooms". They have a bed as the primary purpose. Most upscale hotels have suites with screening rooms attached for which you pay a higher price. These hotels will even provide you with a selection of dvd's as well, still not in violation of copyright law.

You cannot run a "screening room" business, nor can you be liscenced as such. You can however operate a different or multi-use business that happens to have "private lounges" or "meeting rooms", which may have full blown screening equipment installed in addition to meeting or lounge style furnishings. Just as in the case of a hotel, these lounges or meeting rooms are rented for the purpose of holding a meeting or gathering, and are private; not for the general public in any case. If your guest happened to bring a DVD to watch with thier invited guests, this would be the same as in home viewing of a purchased and licensed show. Whether you do this in your own home, a hotel room, or a meeting facility makes no difference.

Operating in this way would not expose you to lilability under copyright infringement, because you are providing facilities that are mulitiple use, and not for the sole use of screening movies. It therefore becomes the responsibility of the renter to ensure that they are following copyright law.

Last example. Sony would not get sued for copyright infringement if one of its DVD players was used to play a movie for a public crowd without a licence having been attained. The DVD player is used in many types of instances, and was not manufactured with the intent to violate copyright law. This is the same that if you operate a multiple use facility that happens to have DVD players, tv's and sound systems, as many multi use facilites do, the facility is not required to ensure copyright law as their place is used for more than just watching movies.

That is the thick of it. In any case, check with at least three attorneys who have argued copyright law in court at least twice each. Make sure that anything you do in this case has legal standing before you open your doors for business. If you have the legal advice, you can hold your attorneys liable.

Ciao

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