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Rent-Only Copyright Culture Makes Us All Worse Off
We're taking part in Copyright Week, a series of actions and discussions supporting key principles that should guide copyright policy. Every day this week, various groups are taking on different elements of copyright law and policy, and addressing what's at stake, and what we need to do to make sure that copyright promotes creativity and innovation.
In the Netflix/Spotify/Amazon era, many of us access copyrighted works purely in digital form – and that means we rarely have the chance to buy them. Instead, we are stuck renting them, subject to all kinds of terms and conditions. And because the content is digital, reselling it, lending it, even preserving it for your own use inevitably requires copying. Unfortunately, when it comes to copying digital media, US copyright law has pretty much lost the plot.
As we approach the 50th anniversary of the 1976 Copyrights, the last major overhaul of US copyright law, we’re not the only ones wondering if it’s time for the next one. It’s a high-risk proposition, given the wealth and influence of entrenched copyright interests who will not hesitate to send carefully selected celebrities to argue for changes that will send more money, into fewer pockets, for longer terms. But it’s equally clear that and nowhere is that more evident than the waning influence of Section 109, aka the first sale doctrine.
First sale—the principle that once you buy a copyrighted work you have the right to re-sell it, lend it, hide it under the bed, or set it on fire in protest—is deeply rooted in US copyright law. Indeed, in an era where so many judges are looking to the Framers for guidance on how to interpret current law, it’s worth noting that the first sale principles (also characterized as “copyright exhaustion”) can be found in the earliest copyright cases and applied across the rights in the so-called “copyright bundle.”
Unfortunately, courts have held that first sale, at least as it was codified in the Copyright Act, only applies to distribution, not reproduction. So even if you want to copy a rented digital textbook to a second device, and you go through the trouble of deleting it from the first device, the doctrine does not protect you.
We’re all worse off as a result. Our access to culture, from hit songs to obscure indie films, are mediated by the whims of major corporations. With physical media the first sale principle built bustling second hand markets, community swaps, and libraries—places where culture can be shared and celebrated, while making it more affordable for everyone.
And while these new subscription or rental services have an appealing upfront cost, it comes with a lot more precarity. If you love rewatching a show, you may be chasing it between services or find it is suddenly unavailable on any platform. Or, as fans of Mad Men or Buffy the Vampire Slayer know, you could be stuck with a terrible remaster as the only digital version available
Last year we saw one improvement with California Assembly Bill 2426 taking effect. In California companies must now at least disclose to potential customers if a “purchase” is a revocable license—i.e. If they can blow it up after you pay. A story driving this change was Ubisoft revoking access to “The Crew” and making customers’ copies unplayable a decade after launch.
On the federal level, EFF, Public Knowledge, and 15 other public interest organizations backed Sen. Ron Wyden’s message to the FTC to similarly establish clear ground rules for digital ownership and sales of goods. Unfortunately FTC Chairman Andrew Ferguson has thus far turned down this easy win for consumers.
As for the courts, some scholars think they have just gotten it wrong. We agree, but it appears we need Congress to set them straight. The Copyright Act might not need a complete overhaul, but Section 109 certainly does. The current version hurts consumers, artists, and the millions of ordinary people who depend on software and digital works every day for entertainment, education, transportation, and, yes, to grow our food.
We realize this might not be the most urgent problem Congress confronts in 2026—to be honest, we wish it was—but it’s a relatively easy one to solve. That solution could release a wave of new innovation, and equally importantly, restore some degree of agency to American consumers by making them owners again.
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