Section 75 — What is a commercial rental arrangement relating to a computer program or sound recording

(1)Subject to subsection (2), a “commercial rental arrangement”, in relation to a computer program or sound recording, is an arrangement with the following features:

(a)under the arrangement, a copy of the program or recording is made available by a person on terms that it must or may be returned to the person;

(b)the arrangement is made in the course of business;

(c)the arrangement provides for the copy to be made available —

(i)for payment in money or money’s worth; or

(ii)as part of the provision of a service in return for payment in money or money’s worth.

(2)An arrangement is not a commercial rental arrangement if —

(a)the arrangement is for the lending of a copy of a computer program or sound recording; and

(b)the amount payable under the arrangement is intended to be no more than —

(i)the amount necessary to recover the costs, including overheads, of the arrangement; or

(ii)a deposit to secure the return of the copy.

(3)In deciding whether an arrangement is a commercial rental arrangement, it is the substance and not the form of the arrangement that matters.