There are exceptions in both Acts that permit non-profit libraries and non-profit educational institutions to lend sound recordings and computer programs. Here is the language from the Act:
Nothing in the preceding sentence [which prohibits the transfer of computer programs and sound recordings] … shall apply to the rental, lease, or lending of a phonorecord for nonprofit purposes by a nonprofit library or nonprofit educational institution. The transfer of possession of a lawfully made copy of a computer program by a nonprofit educational institution to another nonprofit educational institution or to faculty, staff, and students does not constitute rental, lease, or lending for direct or indirect commercial purposes under this subsection.[1]
The section indicates that non-profit libraries and non-profit educational institutions may lend phonorecords (CDs, tapes, etc.) to anyone. As for computer programs, it seems that the exemption applies only to non-profit educational institutions, which would include their libraries. They may lend software to other educational institutions. and to faculty, students and staff, because such lending is not "for direct or indirect commercial purposes." But read on, for later in section 109, we see this:
Nothing in this subsection shall apply to the lending of a computer program for nonprofit purposes by a nonprofit library if each copy of a computer program which is lent by such library has affixed to the packaging containing the program a warning of copyright in accordance with requirements that the Register or Copyrights shall prescribe by regulation.[2]
Here, congress writes that any type of non-profit library may lend a computer program so long as the library does so for non-profit purposes and if it includes on the package the following warning:
Computer Program Warning Label
Notice: Warning of Copyright Restrictions
The copyright law of the United States (Title 17, United States Code) governs the reproduction, distribution, adaptation, public performance, and public display of copyrighted material.
Under certain condition specified in law, nonprofit libraries are authorized to lend, lease, or rent copies of computer programs to patrons on a nonprofit basis and for nonprofit purposes. Any person who makes