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In Country Y, a WTO Member, commercial rental of DVDs of feature films is common, but it has not led to…

Article 11 requires a rental right for at least computer programs and cinematographic works, but a Member "shall be excepted from this obligation in respect of…

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In Country Y, a WTO Member, commercial rental of DVDs of feature films is common, but it has not led to widespread copying that materially impairs the reproduction right. A producers' association demands an exclusive rental right for films. Under Article 11 of the TRIPS Agreement, Country Y:

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Correct answer B

Article 11 requires a rental right for at least computer programs and cinematographic works, but a Member "shall be excepted from this obligation in respect of cinematographic works unless such rental has led to widespread copying of such works which is materially impairing the exclusive right of reproduction". That condition is not met on these facts, so Country Y need not grant the right for films. TRIPS offers no general substitute of equitable remuneration for film rental; that option exists only for phonograms under Article 14.4.

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