The American Library Association Fact Sheet 7 states the following:
“The Copyright Act of 1976 governs the rights of reproduction, adaptation, distribution, and public performance and display. Several sections of this act have implications for videocassettes, DVDs, Blu-ray discs and computer file formats.
When libraries purchase a video formats and make them accessible to patrons for a specific rental period, they own the physical object but not the copyright. Copyright law, there, determines what libraries can and cannot do with the video formats they own without infringing upon the copyright they do not own. The law, however, also includes exceptions and limitations to the exclusive rights of the rights holder that allow libraries to lend, preserve and replace videos and allow non-profit educational institutions the right to publicly perform videos in the face-to-face classroom. When libraries want to use a video in such a way that would infringe upon the copyright, permission must be sought from the rights holder in the form of a license agreement.”
NOTE: The information presented above is only general information. This is not to be considered legal advice.