Public Display Under the CR Act
Nor am I a lawyer, but to me, "public showing" would involve more than having a house full of friends over. Wouldn't that mean anyone could come, not just by invitation? I hope there's an attorney following this discussion, 'cause I'm curious.
You are in luck.
The short answer is that unless your video store agreement says otherwise (and frankly, it probably does), you may allow your friends and family to watch videos for which you have paid. But you may not allow people outside that circle to do so. Further, you may not transmit or broadcast those videos — even if in fact no one else ever tunes in.
Here is the longer answer:
The first place to look for an answer is the form you signed when you rented the movie − it is essentially a licensing agreement that spells out the terms and conditions upon which you may use the video store's physical property. Violation of those terms is breach of contract with your video renter.
The second place to look is to the Copyright Act, which sets forth the legal rights that the Copyright owner (e.g., Universal Pictures) has, notwithstanding any agreement between you and the video store.
As a threshold matter, certain terminology is important. The Copyright Act distinguishes between "public performance" and "public display," and each is associated with different legal rights and remedies. Rough rule of thumb: if it moves, like a dance routine, it’s a performance. If it stands still, like a painting, it’s a display. What we are talking about here (sharing rented videos) is "display." Display by the person who owns the work (not the copyright) is permissible, but *public* display generally is not. So, the issue is whether sharing videos obtained by rental counts as "public" or "private."
Under the current version Copyright Act (17 U.S.C. § 106):
Display:
(1.) The right to display a work belongs to the owner of the work, and permits him to display “to viewers present at the place where the copy is located.” This is a significant limitation, because it forbids broadcast or transmission.
(2.) This limitation therefore allows display in a gallery, but not in a movie theater, over the internet, or a television broadcast.
Public means:
(1.) Display at a place open to the public or where a substantial number of person outside a normal circle of family and social acquaintances, OR
(2.) Transmission or other communication of a performance to a place that is public, or to the public, by means of a device or process, where the performance can be received at separate places or separate times.
So, what does all of that mean? In very general terms, it means this:
(1.) It is okay to play videos or games at small parties.
(2.) But large parties, if they go beyond your “social acquaintances” may pose problems.
(3.) If the place of performance is “open to the public” it doesn’t matter how many people actually view the performance – the definition of public performance includes all public broadcasts even if members of public do not view the copyrighted work at the same time. So, for example, video rental stores cannot provide viewing rooms to customers (it would be public). See,
Columbia Pictures v. Aveco, Inc. But hotels can show videos in rooms, because the rooms are not public – the theory is that when a guest rents them they are private.
Columbia Pictures v. Professional Real Estate Investors.