Yes that would be illegal also, that's a distribution. The law is broken simply due to the fact that the person lending has not paid for the use of the copyright.
"...without prior authority of the owner..."
For example I did a training video of a Scottish Regiment when I was in Northern Ireland, they had 3 songs they wished to use on the video, and since this was going to be shown to potential recruits it would have been deemed to be illegal to show it (..public broadcast...). They were instructed to write to the record companies and seek authority. The authority was given for all 3 songs from the 3 different companies, but it cost them £500 per song, but they paid for the entire song to be used. If they had asked for only a 2 or 1 min section and stated from where it was going to start and where it would finish on the track it would have been a lot less.
Copyright Law is a majorly complex law as it is covered internationally, so if you break the law in Australia and the copyright is owned in Mongolia you would be prosecuted under the international laws in your own country.
Chris (formerly R@nSiD)
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Last edited by R@nSiD; 13-02-2007 at 02:22 AM.