The facts are the same as those in Example 1, except that Corp A only allows P, the Country Z resident, to use Program X for one week. At the end of that week, P must return the disk with Program X on it to Corp A and must also destroy any copies made of Program X.
If P wishes to use Program X for a further period, he must enter into a new agreement to use the program for an additional charge.
Under paragraph (c)(2), P has received no copyright rights. Because P received a copy of the program, under paragraph (c)(1)(ii) he has received a copyrighted article. Taking into account all the facts and circumstances, however, P is not properly treated as the owner, so under paragraph (f)(2) there has been a lease of a copyrighted article rather than a sale. Under the special characteristics rule of paragraph (f)(3), the result would be the same if P were required to destroy the disk instead of returning it, since Corp A can make additional copies at minimal cost.
P receives a copy of the program — a copyrighted article — but is not treated as its owner, so the transaction is a lease under paragraph (f)(2).
P may use the program for only one week and must then return the disk and destroy any copies, so the benefits and burdens of ownership do not pass.
To keep using the program, P must enter a new agreement for an additional charge — further evidence that P never owned the copy.
Under the special characteristics rule of paragraph (f)(3), requiring P to destroy rather than return the disk does not change the lease treatment, because Corp A can copy the program at minimal cost.
