207.—(1) References in Parts III and IV to “rental” or “lending” Rental and lending shall not be construed as including the making available to the public of copies of a recording for the purposes of—

(a) playing or showing in public, broadcasting or inclusion in a cable programme service,

(b) exhibiting in public, or

(c) on the spot reference use.

(2) F109[Subject to subsection (3A), a] performer has the exclusive right to authorise or prohibit the rental or lending of copies of a recording of the whole or any substantial part of his or her qualifying performance.

(3)(a)There shall be right of the performer to authorise or prohibit the rental of copies of a recording which shall be known and in Parts III and IV referred to as the “rental right”.

(b) F109[Subject to subsection (3A), there] shall be a right of the performer to authorise or prohibit the lending of copies of a recording which shall be known and in Parts III and IV referred to as the “lending right”.

F110[(3A) The lending right in relation to a recording does not apply at any time in a period during which a scheme for the remuneration of authors is in effect, pursuant to section 42A, in relation to works of a class in which that recording is included, whether the performer, or (in the case of a recording of a performance by a number of performers) any of the performers, is a participant in that scheme or not.]

(4) The rental right is infringed by a person who, without the consent of the performer, rents or authorises another to rent copies of a recording of the whole or any substantial part of a qualifying performance.

(5) The lending right is infringed by a person who, without the consent of the performer, lends or authorises another to lend copies of a recording of the whole or any substantial part of a qualifying performance.

(6) In Parts III and IV, and subject to subsections (7) and (8)—

(a) “rental” means making a copy of a recording available for use on terms that it will or may be returned after a limited period of time, for direct or indirect economic or commercial advantage;

(b) “lending” means making a copy of a recording available for use on terms that it will or may be returned after a limited period of time, otherwise than for direct or indirect economic or commercial advantage, through an establishment to which members of the public have access.

(7) The making of a copy of a recording available between establishments to which members of the public have access shall not infringe any of the rights conferred by Parts III and IV.

(8) Where lending by an establishment to which members of the public have access gives rise to a payment, the amount of which does not exceed what is necessary to cover the operating costs of the establishment, there is no direct or indirect economic or commercial advantage for the purposes of this section.