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I think that in Australian Law lending an item without payment is not a right reserved for the copyright holder, therefore you can do it. Most of the DVD's I have say something like "Governed under the laws of the state of California" etc, no idea what the law is there. I think the chances of any applicable laws being enforced if you lend a DVD to a mate are about zero though. It seems to me that the difference with downloading pirated movies off the internet is that in effect a copy is being made - which is a right reserved to the copyright holder with a few limited exceptions such as private study.
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