oduction or distribution of multiple
copies or phonorecords of the same material, whether made on one
occasion or over a period of time, and whether intended for aggregate
use by one or more individuals or for separate use by the individual
members of a group; or

(2) engages in the systematic reproduction or distribution of single or
multiple copies or phonorecords of material described in subsection
(d): Provided, That nothing in this cause prevents a library or
archives from participating in interlibrary arrangements that do not
have as their purpose or effect, that the library or archives receiving
such copies or phonorecords for distribution does so in such aggregate
quantities as to substitute for a subscription to or purchase of such
work.

(h) The rights of reproduction and distribution under the section do
not apply to a musical work, a pictorial, graphic or sculptural work,
or a motion picture or other audiovisual work other than an audiovisual
work dealing with news, except that no such limitation shall apply with
respect to right granted by subsections (b) and (c), or with respect to
pictorial or graphic works published as illustrations, diagrams, or
similar adjuncts to works of which copies are reproduced or distributed
in accordance with subsections (d) and (e).

(i) Five years from the effective date of this Act, and at five-year
intervals thereafter, the Register of Copyrights, after consulting with
representatives of authors, book and periodical publishers, and other
owners of copyrighted materials, and with representatives of library
users and librarians, shall submit to the Congress a report setting
forth the extent to which this section has achieved the intended
statutory balancing of the rights of creators, and the needs of users.
The report should also describe any problems that may have arisen, and
present legislative or other recommendations, if warranted.

Section 109. Limitations on exclusive rights: Effect of transfer of
particular copy or phonorecord.

(a) Notwithstanding the provisions of section 106(3), the owner of a
particular copy or phonorecord lawfully made under this title, or any
person authorized by such owner, is entitled, without the authority of
the copyright owner, to sell or otherwise dispose of the possession of
that copy or phonorecord.

(b) (1) Notwithstanding the provisions of subsection (a), unless
authorized by the owners of copyright in the sound recording an