Distribution Right and the Internet
Traditionally, the distribution of a work via sale or rental would necessarily take place after reproduction of the work. For example, Party A might manufacture illegal copies of software on compact discs and then transfer the compact discs to Party B for distribution to the public. This scenario is illustrated in Exhibit 5.4.
In 5.4, only Party A has the right while has Exhibit the owner might be powerless to prevent Party Without the distribution right copyright B from selling copies of the infringing software to the public, thereby undercutting the market for the copyright owner's authorized sales. The availability of both a reproduc tion and a distribution right helps to ensure that copyright owners have legal recourse even if the source of the illegal copies is overseas or cannot be found