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Actually, amazon hasn't been very clear about whether or not physically lending a kindle is within their terms of service.

http://www.libraryjournal.com/article/CA6649814.html?rssid=1...

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Regardless of where it actually stands in their ToS, I suspect that even if they wanted to start enforcing it (which they seem not to want to do based on the article), some group like the EFF would be pretty quick to mount a court challenge. The iTunes ToS[1] says, "You agree not to modify, rent, lease, loan, sell, distribute, or create derivative works based on the Service in any manner," but I think if there was ever a challenge on people loaning their iPod (with iTMS music on it) to a friend, it would get struck down pretty quickly.

[1]http://www.apple.com/legal/itunes/us/terms.html#SERVICE Under Intellectual Property

I would think and hope so, but that gets awfully close to the Zediva case (http://www.wired.com/threatlevel/2011/03/zediva-copyright/). I would think the 'public performance' argument still holds, even though it would be a free performance.

So, I do not think this would get struck down quickly. I do doubt that studios would dare sue in this case, though. Under pressure from public opinion, laws can change very quickly, and such a change could see studios lose quite a few sources of income.

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