That's the whole issue with online consumption. The physical medium has disappeared and so only the license remains. The legal framework has not caught up yet.
Amazon T&Cs' wording is wishy-washy ("on-demand viewing over an indefinite period of time") and that wording may cause them problems especially where consumers protection is extensive. My limited knowledge on contract law is that this sort of unspecified duration may not be permitted because the parties (especially the consumer) cannot know what he is signing up to when entering into the contract.
This is not the same with a CD for a video-game, for example. I still remember that my copy of Starcraft had a note that I should notify Blizzard if I indended to lend the CD to any of my friends!
Sure you own the CD and can actually lend it but the person you lent it to has no right to effectively use that CD since only you were granted the right (license) to copy it on a limited number (which can be 1) of your own computers.
Same if you buy a copy of MS Word. You do own the CD but you only get the license to install it on a couple of computers.
Any term that purports to prevent you from lending your property has no value. The key point is that the license prevents others from installing the software/video game.
> Sure you own the CD and can actually lend it but the person you lent it to has no right to effectively use that CD since only you were granted the right (license) to copy it on a limited number (which can be 1) of your own computers.
The second-hand gaming market is obvious proof that you are it is indeed legal for multiple people to copy the game to their own computers from the same CD. The only limitation is the same one that applies to books: copying a book that you own for personal purposes falls under fair use, but selling/lending the book without also passing on / destroying the copy invalidates the fair use exception.
This can also be seen from the existence of game rental services, and there are even libraries that lend video games.
This has been one of those instances where if enough organisations tell enough consumers something is true and for long enough then people start to believe it, even when it technically isn't true.
Now, each of these could be considered to fall under fair use, but they are definitely complicating the legal case to a great extent.
Also, given that Windows is sold with a limited number of installations (license activations) allowed, even in the EU, I'm not sure that the copyright case is as simple as you claim.
I cover some of those points in a more detailed post here: https://news.ycombinator.com/item?id=24929034
As for your point about copying to RAM, you have to bare in mind that the law talks about intent and human impact rather rather than scientific specifics (be that physics, computer science, etc). This is a trap many techies make on here (since we're trained to think technically) and a point I've touched on before with regards to comments some made about youtube-dl. With regards to your specific point: if your playback software copies the file into RAM then that is considered playback (because that is the intent) not copying. The fact the playback requires copying is irreverent so long as the playback isn't used with the intent to copy. However the fact that RAM is volatile reinforces that intent (otherwise we'd have an issue with almost all tech, old and new. eg LCD panels buffer image data to be displayed).
> Also, given that Windows is sold with a limited number of installations (license activations) allowed, even in the EU, I'm not sure that the copyright case is as simple as you claim.
That's a little different there because the license activations grant additional permissions rather than adding limitations (generally speaking, of course). eg if you're licensed to install on two machines then that's more copies than copyright law normally allows. It's a bit like how GPL et al grant additional privileges that normally wouldn't be allowed under the default copyright laws. The thing to remember is that companies can grant you additional rights but they can't remove any rights you already have. So a company can say "this license allows you to install on 3 computers" but they can't say "this license doesn't allow you to install on any yellow computers".
Not legal in any country of the world I can think of.
Whether the license is fair or not is up to the consumer to decide. The Buy vs Rent labelling is misleading - but as always, buyer beware.