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It's illegal to distributecopyrighted material for a profit, so I would say no because their is always some kind of charge/fee associated with movie rentals or else the movies would never be returned.

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Q: Can you donate movies you have copied from television to your local public library and is it legal for them to rent the movies?
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Can you donate movies copied from television to your local library and is it legal for the library to lend them?

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