Again let me preface by stating I am not an attorney, so I have no case law to reference. If you want to continue to pursue this, consult a copyright attorney. My findings are from the CLEAR language of the code.
The owner, you, of any copyright(cr) protected video, PAL or otherwise, does have rights. But they are limited. The law is there to protect the cr holder from you. They have made the investment of time and money. This is how the law looks at it. The burden of proof will fall then on you.
FAIR USE is the rule.
There are certain exceptions made and they are listed in Title 17,i.e. for use in libraries, classrooms, etc.
Profiting from these tapes is clearly outside of fair use.
from USC TITLE 17 Chapter 1 (
http://www4.law.cornell.edu/uscode/17)
Sec. 107. Limitations on exclusive rights: Fair use
Notwithstanding the provisions of sections 106 and 106A, the fair use of a copyrighted work, including such use by reproduction in copies or
phonorecords or by any other means specified by that section, for purposes such as criticism, comment, news reporting, teaching (including multiple
copies for classroom use), scholarship, or research, is not an infringement of copyright. In determining whether the use made of a work in any
particular case is a fair use the factors to be considered shall include -
(1) the purpose and character of the use, including whether
such use is of a commercial nature or is for nonprofit
educational purposes;
(2) the nature of the copyrighted work;
(3) the amount and substantiality of the portion used in
relation to the copyrighted work as a whole; and
(4) the effect of the use upon the potential market for or
value of the copyrighted work. The fact that a work is unpublished shall not itself bar a finding of fair use if such finding is made upon
consideration of all the above factors.
What is the purpose or character of your intented use? Commercial right.
What would be the effect of the use upon the potential market for or value of the copyrighted work? If you can find this video in NTSC, then your conversion cuts into their market.
The only expressed right you have is found in Sec.109
Sec. 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 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.
The language here is CLEAR. The only right you have is to sell your LAWFULLY made copy(the purchased PAL original). If you make a NTSC copy, and then sell it, it's for profit and is no longer lawfully made.
The only way you may be able to do this, and again I stress MAY, is if a NTSC copy is NOT available, you purchase a PAL original for EACH conversion, and do not obviously charge them for the conversion.
My thought is that the cr holder still makes money from the sale of the PAL video so you haven't cut into their market, it's not available in NTSC so again you haven't cut into their market, and you have the right to sell your PAL version.
If they brought action against you, you would probably lose although. They have the choice to limit availability in certain markets, and you are attempting to circumvent their wishes. It wouldn't be too difficult to prove that you are attempting to profit from it.
So, when you ask
'are you telling me that the owner of a PAL formatted video has no rights to convert that tape to a format that his/her country considers standard??'
That is exactly what I'm telling you.
The owner of a PAL formatted video, or any other cr video, has NO 'right' to copy it. Or more to the heart of your question, he/she has no 'right' to HAVE IT COPIED BY YOU. They can buy a VCR that plays PAL on their current system. Or buy a NTSC copy.
'Mickey' wants his cheese because he has earned it.
Sorry
Good luck to you
You can still talk to a copyright attorney if you want the official version.