The legislation does make explicit provision for cases where the rightsholders are unknown:
Quote:
|
(10) For the purposes of this section the identity of any of the persons referred to in subsection (2)(a) to (d) shall be regarded as unknown if it is not possible for a person to ascertain his identity by reasonable inquiry; but if the identity of any such person is once known it shall not subsequently be regarded as unknown." .
|
In other words, if you have a pre-1936 film and you have genuinely made some effort (and can prove this) to identify the current rightsholder and have drawn a blank, then you can legally regard the film as being in the public domain - until such time as a legitimate rightsholder appears (or is identified as having died less than 70 years ago).
If that happens, then the film automatically goes back into copyright - but I don't believe anyone who's been trading in it will be liable for prosecution, provided of course that they've taken steps to ensure that they've withdrawn it from their catalogue once its copyright status has been established.