An apparatus for the rental or sale, and distribution of digital content via the Internet. This apparatus ensures enforcement of copyrights and end-use licensing. The invention consists of one or more databases, for the storage of digital content, and also for storage of customer profile and billing information. These databases are housed in multiple networked computers, sharing a private connection to an Internet firewall, gateway computer. This computer hosts an electronic commerce web site for customer purchase transactions and encryption of digital content prior to customer download. The invention also includes a software client application for decrypting and using the digital content. The invention also provides for computer software to manage the digital content inventory of each customer.