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    Michael Geist's Blog

    Why Creators and Consumers Should Welcome the "Netflix Threat"

    The examination of the proposed Bell acquisition of Astral Communications took place last week in Montreal with the Canadian Radio-television and Telecommunications Commission hearing from a wide range of supporters and opponents of a deal that only last year was rejected as contrary to the public interest.  

    As Bell and Astral sought to defend their plan, a familiar enemy emerged - Netflix. What does a U.S.-based Internet video service with roughly two million Canadian subscribers have to do with a mega-merger of Bell and Astral?  

    My weekly technology law column (Toronto Star version, homepage version) notes that for the past few years, it has become standard operating procedure at CRTC hearings to ominously point to the Netflix threat. When Internet providers tried to defend usage based billing practices that led to expensive bills and some of the world's most restrictive data caps, they pointed to the bandwidth threat posed by Netflix. When cultural groups sought to overturn years of CRTC policy that takes a hands-off approach to Internet regulation, they argued that Netflix was a threat that needed to be addressed. So when Bell and Astral seek to merge, they naturally raise the need to respond to Netflix.


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    The Copyright Pentalogy: Technological Neutrality

    Last month, the University of Ottawa Press published The Copyright Pentalogy: How the Supreme Court of Canada Shook the Foundations of Canadian Copyright Law, an effort by many of Canada's leading copyright scholars to begin the process of examining the long-term implications of the copyright pentalogy. As I've noted in previous posts, the book is available for purchase and is also available as a free download under a Creative Commons licence. The book can be downloaded in its entirety or each of the 14 chapters can be downloaded individually.

    The book includes two articles on technological neutrality, whose inclusion as a foundational principle  of Canadian copyright was a landmark aspect of the copyright pentalogy.  The message from the Court is clear: copyright law should not stand in the way of technological progress and potentially impede the opportunities for greater access afforded by the Internet through the imposition of  additional fees or restrictive rules that create extra user costs. Viewed in this light, technological neutrality as a principle within Canadian copyright may have the same dramatic effects on the law as the articulation of users’ rights did in 2004.


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    Canadian Government Establishes Two-Tier Approach for Trade Talks: Insiders and Everyone Else

    As the future of the proposed Canada - European Union Trade Agreement becomes increasingly uncertain - the EU has been unwilling to compromise on the remaining contentious issues leaving the Canadian government with a deal that offers limited benefits and significant costs - the Trans-Pacific Partnership Agreement (TPP) is likely to emerge as the government's new top trade priority.

    The TPP has rapidly become of the world's most significant trade negotiations, with participants that include the United States, Australia, Mexico, Malaysia, New Zealand, Vietnam, Japan, and Canada. There is a veil of secrecy associated with the TPP, however, as participants are required to sign a confidentiality agreement as a condition of entry into the talks.  Despite those efforts, there have been occasional leaks of draft text that indicate the deal could require major changes to Canadian rules on investment, intellectual property, cultural protection, procurement, and agriculture.

    My weekly technology law column (Toronto Star version, homepage version) notes the Canadian government has adopted several measures to guard against leaks by departmental officials. According to documents obtained under the Access to Information Act, a November 2012 email to government officials noted that their access to TPP texts was conditioned on "Secret" level clearance, an acknowledgement that all texts are watermarked and can be traced back to the source, and confirmation that no sharing within government is permitted without prior approval.


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    Industry Minister Paradis on Canadian Wireless Prices: We're "Middle Average"

    Industry Minister Christian Paradis appeared before the Standing Committee on Industry, Science and Technology last week and was asked what he thought Canadians would say about wireless pricing. Paradis instead indicated what he would tell them:

    I would tell them that when we compare with our peers, we are in the middle-average, we dropped down by almost 20% and this is a work in progress. We will continue. We are dedicated to have a fourth player and we will do whatever we can in terms of policy to achieve this. Frankly, so far time gave us reason.

    If this is a work-in-progress, is the government prepared to do more?  Apparently it is, as Paradis also told the committee:

    When you talk about the roaming and the tower sharing, we announced broader measures, and if we have to intervene more we will.  


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    The Copyright Pentalogy: Standard of Review and the Courts

    Last week the University of Ottawa Press published The Copyright Pentalogy: How the Supreme Court of Canada Shook the Foundations of Canadian Copyright Law, an effort by many of Canada's leading copyright scholars to begin the process of examining the long-term implications of the copyright pentalogy. The book is available for purchase and is also available as a free download under a Creative Commons licence. The book can be downloaded in its entirety or each of the 14 chapters can be downloaded individually.

    The first section of the book features three chapters focused on important administrative law questions about the standard of review as well as an attempt to place the Supreme Court's copyright jurisprudence within a larger context. With all five cases originating with the Copyright Board of Canada, the interplay between the Copyright Board and Canada’s appellate courts is at issue throughout the five cases, with two decisions - Rogers Communications Inc. v Society of Composers, Authors and Music Publishers of Canada and Alberta (Education) both specifically discussing standard of review issues.


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    The Copyright Pentalogy: How the Supreme Court of Canada Shook the Foundations of Canadian Copyright

    Copyright cases typically only reach the Supreme Court of Canada once every few years, ensuring that each case is carefully parsed and analyzed. As readers of this blog know, on July 12, 2012, the Supreme Court issued rulings on five copyright cases in a single day, an unprecedented tally that shook the very foundations of copyright law in Canada.  In fact, with the decisions coming just weeks after the Canadian government passed long-awaited copyright reform legislation, Canadian copyright law experienced a seismic shift that will take years to sort out.

    I am delighted to report that this week the University of Ottawa Press published The Copyright Pentalogy: How the Supreme Court of Canada Shook the Foundations of Canadian Copyright Law, an effort by many of Canada's leading copyright scholars to begin the process of examining the long-term implications of the copyright pentalogy. The book is available for purchase and is also available as a free download under a Creative Commons licence. The book can be downloaded in its entirety or each of the 14 chapters can be downloaded individually. This is the first of a new collection from the UOP on law, technology and society (I am pleased to serve as the collection editor) that will be part of the UOP's open access collection.

    This book features fourteen articles on copyright written by independent scholars from coast to coast. The diversity of contributors provides a rich view the copyright pentalogy, with analysis of the standard of review of copyright decisions, fair dealing, technological neutrality, the scope of copyright law, and the implications of the decisions for copyright collective management.


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    Your Information is Not Secure: Thousands of Government Privacy Breaches Point to Need for Reform

    As Canadians focused last week on the aftermath of the Boston Marathon bombing and the RCMP arrests of two men accused of plotting to attack Via Rail, the largest sustained series of privacy breaches in Canadian history was uncovered but attracted only limited attention.  Canadians have faced high profile data breaches in the past - Winners/HomeSense and the CIBC were both at the centre of serious breaches several years ago - but last week, the federal government revealed that it may represent the biggest risk to the privacy of millions of Canadians as some government departments have suffered breaches virtually every 48 hours.

    The revelations came as a result of questions from NDP MP Charlie Angus, who sought information on data, information or privacy breaches in all government departments from 2002 to 2012.  The resulting documentation is stunning in its breadth.

    My weekly technology column (Toronto Star version, homepage version) notes that virtually every major government department has sustained breaches, with the majority occurring over the past five years (many did not retain records dating back to 2002). In numerous instances, the Privacy Commissioner of Canada was not advised of the breach.



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    Copyright Board of Canada Admits to "Palpable Error" in Music Tariff Decision

    The Copyright Board of Canada has released a decision in which it admits to palpable error that resulted in a hugely inflated tariff. The case involved a tariff for SODRAC for reproduction of music works in cinematographic works for private use of for theatrical exhibition.  The Canadian Association of Film Distributors and Exporters had proposed a tiered tariff approach of a maximum of 2 cents per copy containing 30 minutes of music or more (less music would result in a lower tariff). The Copyright Board mistakenly established a tariff of three cents per copy, mistakenly treating three tiers as three cents. As the Board now notes:

    CAFDE was seeking a rate of 2 cents per DVD copy containing over 30 minutes of SODRAC music; the Board's interpretation leads to royalties that are 15 times higher or even more.

    While SODRAC argued that the Board could not correct its error, the Board concluded that it could noting that this resulted in palpable error. Moreover, since the erroneous Board decision actually resulted in higher tariffs than those even requested by SODRAC, it also concluded that procedural fairness was breached. The Board has now suspended the tariff and advised that will issue a new decision in the future.



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    Canadian Government Quietly Drops Lawful Access From Its Cyber-Security Strategy

    Jesse Brown had an interesting post  yesterday that raised concerns about the prospect that the government might use mounting fears over cyber-bullying to re-start their failed lawful access legislation. While it is important to remain vigilant about the possibility of the re-emergence of Internet surveillance legislation, I think a more important signal suggests the bill really is dead (at least until after the 2015 election).

    First, Bill C-30 actually did include a provision that could arguably be used to help address cyber-bullying. It wasn't the provisions involving privacy and surveillance, but rather the expansion of a Criminal Code provision on harassment. Section 372(3) currently provides:

    Every one who, without lawful excuse and with intent to harass any person, makes or causes to be made repeated telephone calls to that person is guilty of an offence punishable on summary conviction.

    The limitation to harassing phone calls would seemingly exclude instances of cyber-bullying. Bill C-30 would have made provision technology neutral:


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    Why Rejecting Mandatory Distribution Fits With the CRTC's Interpretation of the Broadcasting Act

    This week's CRTC mandatory distribution hearing has placed the spotlight on a fascinating disconnect between the Commission and the Canadian broadcast community. Despite months of telegraphing its intent to promote consumer choice over broadcaster revenues, the first two days of the hearing have featured repeated presentations from groups who have not gotten the message. CRTC Chair Jean-Pierre Blais could not have been clearer in a speech last October:

    In our decision, we noted that consumers increasingly expect to be in control of what they watch. It makes sense that consumers and the distributors who serve them should have more flexibility in packaging choices. While we acknowledged the value of predictable revenues to the programming services, we decided that the days of guaranteed wholesale rates are over. Programming services cannot expect to remain completely insulated from the growing demand for greater choice by Canadians.

    He followed that up in March by telling the production community that it "will need to compete, just like any other sector."

    Despite the messaging, many of the groups seeking mandatory distribution evidently don't get it.


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