Canada’s copyright notice-and-notice system took effect earlier this year, leading to thousands of notifications being forwarded by Internet providers to their subscribers. Groups such as the Canadian Recording Industry Association argued during the legislative process that notice-and-notice would “pose a long-term problem”, yet the evidence suggested that the system could be effective in decreasing online infringement. Since its launch, there have been serious concerns about the use of notices to demand settlements and to shift the costs of enforcement to consumers and Internet providers. With Industry Canada officials emphasizing that “there is no obligation for Canadians to pay settlement demands,” it is clear that there is still a need for the missing regulations, including a prohibition on the inclusion of settlement demands within the notices.
While the problems with notice-and-notice must be addressed, the leading notice sender says that they are proving to be extremely effective in reducing piracy rates. In fact, the system has proven so successful that a consortium of movie companies now want the U.S. to emulate the Canadian approach. According to CEG TEK, there have been “massive changes in the Canadian market” under notice-and-notice. They claim that piracy rates have dropped by the following rates in Canada:
• Bell Canada – 69.6% decrease
• Telus Communications – 54.0% decrease
• Shaw Communications – 52.1% decrease
• TekSavvy Solutions – 38.3% decrease
• Rogers Cable – 14.9% decrease
Some of the decrease may be attributable to the inclusion of settlement demands, but the evidence has long suggested that the notices alone have an education effect that leads to a significant reduction in infringement. Within a matter of months, that has apparently been the case in Canada. Given the plummeting Canadian piracy rates, U.S. film companies that once derided the Canadian system now argue that U.S. ISPs should adopt it.