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Michael Geist's Blog

U.S. Republican Study Committee Releases Progressive Copyright Document Only To Withdraw Hours Later

The story of the weekend was the publication by the U.S. Republican Study Committee of a progressive report on copyright, only to withdraw the paper hours later (coverage from Techdirt (1, 2), Volokh Conspiracy, the American Conservative, Politico, CNET, and Macleans). The paper - which can still be found online - identifies several copyright myths and contains several notable proposed reforms including expanding fair use, reforming U.S. statutory damages rules, creating copyright misuse penalties, and limiting copyright terms. 

Interestingly, Canada has already begun to move in this direction with Bill C-11, which reformed statutory damages and created a non-commercial user generated content provision. Moreover, Canadian law features a shorter copyright term than that found in the U.S.  Given the rush to take the paper down, the fear is that even modest reform recommendations face opposition from copyright lobby groups, who exert enormous influence with U.S. politicians. As Canada jumps into the Trans Pacific Partnership negotiations in the next few weeks, Canadian copyright reforms will undoubtedly face tough scrutiny as the U.S. pressures us to undo many positive reforms and make further changes that the Canadian government previously concluded did not strike a reasonable balance.
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NPD Group Fails Basic Math: Data Shows P2P Users Spend Nearly 50% More on Music Than Non-P2P Users

File sharing of music has been part of the Internet landscape for well over a decade, but the debate over its economic impact continues to rage. The issue has come to fore once again in recent weeks after Columbia University's American Assembly released an excerpt of a report that found that peer-to-peer users purchase 31 percent more downloads than non-P2P users. The NPD Group, which conducts industry analysis for the Recording Industry Association of America, quickly responded with data that purports to show that among music buyers, both P2P and non-P2P users spend about the same, though P2P users spend more on merchandise and concert tickets. The NPD Group dismisses the additional spending, arguing "it would be silly" to concluded the P2P promotes merchandise or ticket sales.

While there have since been responses from the American Assembly and further promotion of the NPD Group findings from the RIAA (along with coverage from CNET and TorrentFreak), no one seems to have picked up on the basic math error from NPD Group. The NPD Group post ironically starts with:

I often think you ought to have a license to publish data, especially these days, when misinterpreted statistics easily make their way to the blogosphere, and thus become truth.

Yet take a closer look at its own data in a chart that has been replicated throughout the blogosphere. 
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Fair Dealing Consensus Emerges Within Canadian Educational Community

Four months after the Supreme Court of Canada issued its landmark series of copyright decisions, a consensus on the scope of fair dealing has begun to emerge within the education community. While Access Copyright has been sending threatening letters to institutions that seek to rely on fair dealing with claims that the decisions are being misinterpreted, roughly similar policies have now been developed by K-12 school boards, community colleges, and universities that plainly reject the views of the copyright collective.

As discussed in my post on the ACCC fair dealing policy, the breadth of fair dealing raises obvious questions about the necessity of an Access Copyright licence. All educational institutions already spend millions on licensed materials. Indeed, the Access Copyright study on K-12 institutions found that 88% of copying was permitted without the need for either an Access Copyright licence or reliance on fair dealing.  Given the scope of fair dealing as articulated by the Supreme Court of Canada, many are concluding that the Access Copyright licence offers little additional value to Canadian educational institutions.


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What the New Copyright Law Means For You

More than a decade of debate over Canadian copyright reform came to a conclusion last week as Bill C-11, the fourth try at reform since 2005, formally took effect. While several elements of the bill still await further regulations, the biggest overhaul of Canadian copyright law in years is now largely complete.

My weekly technology law column (Toronto Star version, homepage version) notes the wholesale changes have left many Canadians wondering how the law will affect them, as they seek plain language about what they can do, what they can't, and what consequences they could face should they run afoul of the law.



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Supreme Court Voids Viagra Patent as Insufficient Disclosure Means It Fails the "Patent Bargain"

The Supreme Court of Canada this morning shocked the pharmaceutical industry by voiding Pfizer's patent in Canada for Viagra. The unanimous decision provides a strong reaffirmation of the policy behind patent law, namely that patents represent a quid pro quo bargain of public disclosure of inventions in return for a time limited monopoly in the invention. The Supreme Court describes it in this way:

The patent system is based on a "bargain", or quid pro quo: the inventor is granted exclusive rights in a new and useful invention for a limited period in exchange for disclosure of the invention so that society can benefit from this knowledge. This is the basic policy rationale underlying the Act. The patent bargain encourages innovation and advances science and technology.

Disclosure is therefore a crucial part of the patent bargain.


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Canadian Copyright Reform In Force: Expanded User Rights Now the Law

This morning, the majority of Bill C-11, the copyright reform bill, took effect, marking the most significant changes to Canadian copyright law in decades. While there are still some further changes to come (the Internet provider notice-and-notice rules await a consultation and their own regulations, various provisions related to the WIPO Internet treaties await formal ratification of those treaties), all the consumer oriented provisions are now active. These include:
  • The addition of education, parody, and satire as fair dealing purposes.
  • The creation of a non-commercial user generated content provision that creates a legal safe harbour for creators of non-commercial UGC (provided they meet four conditions in the law) and for sites that host such content. 
  • The adoption of several new consumer exceptions including time shifting (recording of television shows), format shifting, and the making of backup copies.
  • Changes to the statutory damages rules that distinguish between commercial and non-commercial infringement. The law now includes a cap of $5000 for all non-commercial infringement. The change reduces the likelihood of lawsuits against individuals for non-commercial activities and would apply to educational institutions engaged in non-commercial activity and significantly reduce their potential liability for infringement.
  • The inclusion of an exception for publicly available materials on the Internet for education. This covers the content found on millions of websites that can now be communicated and reproduced by educational institutions without the need for permission or compensation.
  • The adoption of a technology-neutral approach for the reproduction of materials for display purposes. The current law is limited to manual reproduction or on an overhead projector. The provision may be applicable in the online learning context and open the door to digitization activities.
  • The implementation of a distance learning provision, though use of the exception features significant restrictions that require the destruction of lessons at the conclusion of the course.
  • The inclusion of a restrictive digital inter-library loans provision that will allow for digital transmission of materials on an inter-library basis, increasing access to materials that have been acquired by university libraries.
  • A new exception for public performances in schools, which will reduce licensing costs for educational institutions.

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How Canadians Reclaimed the Public Interest on Digital Policy

The fall of 2007 was a particularly bleak period for Canadians concerned with digital policies. The government had just issued a policy direction to the CRTC to adopt a hands-off regulatory approach even as consumer prices for Internet and wireless services were increasing. Meanwhile, the Department of Public Safety held a semi-secret consultation on Internet surveillance where mandatory disclosure of subscriber information was assumed.

Moreover, the CRTC had largely rejected mounting concerns with the way Internet providers managed their networks (often called network neutrality), there were doubts about new wireless competitors entering the marketplace, Industry Canada had seemingly no interest in developing anti-spam laws or updating privacy legislation, the government agreed to participate in negotiations on the Anti-Counterfeiting Trade Agreement, and a copyright bill with virtually no user-oriented provision was being prepared for introduction.

My weekly technology law column (Toronto Star version, homepage version) notes that fast forward five years later and the CRTC has now positioned itself as a staunch defender of the public interest with consumer concerns at the centre of its policy making process, a lawful access bill was introduced in the spring but is viewed as politically dead, the CRTC has crafted and enforced new net neutrality rules, anti-spam legislation has been enacted, there are several new wireless providers and the removal of most foreign investment restrictions, the Anti-Counterfeiting Trade Agreement is discredited after being rejected by the European Parliament, and copyright reform is set to take effect this week with a host of user safeguards and rights.


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Supreme Court Confirms Privacy Survives in the Workplace

Millions of Canadians go to work each day, turn on their workplace computers, and wonder whether they have also shut off their privacy. Many employers seek to remove any reasonable expectation of privacy by telling employees that they should not expect any privacy when using workplace computers during company time.

Earlier this month, the Supreme Court of Canada grappled with the question of workplace privacy and arrived a somewhat different conclusion. My weekly technology law column (Toronto Star version, homepage version) notes it ruled that the workplace environment may diminish an employee's reasonable expectation of privacy, but it does not remove the expectation altogether.


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EU Drops Demands for Inclusion of ACTA's Criminal IP Provisions in CETA

Reports this morning from EDRI, a European digital rights group, indicate that Europe has now dropped demands to include ACTA-style intellectual property criminal provisions within the Canada - EU Trade Agreement. The inclusion of IP criminal provisions in CETA was the source of considerable outrage in Europe in the aftermath of the European Parliament's rejection of ACTA in early July.  EDRI reports that the European Council obtained support over the summer from member states to drop demands for the criminal provisions, fearing those provisions could lead to a European rejection of the treaty (the Dutch government has already indicated it will not support CETA if it includes ACTA provisions).

The removal of ACTA's criminal provisions leave only two copyright-related question marks in CETA. First, the ACTA border measures provisions have yet to be determined as they are being discussed within the context of protection for geographical indications. Second, Canada is still seeking the inclusion of criminal anti-camcording rules. Canada adopted those rules in 2007 under significant pressure from the United States. Europe resisted their inclusion within ACTA, resulting in a provision that is optional rather than mandatory. While Canada is seeking a mandatory rule, it seems likely this is a (very weak) bargaining chip, rather than a serious attempt to require criminal anti-camcording measures. Canada may drop the demand during negotiations later this month over pharmaceutical patent reform. Regardless, the European Parliament's rejection of ACTA has clearly had a significant impact on CETA as the Internet and criminal provisions are now both apparently gone in the face of widespread European opposition.
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Government To Delay Implementation of Bill C-11's Internet Provider Rules

The government is slated to bring Bill C-11, the copyright reform bill, into effect next week without the "notice-and-notice" rules for Internet providers. The revelations come in a Privy Council document that provides notification on when the bill will come into force. It is expected that the order bringing the bill into effect will be published on November 7, 2012. The majority of the bill will take effect on that date, including fair dealing reform, new consumer exceptions, caps on statutory damages for non-commercial infringement, the user generated content provision, and the digital lock rules. There are two notable exceptions, however.

First, the Internet service provider "notice-and-notice" rules will not take effect. The implementation has been apparently been the subject of fierce behind-the-scenes lobbying over issues such as the fees for processing notices and the retention of subscriber information. The public has not been included in these discussions and more open policy process is needed in developing the notice-and-notice regulations.

Second, several sections related to the WIPO Internet Treaties will also be delayed until those treaties come into force for Canada. There are lingering questions over whether Canadian law is fully compliant with the WIPO Internet treaties, particularly with respect to the private copying levy. Moreover, Canadian policy now requires the government to provide the House of Commons with at least 21-sitting days for review of a treaty before taking legal steps to bring it into force. The tabling of the treaty must include an explanatory memorandum. This suggests that these provisions may be delayed and that the House of Commons may have some further debate on the WIPO Internet treaties - perhaps including why the government went far beyond treaty requirements - whenever the government does pursue bringing the treaties into force.
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