Canada’s new copyright notice-and-notice system has been in place for less than a week, but rights holders are already exploiting a loophole to send demands for payment citing false legal information. Earlier this week, a Canadian ISP forwarded to me a sample notice it received from Rightscorp on behalf of BMG Rights Management. The notice, which is posted below with identifying information removed, must be forwarded to the subscriber or the ISP faces the possibility of statutory damages of between $5 – 10,000. Rightscorp announced that it was entering the Canadian market last year, so its participation in the notice-and-notice system is not a surprise. What is surprising is that the company has brought its model of issuing demands for payments to Canada by warning of U.S. damage awards and Internet termination in order to stoke fear among Canadians that they could face massive liability if they refuse to pay.
The notice falsely warns that the recipient could be liable for up to $150,000 per infringement when the reality is that Canadian law caps liability for non-commercial infringement at $5,000 for all infringements. The notice also warns that the user’s Internet service could be suspended, yet there is no such provision under Canadian law. Moreover, given the existence of the private copying system (which features levies on blank media such as CDs), personal music downloads may qualify as private copying and therefore be legal in Canada.
In addition to misstating Canadian law, the notice is instructive for what it does not say. While a recipient might fear a lawsuit with huge liability, there is very little likelihood of a lawsuit given that Rightscorp and BMG do not have the personal information of the subscriber. To obtain that information, they would need a court order, which can be a very expensive proposition. Moreover, this is merely an allegation that would need to be proven in court (assuming the rights holder is able to obtain a court order for the subscriber information).
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Canipre, a Montreal-based intellectual property enforcement firm, yesterday issued a press release announcing an infringement monitoring program designed to take advantage of the new copyright notice-and-notice system. The release notes that the service detects online infringement and sends notifications alleging infringement to Canadian Internet providers, who must forward the notifications to their subscribers. The company has been involved in the Voltage Pictures – TekSavvy lawsuit and it cites that case as evidence of the effectiveness of its services.
Yet what Canipre does not say is that a blog associated with the company may have been engaged in copyright infringement for many months. The blog – copyrightenforcement.ca – is run by Barry Logan, the company’s Managing Director, Operations (I received an email from Mr. Logan last year that listed the site as his blog address). In addition to posting releases from Canipre and information about the TekSavvy case, the site has posted dozens of full-text articles from media organizations around the world.
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A new year is traditionally the time to refresh and renew personal goals. The same is true in the digital policy realm, where despite the conclusion of lawful access, anti-counterfeiting, and anti-spam rules in 2014, many other issues in Canada remain unresolved, unaddressed, or stalled in the middle of development.
With a new year – one that will feature a federal election in which all parties will be asked to articulate their vision of Canada’s digital future – there is a chance to hit the policy reset button on issues that have lagged or veered off course.
There is no shortage of possibilities, but my weekly technology law column (Toronto Star version, homepage version) notes the following four concerns should be top of mind for policy makers and politicians:
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Appeared in the Toronto Star on January 3, 2015 as Time to Hit the Reset Button on Digital Policies A new year is traditionally the time to refresh and renew personal goals. The same is true in the digital policy realm, where despite the conclusion of lawful access, anti-counterfeiting, and […]
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