Columns

Canadian Rules Rain on Cloud Music Parade: Why New Services Unlikely To Come To Canada Anytime Soon

Apple has once again captured the attention of the Internet world with the unveiling of the iCloud, an online backup system that will allow users to instantly store their content on Apple computer servers so that they can be accessed anywhere from any device.

The most notable element of the iCloud is the iTunes Match service that gives users cloud-based access to their full digital music libraries. This includes songs purchased on iTunes as well as any other music files, which will be identified by Apple and made available without the need to upload the copy. Itunes Match has obtained the blessing of the major record labels, who will reportedly receive the lion’s share of the service’s US$24.95 annual fee.

The Apple announcement comes on the heels of newly launched music cloud services from Internet giants Amazon and Google. The Amazon Cloud Player allow users to upload their own music to Amazon’s computer servers and to stream it to any device, while Music Beta by Google similarly involves uploading music files for streaming access. Neither Amazon nor Google obtained licenses for their services, relying instead on their users’ fair use rights to shift their music to the “cloud.”

While the licensing approaches differentiate Apple from its competitors, my weekly technology law column (Toronto Star version, homepage version) argues all three cloud music services share a common characteristic when it comes to Canada – none are likely to be available here anytime soon.

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June 14, 2011 69 comments Columns

Study Debunks Chamber of Commerce Claims on Canadian Patent Law

Yesterday I posted on how the Canadian IP Council, the Canadian Chamber of Commerce’s IP lobby arm, floated false claims about the scope of counterfeiting in Canada in an attempt to bolster claims for increased border measures. The Chamber placed Canadian countefeiting costs at $30 billion per year, a figure that has no basis in fact and that even RCMP no longer supports.

The Chamber’s false claims on counterfeiting are not the only intellectual property issue where their arguments have been debunked as inaccurate.  My weekly technology law column (Toronto Star version, homepage version) focuses on the proposed trade agreement between Canada and the European Union, which could have big implications for the costs of pharmaceutical drugs, on which Canadians spend $22 billion annually.

The E.U. is home to many of the world’s big brand name pharmaceutical companies and one of their chief goals is to extend Canada’s intellectual property rules to delay the availability of lower cost generic alternatives. Earlier this year, the Chamber’s IP Council released a report claiming that Canada lags behind other countries and encouraging the Canadian government to follow the European example by extending the term of pharmaceutical patents and “data exclusivity.”

The CIPC (which counts several brand name pharmaceutical companies as members) claims the reforms would lead to increased pharmaceutical research and development in Canada. But last month University of Toronto law professor Edward Iacobucci released a study that thoroughly debunks the CIPC claims, predicting increased consumer costs and noting that there is little evidence the changes would increase employment or research spending. 

Iacobucci’s blunt assessment of the report:

The CIPC Report does not offer objectivity in its assessment of Canada’s patent regime.  It rather is a straightforward piece of advocacy on behalf of the branded pharmaceutical sector. The Report makes no effort to place Canada’s patent law in an international context or address international relations, but instead simply asserts without justification that Canada would suffer if it fails to grant the same concessions to the pharmaceutical industry that the EU and US have made. The flaws in this basic approach undermine each of the CIPC Report’s recommendations. 

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June 9, 2011 4 comments Columns

Cabinet Minister Mandate Letters for The Digital Era

With the new Parliamentary session set to kick off today with the election of a new speaker, new cabinet members are busy brushing up on the myriad of issues they will face in the coming months. The appointment to cabinet comes with a private mandate letter from the Prime Minister that sets out his expectations and policy goals. If Canadians focused on digital policies were given the chance to draft their own mandate letters, my weekly technology law column (Toronto Star version, homepage version) speculates that they might say the following:

Christian Paradis, Minister of Industry: As the new Minister of Industry, it falls to you to make the digital economy strategy initiated by your predecessor Tony Clement a reality. The centrepiece of the strategy should be universal, competitively priced broadband service. With a majority government in place, we have four years to open the market to new competitors, facilitate the introduction of new wireless broadband alternatives, encourage the market to offer fibre connections in all major markets, foster new local competitors, leverage the role of high speed research and education networks, consider using spectrum auction proceeds to fund broadband initiatives, and address anti-competitive pricing models. We should set realistic but ambitious targets for broadband speed, pricing, and competition that allows Canada to reverse a decade of decline and once again become a global leader.

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June 2, 2011 1 comment Columns

Canadian Broadcasters and BDUs: Can They Compete With “Free”?

Earlier this month, Bell and Quebecor, two giants in the Canadian broadcasting and telecom landscape, became embroiled in a dispute over Sun News Network, the recently launched all-news network. At first glance, the dispute appeared to be little more than a typical commercial fight over how much Bell should pay to Quebecor to carry the Sun News Network on its satellite television package. When the parties were unable to reach agreement, Bell removed Sun News Network, leaving a placeholder message indicating “the channel has been taken down at the request of the owners of Sun News Network.”

While the dispute is now before the Canadian Radio-television and Telecommunications Commission – Quebecor claims Bell is violating the legal requirement against “undue preferences”- more interesting is Bell’s claim about the value of Sun News Network signal.

According to Mirko Bibic, senior vice-president of regulatory affairs at Bell Canada, the market value of Sun News Network is zero because Quebecor makes the signal available free over-the-air in Toronto and is currently streaming it free on the Internet. Given the free access, Bell maintains that the signal no longer has a market value.

My weekly technology law column (Toronto Star version, homepage version) notes Bibic’s comment may be posturing for negotiation purposes, but it highlights the larger problem for Canadian broadcasters and broadcast distributors such as cable and satellite providers.

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May 24, 2011 33 comments Columns

Web Surveillance Legislation Requires Study, Not Speed

With the new Parliamentary session scheduled to kick off within the next few weeks, two major initiatives will dominate the initial legislative agenda: passing a budget and introducing an omnibus crime bill that contains at least 11 crime-related bills. My weekly technology law column (Toronto Star version, homepage version) notes the prioritization of the crime legislation is consistent with the Conservative election platform, which included a commitment to bundle all the outstanding crime and justice bills into a single omnibus bill and to pass it within the new Parliament’s first 100 days.

The Conservatives argue that the omnibus approach is needed since the opposition parties “obstructed” passage of their crime and justice reforms during successive minority governments. Yet included within the crime bill package is likely to be legislation creating new surveillance requirements and police powers that has never received extensive debate on the floor of the House of Commons and never been the subject of committee hearings.

The package is benignly nicknamed “lawful access,” but isn’t benign. If the Conservatives move forward with their complete lawful access package, it would feature a three-pronged approach focused on information disclosure, mandated surveillance technologies, and new police powers.

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May 20, 2011 32 comments Columns