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Why the CRTC Fell Short in Addressing Canada’s Wireless Woes

The competitiveness of Canadian wireless services has been the source of an ongoing and contentious debate for years. Last week, Canada’s telecom regulator concluded that there is a competitiveness problem, yet in a decision surprisingly applauded by many groups, declined to use much of its regulatory toolkit to address the problem. Instead, it placed a big bet on the prospect of a smaller wireless carrier somehow emerging as a fourth national player.

My weekly technology law column (Toronto Star version, homepage version) notes that the Canadian Radio-television and Telecommunications Commission began investigating the wholesale wireless services market in 2013. The big three wireless companies – Bell, Rogers, and Telus – argued that the market was competitive and that no regulatory action was needed. By contrast, new entrants such as Wind Mobile called for regulated roaming rates so that they could offer viable national services with more affordable connectivity wherever their customers roam.

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May 13, 2015 5 comments Columns
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CMRRA Confirms Denial of Licences for Public Domain Recordings

CMRRA, the Canadian Musical Reproduction Rights Agency, recently wrote to the Toronto Star and the Hill Times to respond to one of my columns which focused on the lobbying and denial of licensing effort to stop cheaper public domain recordings from entering the Canadian market. The column reported that CMRRA had issued a “pay as you press” licence for the recordings to ensure that creators were paid for the works still in copyright. CMRRA was later ordered to stop issuing the licence.

CMRRA writes that the column’s statement that record labels ordered the denial of licences is “patently false”. Dig deeper into the letter and it becomes clear that CMRRA confirms that it denied the licence, but takes issue with the claim that it was record labels that ordered it to do so. In the case of the Beatles recordings, it was Sony/ATV, which is jointly owned by Sony and the Michael Jackson Estate that ordered the denial of licence. Sony also owns one of the world’s largest record labels.

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May 12, 2015 2 comments News
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Sound of Silence: Why the Government’s Copyright Extension for Sound Recordings Will Reduce Access to Canada’s Musical Heritage

The government yesterday tabled its budget implementation bill (Bill C-59), which includes provisions to extend the term of copyright for sound recordings and performances. The extension adds 20 years to the term (to 70 years). It also caps the term at 100 years after the first fixation of the sound recording or performance. The change is not retroactive, so sound recordings currently in the public domain will stay there. The government’s unexpected decision to extend the term of copyright for sound recordings and performances will not only cost consumers by reducing competition and stop cheaper, legal music alternatives from coming to the market – but it will also reduce access to Canada’s music heritage.

This is the inescapable conclusion based on studies elsewhere, which find that longer copyright terms discourage re-issuing older releases, which often means that the musical heritage is lost.  For example, Tim Brooks conducted a detailed study in 2005 on how copyright law affects reissues of historic recordings. He concluded that longer copyright terms significantly reduce public access. First, he examined the data in the United States, which at the time had the longest term of protection:

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May 8, 2015 4 comments News
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House of Commons Passes Bill C-51 as Conservative MP Questions Values of Canadian Tech Companies

Bill C-51, the anti-terrorism bill, passed third reading in the House of Commons last night as Conservative and Liberal MPs voted in favour of the bill, leaving only the NDP and Green opposed. It now heads to the Senate, which has already conducted most of its hearings on the bill. Those hearings – which have included Canadian Privacy Commissioner Daniel Therrien – have been better than the embarrassing Public Safety and National Security review (hearing by the numbers, witnesses, and clause-by-clause review), yet the outcome is almost sure to be the same. Bill C-51 is on a legislative fast track and Conservative Senators are incredibly unlikely to require amendments that would send the bill back to the House.

As debate on Bill C-51 wound down, Press Progress points out that Conservative MP Laurie Hawn took the time to question the values of leading Canadian technology companies such as Shopify and Hootsuite.  The CEOs of those companies, along many others, dared to sign a public letter calling on the government to go back to the drawing board on the bill. The letter highlights concerns with website takedowns, new CSIS powers, and data security issues.

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May 7, 2015 18 comments News
you drive a hard bargain by haven't the slightest (CC BY-ND 2.0) https://flic.kr/p/8fvpkL

The CRTC Knows Best: Why the Wireless Decision Doesn’t Go Far Enough

The CRTC released it much anticipated decision on the wholesale wireless industry yesterday, painting the decision as fostering “sustainable competition, innovation and investment in the wireless services market.” The ruling generated supportive comments from consumer groups, community groups, new entrants such as Wind Mobile, and business analysts who thought that the CRTC might go further. The regulated wholesale roaming rates has attracted the lion share of attention, but the bigger story is what the Commission did not do. Indeed, given the CRTC’s finding on the competitiveness of the Canadian wireless industry, it should have done more to address the issue. Instead, it adopted a regulatory approach that suggests it thinks it knows the right formula for more competition and it has placed its bet primarily on a fourth national wireless player rather than on an environment that facilitates as much new competition as the market can support.

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May 6, 2015 5 comments News