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The Copyright Board of Canada Music Streaming Decision: The Good, the Bad, and the Ugly

The Copyright Board of Canada Music Streaming Decision: The Good, the Bad, and the Ugly

The Copyright Board of Canada issued its long-awaited music streaming decision late last week, setting royalties to be paid by Internet music streaming services such as Pandora for non-interactive and semi-interactive streaming for the years 2009 to 2012. This covers passive Internet radio services and services that allow users to influence what they listen to. Given that Pandora left the Canadian market over high tariff rates, the outcome of the decision was destined to be a key determinant over whether many of the missing Internet music streaming services enter the Canadian market.

For fans of Pandora or similar services, the decision brings good news. The board largely rejected the arguments of Re:Sound, the collective responsible for the tariff and settled on rates close to what the Internet services were seeking. While the collective argued for rates similar to those found in the U.S., the Board ruled that the U.S. was not a suitable comparison. 

Moreover, it rejected arguments that this form of music streaming cannibalizes music sales, concluding that exposure to music through non-interactive and semi-interactive streaming may increase sales:

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May 21, 2014 — 4 comments — News
Google Main Search by MoneyBlogNewz (CC BY 2.0) https://flic.kr/p/92t8FA

European ‘Right to be Forgotten’ Ruling Fails to Strike Free Speech – Privacy Balance

The European Court of Justice shook up the privacy and Internet world last week by ruling that European data protection law includes a right to be forgotten with respect to search engine results that are “inadequate, irrelevant or no longer relevant.” As a result of the decision, search companies such as Google will be required to remove results from its index that meet this standard upon request.

My weekly technology law column (Toronto Star version, homepage version) notes that as people flock to remove content from the Google search index – reports indicate that the company began receiving removal requests within hours of the ruling – there remains considerable uncertainty about how to implement the decision, whether it will migrate to Canada, and if a new right to be forgotten will serve the cause of privacy protection or harm free speech and access to information.

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May 20, 2014 — 8 comments — Columns

Competition Bureau Recommends New Regulations To Address Wireless Competition Concerns

The Canadian Competition Bureau has filed a submission to the CRTC’s wholesale mobile wireless services review in which it reaffirmed its view that the Canadian wireless market is uncompetitive and would benefit from regulation.  The Bureau finds that a more competitive market would deliver $1 billion annually in benefits to the Canadian economy:

incumbents appear to have the ability and incentive to profitably raise the rates they charge their retail competitors for wholesale roaming services, and potentially other wholesale arrangements, above competitive levels. The incumbents’ wholesale customers may be passing these price increases on to retail customers. These retail price increases may be harming competition in retail mobile wireless services markets in Canada. In particular, more competitive markets could deliver approximately $1 billion in benefits to the Canadian economy.

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May 16, 2014 — 12 comments — News
europe infinite copyright by Jose Mesa (CC BY 2.0) https://flic.kr/p/amMHBV

Has Canada Caved on Copyright Term Extension in the TPP?

The Trans Pacific Partnership negotiations resume next week and while an agreement does not appear imminent, reports from Japan indicate that the copyright term issue may have been resolved.  Japan and Canada are two of several TPP countries whose term of copyright protection is life of the author plus 50 years. According to the Japan News, those countries (which also include New Zealand, Malaysia, Vietnam, and Brunei) are prepared to cave to U.S. pressure to extend the term of copyright to life of the author plus 70 years:

Among the 12 countries, Japan, Canada and four other countries protect an author’s copyright for 50 years after their death, the United States and four other countries for 70 years and Mexico for 100 years. Following the agreement, Japan will extend its duration by 20 years.

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May 16, 2014 — 11 comments — News
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Why the Canadian Government Should Maintain Its Position on CETA and the ISDS Provision

Media reports last week indicated that finalizing the Canada – European Union Trade Agreement has been delayed by a Canadian demand to exclude intellectual property from the scope of the investor-state dispute settlement system. While that sounds like an arcane, technical issue, it actually involves potentially billions of dollars and the Canadian government deserves kudos for adopting its current position even as the pressure builds to simply cave on the issue.

The investor-state dispute settlement provision is among the most controversial aspects of CETA (and the proposed Trans Pacific Partnership) since it opens the door to private lawsuits by companies against the government over the state of national law. These lawsuits can involve claims for hundreds of millions of dollars, with costs that may ultimately be borne by taxpayers. The Canadian government is keenly aware of the risks, since it is currently facing a $500 million lawsuit by pharmaceutical giant Eli Lilly over the approach of Canadian courts to the concept of utility in patent law. The Canadian government is likely to ultimately win the lawsuit, but the legal risks are still significant, with Eli Lilly effectively demanding that every Canadian pay it nearly $15 due to our patent laws. If Eli Lilly can file a $500 million lawsuit over two patented drugs, the potential for numerous lawsuits and billions in claims is a real possibility.

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May 14, 2014 — 6 comments — News
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