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UN Internet Meeting About Who Pays, Not Who Rules

Should the Internet be treated like traditional phone services when it comes to regulation and pricing? That is the contentious question as the International Telecommunications Union, a United Nations agency with roots dating back to 1865 and the interconnection of telegraph services, meets in Dubai next week for the World Conference on International Telecommunications (WCIT).  The WCIT is a treaty-writing event that has attracted growing attention given fears that the ITU and countries such as Russia plan to use it to press for greater control over the Internet.

My weekly technology column (Toronto Star version, homepage version) notes that there are certainly legitimate reasons for WCIT suspicion since the ITU lacks transparency and largely excludes public participation. For months, the ITU proposals scheduled for debate (known as International Telecommunications Regulations or ITRs) were shrouded in secrecy and the organization itself offered only limited opportunity for public participation. Moreover, some countries view the WCIT as an opportunity to increase their leverage over the Internet by proposing regulations that would increase governmental controls.

While these issues are cause for concern, proposals aimed at seizing control of Internet governance are unlikely to succeed and the reality is that governments already flex their regulatory muscles within the current U.S.-backed Internet governance framework.

The focus on a UN takeover of the Internet has obscured the real concern with the WCIT, namely efforts by telecom companies to find new sources of revenue by changing the way we pay for the Internet.

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November 27, 2012 10 comments Columns

The CETA Leak: Major Outstanding Issues Remain in an Unbalanced Deal

As International Trade Minister Ed Fast returns from negotiations in Europe that failed to secure a deal on the Canada – EU Trade Agreement, newly leaked documents to the CAQ and posted by LaPresse provide a detailed look at the remaining outstanding issues with details on the Canadian and European positions. The documents (1, 2, 3, 4) make it clear that the EU recognizes the deal is unbalanced as there are far more demands for Canadian changes than European ones. The EU retains the hope that Canada will cave on the EU demands since “the EU market to which it gains preferential access is much larger than its own.”

This ranks as perhaps the most important CETA leak to date, since it clearly identifies the key remaining issues, the European demands, and the massive changes that would be required for Canada to comply with the treaty.  Some of the changes demanded by Europe include patent reform that could add billions to Canadian health care costs, the removal of foreign ownership restrictions on telecommunications and book publishing, the opening of public procurement for the energy and public transport sectors, eliminating Investment Canada Act review for European investments, new restrictions on the sale of a myriad of products such as feta and parmesan cheese, changes to agricultural protections (ie. supply management), and the adoption of European standards on passenger cars. This would require dramatic changes across the Canadian economy, all for what even the Europeans acknowledge are limited gains for Canada.

Given what is at stake, there needs to be an open debate and consultation before an agreement is reached (which is no longer a certainty) and Canada should be considering whether a scaled down version of CETA – one that focuses primarily on a reduction of tariffs for trade in goods – is a better model. A closer look at the some of the remaining issues is posted below.

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November 26, 2012 9 comments News

No Deal (Yet) on Canada – EU Trade Agreement

Canada’s International Trade Minister Ed Fast traveled to Brussels this week hoping to secure a deal on the Canada – EU Trade Agreement. It looks like he’ll be coming home empty handed as the EU has issued a release indicating that there are still gaps on key issues. The EU’s […]

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November 23, 2012 1 comment News

Supreme Court Serves Stunning Reminder of Patent Bargain

The House of Commons Committee on Industry, Science and Technology has spent the past few months hearing from a myriad of companies on the Canadian intellectual property system. With few public interest groups invited to appear, one of the primary themes has been the call for more extensive patent protections, as witnesses link the patent system to innovation and economic growth.

While policies that purport to help the economy unsurprisingly generate considerable support, my weekly technology law column (Toronto Star version, homepage version) notes the Supreme Court of Canada recently provided a powerful reminder about the true purpose of patent law in a decision involving Pfizer’s patent for Viagra, the well-known erectile dysfunction medication. Teva Pharmaceuticals, one of the world’s leading generic pharmaceutical manufacturers, had lost successive challenges against the Viagra patent, but managed to pull out a win when it mattered most. The decision has already had considerable fallout, as Pfizer has asked for a rehearing, had the patent confirmed as invalid in a Federal Court case with Apotex, and dropped its retail price to match the generic pricing.

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November 22, 2012 5 comments Columns

Canadian Broadcasters Seek Overhaul of Radio Copyright Fees Post-C-11 & Fair Dealing Decisions

The Canadian Association of Broadcasters has applied to the Copyright Board of Canada for a radical overhaul of the current fees paid by radio stations for commercial radio reproduction of music. The CAB argues that in light of copyright reforms in Bill C-11 and the Supreme Court of Canada’s rulings on fair dealing, there is no legal basis for several tariffs proposed by CMRRA-SODRAC (CSI), AVLA, and ACTRA and that the rate on earlier approved tariffs should be significantly reduced.

The CAB position on the impact of the law is that:

The result of the changes to the Copyright Act made by the Copyright Modernization Act, when combined with the fair dealing right as applied in ESA, is to eliminate or significantly reduce the liability of radio broadcasters for the reproductions made by them in the course of their broadcasting activities. Even the reproduction collectives agree that the legislative changes alone will eliminate most liability of radio broadcasters for reproductions of music. 

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November 20, 2012 4 comments News