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The $8 Billion iPod

Great, great TED talk from Rob Reid on the funny numbers often promoted by music and movie lobby groups in the context of copyright.

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March 16, 2012 2 comments News

Bland Over Bold: The Government’s New Telecom and Spectrum Policy

Industry Minister Christian Paradis unveiled the government’s plans for the next spectrum auction yesterday with a plan that hits many of the right notes but remains too timid in places. The reliance on spectrum caps is reasonable, but the foreign ownership restriction changes do not go far enough and the decision to forego mandated open access is a blow to Canada’s still-missing digital economy strategy. Overall, the plan (spectrum auction + foreign ownership policy) feels like one that a minority government would release as it seems designed not to generate too much opposition (incumbents and new entrants will see enough that they like that few – WindMobile excepted – will scream too loudly). 

The government’s vision of fostering new competition is somewhat limited. The primary goal appears to be the creation of a strong, national fourth carrier in the market. The spectrum caps and foreign ownership changes are both geared toward giving a fourth player the necessary spectrum and capital to compete with Bell, Telus and Rogers. That suggests consolidation of the current smaller players in the hope of a single, stronger competitor – possibly foreign owned – challenging the incumbents. Given the current environment, it is not clear that this generates significant new consumer choice. 

While the headlines have focused on changes to the foreign ownership rules, the new changes are rather timid. There is an opening for a foreign competitor to enter the marketplace by buying some of the smaller players or aggressively bidding on spectrum, but there is no vision of throwing the market open to full-scale competition that might include a major international player entering the market by buying an incumbent. That would shake up the competitive landscape far more than the incremental, go-safe approach in this policy.

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March 15, 2012 4 comments News

Bill C-11 Committee Review Concludes: What Happened and What Comes Next

The Bill C-11 legislative committee concluded its clause-by-clause review yesterday as eight government amendments were added to the bill and all opposition amendments were defeated. The amendments included an expanded enabler provision and some modest tinkering to other elements of the bill. There are still several steps needed before the bill passes including third reading at the House of Commons, Senate review, and ultimately royal assent, but Canadian copyright reform is well on its way to completion before the summer starts.

In the days leading up to the clause-by-clause review, many focused on three key issues: no SOPA-style amendments such as website blocking or warrantless disclosure of information, maintaining the fair dealing balance found in the bill, and amending the digital lock provisions. By that standard, the changes could have been a lot worse. The government expanded the enabler provision, though not as broadly as CIMA requested. Virtually all other copyright lobby demands – website blocking, notice-and-takedown, iPod tax, copyright term extension, disclosure of subscriber information – were rejected. Moreover, the provisions supported by consumer and education groups including user generated content protection, time shifting, format shifting, backup copies, Internet provider liability, and statutory damages reform were left untouched. This represents a major victory for the many Canadians and groups such as Open Media that spoke out on these issues.

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March 14, 2012 63 comments News

Proposed Bill C-11 Amendments: Gov Says No Changes to Digital Locks, Fair Dealing or User Provisions

The Bill C-11 committee has just opened the clause-by-clause review of the copyright bill with 39 amendments on the table: 8 from the goverment, 17 from the NDP, and 14 from the Liberals. The good news is that the misinformation campaign on issues such as fair dealing, user generated content, consumer provisions, statutory damages, and Internet provider liability has largely failed as the government is not proposing significant changes to those provisions. These all represent good compromise positions that will likely remain intact. 

Unfortunately, the digital lock provisions will also remain largely unchanged as the government is not proposing to link circumvention to copyright infringement (both the NDP and Liberals will put forward such amendments). The music and movie lobby are getting one of their demands as the enabler provision will be expanded from targeting sites “primarily designed” to enable infringement to providing a service primarily for the purpose of enabling acts of infringement. The CIMA demand for an even broader rule has been rejected.

A summary of some of the proposed amendments, by party (note: subject to possible change should a party decide not to introduce the amendment):

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March 12, 2012 64 comments News

Copyright Bill Hits the Home Stretch: C-11 Clause by Clause Review Today

Days after the Conservative government introduced its copyright reform bill in June 2010, Canadian Heritage Minister James Moore spoke out in support of the legislative package by notoriously labeling critics as “radical extremists” who should be confronted until “they are defeated.” This week, the copyright bill hits the home stretch as the Bill C-11 legislative committee conducts its final “clause-by-clause” review.

The bill has been a subject of debate for nearly 20 months and over the course of that period, there has been a surprising role reversal. My weekly technology law column (Toronto Star version, homepage version) notes that Moore’s vision of strong support from copyright lobby groups has been replaced by demands to overhaul the legislation with a broad array of extreme measures, while the supposed critics – library groups, educators, consumer associations, and individual Canadians – have endorsed much of the legislation with only requests for modest changes to the controversial digital lock provisions.

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March 12, 2012 5 comments Columns