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Why are U.S. Net Services Slow to Migrate North?

Netflix, the popular online movie rental service, launched in Canada last month, providing consumers with the option to download an unlimited number of movies and television shows for a flat monthly fee.  While the Netflix debut was marred by an ill-advised public relations stunt that involved actors masquerading as excited consumers, my weekly technology law column (Toronto Star version, homepage version) notes that the long delays in migrating the service north once again raised questions over why popular online services rarely view Canada as a priority destination.

Canada’s legal framework makes for a convenient explanation, but the reality is that subtle legal differences are rarely the primary rationale for business and marketing decisions.  Moreover, Canadian privacy, e-commerce, and intellectual property laws are compliant with international standards and recent surveys have found that business executives view Canadian protections as better than those in the United States. As the Canadian government readies its national digital economy strategy, identifying the real reasons behind delayed entry into the Canadian market is a crucial piece of the puzzle.  

At least three explanations come to mind.

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October 15, 2010 36 comments Columns

Locking Out Lawful Users

Osgoode Hall Law School professor Carys Craig has a great post at the IP Osgoode site on her article in From “Radical Extremism” to “Balanced Copyright”: Canadian Copyright and the Digital Agenda, the copyright book from Irwin Law that officially launches tomorrow. Craig’s article focuses on two key aspects of Bill C-32: the fair dealing reforms and the impact of the digital lock provisions.  On fair dealing, Craig brings much-needed perspective to the fair dealing reform, which has been the target of an ongoing fear mongering campaign that implausibly and inaccurately claims that it will erode Canadian culture.  Rather, Craig notes:

Educational, parodic and other transformative uses have long been recognized as potential fair uses in the United States. Indeed, the need to expressly include these specific exceptions in Canada speaks more to the shortcomings of the Canadian approach to fair dealing (in contrast to US fair use) than it does to the pursuit of a genuine balance between owners and users in the copyright reform process.

Craig reserves her harshest criticism for C-32’s digital lock provisions, which she describes as “unduly expansive,” concluding:

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October 13, 2010 30 comments News

GAO Report on Broadband Competitiveness

The U.S. Government Accountability Office has issued a new comparative study on broadband competitiveness, that finds that mandated open access is a consistent characteristic of countries that are successful in helping to facilitate a competitive environment.

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October 13, 2010 Comments are Disabled News

Liberals, NDP Support Net Neutrality Audits

The SaveOurNet Coalition has released a new report on the three main political parties positions on net neutrality.  It finds that both the Liberals and NDP support mandatory net neutrality audits by the CRTC to ensure that ISPs are compliant with the Commission’s traffic management guidelines.

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October 13, 2010 2 comments News

ACTA Conclusion Leaves Flexibility for Made-in-Canada Approach

Negotiations on the Anti-Counterfeiting Trade Agreement concluded earlier this month, with Canada, the United States, the European Union, and a handful of other countries releasing the text of a near-complete agreement.  While several key issues are still unresolved, no further negotiation rounds are planned as participants plan to use the coming weeks to iron out the remaining differences.

My weekly technology law column (Ottawa Citizen version, homepage version) notes that for many Canadians, a core concern with the agreement was the possibility that it could severely limit the ability to establish a made-in-Canada approach on copyright and intellectual property policy.  Indeed, NDP Digital Affairs Critic Charlie Angus raised the issue in the House of Commons last year, noting that ACTA could undermine domestic policy.

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October 12, 2010 14 comments Columns