Canada’s copyright notice-and-notice system took effect earlier this year, leading to thousands of notifications being forwarded by Internet providers to their subscribers. Groups such as the Canadian Recording Industry Association argued during the legislative process that notice-and-notice would “pose a long-term problem”, yet the evidence suggested that the system could be effective in decreasing online infringement. Since its launch, there have been serious concerns about the use of notices to demand settlements and to shift the costs of enforcement to consumers and Internet providers. With Industry Canada officials emphasizing that “there is no obligation for Canadians to pay settlement demands,” it is clear that there is still a need for the missing regulations, including a prohibition on the inclusion of settlement demands within the notices.
While the problems with notice-and-notice must be addressed, the leading notice sender says that they are proving to be extremely effective in reducing piracy rates. In fact, the system has proven so successful that a consortium of movie companies now want the U.S. to emulate the Canadian approach. According to CEG TEK, there have been “massive changes in the Canadian market” under notice-and-notice. They claim that piracy rates have dropped by the following rates in Canada:
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The flood of copyright notices in Canada continues to attract attention and generate concern among many Canadians. I’ve posted several pieces on the issue, including a recent post on what recipients should consider if they receive a notice. I still receive daily emails from notice recipients, with some admitting that they quickly paid the settlement in a panic and now fear that they may have opened the door to even more settlement demands. In response to this copyright abuse, I was pleased to participate in an open letter signed by many groups calling on the government to fix the loopholes in the notice-and-notice system by prohibiting the inclusion of settlement demands within the copyright notices.
A recent Metro article suggests that the government is well aware that the system is being misused. Industry Minister James Moore’s press secretary Jake Enwright emphasizes that “there is no obligation for Canadians to pay these settlements” and that the current system is “not a notice-and-settlement regime.” Those are encouraging words that come as close as the government can to tell consumers that it does not believe that settlements should be included in the notices and to hint that it does not expect Canadians to pay.
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For the past few months, I’ve received daily emails from people who have been sent a copyright infringement notification as part of Canada’s notice-and-notice system. Most of the notifications come from CEG-TEK, a U.S.-based anti-piracy firm. Canadian Internet providers are now required by law to forward these notifications and CEG TEK has been taking advantage of a loophole in the system to include a settlement demand within the notification. Some of the recipients claim that the notification has been sent in error. Others say that they have received multiple notifications for a single download. In some cases, the recipient has clicked on the settlement demand link, while in others the person has called the company and revealed their identity. In virtually every case, they are looking for advice on what to do.
My typical response has been to point to my earlier posts on the issue that have explained Canada’s notice-and-notice system, the misuse of the system by rights holders in sending misleading information about Canadian copyright law, the government’s failure to stop the inclusion of settlement demands within the notices, and the massive expansion in the number of notices with the arrival of CEG TEK. I also point to Industry Canada’s page on the notice-and-notice system, which provides the government’s perspective on the issue. These resources can be helpful, but what most people really want to know is whether they should pay the settlement or ignore it. I don’t condone infringement but I believe that the misuse of the notice and notice system is extremely problematic. Moreover, I certainly think people that did not infringe copyright should not pay a settlement demand. I’m unable to provide specific legal advice, but I can provide more information that may assist in making a more informed decision about a system that was designed to discourage infringement, not create a loophole to facilitate settlement demands.
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The launch of the Canadian copyright notice system earlier this year raised serious concerns as Rightscorp, a U.S.-based anti-piracy company, sent notices that misstated Canadian law and demanded that users pay to settle claims. The misuse of the Canadian system was the result of the government’s failure to establish regulations prohibiting misleading content or the use of notice-and-notice to demand settlements. Despite more than a year of work on potential regulations – including possible costs to rights holders for sending notifications – Industry Minister James Moore abandoned the process, implementing the system with no costs, no limitations on notice content, no restrictions on settlement demands, and no sanctions for the inclusion of false or misleading information. The government’s backgrounder says that the law “sets clear rules on the content of these notices”, however, it does not restrict the ability for rights holders to include information that goes beyond the statutory minimum.
The furor over the Rightscorp notices died down in recent weeks, but now another U.S. anti-piracy firm is flooding the Canadian market with thousands of notices, all seeking payment for alleged infringements. CEG TEK, a well-known U.S. firm, is sending notices that reference Canadian copyright law, but use the notice-and-notice system to pressure recipients into paying large settlements. A blog reader sent along a sample notice posted below (TekSavvy has posted a similar one they received).
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