Fair Dealing by Giulia Forsythe (CC BY-NC-SA 2.0) https://flic.kr/p/dRkXwP
Copyright
Government Court Filing on Bill C-11: “The Act Does Allow For the Regulation of User-Uploaded Programs on Social Media Services”
The public outcry over the Online Streaming Act is largely in the rear view mirror as the law is now at the CRTC facing years of regulatory and court battles. Last week, the Commission issued its first major ruling on mandated payments by Internet streaming services, a decision that, as I’ve written and discussed, is likely to increase consumer costs with limited benefit to the film and television sector. While Bill C-11 may ultimately become associated with the consumer implications and the CRTC’s failure to consider the market effects, for many Canadians the bill is inextricably linked to fears of user content regulation. For the better part of two years, a steady parade of government ministers and MPs insisted that user content regulation was out of the bill even as a plain reading made it clear that it was in. This week Ministry of Justice lawyers provided their take, arguing on behalf of the government in a court filing that “the Act does allow for regulation of user-uploaded programs on social media services.”
Pay Up and Shut Up: How The CRTC Has Removed Canadians From Broadcast and Internet Policy
Last December, I appeared before the CRTC as part of Bill C-11 hearings, where I emphasized the need for the Commission to pay attention to competition, consumer choice, and affordability. My takeaway from that appearance was that “my intervention met with skepticism from some Commissioners who see their role as guardians of the broadcasting system on behalf of longstanding beneficiaries with little regard for the impact on consumers or the risks to competition.” It turns out that was a pretty good read of the situation as this week’s Bill C-11 streaming ruling acts as if consumers, competition, and affordability are irrelevant issues that are at best someone else’s concern. The result is that Canadians has been largely removed from broadcasting and Internet policy at the regulator, expected to pay up and shut up.
CRTC Bill C-11 Ruling “Makes Web Giants Pay” But it is Canadian Consumers That Will Get the Bill
The CRTC has released its much-anticipated Bill C-11 ruling on the initial mandated contributions from Internet streaming services. The headline the Commission and government will promote is that the services will be required to contribute 5% of their Canadian revenues to support various Canadian funding programs that support film and TV production, news, and music. The decision is a perfect illustration of a sector that is too often focused on regulatory payments rather than market-based success with incredible micromanagement of funding in which the CRTC is turned into a policy funding machine of the government (no surprise that government officials spent last week calling stakeholders for advance supportive comments). For the moment, the actual contributions from Internet streaming services are ignored, an updated definition of Canadian content doesn’t exist, commercial success is irrelevant, and subsidies for the news operations of companies such as Bell and Rogers are encouraged. To top it off, the streaming services are required to pay but are unable to access the funds even as they invest in production in Canada. Bill C-11 was about “making web giants pay” and that is what the CRTC was determined to do even if it is consumers that will ultimately get the bill.
Huge Win for Copyright User Rights in Canada: Federal Court Rules Digital Lock Rules Do Not Trump Fair Dealing
The Federal Court has issued a landmark decision (Blacklock’s Reports v. Attorney General of Canada) on copyright’s anti-circumvention rules which concludes that digital locks should not trump fair dealing. Rather, the two must co-exist in harmony, leading to an interpretation that users can still rely on fair dealing even in cases involving those digital locks. The decision could have enormous implications for libraries, education, and users more broadly as it seeks to restore the copyright balance in the digital world. The decision also importantly concludes that merely requiring a password does not meet the standard needed to qualify for copyright rules involving technological protection measures. If this all sounds technical, this post provides the necessary background and then reviews the decision.
AI Spending is Not an AI Strategy: Why the Government’s Artificial Intelligence Plan Avoids the Hard Governance Questions
The government announced plans over the weekend to spend billions of dollars to support artificial intelligence. Billed as “securing Canada’s AI Advantage”, the plan includes promises to spend $2 billion on an AI Compute Access Fund and a Canadian AI Sovereign Compute Strategy that is focused on developing domestic computing infrastructure. In addition, there is $200 million for AI startups, $100 million for AI adoption, $50 million for skills training (particularly those in the creative sector), $50 million for an AI Safety Institute, and $5.1 million to support the Office of the AI and Data Commissioner, which would be created by Bill C-27. While the plan received unsurprising applause from AI institutes that have been lobbying for the money, I have my doubts. There is unquestionably a need to address AI policy, but this approach appears to paper over hard questions about AI governance and regulation. The money may be useful – though given the massive private sector investment in the space right now a better case for public money is needed – but tossing millions at each issue is not the equivalent of grappling with AI safety, copyright or regulatory challenges.
Recent Posts
Government Court Filing on Bill C-11: “The Act Does Allow For the Regulation of User-Uploaded Programs on Social Media Services” 
Sour Grapes: Big Media Lobby Wants to Squash the New Collective Responsible For Administering Google’s $100 Million Online News Act Money 
The Law Bytes Podcast, Episode 205: Len St-Aubin on What the CRTC’s Internet Streaming Ruling Means For Creators, Competition and Consumer Costs 
Pay Up and Shut Up: How The CRTC Has Removed Canadians From Broadcast and Internet Policy 
CRTC Bill C-11 Ruling “Makes Web Giants Pay” But it is Canadian Consumers That Will Get the Bill
