Intellectual property law is good. Excess in intellectual property law is not. This blog is about excess in IP and related law. I have practiced law with prestigious firms and successfully acted for interveners in several important Supreme Court cases. I've also been in government & academe. My views are purely personal. Nothing on this blog should be taken as legal advice. I am a policy provocateur and currently not practising law. My email address is hknopf@gmail.com.
Showing posts with label making available. Show all posts
Showing posts with label making available. Show all posts
On July 15, 2022
the Supreme Court of Canada (“SCC”) rendered a lengthy, nuanced and very important
judgment in Society
of Composers, Authors and Music Publishers of Canada v. Entertainment Software
Association, 2022 SCC 30 (CanLII), <https://canlii.ca/t/jqgw0>.
Objectively, the decision affirmed that:
1)There
is no new “making available right" as such resulting from the 2012 amendments
to the Copyright Act. The new definition added as s. 2.4(1.1) merely clarified
the meaning of the existing right under s. 3(1)(f) to “communicate to the
public by telecommunication”, and did not create a standalone new right or a
justification for stacking on an additional tariff.
2)SOCAN
was not entitled to stack a new royalty on top of existing tariffs simply by
virtue of a user making a work available for streaming or download. Such
activity is already covered by existing rights and tariffs, and the 2012
amendment clarifying the definition of “communication of a work or other
subject matter” in s. 2.4(1.1) doesn’t create new liability.
3)The
“definition” provisions in s. 2 of the Copyright Act do not add new rights. The
rights of owners of “works” are found in the first paragraph of s. 3(1). As
ably stated by ESA, “These rights are the right to reproduce, perform, and publish
the work or any substantial part thereof.” The “making available” provision,
however, is not contained in this rights-granting section but rather in definition
section 2.4(1.1).
4)The
Court once again affirmed the importance and centrality of the doctrine of
technological neutrality to applying the Copyright Act.
5)The
Court once again affirmed the principle of balance in copyright law:
“[5] I cannot agree with the Board’s interpretation of s. 2.4(1.1). The Copyright Act does not exist solely
for the benefit of authors. Its overarching purpose is to balance authors’ and
users’ rights by securing just rewards for authors while facilitating public
access to works. When this balance is achieved, society is enriched. Authors
are encouraged to produce more works, and users gain access to works which they
can use to inspire their own original artistic and intellectual creations.”
6)The
Court once again affirmed the rule that one activity (here, streaming or
downloading) can only give rise to one royalty payment, and that payment of two
royalties for the same activity is prohibited.
7)The
domestic legislation is what is determinative – not the treaty. Without being
as blunt and even apparently sarcastic as Justice Statas was in the Federal
Court of Appeal when he he referred to “the vibe” of international
law,the SCC affirmed Justice Statas’ general approach to use of
international law to interpret domestic statutes.
8)The
Copyright Board was wrong – i.e. not “correct” - in its interpretation of the
2012 legislation. The Copyright Board will be held to the “correctness”
standard of review when it comes to interpreting the Copyright Act because it
shares concurrent first instance jurisdiction with the Superior Courts. The
Board will be given no deference for being “reasonable” in its interpretation
of the substantive provisions of Copyright Act. It must be correct. Importantly,
this is the first new category of correctness review since the landmark Vavilov
decision. Two of the judges disagreed and would have applied the more
deferential “reasonableness” standard. That said, they found that the Board’s
decision was unreasonable in this case.
9)Justice Rowe states and reiterates that “If a work is
made available for downloading, the author’s right to authorize reproductions
is engaged.” (paras. 8, 108). Moreover, the meaning of “authorize” has been
considered in greater depth in a number of prior SCC decisions. It will be
interesting to see whether future courts look more to ESA or to earlier cases
like CCH when confronted with this issue.
10)Finally, this decision may or may not have some
potential application to infringement cases, given the closing comment from
Justice Rowe:
[113] Before concluding,
I would note that the value of these rights is not in issue in this appeal.
Setting the appropriate royalties to compensate authors when these rights are
engaged is a matter for the Board to decide. Similarly, the considerations that
a court might have regard to in assessing monetary remedies for infringement is
a matter to be decided if and when such a case arises.
More subjectively:
1)To
put it bluntly, when the Copyright Board strays out of its permitted and
mandated narrow lane of rate-setting (see Prof. Katz’s factum on this point) and presumes
to interpret the substantive provisions of the Copyright Act – much less
international law – it had better be “correct” and just not merely “reasonable”.
While the SCC recognizes that there can be many “reasonable” outcomes, there is
normally only one “correct” outcome. This
clarifies a residual issue from Canada
(Minister of Citizenship and Immigration) v. Vavilov, 2019 SCC 65 (CanLII), [2019] 4 SCR 653, <https://canlii.ca/t/j46kb> concerning
the standard of review for the Copyright Board. This is bound to upset the
Copyright Board, following less than a year after the SCC declared that
Copyright Board tariffs are not mandatory for unwilling users in the York v.
Access Copyright decision, which I wrote about here. Per Abella, J:
[39] As matter of legislative
coherence, it would
be incongruous if royalties fixed in the context of licence negotiations
between a collective society and a specific user were voluntary, but those set
in a general tariff were mandatory. https://www.canlii.org/en/ca/scc/doc/2021/2021scc32/2021scc32.html
2)This
clearly very expensive and lengthy detour could have been avoided if the Board
had not called for extensive submissions on the implications of the WIPO treaties
– which numerous well-resourced parties went along with resulting in a pantheon
of experts’ opinions. All of this could and should have been avoided if the
Board had simply allowed or denied SOCAN’s submissions on the basis of the
Canadian Copyright Act, the 1996 WIPO treaties, and existing authorities
on the subject. Then, the FCA could have resolved the issue on judicial review.
Canada does not need a panoply of “experts” to read a domestic statute, and if
appropriate, an international treaty and published commentary on it. We don’t
need a monumentally expensive, dilatory and gratuitous display of the “the
vibe” of international and treaty law in what should have been a rate setting
exercise. The Board’s decision to proceed the way it did could potentially have
set a dreadful precedent in terms of access to justice in situations wherein
objectors do not have the resources that were available in this instance.
3)Ironically,
after recognizing that a freestanding “making available right” existed, the
Board nonetheless refused to value the making-available tariff because ‘the evidence before it was inadequate to warrant the setting of a
tariff for ‘making available’’. This
was upheld as “reasonable” in the companion decision of the FCA. CMRRA-SODRAC Inc. v. Apple
Canada Inc., 2020 FCA 101 (CanLII), <https://canlii.ca/t/j82gf>. Arguably, that should have been the end of the matter for
the Board, especially since the Board recognized more than a decade earlier in
another proceeding for a SOCAN tariff on “other sites” that “in the absence of proper and reliable evidence, it would be
irresponsible to certify a tariff that could potentially have such a broad
scope of application” and this was upheld by the FCA, in a decision in which I
played a leading advocacy role. Society of Composers, Authors and Music
Publishers of Canada v. Bell Canada,
2010 FCA 139 (CanLII), <https://canlii.ca/t/29z9n>, which Justice Stratas cited in 202 FCA 101.
4)Interestingly,
the issues of royalty stacking and the effort to twist or elevate definitions
into new rights has a long history:
a)The
monumental Report of Judge Parker from 1935
outlined the concerns with the attempts by the predecessors of SOCAN to impose
“additional” costs on motion picture exhibitors as a result of the new
technology of the day – namely “talking pictures” and such practices as the notorious
attempt imposition of a “score charge” to “to recoup for the
producer his cost, and perhaps a profit, on what was involved in putting the
sound track on the film or record the sound on a disc, timed in relation to the
film." This was a blatant and early attempt at royalty stacking – and it prompted
the establishment of the Copyright Appeal Board in Canada, which worked very
well in Canada until the Copyright Board came along more than five decades
later.
b)Kraft
tried to twist the s. 2.7 definition of an “exclusive licence” added in 1997 to
the Copyright Act into a right to “thwart” the importation of perfectly
authentic Toblerone chocolate bars based on copyright in a small picture on the
packaging. I successfully thwarted this argument on behalf the Retail Council
of Canada as an intervener when this case went to the SCC resulting in the
decision in Kraft Canada
Inc. v. Euro Excellence Inc., 2004 FC
652 (CanLII), [2004] 4 FCR 410, <https://canlii.ca/t/1h3qj>
c)In
one of the 2012 “Pentalogy” cases at the SCC, the Motion Picture Association of
Canada incongruously argued, in effect, that the word “excludes” in the
definition of “sound recording” actually means “includes”. The definition in
question was: “sound recording” means a
recording, fixed in any material form, consisting of sounds, whether or not of
a performance of a work, but excludes any soundtrack of a
cinematographic work where it accompanies the cinematographic work”. (underline added). Needless to say, the SCC wasn’t impressed and
the only mystery was why it even heard the case in the first place. See Re:Sound v. Motion
Picture Theatre Associations of Canada, 2012 SCC
38 (CanLII), [2012] 2 SCR 376, <https://canlii.ca/t/fs0vc>
BTW, I was not
alone in finding the hearing to be rather confusing. Even the judges were
wondering at times about who was agreeing or disagreeing with whom and about
what. Here’s the webcast.
Some of the
parties seemed to depart from their factums – which in some cases were much
more clear than their oral arguments. Perhaps the most useful factum was that
of ESA, which can be found here.
The FCA
has now released two important companion judgments regarding the Copyright
Board’s 2017 tariff decision that involved the so-called “making available
right”. Both judgments were penned by Stratas, J.A.
The
first FCA decision is Entertainment Software Assoc. v. Society Composers, 2020 FCA 100 (CanLII), <http://canlii.ca/t/j82gg> – the
“making available judgment” – which quashed the Copyright Board’s 2017 decision
that there is a new and separate
“making available right” (“MAR”) that can be monetized as such as a tariff (the
“Board MAR decision”)
The
second FCA decision is CMRRA-SODRAC Inc. v. Apple Canada Inc., 2020 FCA 101 (CanLII), <http://canlii.ca/t/j82gf>, which upheld that Board’s related 2017
decision that ‘evidence
before it was inadequate to warrant the setting of tariff for “making available" (the “Board rate
decision”).
On the
first issue regarding the making available right, the FCA quashed the Board’s
decision in a judgment that is perhaps the most blunt, scolding, scathing,
sweeping, and almost even sarcastic appellate rebuke that I have ever seen of
any tribunal and certainly of the Copyright Board – with one possible other
contender mentioned below, with an interesting common denominator. We see use
of such language as “unacceptable”, “skewed”, “fatal loss of confidence…”,
“misapprehension”, and repeated use of
the word “misuse[s]”.
While
the result is anything but surprising, the frankness of the language from this
normally very staid and rhetorically restrained Court is indeed very notable
and remarkable and should be taken very seriously not only by today’s Copyright
Board (which is composed of different members than those who wrote the 2017
decision) but by those bureaucrats and Ministers who enable and fund it.
Both of these
decisions comment at length about the possible implications of the Supreme
Court of Canada (“SCC”) decision in Vavilov for the Copyright Board.
I’ll leave that mostly for another day. However, it should be noted that that
the Board’s “correctness” niche carved out by the Supreme Court of Canada (“SCC”)
pre-Vavilov wherein some issues arise both in tariff hearings and in
infringement proceedings in the superior Courts may one day now be revisited as
to whether this is still “good law”. In any event, those comments of Stratas, J.A.
were obiter dicta. The FCA reviewed both decisions on the lenient and
more deferential standard of “reasonableness” ((i.e. not “egregious or
irrational” – Board Rate decision, para. 6). The Board won the battle on rate setting but lost the war
on statutory interpretation and its “misuse” (paras. 76, 77 and 93) of international law and its “misunderstanding
of the relationship between Canadian domestic law and international law.”
(para. 75)
The FCA upheld
the Board on the rate setting issue, affirming the Board’s “relatively unconstrained”
power to set rates and indicating that “in setting rates, the Board has
just about the widest discretion known to law” (para 12 of the rate decision).
That is not particularly remarkable or surprising – since the real raison d'ĂȘtreof the Board has historically been and mainly
should be about rate setting and number crunching which requires sometimes lots
of evidence and which justifies some time and effort – though not the 7 – 9+
years that seems now to have become the new normal for any contested file – or in
the case of the Access Copyright post-secondary tariff – even an effectively uncontested one. Don’t get me started
again on the extreme retroactivity of Board tariffs – something about which the SCC has explicitly
expressed concern.
The Copyright
Board has been ill-equipped to deal with any serious legal issues that entail
jurisdictional or other essentially legal matters . Unlike the Competition
Tribunal, where “questions of law shall be determined only by the judicial
members sitting in those proceedings”, the Board has never had such a requirement and can sit even in the absence of its Chair,
who is required to be sitting or retired judge. That said, there has never been a Chair of the
Board who hit the ground running with copyright law expertise. Even the most recent
Board Chair – Justice Robert Blair – who as of today appears either to have retired
or hasn’t yet been reappointed following the expiration of his first term on May
27, 2020 – has explicitly commented in 2018 on Board expertise in his only
published remarks to date that such expertise is more likely to
come from the Federal Courtsand that the Board, at that time, didn’t even
have a member with economic expertise:
The Chair must
be a sitting or retired superior court judge (where very little intellectual
property work, much less copyright work, is done), and to date has not come
from the Federal Court system where they actually know something about those
subjects! In addition, none of the present members is an economist.
At any
rate, I can and probably need do little more at this time than excerpt (with
highlight, emphasis and some brief comment added) some of the more interesting and
trenchant excerpts from Stratas, J.A.’s decision in the FCA’s making available judgement:
[3] After SOCAN had filed its proposed tariffs,
the Copyright Act was amended: Copyright Modernization Act, S.C. 2012, c. 20. A
new subsection, subsection 2.4(1.1), sometimes called the “making available
provision”, was added to the Copyright Act. It reads as follows:
For
the purposes of this Act, communication of a work or other subject-matter to
the public by telecommunication includes making it available to the public by
telecommunication in a way that allows a member of the public to have access to
it from a place and at a time individually chosen by that member of the public.
[4]
This raised the question whether the mere making available of a work on a
server for the purpose of later streaming or download by the public was an
event for which a tariff was payable.
[5] A few days after the addition
of subsection 2.4(1.1) to the Act, the Supreme Court released an important
decision that interpreted the phrase “communicate
the work to the public by telecommunication”: Entertainment Software Association v.
Society of Composers, Authors and Music Publishers of Canada, 2012
SCC 34, [2012] 2 S.C.R. 231. It held that the transmission over the Internet
of a musical work that results in a download of that work is not a
communication by telecommunication: see also Rogers Communications
Inc. v. Society of Composers, Authors and Music Publishers of Canada, 2012
SCC 35, [2012] 2 S.C.R. 283 at
para. 2. Following that decision, SOCAN could not
collect royalties for such downloads.
The
Board took what should have been a very simple exercise in statutory
interpretation and spun it into a lengthy apparently multimillion-dollar orgy of
legal and international “expert” fees and
evidence about the 1996 WIPO treaties. Here
is the Board’s 2017 decision – released about five years after this matter
first arose and after more than three years of deliberation.
The
Board did not need all this evidence. The legal issue about whether the 2012 legislation
created a new distinct right that could be monetized into a tariff was quite
simple not only in hindsight – but at the time, as some including Prof. Katz
pointed out. If the Board was worried that this was over its head, or in any
case, it could have and maybe should have dealt with this issue very simply by
seeking a reference to the FCA – a procedure suggested by Prof. Katz in the
Access Copyright tariff – but rejected with apparent
hostility by the Board. Or, it could have simply ruled quickly by itself and let
the parties bring judicial review proceedings.
[12] As will be made clear from the reasons that
follow, subsection 2.4(1.1) of the Act deems the act of placing a work or other
subject-matter on a server of a telecommunication network in a way that a
request from a member of the public triggers the transmission of that work or
subject-matter, including in the form of a stream or download, whether or not
such a request ever takes place, to be a communication to the public by
telecommunication.
Does this
decision set a royalty for the making available of works to the public by
telecommunication?
The protection
of the making available of works to the public by telecommunication in a way
that allows a member of the public to have access to it from a place and at a
time individually chosen by that member of the public only came into force on
November 7, 2012. Furthermore, there was insufficient usable evidence adduced
by the Parties for the Board to be able to price the act of making available
distinct from other acts of communication by telecommunication, or how to
adjust the price for communication by telecommunication to account for its
broadening in scope. However, this does not mean that the Board cannot do so in
future matters.
Back to the FCA:
[49] Nowhere
did the Board explicitly say that it
had a desired result in mind and that it was going to interpret
subsection 2.4(1.1) in a manner to get that result. But looking at the reasons
as a whole, whether it intended to do so or not, that is exactly what the Board did: it skewed its analysis in favour of one
particular result.
[50]Two general features of unacceptabilityare evident in the Board’s reasons:
(1)
Unacceptable legislative interpretation.
The Board did set out the accepted method of interpreting legislation and the
need to look at the text, context and purpose of legislation: at para. 95. But
the analysis that follows leaves out important elements, particularly
contextual elements such as the Supreme Court’s decision in Entertainment
Software Association. And, along the way, the Board made some leaps of reasoning that cannot be justified.
These fundamental defects result in a fatal loss of confidence in the Board’s
interpretation of subsection 2.4(1.1).
(2)
Misapprehension of the
interrelationship between international law and domestic law. One
element of the legislative purpose and context behind subsection 2.4(1.1),
indeed an important element, is article 8 of the Treaty. But the Board went
beyond seeing it as just an element: it developed its own robust view of
article 8, offering nothing in support, and forced subsection 2.4(1.1), a
provision in domestic legislation, to fit its view, calling subsection 2.4(1.1)
a “deeming provision”. In so doing, the Board acted contrary to binding jurisprudence that limits the
ways in which international law can influence the interpretation of domestic
law.
...
[74]Just because Canadian domestic legislation is
enacted against the backdrop of a treaty that Canada has signed and just
because the preamble to legislation, as here, suggests that it is aimed at
implementing a treaty, it cannot be assumed that Parliament has adopted the
treaty wholesale, no more and no less. Parliament, in fact, may have whittled
down the provisions of the treaty or may have extended them. Indeed, it may
have done something completely different.
[75]The Board’s decision and many of the submissions supporting
it suffer from a misunderstanding of the relationship between
Canadian domestic law and international law.
[76] When developing a
legal argument, some members of the legal academy, the Bar, administrative
decision-makers and the judiciary invoke international law—or sometimes just the vibe of it—because they see it as always
relevant, persuasive and binding. Others see it as a make-weight, hoping to
sway the impressionable with its grand provenance and sometimes broad acceptance.
Still others see it as a supply of preferred values and ideological standards,
handy ammunition to fire in support of a cause. In a courtroom ruled by
doctrine, these are misuses of international law.
[77] Too often these days, we see
these misuses.
International law enters legal debates before
courts and administrative decision-makers only in specific, defined ways that
are consistent with settled doctrine and our constitutional framework: Gitxaala
Nation v. Canada, 2015 FCA 73.
...
[93] In this case, in essence, the
Board went to article 8 of the Treaty, asserted its view of that article’s
meaning without any supporting reasoning, and then made subsection 2.4(1.1)
conform to its view. This is not a legally acceptable methodology. This is a
misuse of international law. The Board exalted international law over domestic law. In
so doing, it violated the constraints imposed by binding case law and
fundamental principle.
[94] Overall, for
the foregoing reasons, there is no basis for the Board’s interpretation of subsection
2.4(1.1). It cannot stand.
Retired Justice William Vancise was the
Chair of the Copyright Board from 2004 to 2014 and was the presiding member for
the decisions in question that were rendered in 2017, more than three years
after his retirement from the Board on May 13, 2014.The
Board is very unusual in allowing this kind of long delay without a cut off
date. The legislation does not preclude it and the Board clearly permits and
indeed seems to encourage it. The norm in the judicial system for a retired judge
to deliver a judgment after retirement is six months.
The current situation is not the first
time where the Board has apparently started out with a “desired result’’ and then tries to
go about justifying it. One can look at the earlier ill-fated attempt to impose
a “iPod tax” on devices when the FCA had said only three years or so earlier
that it couldn’t do so on the memory embedded in such devices. The same Chairman
Vancise was publicly perturbed about his rebuff from the FCA (Apple Canada
Inc. v. Canadian Private Copying Collective, 2008 FCA 9 (CanLII), <http://canlii.ca/t/1vcx1>and openly criticized it and its Justice Marc Noël
(who was appointed Chief Justice of the Federal Court of Appeal, October 9,
2014) by name in what many might regard as an inappropriate speech delivered for
a still active Chair of the Copyright Board in 2009 that he gave on August 11,
2009 shortly after he was reappointed for a second five year term in May of 2009.
Chairman Vancise had some trenchant comments
about the SCC and the FCA. On the latter, he was particularly upset about its “six turgid paragraphs”
that overturned his attempt to impose a “tax” on iPods on other similar devices
that had been clearly rejected just a few years earlier:
The Supreme Court is not the only court attempting
to fill perceived gaps in the Copyright Act. The Federal Court of Appeal has
attempted on at least two occasions to reconcile the wording of the Act with
the contemporary reality (means of consuming protected works or objects of
copyright).
In 2004, the Court ruled the Board was wrong to conclude that the permanently
embedded or non-removable memory, incorporated into a digital audio recorder or
the device itself, was “an audio recording medium ordinarily used by
individuals to copy music”.
In 2007, CPCC tried again and the Board was asked to determine whether the
recorder itself was a recording medium as defined in the Act. It said yes in a
long and well reasoned decision. The Federal Court of Appeal, once again on
judicial review, overturned the Board. This time, the Court in six turgid
paragraphs found its decision of 2004 dealt with the matter and was binding on
the Board. I still wonder how the Federal Court of Appeal came to that
conclusion when the question of whether the device itself was subject to a levy
had not even been an issue in the previous decision and the comments of Noel
J.A. were obiter and contained in what can only be called a “throw away line.”
A throw away line that has had extreme consequences, not the least of which is
at least 10's of millions of dollars in royalties that have not been paid to
authors, composers and performers and threatens to destroy the private copy
regime.
(Full
disclosure - I argued successfully against the Board’s rulings on behalf of the
Retail Council of Canada in both of these instances at the FCA).
Justice
William Vancise rendered his last Board decision only on January 18, 2018 – almost four years after his
retirement.
What Does This All Mean?
This decision comes only a few weeks
after another very important FCA copyright decision in the Access Copyright
v. York University case. I’ve written about
this recently at great length. That
was an appeal – in contrast to judicial review – of a decision from the Federal
Court. But lest we forget, that litigation was mainly about whether about
whether interim and indeed final approved tariffs from the Copyright Board are
“mandatory”. The FCA said very clearly that they are not. The Copyright Board
tried its best to suggest for the longest time that they were mandatory based
upon the absurd “one copy of one work” theory.
So, even if the Board has “just about
the widest discretion known to law” to set tariff rates, it appears that the
Board lacks the power to make the tariffs in question here and in the York case
mandatory – absent an unexpected surprise from the SCC or Parliament. And even
if the Board’s rate calculations can survive almost any judicial review, nobody
will pay any attention to its tariffs even if they are “reasonable” (in the
Vavilov sense) but unreasonable in common sense or dollars and cents to users
and not mandatory.
That should give the Board an incentive
to get things done promptly and satisfactorily from a users’ standpoint –
otherwise nobody will “take the train” with its approved
tariff (my analogy) if there are better and cheaper ways of getting there from
here without recourse to a tariffed means of transportation. Nobody will use
tariffs that are not attractive and not mandatory.Eventually, Parliament will figure this out
and the Board will have to be reinvented or eliminated.
Is the SCC On the Horizon?
Given the proximity in time of the
making available judgments to the Access
Copyright judgment – and the common thread of Copyright Board tariffs, will we see
the SCC once again take on more than one copyright case at once, as we saw in the 2012 great Canadian copyright “pentalogy”?
Perhaps now a “duet” of decisions?
The big difference between this and the
pentalogy situation is that four of the pentalogy cases involved some interesting,
urgent and close issues that called out for the Court’s attention, and which
were interrelated to some considerable extent – and the Board needed to be
corrected in some important respects and indeed was. One of the decisions, Re:Sound v. Motion Picture
Theatre Associations of Canada, 2012
SCC 38, was not close in any way and the mystery remains as to why
leave to appeal was even granted, since everyone including the Board but somehow
excluding Re:Sound and its counsel seemed to understand that the meaning of the
word “excludes” does not include “includes”.
In the current situation, the FCA’s
judgements on the mandatory tariff issue in the Access Copyright v. York
case and the making available judgment would both seem to be “bullet proof” lengthy
and detailed decisions by unanimous panels of the FCA and penned by very
experienced appellate justices. That doesn’t mean that leave won’t be sought,
given the amount of money potentially involved, or even granted in either case.
However, I will go on record to predict that
it is very unlikely that the FCA will be reversed by the SCC at the end of the
day in either of these cases.
Conclusion
The FCA has recently delivered two
stunning, highly documented, extremely lucid and ultra important judgments involving
Copyright Board tariffs that definitely teach and confirm some very essential lessons,
which include:
Tariffs such as those
sought by Access Copyright and SOCAN are not mandatory for users. This is based
upon nearly eight decades of SCC jurisprudence that in turn reaches back to at
least 1894
The Copyright Board
has considerable scope to set rates – including a zero rate where there is
insufficient evidence to justify a tariff. But deference by the FCA won’t make
the tariffs acceptable to the public if the tariffs are not sensible and timely
The Copyright Board
needs to be mindful of basic principles of statutory interpretation, including the
basic and obvious axiom that international law must not be misused so as to misconstrue
domestic law
As attractive as the exercise
may have been, and even by the generous standard of “reasonableness”, the Board
was very unreasonable in its venture into the “vibe” of international law.
Whatever happens – or more likely does
not happen – in the SCC, it is only a matter of time before Ministers focus on the
apparently total lack of tangible evidence of progress in Copyright Board
reform. The Board now has a lot more money, almost no visible sign of meaningful
activity, and no evidence of any plans that will significantly make a
difference. With due respect and tough love, I must reiterate that “revamping its website” and launching a Twitter
account won’t help in any significant way with the underlying issues and
problems. When Ministers get around to the Copyright Board,
which is bound to happen even if overall copyright reform bogs down as it
usually does, these recent decisions are bound to be on their minds.