Thursday, August 05, 2021

Blacklock’s Attempt to Block Resolution of Its Litany of Litigation


(Wikimedia)

Blacklock’s is trying to block the efforts of the Attorney General of Canada (“AGC”) to seek via a counterclaim a summary judgment ruling that might end the seemingly endless litigation attempts by Blacklock’s going back to about 2014 and its attempt to refloat its definitive defeat on fair dealing via a new claim based on Technical Protections Measures (“TPM”).

There is an important motion brought by Blacklock's pending in the Federal Court returnable August 10, 2021. Anyone interested in watching should seek permission at least two days in advance here:

HEARINGS-AUDIENCES@FCT-CF.CA

 The file  is:

  • T-1862-15 - 1395804 Ontario Ltd. v. The Attorney General of Canada

The AGC is attempting to proceed with a summary judgment motion that could potentially resolve all of the litany of cases against the AGC and various federal agencies promptly and efficiently. Here’s a link to the AGC’s motion record material, which is concise and readable. I won’t post Blacklock’s motion material because it is extraordinarily lengthy at 1,298 pages and 25,914 KB. I’m always happy, in the public interest, to post public domain material or material for the purpose of fair dealing without a paywall. But in this case, it’s just too cumbersome. Blacklock’s itself is, of course, free to post some or all of it. Maybe it will even do so without a paywall.

I have blogged several times before about Blacklock’s “tendentious and tenacious litany of litigation" here and elsewhere on my blog.

BTW, CIPPIC is attempting to intervene in the substantive motion for summary judgment, once it moves forward.

Here, in the AGC’s own words, is the Overview of the AGC’s response. The highlighting and emphasis is mine. The AGC’s submissions have not yet been ruled upon – but presumably will be on or after August 10, 2021.

OVERVIEW

1.            This is a bold move by the Plaintiff to set aside a discretionary Order of the Case Management Judge Molgat and avoid a motion for summary judgment which it has been trying to avoid for almost two years. There is no basis in fact or law to set the Order aside. The motion must be heard.

2.            On April 4, 2019, the Attorney General of Canada (AGC) proposed a motion for summary judgment in respect of the Technological Protective Measures (TPM) claims contained in the Parks Canada action at a Case Management Conference (CMC). The TPM claims are the only remaining dispute between the Plaintiff and the AGC, given that Justice Barnes had already concluded that the institutional use of the articles published by the Plaintiff constitute a “fair dealing” under the Copyright Act. The results of the proposed motion would dispose of fourteen actions that are before the Federal Court. An agreement was reached by all counsel at the CMC. With the exception of the Plaintiff, everyone in attendance at the CMC, including the Case Management Judge, had a clear understanding on what was agreed to.

3.            Upon being advised that the AGC would be leading evidence in the motion for summary judgment, a matter clearly provided for under the Federal Court Rules, the Plaintiff reneged on the agreement and spent the next two years trying to derail the motion for summary judgment. As explained in this factum, the conduct of counsel for the Plaintiff has been contemptuous of the Court, and include such things as the disregard of numerous Court Directions.

4.            After two years of resisting and after it was clear that the Plaintiff could no longer avoid the motion, the Plaintiff gave notice that it would discontinue the action. The surprise announcement came at a CMC in July 2021, after the Plaintiff was ordered to comply with the Directions of the Court. However, the Plaintiff did not file the Notice of Discontinuance immediately. The AGC used the delay to serve and file a Counterclaim and it renewed the motion for summary judgment under this new pleading, the very motion that the Plaintiff had been resisting. The Case Management Judge allowed the Counterclaim and directed the parties the set dates for the hearing of the motion. The Plaintiff now appeals from that Order.

5.            The AGC contends that the Order of the Case Management Judge was appropriate and necessary. There are no errors of law, mixed fact and law or fact. The motion will dispose of the remaining thirteen actions and, more specifically, it will dispose of all TPM claims before the Court, even in the Related Actions. The order of the Case Management Judge is in keeping with Rules 55 and 385, which allow her to make decisions that allow for the most expeditious means of adjudicating the claims that are before this Court.

6.            The AGC requests that the appeal be dismissed, with costs.

Be sure to tune in on August 14, 2021. The one good thing about COVID is that the Courts are now more accessible than ever. This is one to watch.

 HPK

Update: August 26, 2021 

From the Federal Court Docket August 25, 2021:

Reasons for Order and Order dated 25-AUG-2021 rendered by The Honourable Madam Justice McDonald Matter considered with personal appearance The Court's decision is with regard to Motion Doc. No. 52 Result: THIS COURT ORDERS that this Appeal Motion is dismissed with costs in the all-inclusive amount of $1,000.00 to the Attorney General of Canada. Filed on 25-AUG-2021 copies sent to parties Final Decision Certificate of Order entered in J. & O. Book, volume 1505 page(s) 481 - 481

So, Blacklock's failed in its effort to stop the AGC's counterclaim for summary judgment. I will blog about this shortly.

Tuesday, August 03, 2021

Victory and Vindication from Justice Abella and the Supreme Court of Canada for Canadian Educators


 

 “Veni, vidi, vici”: Julius Caesar, 47 BC

The more than ten-year-old effort by Access Copyright (“AC”) to impose a “mandatory tariff” through the Copyright Board on Canadian educational institutions is over in a quick, decisive, and devastating unanimous judgment from Justice Rosalie Abella of the Supreme Court of Canada (“SCC”). 85 years of legislative policy and SCC jurisprudence are re-affirmed, vindicated, and continued. No rational and competent Cabinet of any political stripe should even think about trying to overturn this result.

Bottom line:

The Court held that:

  •        AC’s tariff as approved by the Copyright Board is not mandatory for users
  •        It is unnecessary and inappropriate to issue a declaration about fair dealing in these circumstances
  •        Nonetheless, there were serious errors in the Courts below noted concerning their pronouncements about fair dealing, e.g. re “aggregate” copying.

The Court also provided additional guidance on how guidelines can “actualize” fair dealing rights and provided useful guidance for the educational sector to move on – without the need to seek gratuitous and inappropriate declarations from Courts.

These three main aspects of the Court’s judgment reflect the intervention of  my client, the Canadian Association of Research Libraries (“CARL”). I can proudly say that our arguments were clearly very influential and, apparently, even determinative. The other clearly influential intervention that helped to carry the day was from my friend and colleague Prof. Ariel Katz and the Author’s Alliance, who showed that Access Copyright by no means represents the interests of all authors and certainly not the interests of most of the authors whose works are actually used in Canadian universities. Other interveners also provided useful contributions, e.g. Universities Canada and the Canadian Association of University Teachers.

Justice Rosalie Abella heard the AC v. York & York v. AC case on May 31, 2021 as her last case before her retirement from the SCC on July 1, 2021. Her unanimous and unusually prompt yet extremely detailed and substantial judgment was rendered on July 30, 2021 – just ten weeks after the SCC heard this case, which was technically two appeals and which included 17 interveners.  This remarkable judgment summarizes the consistent policy and jurisprudence of Canadian copyright law on collective administration and fair dealing since 1936. This landmark judgement will crown her luminous and lasting jurisprudential legacy built upon her previous important judgments in copyright and so many other areas. This may well prove to be the most important copyright judgment to date in Canada.

From a purely practical bottom-line standpoint, if the decision had gone the other way, Canadian universities could have been on the hook for hundreds of millions of dollars or more for retroactive and prospective payments that would be been a windfall to AC and a disaster for higher education and innovation. Not to mention much more litigation and potentially one or more further trips to the SCC. We now have litigation closure on this for the foreseeable future – but the lobbying to undo this result has already begun.

Prof. Katz was also the author of the two “Spectre” papers that were so influential in the Court’s reasoning and are cited several times. He and Prof. David Lametti, as he then was, before he became a Member of Parliament and then Minister of Justice, were my colleagues, co-counsel and clients in an intervention in the immediate forerunner to the current SCC decision, namely, the case of Canadian Broadcasting Corp. v. SODRAC 2003 Inc., 2015 SCC 57 (CanLII), [2015] 3 SCR 615, <https://canlii.ca/t/gm8b0> (“CBC v. SORRAC”) decided in the SCC just six years ago by now retired Justice Marshall Rothstein. See paras. 101 to 113 which held, based upon our intervention, that:

[113]  I find that licences fixed by the Board do not have mandatory binding force over a user; the Board has the statutory authority to fix the terms of licences pursuant to s. 70.2, but a user retains the ability to decide whether to become a licensee and operate pursuant to that licence, or to decline.

The Simplified History of this Litigation

Most of the immensely long and convoluted history of  this litigation and the Copyright Board proceeding, which concluded more than nine years after it began and was mostly unopposed, has been discussed, sometimes very critically,  on my and Ariel Katz’ blogs. Here are some key points:

  •         AC obtained an “Interim Tariff”  from the Copyright Board just in time for Christmas on December 23, 2010. Universities Canada (then AUCC) did nothing to get this interim tariff judicially reviewed, although that would arguably have been a viable possibility at the time. AUCC instead launched a predictably unsuccessful attempt to force the Board to issue transactional licenses. AUCC was represented by the Osler law firm, which subsequently represented York in the litigation and which was responsible for the Fair Dealing Guidelines involved in this litigation. Osler’s has also represented Re:Sound, the second largest collective in terms of earnings in Canada. Re:Sound represents the major record companies – dominated overwhelmingly by three American giants. Back in the 1990’s, Osler had also represented Access Copyright, or CanCopy as it was then called.
  •         AC sued York in 2013. York did nothing to try to stop the litigation in a summary manner (e.g. on the basis that that the tariff is not mandatory, AC lacks standing, no cause of action, etc.) and instead launched a  counterclaim based on the claim that anything copied within the scope of its fair dealing guidelines was fair game. These guidelines had been developed by Osler’s and AUCC.
  •         AUCC withdrew from the Copyright Board proceedings in 2012 concerning the Post-Secondary tariff in 2004 – presumably having exhausted its budget for the Board proceedings and agreed to a controversial Model Licence deal that very few Universities went along with.
  •         In the 2015 CBC v. SODRAC case, Prof. Ariel Katz, Prof. David Lametti, as the then was, and I as counsel persuaded Justice Rothstein and the rest of the Supreme Court by way of intervention that tariffs in the voluntary so-called “arbitration” regime of the Copyright Board weren’t mandatory. If tariffs under the voluntary regime weren’t mandatory, a fortiori then why should tariffs be mandatory under non-voluntary and immensely expensive “in rem” proceedings that AC was pursing at the Board? However, AC was simply in denial of this result and York was barely cognizant of it until much later.
  •         The AC v. York litigation continued at immense expense culminating in a three-week trial in 2016 and a very controversial judgment by Phelan, J. of the Federal Court in 2017. See Canadian Copyright Licensing Agency v. York University, 2017 FC 669 (CanLII), [2018] 2 FCR 43, <https://canlii.ca/t/h4s07>  During that proceeding, York focussed only on whether the “interim” tariff was mandatory and suggested for some reason that the CBC v. SODRAC judgment was merely “instructive” and that it was not necessary to consider whether final approved tariffs were mandatory – even though the trial judge himself had questioned whether this could resolve the whole case. The result was discussed in a very frank, important and widely read blog by Ariel Katz entitled Access Copyright v. York University: An Anatomy of a Predictable But Avoidable Loss
  •         Anyway, York kept the mandatory tariff issue alive on appeal, although it still focussed mostly on the fair dealing counterclaim.
  •         In the Federal Court of Appeal (“FCA”), Justice Pelletier got the mandatory tariff issue absolutely right – mainly by relying on Ariel Katz’s Spectre I paper that York had thankfully cited. See York University v. Canadian Copyright Licensing Agency, 2020 FCA 77 (CanLII), <https://canlii.ca/t/j6lsb>
  •         In the SCC, York finally fully engaged on the mandatory tariff issue with an very good factum in response to York’s appeal of the mandatory tariff ruling from the FCA. AC dismissed the CBC v. SODRAC judgement as a one-page afterthought in its appeal factum on the mandatory tariff.
  •         York also brought in the well-known barrister Guy Pratte for the oral argument. He is one of the last of the breed of all around appellate barristers who can advocate just about any case and come quickly up to speed on every detail. His performance was excellent and should be watched by anyone who aspires to appear at the SCC. He was extremely clear and in command. And he knew every detail and could answer every question complete with page or paragraph reference without hesitation or having to shuffle papers around.

Key findings in the Judgment In Justice Abella’s own words:

Justice Abella’s judgment is a monument of lucidity, thoroughness and readability. It is a “must read” in its entirety for anyone interested in Canadian copyright law. However, for readers convenience, I take the liberty of including the following key quotes from Justice Abella’s judgment (with highlight added):

[19]     For the following reasons, I agree with the Federal Court of Appeal that the tariff is not enforceable against York University. But I would not grant York’s requested Declaration, nor endorse the fair dealing analysis conducted by the Federal Court and the Federal Court of Appeal.

 [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.

[40]     Access Copyright argued in the alternative that pursuant to s. 68.2(1) Board approved royalties operate as a remedy for infringement against a user who has not accepted a licence. But there is nothing in the legislation to suggest that Parliament intended that Board approved tariffs operate as pre-determined infringement damages. Parliament is well aware of how to create a statutory damages scheme. It did so in s. 38.1, which was enacted in 1997 at the same time as key collective administration amendments. Section 68.2(1) could not have been meant to silently create a second statutory damages scheme, where “amounts are predetermined by the Board, and then imposed without regard to the actual circumstances of the case and without any proportionality to either the user’s behaviour or copyright owners’ actual damage” (“Spectre II”, at p. 58).

[54]     This was consistent with the purpose of the regime, enacted as Parliament became “aware of the necessity of regulating the exercise of the power acquired by” performing rights societies (Vigneux (1943), at p. 352, per Duff C.J.). It would be discordant with this purpose to empower a society to foist a licence on an unwilling user.

[64]     But a collective society’s market power and effectiveness at achieving its goals is not guaranteed by the Copyright Act. Nothing in the Act is designed to prop-up collectives that have become less valuable to users and/or rights-holders. As Professor Daniel J. Gervais explains:

. . . Canadian rightsholders may create a new Collective Management Organization if they are dissatisfied with an existing one. In fact, users themselves could do the same, as was suggested by a well-known author in the area of reprography. [Emphasis in original.]

(“Collective Management of Copyright and Neighbouring Rights in Canada: An International Perspective” (2002), 1 C.J.L.T. 21, at p. 26; see also Department of Canadian Heritage, Collective Management of Copyright and Neighbouring Rights in Canada: An International Perspective (2001), at p. 26; Howard P. Knopf, “Copyright Collectivity in the Canadian Academic Community: An Alternative to the Status Quo?” (1999), 14 I.P.J. 109.)

[65]     If a collective society does not have a large enough repertoire or other sources emerge to provide better value, users may find that the collective is not “the most cost-effective way to obtain licences”, and might prefer to “negotiate with the right-holders directly, or through other intermediaries” (“Spectre I”, at p. 159).

[67]     Operating together, these price-setting powers of the Board protect users from the potential exertion of unfair market power by collective societies. This was clearly the purpose of the 1936 amendments empowering the Copyright Appeal Board to approve statements of royalties. Government reports and legislative history show that this purpose persisted through the 1988 and 1997 amendments.

 [71]     Access Copyright’s interpretation of s. 68.2(1) is not only unsupported by the purpose of the Board’s price-setting role, it is, respectfully, also in direct conflict with that purpose. Instead of operating as a part of a scheme designed to control collective societies’ potentially unfair market power, Access Copyright’s interpretation would turn tariffs into a plainly anti competitive tool, boosting collective societies’ power to the detriment of users.

[72]     The legal consequence of Access Copyright’s mandatory tariff theory would be that a user would be liable to pay royalties in full as soon as it became responsible for any infringing use of a work within a collective society’s repertoire. Under the final 2011-2014 Access Copyright tariff for post-secondary educational institutions, for example, York would be liable to pay $24.80 for each of its 45,000 full time equivalent students, totalling over one million dollars per year, as soon as it made a single infringing use within Access Copyright’s repertoire. For a university that attempts to clear its copyright obligations using alternative licences and fair dealing, a single infringing use — one that was not authorized by fair dealing or independently licensed — could thereby become a tripwire making the university liable to pay the full royalties in a tariff. This “Sword of Damocles”, as the intervener the Canadian Association of Research Libraries aptly put it, renders a university’s freedom to clear its copyright obligations without involving Access Copyright completely illusory.

[74]     The source of Access Copyright’s grievance, it seems to me, stems not so much from the voluntary nature of an approved tariff, but from the fact that Access Copyright cannot initiate infringement actions on behalf of its members. To the extent that this is a problem, it has nothing to do with s. 68.2(1) and is largely outside the scope of this appeal. But it is important to recall that Access Copyright chooses to operate on the terms of a non-exclusive licence that does not give it the right to sue for infringement in respect of the rights it administers. Nothing compels Access Copyright and its members to operate this way.

[76]     It is of course open to Parliament to amend the Copyright Act if and when it sees fit to make collective infringement actions more readily available. But under the existing relevant legislation in this appeal, an approved tariff is not binding against a user who does not accept a licence.

[77]     I would therefore dismiss Access Copyright’s appeal. This brings us to York’s appeal from the dismissal of its counterclaim seeking declaratory relief.

[81]     York’s appeal to this Court seeks the Declaration from this Court that was denied by the Federal Court and the Federal Court of Appeal.

[82]     In my view, it is not appropriate to entertain York’s request for declaratory relief in these proceedings. This Court recently stated the test for when declaratory relief may be granted in Daniels v. Canada (Indian Affairs and Northern Development), [2016] 1 S.C.R. 99, per Abella J.:

The party seeking relief must establish that the court has jurisdiction to hear the issue, that the question is real and not theoretical, and that the party raising the issue has a genuine interest in its resolution. A declaration can only be granted if it will have practical utility, that is, if it will settle a “live controversy” between the parties. [Citation omitted; para. 11.]

[85]     There is no doubt, as York argued, that guidelines are important to an educational institution’s ability to actualize fair dealing for its students. As Professor Samuel E. Trosow writes, a “general lack of understanding about basic copyright rights and obligations” serves as a “serious impedimen[t] . . . to the realization of fair dealing as a substantive users’ right” in the educational context (“Bill C-32 and the Educational Sector: Overcoming Impediments to Fair Dealing”, in Michael Geist, ed., From “Radical Extremism” to “Balanced Copyright”: Canadian Copyright and the Digital Agenda (2010), 541, at p. 542). Institutionalized guidelines can help overcome this impediment.

[86]     But the usefulness of guidelines in theory does not provide the Court with a sound basis for entertaining declaratory relief without a live dispute between the parties or when those whose rights are at stake are not privy to the proceedings.

[87]     While I therefore agree that the requested Declaration should not be granted, this should not be construed as endorsing the reasoning of the Federal Court and Federal Court of Appeal on the fair dealing issue. There are some significant jurisprudential problems with those aspects of their judgments that warrant comment.

[88]     In commenting on those errors, it is important to emphasize that our reasons do not decide the issue of fair dealing, which can only be determined in a factual context. Rather, the objective is to correct some aspects of the reasoning from the courts under review which, respectfully, depart from this Court’s jurisprudence. While correcting the errors committed by the Federal Court and Court of Appeal favours the position argued before this Court by York, these reasons address only some of the factors that make up the fair dealing analysis, an analysis that requires consideration of facts and factors not addressed here.

[89]     The main problem with their analysis was that they approached the fairness analysis exclusively from the institutional perspective. This error tainted their analysis of several fairness factors. By anchoring the analysis in the institutional nature of the copying and York’s purported commercial purpose, the nature of fair dealing as a user’s right was overlooked and the fairness assessment was over before it began.

[102]   In other words, contrary to the Federal Court of Appeal’s view, in the educational context it is not only the institutional perspective that matters. When teaching staff at a university make copies for their students’ education, they are not “hid[ing] behind the shield of the user’s allowable purpose in order to engage in a separate purpose that tends to make the dealing unfair”.

[103]   It was therefore an error for the Court of Appeal, in addressing the purpose of the dealing, to hold that it is only the “institution’s perspective that matters” and that York’s financial purpose was a “clear indication of unfairness” (paras. 238 and 241). Funds “saved” by proper exercise of the fair dealing right go to the University’s core objective of education, not to some ulterior commercial purpose (see Lisa Macklem and Samuel Trosow, “Fair Dealing, Online Teaching and Technological Neutrality: Lessons From the COVID-19 Crisis” (2020), 32 I.P.J. 215, at p. 238). The purpose of copying conducted by university teachers for student use is for the student’s education. But in every case, all relevant facts must be taken into account in order to determine the fairness of the dealing.

[104]   And the trial judge’s criticism of York’s Guidelines on the basis that different portions of a single work could be distributed to different students, such that an author’s entire work could end up being distributed in the aggregate, is also contradicted by SOCAN, which held that “[s]ince fair dealing is a ‘user’s’ right, the ‘amount of the dealing’ factor should be assessed based on the individual use, not the amount of the dealing in the aggregate” (para. 41; see also Alberta (Education), at para. 29).

[105]   And while it is true that “aggregate dissemination” is “considered under the ‘character of the dealing’ factor” (SOCAN, at para. 42; see also CCH, at para. 55; Alberta (Education), at para. 29), as this Court cautioned in SOCAN, “large-scale organized dealings” are not “inherently unfair” (para. 43). In SOCAN, where copies could easily be distributed across the internet in large numbers, this Court warned that focussing on the “aggregate” amount of dealing could “lead to disproportionate findings of unfairness when compared with non-digital works” (para. 43). By extension, the character of the dealing factor must be carefully applied in the university context, where dealings conducted by larger universities on behalf of their students could lead to findings of unfairness when compared to smaller universities. This would be discordant with the nature of fair dealing as a user’s right.

[106]   At the end of the day, the question in a case involving a university’s fair dealing practices is whether those practices actualize the students’ right to receive course material for educational purposes in a fair manner, consistent with the underlying balance between users’ rights and creators’ rights in the Act. Since we are not deciding the merits of the fair dealing appeal brought by York, there is no reason to answer the question in this case.

[107]   In light of these reasons, I would dismiss York’s appeal from the dismissal of its counterclaim but, in the circumstances, without costs.

[108]   I would dismiss Access Copyright’s appeal with costs.

En passant, it’s interesting that AC’s appeal was dismissed with costs and York’s was dismissed without costs. That may signify a degree of sympathy with York’s position on fair dealing. Taxed costs in the SCC are not significant compared to lower courts. However, it will be very interesting to find out – if we ever do – how the costs below, which must be at least in the significant seven figures on each side – are now ultimately dealt with. AC got costs both for its action and for York’s failed counterclaim at trial. The FCA awarded costs for York on its appeal of the mandatory tariff issue but against it on the fair dealing issue.  The final result may be a wash overall. That would leave both sides having to eat their own costs, which are likely to be huge. Clearly, any fight over costs below is bound to be complex, lengthy and expensive.

Implications for Collectives Going Forward

If this decision had gone the other way on the mandatory tariff issue, the result would have been years more very expensive litigation and a potential retroactive cost of hundreds of million of dollars or more to Canadian universities – not to mention future costs of far more.

Professors Katz and Lametti (as he then was) and I succeed in putting the issue of whether the Copyright Board can award retroactive tariffs clearly on the SCC’s radar screen. See FN 2 of the CBC v. SODRAC judgment.

Access Copyright does not perform any clearly necessary or even useful service. Its distribution to average writers is probably less than $100 a year on average.  I know this because I’m a member and I get more than some other even more prolific authors who I know. Very few actual creators make very much, as former Dean Martin Friedland documented in the heyday of AC in 2007. At that time, the maximum creator affiliate payout was $7,356 and this tapered off very rapidly after that. And that’s from before the current litigation began and the Copyright Act was amended to include “education” in s. 29. The Author’s Alliance showed what we all knew – that AC does not represent the vast majority of academic authors whose works are used at Canadian universities. Very few Canadian university students will ever be assigned anything from Margaret Atwood or Alice Munro. AC exists mainly to keep its executives, staff and lawyers busy and very well paid. It has very little useful repertoire for the post secondary sector, is happy to charge for transactional licenses to use public domain material, and has never had any serious methodology in its basic distribution. “Payback” for those who have actually published written material may be slightly more methodical – but not in any obvious way.

The demise of AC’s mandatory tariff myth may hurt or even prove fatal to AC. Its revenues have been in deep decline in recent years – not a result of the 2012 legislation clarifying that “education” is a recognized purpose of fair deal – but as a result of the fact that it is basically selling little or nothing for a lot of money.

There is major litigation pending over the recovery by way of refund, damages, or restitution on many millions of dollars paid by K-12 school boards on the basis of their claim that tariffs are not mandatory.

Of course, nothing prevents AC from actually offering a useful license to a useful repertoire at a reasonable price – say $5 a year or less per FTE – which I’ve been suggesting for years. That price should now be greatly discounted in view of this incredibly decisive decision. But AC lacks the repertoire and lacks the credibility to go down this road. I offered a vision 21 years ago for an alternative collective that was cited in the SCC judgment.

But, we can rest assured that AC is predictably going to whine about “telling our stories” and make up or at least suspiciously spin lots of supposed facts and figures in order to lobby Ministers to change the law to make tariffs mandatory.  The educational sector narrowly dodged such a bullet when an attempt by ISED bureaucrats to effectively make tariffs mandatory under the guise of harmonizing statutory damages was stopped after an earful of negative reaction from the educational sector.

Nobody should listen to AC’s lobbying. They are the enemies of innovation in the educational system in Canada. Our post secondary institutions, with the leadership of my client CARL and others, have adapted very well without them and do a great job at showing the post secondary community how to balance, implement & "actualize" the rights & responsibilities of authors, publishers, faculty, students and administrators. AC is nothing but a deadweight loss to the system. AC’s whining about the including of the word “education” as a purpose of fair dealing in 2012 is nothing but fake news. This amendment simply clarified the clearly existing state of the law. The subsequent decline in AC revenues is the result of its alienation of the educational sector and the evolution of how material is used and paid for, when required, in the educational sector.

The judgment will likely have little or no short-term effect on SOCAN – which actually does have copyright rights – and whose tariffs are, in any event, “de facto” mandatory for any user who wants to use modern repertoire and not just Bach and Mozart. The equitable remuneration regime run by Re:Sound is also probably de facto mandatory for most users of recorded music, as is the retransmission regime. In all three of these situations, there is currently no other practical way to clear rights, if needed, other than to deal with the collectives. However, in the long term, users in these situations may feel empowered to consider whether their bargaining power may now have increased. Moreover, if there is reason to doubt the de jure mandatory nature of these tariffs, other new collectives may begin to feel empowered and there could be more competition. Stay tuned.

The decision may affect some other arguably nuisance collectives and tariffs, such as the media monitoring tariff recently rubber stamped and imposed yet again by the Board after more than two years of unopposed rumination, apparently without even raising the issue of fair dealing – which seems like an obvious issue in media monitoring. However, the prohibitive costs and usually absurd and invasive interrogatory process of Board proceedings, have discouraged any opposition of the tariff over the years. Some may now wish to consider whether it is indeed legally mandatory.

It won’t affect the private copying levy, which is indeed mandatory because the legislation is clear. It is, in fact, the “only” tariff that is clearly mandatory – because it is a “levy” and the language is clear. We made this point to the SCC. The Board has shamefully kept this collective on life support for years for no cogent reason – apparently so that it can live to fight another day, as it recently has signalled it might do and in view of possible sympathy from the current crew of some senior bureaucrats and certain Ministers.

The Good News Going Forward

The post-secondary sector in Canada can exhale and enjoy the rest of the summer and have less anxiety about planning curricula that include material that meets the established tests for fair dealing.

It’s probably a good idea for all post-secondary – and indeed K-12 – institutions to think about updating their fair dealing guidelines consistent with the teachings of the Court in this judgment in order to actualize the fair dealing rights of faculty and students. Whether this happens in a very coordinated way or more ad-hoc remains to be seen. However, the AUCC/Universities guidelines were not blessed as such by the Court and presumably should be updated. They were very problematic at the time and have not improved with age, especially with the massive roll-out of eBooks, OER, MOOCs, and the COVID crisis since then.

Although there is the theoretical possibility of class action copyright litigation against educational institutions in Canada, that is probably unlikely. Attempts along these lines in the USA in the Georgia State litigation have been by and large a legal and public relations disaster for the plaintiff publishers, led by no less than Cambridge University Press.

However, the post-secondary and K-12 sectors must plan and budget for the inevitable lobbying efforts of AC directed especially towards  certain Ministers from Quebec, since any mention of copyright, culture and “telling our stories” is a regarded by some as a sure vote-getter in that province.

It will be very interesting to see what governments do regarding their own dealings with Access Copyright. The tariff for provincial governments was actually very low at the end of the day, although Ontario bears the embarrassment of having settled at an absurdly high cost in hindsight. There is no tariff for the Federal Government. Maybe it can finally move on from its sweetheart approach to AC that helped to launch it in the first place more than 30 years ago – and be more responsible for taxpayers’ money and the real encouragement of innovation.

Conclusion

Interventions can count. Although one can debate whether the Court should be hearing so many interventions but only allowing five minutes each for oral argument, the result is that most who have anything to say will be heard. It takes a long time to prepare a short five-minute argument – but one can be confident that it will be heard attentively.

At the risk of shameless self-promotion, it seems clear that our intervention on behalf of CARL along with that of Ariel Katz and particularly his two landmark Spectre papers were very influential and maybe even more determinative in this case than the submissions of the main parties.

Here are some convenient links:

Here’s the Supreme Court’s Cases in Brief summary:

 https://scc-csc.gc.ca/case-dossier/cb/2021/39222-eng.aspx

 Here’s the full decision:

 https://decisions.scc-csc.ca/scc-csc/scc-csc/en/item/18972/index.do

 The oral arguments are here. https://scc-csc.gc.ca/case-dossier/info/webcastview-webdiffusionvue-eng.aspx?cas=39222&id=2021/2021-05-21--39222&date=2021-05-21

CARL’s argument is at 3:37:56.

Here’s the link to all the factums:

https://scc-csc.gc.ca/case-dossier/info/af-ma-eng.aspx?cas=39222

Here's CARL's Press Release:

https://www.carl-abrc.ca/news/reaction-supreme-court-decision-on-york-case/


HPK

 

Monday, July 26, 2021

Default Judgment Dire Doomsday for Downloaders? Update November 26, 2021

 


I am becoming increasingly concerned about how default judgments potentially may be viewed as precedents to establish sometimes sweeping and even sometimes wrong principles in IP cases. Sometimes, default judgments arise because the defendant(s) never participate, which can be for any number of reasons. Sometimes, the default can come towards the end of a case, again for various reasons. The common thread is that the presiding judge does not get to see and hear all of the evidence and all of the law in the ideal forum of the fully contested adversarial process – which is the cornerstone of our common law and the rule of law. I am working on a blog about some of the more high profile and sometimes problematic recent examples of the trend toward default judgments that can potentially take on precedential weight in IP cases, perhaps the most noteworthy of which is that of the Nintendo decision, about which I’ve written before.

There is a new default proceeding urgently looming in the Federal Court that could have profound  and dire effects on the mass litigation trend in Canada whereby hundreds of BitTorrent users are sued at once amounting to thousands overall in the approximately two dozen cases to date from the Aird & Berlis LLP firm, many of whom have been eventually persuaded to settle at relatively low amounts but may have felt the need to retain counsel in the face of an apparent potential threat of $5,000. Aird & Berlis LLP is a big, old and reputable Bay Street firm. Mr. Ken Clark handles these cases and he does so courteously and efficiently and is open to hearing any relevant mitigating factors and to dealing directly with Counsel for individual defendants caught up these mass lawsuits.

In recent years, these enforcement activities arising from alleged BitTorrent activity have been conducted on a very civilized plain, with full credit to Mr. Clark. We have not seen the nauseating trolling antics that have too often happened in the USA that have resulted, for example, in at least two American copyright lawyers sentenced to jail for long periods of time.

However, things are now taking a troubling turn in the mass BitTorrent litigation arena in Canada. Mr. Clark is bringing a motion for default judgment against more than two dozen “Doe” defendants in Federal Court case #T-513-18. These Defendants are not yet publicly named – but they will be if the motion succeeds as framed. An affidavit has been filed that suggests that some of these defendants may have downloaded some pornography based upon some of the colourful film titles. This is extremely problematic from a relevance and privacy standpoint – and I won’t post the affidavit because it may be possible, if the “Does” are eventually named, to connect the porno dots with real names. Mr. Clark is seeking statutory minimum damages of $2,250 to $5,000 plus costs in each case. If he succeeds, enforcement is bound to follow.

Here's the recent letter to Court from Mr. Clark dated July 20, 2021 seeking to “set a hearing date for the special sitting before the Case Management Judge so that we can put that information in the motion record.” He says that “The Plaintiff shall file its written representations and confidential affidavits by no later than July 26, 2021”.

 For any number of reasons, this motion could and arguably should be opposed and may be very vulnerable. However, it is not worth any one individual’s expense to do so and this is much too complicated for self-representation. The issues are potentially very complicated and Mr. Clark is a worthy and formidable adversary – so a lot of time would be required even for any very experienced counsel. There is always the risk of an adverse costs order. Last but not least, the listed “Does” may be out of time to even be allowed back, without a procedural fight, into the ring to defend.

Mr. Clark will no doubt be very thorough, forthright, and professional in his presentation to the Court. However, there are arguably a lot of issues and arguments in this proceeding that potentially could and should be considered and heard. Accordingly, this case calls out for a Court appointed “Assessor” under Rule 52 or an “Amicus Curiae”, or the intervention or the pro bono representation of one or more “Does” by a public interest clinic, e.g. CIPPIC, whose mandate and resources are ideal for this case. Otherwise, a very dangerous precedent could be set by default for masses of default judgments against potentially thousands of  Canadians for several thousand dollars each and the disgorgement of irrelevant personal private information.

HPK

UPDATE Aug. 4, 2021:

Here are Mr. Clark's Written Representations for his Motion for Default Judgment) dated and filed July 26, 2021. There are many issues that could and should be addressed here. If CIPPIC does not step up to the plate, or the Court does not somehow on its own motion seek the assistance of an "Assessor" or "Amicus Curiae", it's hard to see how this will be done.

UPDATE: Aug. 9, 2021:

The mass default judgment motion has been set down for  hearing on August 24, 2021.

UPDATE: August 11, 2021:

The Federal Court docket in T-513-18 indicates that CIPPIC wrote to the Court on August 9, 2021 seeking an adjournment so that it can potentially intervene. That's good news for the public interest!

UPDATE: October 23, 2021:

CIPPIC has been given leave to intervene by Justice Furlanetto in the default judgment motion that will now be heard during the week of November 22, 2021: 

https://www.scribd.com/document/534653567/T-513-18-Voltage-Holdings-v-Doe-OrderAndReasons-Oct-22-2021 

UPDATE: November 4, 2021

T-513-18:

 Written directions received from the Court: Chief Justice Crampton dated 27-OCT-2021 directing that The Plaintiff¿s Motion for Default Judgment (doc 158) will be heard by Zoom videoconference on Monday, November 29, 2021, at 1:30 pm EST for a duration of 3 hours. placed on file on 27-OCT-2021 Confirmed in writing to the party(ies)

UPDATE NOVEMBER 26, 2021

The motion for default judgment will be heard on November 29, 2021.

CIPPIC's intervener memorandum is here.  

Voltage's memorandum is here.


Wednesday, June 09, 2021

The Copyright Board 2021 Second Town Hall – From Dysfunctional to Dormant After Nearly Four Years of No Hearings


 On May 31, 2021 the Canadian Bar Association hosted a second Copyright Board Town Hall. The first was in 2019. I’ve written about it here. As I said at that time:

Spoiler alert: Although Mme Théberge did at least acknowledge the delay issue at the outset, neither she nor Maître Audet indicated any direct and specific steps that the Board is going to take to deal with the issue of lengthy delays.  The Q & A aspect of the session was also disappointing.

Frankly, this year’s Town Hall was even more unsatisfactory and troubling.

 This time, the Board’s new Chair, Justice Luc Martineau, at least did appear, unlike his predecessor Justice Robert Blair who was apparently unable to get to Ottawa in time for the 2019 event. There was no Town Hall last year for COVID reasons and this year’s session was, of course, virtual. Justice Martineau promised more transparency, new regulations to be published in the coming months,  and a “new tone”, or a “slightly different tone”.  I do not recall anything much more specific than that, although he spoke at some length and may have mentioned “innovation”. I will look forward to seeing his remarks published on the Board’s website.

 Mme Théberge – the Vice Chair & CEO spoke of the “holistic and polycentric” nature of the Board’s work. She acknowledged that the Board was “losing credibility” in the past, seeming to  blame her predecessors for issues and problems that have not improved in any measurable manner since she took office in 2018.

 Maître Audet, the Board’s General Counsel, noted some possible questions arising from the pending SCC York University v. Access Copyright case and the forthcoming case on  the “making available” right. This was rather unusual, given that the Board, although once very vociferous in judicial review proceedings and even intervening whenever its former General Counsel Mario Bouchard could,  has more recently and more appropriately kept its counsel and let the Courts do their job without comment from the Board itself – as is fitting. On the issue of post-retirement deliberations, he made what appeared to be an inapposite or inaccurate reference to the concept of “functus officio”.

 There was a Q&A and the moderator, John Cotter, put forward the gist of my questions, which were as follows:

  1. Why are no Copyright Board decisions before 2020 available on CANLII?
  2. Why do links to Board decisions prior to recent website remake no longer work?
  3. Why do retired Board members sometimes deliberate for up to three years or even more post-retirement on cases they have heard and how do they get paid for this and at what rate? Are there any other comparable Boards of Tribunals anywhere that permit this post retirement deliberation beyond six months?
  4. Why has the Board not even held virtual hearings since the pandemic, when so many Courts, Tribunals and the Supreme Court of Canada have managed to do so? 

 The responses from Mme Théberge and Mme Taylor (the Board’s Secretary General) were at best inadequate and unconvincing. I submitted several follow up questions but these did not go forward.

 For example, re the first two questions, we were told that the website was redone to make if more accessible to the “general user”. Mme Théberge suggested that the former website was only aimed at “experts”. This, of course, is a red herring. I doubt if there is or should be any measurable interest amongst the general public in the innards of the Board’s activities. It has always been an “inside baseball” milieu – and the new website will likely ensure that this will continue a fortiori. The handful or less of individuals who have actually participated in Board hearings have varied in sophistication – but their low numbers and impact had nothing to do with the appearance of the Board’s website.

BTW, the Board’s Twitter account @COP_eng, which was highly trumpeted at great length and with much fanfare by Mme Théberge at the 2019 Town Hall, now has a grand total of 72 followers of the English version and 33 of the French. Most of the followers appear to be “insiders” or copyright professionals of some sort who do not need a twitter account to keep track of the very few new noteworthy happenings at the Board. In comparison, the Supreme Court of Canada @SCC_eng Twitter account has nearly 37K followers and the Federal Court and Federal Court of Appeal which have over 2,000 and nearly 3,000 followers respectively. They have lots to tweet about, in contrast to the Board which rarely has any noteworthy announcements.

The recent 2020 remake of the Board’s website at huge cost can only be charitably described as a “degraded” version Board’s previous website, which was at least fairly useful to copyright practitioners. As I have documented, the website was remade at a cost of at least $757, 548.50.

The only thing wrong with the previous website was that the search function was non-functional. This remained inexplicably and inexcusably unfixed for more than two decades.  That problem could and should have been fixed long ago at zero cost – but wasn’t, notwithstanding ongoing huge third part website related costs. It did not require the involvement of Decisia to make the site searchable. My freeware bargain basement blog has been searchable from day 1 – about 15 years ago. Basic searchability of a website is as routine as running water. Apparently, the Board just did not want its site to be searchable. It is searchable now – but at immense and unnecessary expense and delay and it sure helps if you know what to search for. The old website had tariffs and decisions grouped in nicely recognizable categories. That’s no longer the case. So much for the general public. More of what I’ve already written about this is here. BTW, despite the huge expenditure on its degraded website, the Board still does not have an email alert subscription facility – which is a basic feature of the Federal Courts and the SCC. Even my bargain basement freeware blog has had this feature. The Board seems to have dropped its chronological list of “rulings”, which was occasionally interesting and useful to practitioners – even if not searchable.

The Board indicated more than 20 years ago that “A compilation of the Copyright Appeal Board's decisions (1935-1989) is being prepared for publication.” That was vapour ware then, and millions of dollars of budget and 21 years later, we are still waiting. One cannot imagine what possible excuse there could be for not providing these decisions. It does not matter if they were not originally bilingual. The only comfort is that these pre-1989 decisions are really not very relevant or important anymore, and the important ones have been assimilated into many judicial decisions over the years. Still, the taxpayers have paid for these decisions over the decades and deserve to have them readily available and accessible. Researchers may wish to study them. “Official languages” policy is not an excuse. There are countless old court decisions from the Supreme Court of Canada available on its marvellous website in English only, if that is how they were originally released. Same with lots of not so old federal tribunal decisions on CANLII. While modern federal courts and tribunals strive to issue all decisions in both official languages, this was not always the case and doesn’t limit CANLII’s ability to post in one language only, if that’s what’s available. Even today, it can take some time for a Federal Court decision to get officially translated.

As for helping the “general user” learn about copyright, that is clearly NOT the Board’s responsibility. It should not be wasting its time and taxpayer dollars on this – and it’s doing a very poor job of it in in any event. Its mostly useless and sometimes even dangerous for users FAQ section  could use a basic spell check  - e.g. for “Copyright Registration and Infrigement [sic]”. Or “Fore [sic] more information on the tariffs that apply to your situation…” (highlight added). Maybe spell checking wasn’t included in the $757,548.50 remake cost?

Informing the “general user” about copyright is the responsibility of the Departments, especially CIPO, which has some information and could and should do better on copyright in general – if only it’s Minister had the slightest interest in copyright law or policy for which he is primarily responsible. However, he has been MIA and appears to have effectively handed copyright matters over the Canadian Heritage department, from which, BTW, both Mme Théberge and Mme Taylor hail. This is the first time that both the Vice-Chair and Secretary have been non-lawyers.

Above all, there is absolutely no valid reason not to put all old Board decisions – at least since 1990 – on CANLII. They were all available on the Board’s website until the degradation, categorized by issue, and in both official languages – contrary to Mme Théberge’s very questionable assertion and reference to Treasury Board and Official Languages policy. For example, the Competition Tribunal’s decisions are available on CANLII going back to 1990. The Canadian International Trade Tribunal’s decisions are available on CANLII from 1989. The Trademarks Opposition Board has more than 5,000 decisions on CANLII going back to 1990 and even earlier. These tribunals are comparable in some ways to the Copyright Board, but are far more productive. It is certainly not the case that all these decisions on CANLII are bilingual.

Contrary to Mme Théberge’s assertion, I am reliably informed that, there should be no cost incurred in getting all of its old decisions and approved tariffs at least since 1990 on CANLII – since they are all already bilingual and nicely formatted and 100% searchable. Moreover, they have all been published in the Canada Gazette in both official languages. She is apparently simply wrong about this – both regarding costs and the bilingual aspect. All that should be required is for one of her 21 employees to put the decisions and tariffs on a USB key or use cloud transfer to deliver them to CANLII. Only a minimum of direction re ordering and citation protocol would be required. It’s apparently that simple. However, it’s clear that – for whatever reason – she simply doesn’t want this to happen. So much for access to justice and transparency. Maybe that is precisely what the Board actually wants to avoid? Maybe the Board does not wish for the public – or those in government – to transparently see how very few hearings and decisions of any significant importance that the Board has dealt with in the last three decades? The many rubber stamped, uncontested and repetitive tariffs dealing with marching bands, etc. that have very questionably  been parlayed into very exaggerated numbers do not justify even a fraction of the Board’s budget or its endless delays.

And, BTW,  is there any plausible reason not to restore the viability of old and now dead links, which should not have been allowed to go dead in the first place? It’s apparently a simple exercise in providing a URL redirect with minimal effort at no cost using existing resources. I’ve pointed this out before, to no avail.

Speaking of transparency, the Board has recently invited selected persons to participate in a secretive consultation about proposed Rules of Practice and Procedure according to restrictive Chatham House Rules  in a super-confidential consultation requiring participants to sign an absurd Non-Disclosure Agreement (“NDA”). The NDA would require, inter alia, that the participant “(a) not disclose, discuss or communicate, or cause or allow to be disclosed, discussed or communicated, that it is a participant in the technical discussion on the Proposed Rules except on a strict need-to-know basis”. This is an exercise in public policy development.  This is not high-powered commercial litigation where confidentiality and protective orders are sometimes required but avoided where possible. So much for “Transparency” and “Open Government”. The Board should not insult its stakeholders and waste their time in this way.

 As for speeding things up at the Board, forget it. As I’ve pointed out before, the Governments’ recent time limits regulations solve nothing. Indeed, the Regulations do not appear to solve and do appear to continue and confirm the main problems I identified on April 29, 2019. The Board often keeps cases open for long after a hearing has supposedly concluded or should have concluded. These regulations explicitly permit this to be done in the future. Normal courts and tribunals just don’t do that. In the normal world of litigation and administrative law in the normal universe, by the time a hearing takes place, the tribunal or court is fully prepared, the parties have put their best foot forward and have presented their whole case and a decision is rendered after the hearing has concluded – usually within six months max.  Once the hearing is over, there are *never* any further submissions except in very rare circumstances, e.g. a new and potentially relevant and binding case from the courts. At the Copyright Board, the hearing – which may be six years or more in the making – is not the beginning of the end but is too often only the end of the beginning. There is no viable excuse for this. Copyright Board cases are not any more  complicated from a legal, evidentiary or economic aspect than many matters routinely dealt with the Competition Tribunal, the CITT, or the Federal Court – which are all dealt with in real world time frames, including he mandatory two year beginning to end requirement for PMNOC cases in the Federal Court.

As for the timely rendering decisions, the Board just recently posted its decision in the Stingray pay audio matter, which is retroactive to 2007 and goes only to 2016. The decision comes more than four years after the hearing, with two of the panelists deliberating for about three years to render this decision which few will understand and which may be of little importance in the current streaming milieu. Here’s my brief comment on the Stingray decision.

BTW, I noted on October 23, 1919 that the Board had then not held any hearings in more than two years. Ms. Théberge indicated, apparently inaccurately, in response to my Questions #4 that no hearings were scheduled during the pandemic began. That is simply not true. Three had been scheduled but since “suspended” without apparent reasons. In another manifestation of the degraded website, the listing of previous hearings and exhibits that were filed appears to have disappeared for no explicable reason. However, the Board’s Annual Reports do confirm that the Board has held no hearings since September, 2017 – which was actually a  rehearing following the SCC’s decision in the CBC v. SODRAC case reaching back to 2008.

Ms. Théberge again affirmed Board’s great reliance on the expertise of her large legal and economic staff – seemingly oblivious to the notion that “Whoever hears must decide”. The Board’s full time staff includes six lawyers and four economists. It’s hard to imagine how they spend their time. She indicated that the Board currently has 21 employees. It must be noted that a budget approaching $5 million a year is a lot of money for a tribunal with 21 full time employees and two floors of splendid prime office space on Sparks Street, including a vey large hearing room,  that has held no hearings in almost four years and apparently with none scheduled in the future. The pay rates at the Board seem extremely high for the work required. The Board also regularly spends a small fortune on third party consultants and suppliers of often vaguely specified services, some of whom seem to be frequent flyers over the years. These reports are available – though rather well hidden under the banner of “transparency” – here. These include such oddities as court reporting services during a period when there were no hearings and frequent recourse to outside sources for “temporary help”, not to mention huge amounts on ongoing website maintenance and the new degraded site.

 Recent controversial “consultation” efforts emanating from Heritage Canada contain thinly veiled “make work” options for the Copyright Board. See here and here. However, if the pending SCC case unsurprisingly confirms that Copyright Board tariffs are not mandatory, the Board’s current modus operandi and raison d'être may be existentially challenged and non-sustainable.

Above all, it must be realized that the copyright law is not particularly complicated compared to many other areas of the law, such as competition, patent or trade law. True, it can get complicated – but that is way beyond the mandate and the expertise of the Copyright Board. That’s for the courts, including the Supreme Court of Canada, where the Copyright Board’s shortcomings are rather often dealt with – at inordinate inconvenience and expense to the parties and interveners.

If the Federal Court can resolve complex notice of compliance patent cases involving potentially hundreds of millions of dollars within two years – start to finish, including rendering of judgment – there is no excuse for the Board taking often six years just to get to hearing and another three years or more to render a grossly retroactive decision, which too often has proven to be wrong. You just can’t make this stuff up. It is was it is.

If the Board is to serve any useful purpose in the future, it must be reinvented so as to:

  •  Render timely and minimally, if at all, retroactive “tariffs” that are non-mandatory but sufficiently attractive in the market place that users will consider voluntarily signing licenses, just like making the cost of taking the train from Ottawa to Toronto more attractive than other choices, but not making taking the train mandatory – let  alone requiring an all year Canada wide pass for one trip. For most if not all of the “routine” tariffs, the Board’s involvement should not even be necessary.
  • Concentrate on determination of rates, terms and conditions, which is the reason it was formed more than 8 decades ago,  and stop pretending that it has any expertise in substantive copyright or other legal issues, much less international law
  • Drastically reduce its budget
  • Revert to the model envisaged by Justice Parker in the 1930’s that worked very well for the Copyright Appeal Board, which was well serviced part time by a retired judge and some public servants who had other responsibilities until ambitious bureaucrats got hold of the new Copyright Board in 1990 and beyond and have attempted to create a new mini-CRTC or other endlessly expanding empire.

Interestingly, the Auditor General doesn’t seem to have paid much if any attention to the Board in the past. As to ATIPs, the Board has spent a lot of money in the past on Michel Drapeau to advise on ATIP requests. One doubts that this was for the purpose of facilitating timely and transparent fulfilment. 

We have gotten nowhere close to a Copyright Board 3.0 as I called for on the 30th anniversary of the new Board in 2019.  The current Board has gotten only successively slower, more bloated and “dysfunctional” in the Senate Committee’s words since then.

That fact that it has not held a hearing in nearly four years, which may be a public policy blessing in disguise,  may be due in no small part to:

  • The ruling in Canadian Broadcasting Corp. v. SODRAC 2003 Inc., 2015 SCC 57 (CanLII), [2015] 3 SCR 615, <https://canlii.ca/t/gm8b0> in which I, Prof. Ariel Katz, and Prof. David Lametti as he then was persuaded the SCC that “licences fixed by the Board do not have mandatory binding force over a user; the Board has the statutory authority to fix the terms of licences pursuant to s. 70.2, but a user retains the ability to decide whether to become a licensee and operate pursuant to that licence, or to decline.”
  • The fact that “the Board’s power to issue retroactively binding decisions in general” is now on the SCC radar screen as stated in FN 2 of para. 111 of Justice Rothstein’s judgement in CBC v. SODRAC
  • Even major collectives may be reluctant to incur the immense costs, never ending delays, and the uncertainty of pursuing an approved tariff from the Board that has a very good chance, statistically, of being struck down in the Courts – even if it is somehow enforceable as such, which is doubtful now in all cases except the private copying levy, which is of no importance to anyone except the lawyers and collective executives who continue to feed off its decomposing and diminishing small remains with the inexplicable regular rubber stamp of continuing renewal from the Board. When is the last time that anyone you know has bought a blank CD?

I have been involved one way or another with making copyright policy, litigating copyright, writing about copyright, and the Copyright Board itself at hearings and in the Courts possibly for far too long and probably for far longer than anyone else who is still active in this milieu. Thus, I feel competent and somehow compelled to suggest that the Board’s status quo is not and should not be sustainable.

There have been some outstanding and very professional persons at the Board over the years in various capacities. Likewise, there have been some very worthy counsel who have appeared before the Board. Hence my tough love for the Board and my hope that, if it is to survive and serve a useful function, it will be reinvented and become, as it once was, at least for its first five decades or so, a modest, modern and model tribunal not only within Canada but in the eyes of the world.

However, as it now stands, it is even more “dated, dysfunctional and in dire need of reform” than as described  by the Senate BANC Committee in 2016. 

Sadly, the Minister with primary responsibility for the Copyright Board, namely François-Philippe Champagne (FPC) @FP_Champagne, is MIA with no apparent interest in copyright law, policy or related matters. He has abdicated all of this to Steven Guilbeault @s_guilbeault, the Heritage Minister, who has shown nothing but chaotic incompetence on copyright and related “cultural” fronts such as #BillC10. This is all very regrettable because there are undoubtedly some capable officials in both Departments. However, their voices are apparently not being heard, or are being drowned out by lobbyists and Quebec politics.

 HPK