Showing posts with label copyright revision. Show all posts
Showing posts with label copyright revision. Show all posts

Wednesday, May 15, 2019

The Canadian House of Commons Copyright “Shifting Paradigms” Report – Let’s Just Call it the “Values Gap” Report





 Graham Henderson, President, Music Canada http://musiccanada.com/contact/

The House of Commons Heritage Committee copyright report entitled "Shifting Paradigms" is out. It seems even more imbalanced & problematic than the 1985 Charter of Rights for Creators report or the infamous 2004 "Bulte" report. I'll be calling this the "Values Gap" report, with no apology to the inaptly named lobbying group Music Canada (which largely represents the international sound recording industry) and which has been pushing the phrase “Value Gap” for a long time.

Michael Geist explains how the Committee acted outside its mandate of looking at remuneration models in order to help the INDU Committee in its forthcoming s. 92 report. Instead, Committee Chair Julie Dabrusin rubber stamped lobbying positions of the music, publishing and collective sectors . For example, it notably embraces Access Copyright’s devious attempt to make tariffs mandatory by harmonizing tariff regimes and statutory minimum damages, an approach that  appeared to have also received early but hopefully not lasting sympathy from DG Mark Schaan at ISED and perhaps other officials.

This is the most over-the-top copyright event I’ve seen since the 1985 Charter of Rights for Creators and the infamous 2004 Bulte Report. Michael Geist has aptly penned the name “Bulte Redux” to today’s report – referring to a former Liberal MP once touted as the next Canadian Heritage minister.

For those who don’t know Canadian copyright history and may be condemned to repeat it, Sarmite Bulte’s political career ended a couple of years after her very one sided report when her closeness to the entertainment and collective sectors was exposed and she was defeated in her reelection in the presumed safe Liberal seat of Toronto Parkdale in 2006. Had she been reelected, and the Liberals not defeated, she might have been the next Heritage Minister. But flying too high with the copyright lobby effectively ended her political career.

Anyway, here are the recommendations of today’s report which I shall henceforth call the “Values Gap” report because it is so one-sided and so completely falls short of the values of balance, evidence-based analysis, and democratic responsibility that we would expect from a Canadian parliamentary committee. The Committee simply ignored the testimony of those with whom it disagreed, including, as Michael Geist points out, Professors Jeremy de Beer, Ariel Katz, Nick Mount, Meera Nair along with author Cory Doctorow and me, lawyer Howard Knopf. Hopefully, INDU and Cabinet will do much better. I’ve highlighted some of the more outrageous and insupportable recommendations:

Recommendation 1
That the Government of Canada increase its support for creators and creative
industries in adapting to new digital markets............................................................... 9
Recommendation 2
That the Government of Canada develop mechanisms by which streaming
services will develop and promote Canadian content. ............................................... 15
Recommendation 3
That the Government of Canada create educational materials to raise
awareness of copyright provisions and artist remuneration for consumers. .............. 16
Recommendation 4
That the Government of Canada create educational materials to raise
awareness of copyright provisions as well as artists’ rights and responsibilities
under the Copyright Act for artists and creators. ........................................................ 16
Recommendation 5
That the Government of Canada review the safe harbour exceptions and laws
to ensure that Internet service providers are accountable for their role in the
distribution of content. .............................................................................................. 19
Recommendation 6
That the Government of Canada increase its efforts to combat piracy and
enforce copyright. ...................................................................................................... 19
Recommendation 7
That the Government of Canada pursue its commitment to implement the
extension of copyright from 50 to 70 years after the author’s death. ......................... 22
Recommendation 8
That music streaming services be regulated like other Canadian music services. ....... 24
Recommendation 9
That tariffs for online music services be reviewed by the Copyright Board to
ensure royalty payments provide fair compensation for artists................................. 24
Recommendation 10
That the Government of Canada amend the radio royalty exemption found at
section 68.1(1) of the Copyright Act so that it applies only to independent
and/or community-based radio stations. ................................................................... 26
Recommendation 11
That the Government of Canada amend the definition of sound recording
found in section 2 of the Copyright Act to allow sound recordings used in
television and film to be eligible for public performance remuneration. .................... 28
Recommendation 12
That the Government of Canada review, clarify and/or remove exceptions
contained in the Copyright Act, ensuring that any exception respects section 9
of the Berne Convention for the Protection of Literary and Artistic Works, to
which Canada is a signatory. ...................................................................................... 30
Recommendation 13
That the Government of Canada meet international treaty obligations
(including Berne Convention for the Protection of Literary and Artistic Works,
the Trade-Related Aspects of Intellectual Property Rights Agreement, and
World Intellectual Property Organization Copyright Treaty). ..................................... 30
Recommendation 14
That the Government of Canada amend subsection 14(1) of the Copyright Act
so that it reads “from 25 years after assignment.” ..................................................... 31
Recommendation 15
That the exception for charitable organizations in subsection 32.2(3) of the
Copyright Act be clarified to apply strictly to activities where no commercial
monetary gain is intended. ........................................................................................ 33
Recommendation 16
That the Government of Canada extend moral and economic rights to
audiovisual performers. ............................................................................................. 35
Recommendation 17
That the Government of Canada amend section 34.1 of the Copyright Act to
deem the screenwriter and director the co-owners of copyright and co-authors
of a television or cinematographic work. ................................................................... 37
Recommendation 18
That Government of Canada amend the Act to clarify that fair dealing should
not apply to educational institutions when the work is commercially available. ........ 43
Recommendation 19
That the Government of Canada promote a return to licensing through
collective societies. .................................................................................................... 43
Recommendation 20
That the Government of Canada review, harmonize and improve the
enforcement of the statutory damages for infringement for non-commercial
use in section 38.1(1) of the Copyright Act. ................................................................ 43
Recommendation 21
That the Government of Canada harmonize remedies for collective societies
under the Copyright Act. ............................................................................................ 43
Recommendation 22
That the Government of Canada establish an artist’s resale right............................... 47

PS – the Committee is obviously unaware that Canada meets or exceeds all of its international obligations as I’ve pointed out many times before, and in many respects much more so than the USA, which is ultimate source of much of the lobbying that went into this sadly bad report.

HPK

Sunday, December 02, 2018

Fake News on Fair Dealing from Michael Enright Himself and the CBC Sunday Edition


(CBC)

The legendary Michael Enright – host forever of the slowly declining but still usually worthwhile  Sunday Edition on CBC – has let his listeners and the CBC down badly today with his weekly "essay" entitled “A new survey shows how poorly writers are paid in this country”.  It is apparently based on little if anything more than a Writers’ Union of Canada (“WUC”) undated press release (which he acknowledges) based in turn upon a so-called “survey” of so-called writers that yields the much quoted and highly misleading result that the average Canadian writer makes only $9,380 a year and the incomes are falling fast. He says that: “In 2012, the Harperites changed the copyright laws, reducing writers' share of educational copying by tens of millions of dollars. The government's argument was that reducing the writers' compensation would help the education sector.” This, of course, is legally and factually false. Sadly, his “essay” can charitably be called “fake news” at best. The timing is interesting, coming just a day before what promises to be an eventful #INDU committee hearing on December 3, 2018 that will include Prof. Ariel Katz and Barry Sookman and amid lots of other hot and heavy committee hearings lately sadly full of fake news.

The obvious problem is that the survey respondents here are self-selecting and self-defining. Almost anyone can qualify to be an Access Copyright (“AC”) creator affiliate – and it’s not much harder to be a Writers’ Union member, since even a self-published book “that successfully demonstrates commercial intent and professionalism” gets one in the door – for whatever benefit if any that may be available.  At least it presumably still doesn’t cost anything to join Access Copyright. I should disclose that I’ve been a member for years and earned almost $85 this past year in royalties – more than many. I obviously don’t consider myself a professional writer – though I write constantly – and I’m not about to quit my day job. Waving a magic legislative wand to double my AC payout would get me a modest lunch for two at a decent restaurant without a bottle of wine – but could cost hundreds of millions of dollars a year to the Canadian educational system.

UNEQ – the counterpart to AC  in Quebec – has been spouting similar apparently  unreliable figures, claiming according to Le Devoir on November 27, 2018  “While the average salary of respondents was $ 9,169, the median wage - the point at which 50% of the sample receives a higher salary and 50% receives a lower salary - did not exceed $ 3,000.” (as translated)

If Michael and/or his staff did any other research beyond WUC and perhaps Access Copyright propaganda, its not apparent.

Anyway, here are my three tweets back to @CBCSunday. I’ve listened to Michael for decades and he’s a treasure – so it’s sad to see him and his staff get played this way, or maybe even sadder still if he has lost his sense of journalistic balance and the need for adequate research.

HPK








Tuesday, November 27, 2018

My speaking notes for the CHPC Committee Hearing of November 27, 2018 about Remuneration Models for Artists and Creative Industries

John Kenneth Galbraith  1908 - 2006
(Wikimedia)

Here are  my speaking notes for the CHPC Committee Hearing of November 27, 2018 about Remuneration Models for Artists and Creative Industries 

1.     Introduction

The late legendary Canadian economist John Kenneth Galbraith explained the aptly named trickle-down theory of economics as follows. He said:

 'If you feed the horse enough oats, some will pass through to the road for the sparrows.'”

That’s essentially the basis of the copyright system as we know it in Canada. It’s frankly a bit messy. We have about 38 collectives in Canada – which is about six times more than the USA. We have the largest, most expensive and slowest moving copyright tribunal in the world. 

Most of the sparrows get little from this system. Take Access Copyright for example. Based on its 2017 figures, 11,000 creators got $2,090,000 from AC and publishers, for an average of $190 per annum each. That’s less than the hourly billing rate of most junior lawyers these days.

The copyright system can actually be a disincentive to creation. Case in point is Giuseppe Verdi – perhaps the greatest of all opera composers, as documented in a wonderful book by Prof. F. M. Scherer called Quarter  Notes and Bank Notes. And there’s a recent book and article on the sound recording and popular music industry by Prof. Glynn Lunney.

Here are some facts to keep in mind:
·       It is impossible to define who is a professional writer, musician, composer, painter or other creator. I write a lot in my work and outside of my day job. I certainly don’t consider myself a professional “writer”. However, I got paid about $85 this year by Access Copyright– which is more than others I know. It’s always been incredibly easy to qualify as an Access Copyright creator affiliate. Doubling my Access Copyright royalties will mean nothing to me other than a nice lunch for two – but could cost the educational system hundreds of millions of dollars a year.
·       The composers whose works you might hear at the National Arts Centre are lucky to make more than $500 or $1,000 a year from SOCAN. Good thing they get grants and commissions and maybe salaries as a professor if they are lucky.
·       Virtually all professors are writers – and they get well paid for their writing by getting tenure and nice six figure salaries. But only a very small handful – such as Jordan Peterson – make serious money writing books.
·       A trade book selling 5,000 copies is a great success in Canada. The writer will be lucky to get $15,000 from the publisher and a pittance from Access Copyright. I hope they have a good day job.

2.     How digital technology can help artists get paid….

 Digital technology has much potential. Justin Bieber was discovered by his talent manager through his YouTube video cover versions in 2008 and the rest is history. And there’s the recent example of that wonderful 95-year-old Canadian gentleman Harry Leslie Smith who is suddenly a world-wide sensation and who we wish a speedy recovery.

There’s no doubt that artists will find a way – perhaps with the help of Google, Amazon, Shopify or others yet to come – of selling directly online to their fans without signing away their rights and most of their revenues in exchange for recoupable advances and elusive dreams that almost never come true.

But beware of digital delusions and vapor ware. For example, I’m frankly very skeptical about Access Copyright’s latest announcement called “Prescient” that promises the world once again. I’m not holding my breath, based upon its past failures to deliver. Talking about blockchain and machine learning is easy to do. That’s why everyone is doing it.  

Above all – please consider that we are looking at the cultural and knowledge sector, of which copyright is only a component or tool – and not the sector or the end itself. The transportation sector evolved from the horse and buggy to cars. More money got spent on transportation – but it got spent differently. Things change and constantly evolve. Old business models and jobs are not guaranteed – just look at Oshawa. As Universities Canada pointed out the other day and, in its brief, filed with the INDU Committee in June 2018. Canadian universities “are spending more than ever purchasing content: more than one billion dollars in library content in the last three years combined” – based upon Statistics Canada data.

3.     Increased use of the public lending right and similar models

 The Public Lending Right is an excellent program that rewards writers whose works are borrowed from public libraries. Because it’s outside the copyright system, the payments can be restricted to Canadian writers. Sadly, the maximum annual payout has fallen over the years from $4,000 to $3,000. Let’s put more money into this system – and consider Roy McSkimming’s suggestion for broadening the system to include an Educational Lending Right. This would enable payments to Canadian authors of school and college textbooks and other educational materials, including scholarly works.

4.     How collectives can best serve artists?

 Collectives have an inherent conflict of interest when it comes to serving creators. High salaries and high legal fees can only be justified in big organizations with annual revenues in the tens or hundreds of millions of dollars.

Collectives can best serve artists by doing their best to put themselves out of business – or at least by making themselves smaller and smarter - by embracing digital technology. It is simply unacceptable for a collective to spend 25% to 30% of it revenues on administration, lobbying and legal fees.  That’s members’ money.

The Copyright Board should only allow a collective to operate if it does so in the best interest of both creators and users. In all cases, it should require full disclosure of:
  •        Actual repertoire
  •        Average and median payments to individual creators
  •        Salaries of senior officers and in-house counsel
  •        Amounts spent on outside lobbyists, lawyers, experts and other consultants together with names

5.     Levies and taxes

 Since 1997 Canada has had a blank media levy system. I have tried on behalf of the Retail Council of Canada to get the Federal Court of Appeal to agree that it’s an illegal tax and very nearly succeeded. As they say, close but no cigar. However, a previous Minister Hon. James Moore agreed with me and in 2010 called proposed iPods, phones and other devices a “tax” and said, “this idea is really toxic and, frankly, really dumb.”

The Copyright Board is inexplicably keeping this zombie tax alive – and allowing the music industry to use the small revues of about $2 million a year – almost 30% of which is spent in administration, including lobbying and lawyers  – ­­­­­­to wait in zombie like stealth for another day to pounce on smart phones, ISPs, the cloud or whatever they can persuade a gullible government  to somehow tax.

The music industry is asking for a new “tax” on iPhones and other devices as well as its proposal for a $40 million per year taxpayer handout until an iPhone type tax can be implemented. Not to mention a recent proposal that would subject broadband data use to a copyright tax.

It’s more than high time to kill off the levy scheme in Part VIII of the Copyright Act and any idea of zombie tax. There’s no “Value Gap” in the copyright system. However, there’s a serious “values gap” in the fake news that is being disseminated these days about IP in general and Canadian copyright revision in particular.

6.     Need to clarify that tariffs are not mandatory

 The elephant in the room is the issues of whether Copyright Board tariffs are mandatory. They are not. I won that case in the SCC three years ago – but most of the copyright establishment is in denial or actively resisting. A tariff that sets the maximum for a train ticket from Ottawa to Toronto is fine – and we used to have such tariffs. But passengers were always free to take the plane, bus, drive my car or ride my bicycle or use any other legal and usually unregulated means. It should be no different with Copyright Board tariffs.

*********
I look forward to your questions

HPK

Wednesday, September 10, 2008

Bill C-61 - Dead or Undead?

Is Bill C-61 really "dead", now that an election has been called?

Or is it really in the realm of "The Undead"?

Since many believe that this bill was all about a "made worse in Canada" version of the American DMCA, is it fair to ask whether will it become a legislative real life version of that immortal thriller "American Zombie"?



Love it or hate it, Bill C-61 will return, maybe even in a scarier remake. Maybe with a different number? Maybe as the "Son of 61"?

For better or worse. Maybe sooner than you think!

HK