Canada, China and Copyright Law


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In this presentation, V. Peter Harder describes why Canada engages with China, while Rob McDonald and Margot Patterson outline the changes to copyright laws in Canada.

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Canada, China and Copyright Law

  1. 1. FMC Presents:Canada, China and Copyright Law November 15th, 2012Los Angeles, California 1
  2. 2. Why Canada Engages with China?Presented by: V. PETER HARDER 2
  3. 3. Global Demography The emerging markets will outgrow the mature economies dramatically 1. China 2. 3. Soviet Union India 1950 4. USA 5. Japan ■ Mature Economies 6. Indonesia 7. Germany 8. Brazil 9. United Kingdom 10. Italy 11. France 12. East Pakistan 3
  4. 4. Global Demography The emerging markets will outgrow the mature economies dramatically 1. China 2. 3. India USA 2000 4. Indonesia 5. Brazil ■ Mature Economies 6. Russian Federation 7. Pakistan 8. Bangladesh 9. Japan 10. Nigeria 11. Mexico 12. Germany 4
  5. 5. Global Demography The emerging markets will outgrow the mature economies dramatically 1. India 2. 3. China USA 2050 4. Pakistan 5. Indonesia ■ Mature Economies 6. Nigeria 7. Bangladesh 8. Brazil If demography is destiny, 9. Congo global leadership may pass from the 10. Ethiopia “Matures Economies” to the 11. Mexico 12. Philippines “Emerging Markets” … 5
  6. 6. Global DemographyIn many aging countries, the size of the working age population will shrink dramatically US-/-CAN-/-UK-/-FR-/-GER-/-ITALY-/-JAPAN 6
  7. 7. China’s sustained, rapid growth is an unprecedented achievement 7
  8. 8. China GDP in 2009 by province: a union of leading developing countries 8
  9. 9. China GDP in 2020 by provinces (projected): a union of second‐tier developed and top‐tier developing countries 9
  10. 10. China in the BRIC 10
  11. 11. 11
  12. 12. 2012: A Landmark Year for Copyright in Canada The Copyright Modernization Act and Supreme Court of Canada DecisionsPresented by:Robert D. McDonald and Margot Patterson 12
  13. 13. BILL C ‐ 11• An Act to amend the Copyright Act (also known as the  Copyright Modernization Act) (“CMA”)• Introduced September 29, 2011• Received royal assent – June 29, 2012• Provisions will be entered into force on a date to be  fixed by Order in Council 13
  14. 14. Purpose of Copyright Modernization Act• Updating legislation to deal with new technology• Aligning Canada’s legislation with international treaties• Clarify Internet Service Provider liability• Permit businesses, educators, students and libraries to make  greater use of copyright material in digital form• Revise legislative provisions to be technology neutral• No substantial amendments since 1997 14
  15. 15. Anti‐Circumvention Provisions  (s.41 ‐ 41.27)• Circumvention of technological protection measures (“TPM’s”)  used by rights holders to secure and control their digital  content, is prohibited • TPM (or digital lock) circumvention is considered copyright  infringement (passwords, encryption software, access codes)• Persons who manufacture, market or distribute TPM  circumvention tools such as digital lock cracking software, or  who set up services to enable infringement, will be subject to  civil and criminal sanctions• Exception for unlocking cell phones (“radio apparatus”)• These provisions apply to all TPM circumvention, even for  personal use 15
  16. 16. Internet Service Providers (ISP’s) (s.31.1)• No infringement simply by providing the means for telecommunication and  reproduction• The CMA establishes a “notice and notice” scheme for ISP’s and search  engines (s. 41.25 – 41.27)• ISP’s and search engines will have only limited liability for copyright  infringement committed by their subscribers• “Notice and Notice”: ISP’s and search engines will have to forward any  notices received of claimed infringement to the alleged infringer and  maintain records relating to the alleged infringer’s identity• It is now copyright infringement to provide a service over the internet or  otherwise that is designed to enable acts of copyright infringement 16
  17. 17. Statutory Damages (s. 38.1)• The previous Copyright Act allowed a copyright owner to seek  statutory damages between $500.00 and $20,000.00 for each  work infringed• The CMA reduces the statutory damages to a range of  between $100.00 and $5,000.00 where the copyright  infringement is relating to an individual who has infringed  copyright for private use (one time payment for ALL  infringements)• Statutory damages for infringement for commercial purposes  are still between $500.00 and $20,000.00 for each work  infringed. 17
  18. 18. Fair Dealing (s.29)• Fair dealing has always been an exception under the Copyright Act: research, private study, criticism, review• Permitted purposes expanded under the CMA to include education, parody and satire• Dealings with works must still be considered “fair” – 6‐step test: purpose, character, and amount of the dealing; alternatives to the dealing; nature of the work; and effect of the dealing on the work. 18
  19. 19. User Generated Content (YouTube clause s. 29.21)• Users now permitted to create their own content by combining or using existing copyright material, provided certain conditions are met• The purpose of the user generated content must be non‐commercial, the source must be mentioned (where reasonable), and there must not be any substantial adverse impact on the copyright holder’s exploitation of the work• Individual must have reasonable grounds to believe the source material was not infringing copyright 19
  20. 20. Copying for Private Purposes• Format shifting (s. 29.22) time shifting, (s. 29.23) and backup copies (s. 29.24)• Under the previous Copyright Act, format shifting and time shifting were unlawful, and constituted copyright infringement• The CMA makes it lawful to make copies for private purposes• The exception is only available if the source material is not infringing, it was legally obtained, and a TPM has not been circumvented• Cannot copy borrowed or rented works, cannot give away, sell or rent the copy 20
  21. 21. Photographers (s. 10 and s. 13(2) repealed)• Under the old Copyright Act, the person who  commissioned a photograph was considered the  original owner of copyright • Under the CMA, the photographer will become the  first owner of copyright in their photographs,  regardless of whether or not the works were  commissioned • Individuals who commissioned works will have rights  of personal and non‐commercial use unless there is  an agreement to the contrary 21
  22. 22. Other Amendments• New Moral Rights for Performers (s. 17.1 and 17.2) – used to only exist for authors• New Making Available and Distribution Rights (s. 15 and s. 18) – Making works and performer’s performances available by  telecommunication and distribution• Removal or alteration of Rights Management Information  (RMI) prohibited (s. 41.22) – ie. water marks and notices• New Educational Institution exceptions (s. 29.4 and s. 30.1) – Use of publicly available internet materials, digital delivery of course  materials• Review of CMA every 5 years (s. 92) 22
  23. 23. Supreme Court Pentalogy 20121. Downloads don’t infringe  (Entertainment Software Association v. SOCAN)2. Online streams do infringe  (Rogers Communications v. SOCAN)3. “Sound recording” excludes film and TV soundtracks  (Re:Sound v. MPTAC)4. Teachers’ photocopies for students “fair dealing”  (Alberta (Education) v. Access Copyright)5. Online music previews “fair dealing”                  (SOCAN v. Bell Canada) 23
  24. 24. Conclusion• The Copyright Modernization Act represents a  significant revision to existing Canadian copyright  legislation• The CMA attempts to balance the rights of both  creators and users, brings Canada’s legislative regime  more in line with international standards, makes  Canada’s copyright legislation technologically neutral,  and addresses the realities of new technologies on  the protection and enforcement of copyright 24
  25. 25. The preceding presentation contains examples of the kinds of issues companies dealing with Copyright Law  could face. If you are faced with one of these issues, please retain professional assistance as each situation  is unique.
  26. 26. Thank You!Technology, Media and Entertainment Practice Group Gordon Esau, Partner Fraser Milner Casgrain LLP | www.fmc‐ T 604 443 7105 | F 604 683 5214 E gordon.esau@fmc‐