Crossing the line: Supreme Court of Canada to consider balance between privacy rights and freedom of expression in picket line videotaping case

David Elder -

In an important constitutional case, the Supreme Court of Canada has granted leave to hear an appeal from a decision that found that the application of privacy law to the videotaping of individuals crossing picket lines infringed the Canadian Charter of Rights and Freedoms.

 As we noted in a previous post, the judgment in question considered the activities of a union that had videotaped picketing activity during a strike at an Edmonton casino.  Like other Canadian private sector privacy laws, Alberta’s Personal Information Protection Act (PIPA), generally requires the consent of individuals for the collection, use and disclosure of their personal information, including videotaped images of identifiable individuals.  The union, which did not obtain such consent, videotaped and photographed the picket lines in order to publicize the images of individuals crossing the lines. 

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Performers and makers of film soundtracks not entitled to broadcast royalties

In a ruling issued July 12, 2012, the Supreme Court upheld the decisions of the Federal Court of Appeal and the Copyright Board in Re: Sound v. Motion Picture Theatre Associations of Canada, concluding that performers and makers of sound recordings are not entitled to royalties for the broadcast of their recordings in film or on television as part of a movie soundtrack.

Under section 19 of the Copyright Act, performers and makers of sound recordings are entitled to remuneration when their recordings are performed or telecommunicated to the public. However, the section 2 definition of “sound recording” excludes a “soundtrack of a cinematographic work where it accompanies the cinematographic work.” “Soundtrack” is not defined, but the appellants had argued that it means the whole aggregate of sounds accompanying the film, and not the individual pre-existing sound recordings incorporated into the soundtrack. They contended, therefore, that royalties should be collected when those recordings are broadcast as part of a film’s soundtrack.

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Previews of musical works do not infringe copyright

As we've discussed in a number of recent blog posts, the Supreme Court of Canada this week released a number of major copyright-related decisions. In one of these cases, Society of Composers, Authors and Music Publishers of Canada v. Bell Canada (SOCAN), the Supreme Court considered whether there would be a tariff for the communication of previews of musical works over the internet.

Online music previews are short extracts of musical works and assist a consumer in deciding musical purchases. The Copyright Board concluded that those who make previews available, and the users that listen to previews, were entitled to avail themselves of the fair dealing exception under section 29 of the Copyright Act, as listening to the previews constituted research of a purchasing decision (see our previous post). The Federal Court of Appeal upheld the Copyright Board’s decision and SOCAN sought leave to appeal to the Supreme Court of Canada.

In upholding the decisions below, the Supreme Court concluded that the previews constituted fair dealing, applying the test articulated by the Court in CCH Canadian Ltd v. Law Society of Canada (CCH).

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Canadian government to loosen foreign ownership restrictions in telecommunications sector

Susan M. Hutton, T. Gregory Kane & David Elder -

As part of its plan to auction rights for the 700 MHz spectrum band, the Canadian government announced yesterday that it plans to amend the Telecommunications Act to lift foreign investment restrictions for telecommunications companies holding less than a 10 per-cent share of the total Canadian telecommunications market.

The Honourable Christian Paradis, Minister of Industry, announced the following commitments designed to provide Canadians with greater choice and lower prices in the market for wireless services:

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Top 10 Canadian communications law developments for 2011

David Elder -

The past year has seen many important developments in the area of Canadian communications law, and we have blogged about many of them here.

In several cases, the key developments have stemmed from ongoing trends in the industry, especially those relating to technology and industry consolidation.  If there is one unifying theme for the key legal and policy changes in 2011, it would be that many of them stem from the continuing disruptive effect of broadband internet services and digital technology on both the existing business models for broadcasting and telecommunications and the regimes under which those industries have been regulated.  Several courts began considering, or issued judgement in cases that explore the intersections between the laws respecting, broadcasting, telecommunications and copyright.

Here are our picks for the most significant communications law developments of 2011:

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French-language Pay-TV competition: cancelled due to lack of interest?

Paul Beaudry and Lindsay Gwyer -

French-language television viewers hoping for the option of a second national pay-television channel will not be getting their wish anytime soon, as the CRTC recently announced that it would not open up the French-language general interest pay television service genre to competition due to a lack of applicants for a new service.

However, while closing a proceeding due to lack of applications seems understandable, the more interesting question may be why no such applications were forthcoming.

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Le CRTC annonce que Super Écran demeurera le seul joueur dans le marché de la télévision payante d'intérêt général de langue française

Les téléspectateurs francophones qui espéraient l’arrivée d’un second service de télévision payante ne verront pas leur souhait exaucé de sitôt. Le CRTC a récemment annoncé que le genre des services de télévision payante d’intérêt général de langue française ne serait pas ouvert à la concurrence en raison d’un manque de demandeurs pour un nouveau service.

Cependant, bien que la clôture de l’étude en raison d’un manque de demandes est compréhensible, on peut se demander pourquoi aucune demande n’a été faite suite à l’appel de demandes du CRTC.

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CRTC says no regulation for "over-the-top" programming - at least for now

David Elder and Lindsay Gwyer -

Internet-based broadcast content providers can breathe a bit easier following an announcement by the CRTC that it has no immediate plans to impose regulatory obligations on “over-the-top” (OTT) providers such as Netflix, nor to reduce any of the obligations that currently apply to regulated broadcasters and distributors in response to the growing competition from OTT services.

On October 5, the CRTC released the results of a “fact-finding” exercise in which it had asked interested stakeholders to submit comments on the implications of OTT services, which the CRTC defines as “Internet access to programming, independent of a facility or network dedicated to its delivery.”  In its call for comments, the CRTC emphasized that participants should submit applicable data to support their positions.   The fact-finding process was apparently the result of calls from a range of stakeholders (including the Standing Committee on Canadian Heritage) to reconsider the potential impact of OTT services on licensed broadcasters.

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Where does copyright law end and broadcasting regulation begin? Supreme Court to hear appeal on "Value for Signal"

David Elder and Lindsay Gwyer -

The long road for local broadcasters wanting to charge fees to cable and satellite companies for rebroadcasting their signals just got a little longer, as the Supreme Court of Canada has granted leave to hear an appeal a Federal Court of Appeal decision that upheld the ability of the Canadian Radio-television and Telecommunications Commission (CRTC) to establish such a regime.

The “Value for Signal” (VFS) regime was authorized by the CRTC in its 2010 group licensing framework decision, and was intended “to remove unnecessary barriers to the continued viability of private broadcasters and to ensure that broadcasters are able to obtain, through market-based negotiations, fair value of the programming they broadcast.”

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UPDATE - CRTC issues standstill "policy" on carriage agreements

David Elder

Subsequent to our original post, the CRTC issued a clarification to Broadcasting Regulatory Policy 2011-415, indicating that, in fact,  broadcasting undertakings are not prevented from  renegotiating the rates, terms and conditions of pre-existing carriage agreements, whether expired or otherwise. 

After struggling to reconcile this with the wording of the original directive, it would appear that all that the “standstill” directive was intended to do was to ensure that during negotiations, existing services continue to be made available by broadcasters and continue to be carried by distributors.

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CRTC issues standstill "policy" on carriage agreements

David Elder and Edwin Mok -

In an attempt to preserve the status quo leading up to its decision on the regulatory framework for vertical integration in the broadcasting industry, the CRTC has indicated that existing carriage arrangements between broadcasters and distributors should remain in place for now.

On July 8, 2011, the CRTC issued Broadcasting Regulatory Policy CRTC 2011-415 (the Policy), coincident with the filing of final written comments respecting the recent CRTC public hearings on vertical integration in Canada.

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New Government reaffirms its communications agenda

David Elder -

The newly elected Conservative Government is staying the course on a number of issues of interest to the communications industry.  It remains to be seen how the new majority status of the Government will affect the progress of these initiatives.

The Speech from the Throne, which opened the 41st Parliament, resurrected several  proposals that were put on hold with the fall of the previous Government and election call.  By convention, such a speech provides a general description of the Government's legislative program for the next Parliamentary session

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CRTC puts "over-the-top" programming under the microscope

David Elder -

The CRTC has initiated a public proceeding to allow interested parties to comment on the implications for the Canadian broadcasting system of the increasing consumption of Internet-delivered programming in Canada – but has urged them to back up their assertions with any applicable data.

The “fact-finding exercise” follows pressure from several sources to consider changes to the existing broadcasting regulatory framework in light of increased competition from unregulated over-the-top (OTT) program providers.

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CRTC requires DTH providers to carry more local television services

David Elder

In a revision to its regulatory framework for direct-to-home (DTH) satellite distribution undertakings, the CRTC has required DTH providers to carry additional local television stations, although the nature of the obligation varies among providers.

For its part, DTH provider Bell TV will be required to carry a fixed number of additional local televisions stations by August 31, 2012, consistent with the benefits proposal that its parent company, BCE Inc., made in connection with its application to acquire effective control of major private broadcasting ownership group CTVglobemedia. 

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And then there was one: CRTC approves satellite radio merger

David Elder and Maya Weiss -

In the latest chapter in the challenging history of satellite radio in Canada, the CRTC recently approved the long-pending merger of Canada’s two satellite radio services, Sirius Canada Inc. (Sirius Canada) and XM Satellite Radio Canada (XM Canada), effectively creating a monopoly for Satellite Subscription Radio (SSR) services in Canada.

Under the terms of the deal, both Sirius Canada and XM Canada will be wholly owned by Canadian Satellite Radio Holding Inc. (CSRHI), currently the holding company for the licensee of Sirius Canada.

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Election call puts communications laws and policies in limbo

By David Elder -

Last week’s non-confidence vote meant not only the fall of the government and the dissolution of the 40th Parliament, but the death of a number of important communications-related bills and policy initiatives.

In a recent blog post, Professor Michael Geist provided an inventory of incomplete government initiatives, noting that it is unclear when – or if -- some of these may be reintroduced following the election.

Here’s our take on which of the Harper government’s communications-related initiatives may be truly dead, and which, like the Monty Python parrot, may be “just resting.”

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Supreme Court to consider whether ISPs are broadcasting undertakings

David Elder -

The Supreme Court of Canada has announced that it will hear an important “convergence” case respecting regulatory treatment of Internet access to broadcasting content.

On March 24, the Court granted leave to appeal last summer’s judgement of the Federal Court of Appeal, which found that Internet Service Providers (ISPs) do not carry on “broadcasting undertakings”, within the meaning of the Broadcasting Act, when they provide access through the Internet to broadcasting material requested by users.

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Déjà vu all over again: CRTC considers re-imposing payment of benefits on BDU transactions

David Elder -

In a brief amendment to the Notice of Consultation that initiated the upcoming vertical integration hearing, the CRTC has quietly added to the issues for discussion the possibility that benefits payments may be required in future applications for authority to transfer the ownership or control of broadcasting distribution undertakings (BDUs), but the low-key nature of the announcement belies the potentially significant impact of such a change in policy.

The re-imposition of the benefits test on BDU transactions could result in significant new costs to those acquiring distributors, potentially creating a chilling effect on such transactions, driving down prices or even acquisitions altogether.  On the other hand, the revived stream of financial contributions could have material benefits for other aspects of the broadcasting system, including programmers, program producers and viewers.

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CSI proposes tariffs for non-commercial radio stations (2011), online music (2011), and satellite radio (2011-2013)

On July 17, 2010, CSI, the company formed as a royalty-collection vehicle by the Canadian Musical Reproduction Rights Agency (CMRRA)  and the Society for Reproduction Rights of Authors, Composers and Publishers in Canada (SODRAC) , proposed three new tariffs which would apply to the reproduction of music (which can include broadcasting, streaming and downloading) by non-commercial radio stations, online music providers, and satellite radio providers.

In the proposed CMRRA-SODRAC Inc. Non-Commercial Radio Tariff, 2011, CSI is requesting that the Copyright Board of Canada  certify a tariff of 0.63% of the annual gross operating costs of radio stations that are either owned or operated by not-for-profit corporations, excluding the Canadian Broadcasting Corporation.  In the case of such a non-commercial radio station that is a “low use station” (generally, a station that plays music for less than 20% of its broadcast time), the tariff would be lower, at 0.23% of its annual gross operating costs.  In exchange for the payment of the tariff, the non-commercial radio stations would receive a license to broadcast music contained in CSI’s repertoire as often as desired, including the streaming of the broadcast over the Internet.

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CRTC considering relaxing prohibition on broadcasting misleading news.

In a Broadcasting Notice of Consultation issued on January 10, the CRTC indicated that it is seeking comments for the amendment of several regulations to allow for more leeway in broadcasting false or misleading news. According to the CRTC, it is considering these amendments because of the Parliament’s Standing Joint Committee’s concern that the existing prohibitions on broadcasting false or misleading news is too broad and vague. Fearing that it would not withstand a Charter challenge, the CRTC was urged by the Committee to revise the language of the regulations.

Currently the regulations prohibit the broadcasting of “any false or misleading news” whereas if the proposed language to the amendments were accepted, it would lower the standard to "any news that the licensee knows is false or misleading and that endangers or is likely to endanger the lives, health or safety of the public." In other words, a broadcaster would be permitted to air news that it knows is false or misleading as long as it does not endanger the lives, health or safety of the public.

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Federal Court of Appeal says broadcasting policy trumps copyright law: CRTC has power to allow local broadcasters to demand fee for carriage

David Elder -

“Free-to-air” local television signals may no longer be free to cable and satellite subscribers, following a recent court decision affirming the scope of the powers of the Canadian Radio-television and Telecommunications Commission (CRTC) under the Broadcasting Act.

In an important ruling that addresses the intersection of broadcasting and copyright law and policy, a majority of the Federal Court of Appeal found, in the case of Reference re the Canadian Radio-television and Telecommunications Commission’s Broadcasting Regulatory Policy CRTC 2010-167 and Broadcasting Order CRTC 2010-168, 2011 FCA 64, that the Copyright Act permits the CRTC to limit the statutory retransmission rights of broadcasting distribution undertakings (BDUs), such as cable companies, by imposing any regulatory or licensing condition that is consistent with the Commission’s statutory authority under the Broadcasting Act. In fact, the majority went so far as to state that Parliament has ranked the objectives of Canada’s broadcasting policy ahead of the statutory retransmission rights granted to BDUs under the Copyright Act.

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