Barry Sookman, lawyer and registered lobbyist for the Canadian
Recording Industry Association (now Music Canada), the Motion Pictures
Association - Canada, and Canadian Publishers Council, has an
op-ed
in the National Post claiming that concerns that proposed amendments to
Bill C-11 could result in SOPA-style rules in Canada are the stuff of
wild claims and hysteria.
The short response is that Sookman's column - along with his clients -
downplay the dramatic impact of their proposed amendments. Their
proposed amendments to C-11 would radically alter the bill by
constraining consumer provisions, heaping greater liability risk on
Internet companies, and introducing website blocking and Internet
termination to Canada. Several of these provisions are very similar in
approach to SOPA in the U.S. and the comparison is both apt and
accurate. Moreover, the column leaves the false impression that Bill
C-11's digital lock rules are standard when they are widely opposed by
numerous stakeholders that Sookman would not dare to call
anti-copyright.
There is much more to take issue with in the column and I've done so in
paragraph-by-paragraph format below. Sookman's column is posted in
italics and my response immediately follows:
While hysterical predictions about
copyright reform in Canada have been ratcheted up yet again, this time
the claims are so outrageous that they can perhaps best be described as
having âjumped the shark.â Canadians are being told that Bill C-11, an
act to amend Canadaâs outdated copyright law, could be used to shut
down popular websites such as YouTube, fundamentally change the
Internet, sabotage online freedoms and hog-tie innovators.
Further details on how the proposed amendments to Bill C-11 could be
used to target YouTube are available
here
and discussed in greater detail below. As noted in the post, the
language in the bill - if combined with amendments supported by
Sookman's clients - could be used to target legitimate sites such as
YouTube. Those same proposed amendments call for website blocking and
ISP policies that could lead to loss of Internet service.
Activist organizations are urging
Canadians to protest what they call the impending Bill C-11 âInternet
lockdown.â Making wild claims about the bill that have no basis in
reality are groups such as OpenMedia and Avaaz and illicit businesses
who sell hacking devices for pirated video games, all urging online
protests and all relying on the hyperbolic musings from University of
Ottawa academic Michael Geist of what might or possibly or could one
day happen. To fully ratchet up the frenzy, these groups are claiming
attempts are being made to bring U.S.-style legislation to Canada.
I have written in detail about the SOPA-style rules including website
blocking and expansion of liability for sites that could even cover
legitimate sites
here and
here. The
concerns about an "Internet lockdown" likely stem from the
recording
industry's demand for ISP provisions that could lead to termination
of Internet services.
These warnings are an attempt to
exploit the controversy and unpopular anti-copyright sentiments about
the much-misunderstood U.S. legislation in Congress called the Stop
Online Piracy Act, and to derail parts of Bill C-11 and proposals to
amend it. It doesnât seem to matter that SOPA and Bill C-11 are
entirely different pieces of legislation, with different goals and
legislative text. Canadians should examine the facts and see the
hysteria for what it is.
SOPA and C-11 are different pieces of legislation as I emphasized in an
FAQ on the
issue.
What matters is the substance of the provisions in C-11 and the
proposed changes that would add SOPA-style provisions to the bill.
Bill C-11 contains many provisions
that would greatly expand the freedoms of Canadians to copy creative
products under new exceptions for format shifting, time shifting and
creating mash-ups. ISPs and other online service providers would have
new wide exceptions when they act as neutral intermediaries. The bill
also proposes new exceptions for broadcasters and to support learning
and education. With these new exceptions, Canadaâs copyright law would
become one of the most user-friendly, if not by far the most
user-friendly, in the world. An Internet lockdown? Hardly.
Bill C-11 certainly includes some user-friendly provisions. From the
day the bill was introduced, I
have argued
that there are many aspect of the bill that deserve support. In fact, a
review of the
transcript
of my committee appearance shows I was more supportive of the bill than
Sookman, who appeared on the same day. The public has become concerned,
however, because Sookman's clients are seeking radical amendments that
would scale back even the user-focused provisions. The
proposed
amendments
(this is their document, not mine) includes limitations on the format
shifting, time shifting, and user generated content provisions,
restrictions on the ISP provisions, and elimination of the broadcaster
provision. To suggest that the bill is user-friendly while
simultaneously seeking to change those provisions amounts to a classic
bait and switch.
Bill C-11 also proposes amendments to
provide legal protection for technological protection measures (a.k.a.
digital locks or TPMs) that safeguard intellectual property products.
These amendments would use internationally accepted measures to support
new business models and innovation in digital products and services
such as online music and movie streaming services.
This is by far the most contentious aspect of the bill with a digital
lock approach that is
widely
opposed by both major opposition parties, business groups, creator
associations, consumer groups, and education associations. The
issue is not whether to provide legal protection for digital locks, but
rather how to do so in a manner that supports businesses and retains
the copyright balance. The Canadian approach goes far beyond
international requirements and raises legitimate fears about its impact
on consumer property rights, free speech, and privacy. More information
on the
digital
lock rules here.
The SOPA rhetoric has led opponents
of legal protection for TPMs to mount further opposition to Bill C-11
by trying to link the anti-copyright sentiments about SOPA to the TPM
provisions in Bill C-11, arguing, for example, that they are the
âCanadian version of SOPA.â They do this even though there is no
connection whatsoever between them.
The argument is that some of the proposed amendments to C-11 are the
Canadian version of SOPA. Bill C-11 as it stands is better
characterized as the Canadian DMCA, since it largely mirrors the
digital lock approach found in that legislation. I discussed this point
during my
appearance
on George Stroumboulopoulos Tonight.
Bill C-11 also proposes an amendment
intended to make it an infringement of copyright for a person using the
Internet to knowingly enable copyright infringement. The poster
children for this legislation are BitTorrent sites such as IsoHunt.com
that have been found to facilitate the distribution of files, 95% to
99% of which are infringing. Other targets of the enablement provision
are sites such as Megaupload.com, a cyber locker site whose principals
were just indicted for criminal copyright infringement. The FBI
estimates that the founder, Kim Dotcom, personally made $115,000 a day
from his network of sites.
In 2008, Sookman sent isoHunt a
cease and
desist letter
that threatened legal action that would seek up to $20,000 per
infringement. That letter was based on current Canadian copyright
law.
In 2010, Sookman's firm
filed a
lawsuit
against isoHunt, citing a long list of copyright infringing activities
based on current law. IsoHunt may be the poster child for the enabler
provision, but Sookman is the poster child for how current Canadian law
can be used to target these same sites.
This provision is currently worded to
apply only to sites that are âdesigned primarily to enable acts of
copyright infringement.â Mr. Geist claims that clarifying the wording
to expressly cover services that are âprimarily operated to enable
infringement or induce infringementâ could be used to shut down sites
such as YouTube and would stifle innovation. These claims are
ridiculous, though not surprising given his historical antipathy to
laws designed to protect the creative industries from theft.
The amendments proposed by the recording industry are not
"clarifications" of the enabler provision. They represent a significant
expansion of the provision that would risk being applied to legitimate
sites as well. I provide a full analysis of why the expanded provision
could be used to target sites such as YouTube
here.
To be clear, SOPA was intended to
target foreign rogue websites that would already be illegal under U.S.
copyright law if those sites were operated from the U.S. Bill
C-11 is
not about foreign pirate sites: It is Canadaâs attempt to establish
rules about what is and isnât legal in Canada. This is long
overdue.
The fact that Canada has not updated its copyright laws to deal with
the Internet environment has led to our reputation as a haven for
internet piracy operations both with our trading partners and pirate
operators including Megauploadâs Kim Dotcom.
As noted above, Sookman's legal threats and lawsuits make it clear that
he thinks these sites are illegal under current Canadian law. Canada's
reputation as a piracy haven is due to the hyperbolic claims of Sookman
and his clients. The Business Software Allianceâs annual Global Piracy
Report shows Canada among the
15 lowest
piracy countries in the world with the Canadian piracy rate at an
all-time low. The Canadian Motion Pictures Distributors Association has
acknowledged
that illegal camcording had largely disappeared from the Canadian
market. In 2010, the World Economic Forum
found
that global executives rank Canadian intellectual property protection
ahead of the United States, the United Kingdom, Japan, and most of
Europe. Canada is a
world leader
in digital music sales that even the Canadian Recording Industry
Association now characterizes as a commercial opportunity.
The current wave of opposition to the
amendments appears to be an opportunist effort to turn the tide on
effective copyright reform by leveraging anti-SOPA public opinion. The
amendments that are being objected to were first tabled before the
Parliamentary Committee examining Bill C-32 in March 2011 and were
publically disseminated even by Mr. Geist, well before the SOPA ruckus.
At that time there was no public opposition to the proposed amendments
as going too far.
The Bill C-32 committee solicited comments and proposed amendments from
all Canadians. It received dozens of submissions, but none were posted
online or made publicly available. I obtained
copies of the
submissions
last summer after Bill C-32 died on the order paper as part of a
request from the committee clerk. There was no public opposition to the
proposed amendments because few people were actually aware of the
specifics. Moreover, by Sookman's standard, there were no objections to
the dozens of suggested changes, the majority of which called for
reforms to the digital lock rules.
The new argument that amendments
would cover sites such as YouTube is spurious. Bill C-11 provides a
series of criteria that a court would need to consider in determining
if a site primarily enables infringement. The targeted sites are those:
promoted to enable acts of infringement; that know they are being used
to enable significant infringements; that have no significant uses
other than enabling infringement; that benefit from enabling
infringement; and that would be economically unviable but for enabling
infringement. The types of sites that would be affected are such sites
as IsoHunt and Megaupload, the very wealth-destroying âinnovatorsâ the
bill targets.
I outlined how the specific criteria could applied to YouTube
here.
To repeat, contrast the Bill C-11 criteria that a court may consider
with Viacom's
claims against YouTube, as found in its
appellate
brief:
Bill
C-11
Viacom's
Claims
whether the person expressly or
implicitly marketed or promoted the service as one that could be used
to enable acts of copyright infringement
"YouTubeâs founders built an
integrated media entertainment business, in the district courtâs words,
by âwelcom[ing] copyright-infringing material being placed on their
website.â That copyrighted material was âattractive to usersâ and
âenhanced defendantsâ income from advertisements,â enabling YouTubeâs
founders to sell the business to Google for $1.65 billion."
whether the person had knowledge
that the service was used to enable a significant number of acts of
copyright infringement
"Almost immediately after
YouTube came online, YouTube became aware of widespread infringement on
its site. And it was the copyrighted videosânot home moviesâthat
people flocked to YouTube to see."
whether the service has
significant uses other than to enable acts of copyright infringement
"In their written presentation
to Googleâs board and senior management, Googleâs financial advisors
stated that 60 percent of YouTubeâs views were âpremiumâ âi.e.,
copyrightedâand only 10 percent of the premium videos were licensed."
the personâs ability, as part of
providing the service, to limit acts of copyright infringement, and any
action taken by the person to do so
"Dunton similarly put a stop to
efforts to implement software that would notify copyright owners when
infringing videos were uploaded. Even though a YouTube engineer
said
that implementing an automated anti-infringement tool to alert
copyright owners when suspected infringing content was uploaded
âisnât
hardâ and would âtake another day or [weekend],â Dunton ordered
the
engineer to âforget about the email alerts stuffâ because âweâre just
trying to cover our asses so we donât get sued.â"
any benefits the person received
as a result of enabling the acts of copyright
infringement
"Unable to compete with
YouTubeâs pirated content, in late 2006, Google bought YouTube for
$1.65 billion."
the economic viability of the
provision of the service if it were not used to enable acts of
copyright infringement
"As early as June of 2005,
YouTubeâs Internet service provider complained that YouTube was
violating its user agreement by, YouTube founder Steve Chen believed,
âhosting copyrighted content.â But Chen resolved that YouTube was
ânot
about to take down content because our ISP is giving us shit.â
And, in
emails with the other founders, he later remarked âwe need to attract
traffic. . . . [T]he only reason why our traffic surged was due
to a
video of this typeââi.e., copyrighted and unauthorized"
The government has acknowledged that
technical amendments to Bill C-11 are required. A healthy debate based
on facts can be expected as Parliamentâs Special Legislative Committee
continues to consider it, and thoughtful debate is always helpful in
ensuring a proposed law meets its objectives. But letâs not be fooled
by Chicken Little claims. Canadians will all be hurt if the debate
continues to be marred by political opportunism and misinformation
spread for political purposes.
If there has been political opportunism and misinformation, it has been
the consistent mischaracterization of Canadian law by groups such as
CRIA and their representatives, which sue on the one hand and lobby for
reform on the other. The fact that tens of thousands of Canadians have
woken up to Bill C-11 and the
radical
proposed amendments
supported by Sookman's clients is a welcome development, one that will
help ensure a full debate with politicians from all parties better
aware of where Canadians stand on copyright reform.