Canada Media Fund comes to HotDocs 2010

HotDocs 2010, North America's largest documentary festival, will be hosting a micro session on CMF's programs and funding on May 3. This information session is part of a growing number of information sessions springing up around the country in an attempt by CMF officials to better explain the new program, which officially started on April 1, 2010.

The session at HotDocs follows a less than stellar reception that the president of CMF, Louis Roquet, received when he presented at a luncheon in Montreal on April 20, 2010. According to Playback Daily, Roquet spent much of the time talking about changing consumer habits and not about the scope of CMF's acceptable digital platforms.

After various Heenan Blaikie lawyers attended a similar information session held in Toronto on April 8, it would appear that producers and stakeholders want to hear more about eligibility requirements under the CMF's multi-platform programs and less about its cultural and technical objectives.

If you are interested in attending the CMF information session during HotDoc2010, it will be taking place on Monday, May 3rd at 4 p.m. ET at Victoria College, Room 323, 140 Charles Street West, Toronto, Ontario.

  

 
 

 

Trade-mark Protection for a Fictional Beer

The UK's Intellectual Property Office (IPO) has issued a trade-mark decision (Trademark Inter-partes Decision O/359/09 [.pdf] - hat tip to Harbottle & Lewis LLP) of significance for the creators of fictional brands: the IPO refused a trade-mark application on the basis that a protectable goodwill interest had arisen in a fictional brand of beer.

Viewers of the long-running English soap opera Coronation Street will recognize the name at the centre of the matter: Newton & Ridley.  N&R is a fictional brewery and brand of beer which is depicted in the fictional Coronation Street world - it is served in the fictional pubs which populate the fictional world, a world replete with N&R bar taps, beer mats, delivery vans and even a fictional history of the business dealings of the N&R brewery.

A company, evidently unaffiliated with ITV (the producer and broadcaster of Coronation Street), called itself Newton & Ridley Beer Company Limited, and filed an application for registration of "Newton & Ridley" in connection with the sale of certain alcoholic beverages (namely, "Beer; ale; lager; stout and porter").  ITV opposed the application, relying on its own registered mark for N&R in the "printed matter" category (which included beer mats), and the goodwill which had accrued to the mark by virtue of ITV's continuous visual use of the mark in the show since the 1960s.  ITV had also evidently for a number of years sold an actual beer using the name Newton & Ridley until a change in the Ofcom Broadcasting Code earlier this decade made it untenable for ITV to continue such sales.  It was also pointed out by ITV that allowing the third party company to sell the beer using the mark would, because the Ofcom Broadcasting Code prohibits giving "undue prominence" to a product or service, have the perverse result of effectively preventing ITV from continuing to show the N&R brand, which it had created, on its own show.

The IPO accepted the arguments of ITV, recognizing that goodwill had accrued to ITV in respect of the mark not from the sale of beer by ITV (which had stopped in 2005) but from "the exposure of NEWTON & RIDLEY on Coronation Street itself".  The creation and depiction of a fictional brand, in short, can have real world impact and value.  That goodwill and "attractive force" meant that purchasers of the unauthorized Newton & Ridley beer would be confused into thinking it had some connection with the television show.  Accordingly, the mark was not registered.

The IPO took note of a similar decision reached by the Federal Court of Australia (Twentieth Century Fox Film Corporation and Matt Groening Productions Inc v the South Australian Brewing Co Ltd and Lion Nathan Australia Pty Ltd [1996] FCA 1484) in connection with the sale by a brewery attempting to register a trade-mark for Duff Beer.  Regrettably, no reported cases appear to address the possibility of using Elsinore Beer.

Restrictions on Videogame Sales

The US Supreme Court has indicated that it will be hearing an appeal regarding a California law (which has, due to various court challenges, never actually been enforced) which prohibits the rental or sale of violent videogames to minors.  The law is being challenged on First Amendment grounds, and Wired reports that "similar bans have been overturned in Illinois, Michigan, Minnesota and Oklahoma, and in the cities of Indianapolis and St. Louis."  The Huffington Post has comprehensive coverage of the matter in "Supreme Court Video Game Case: SCOTUS to Decide If California Can Regulate Games", and SCOTUSBlog has links to various amici briefs and the decision of the 9th Circuit Court of Appeals.

In Canada, Ontario has had content-based restrictions on the sale or rental of videogames to minors in place for a number of years now, which are administered by the Ontario Film Review Board.  As the OFRB's website on the sale of videogames and computer games to minors notes, the OFRB has adopted the classification system used by the Entertainment Software Rating BoardUnder the Film Classification Act, 2005, and Ontario Regulation 452/05, "video games that are classified as "Mature" may not be sold, rented or exhibited to a person under the age of 17 and video games that are classified as "Adults Only" may not be sold, rented or exhibited to a person under the age of 18."

UPDATE: Marie-Andrée Weiss provides some analysis of the applicable US law in "Should violent video games be disqualified as speech?" at the NYSBA's Entertainment, Arts and Sports Law Blog.

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Incidental Inclusion in Canadian Copyright Law

The good folks at IP Osgoode's IPilogue blog have published a short article I wrote which explores the "incidental inclusion" exception to copyright infringement, an exception which, depending on who you talk to, could be of major significance for film and TV producers facing errors and omissions clearance problems: "Cindy, Incidentally – The “Incidental Inclusion” Exception in Canadian Copyright Law".  The opening paragraph:

A filmmaker films an individual walking down a city street, past a convenience store.  The camera captures, among others, two things: an advertisement consisting of the familiar, stylized Coca-Cola symbol hanging in the window, and the faint, but audible, strains of a popular song drifting from inside the store as an unseen customer opens the door.  Concerned, the filmmaker speaks with an entertainment lawyer and asks whether there’s anything to worry about.  From such a simple fact scenario rises one of the more vexing questions in Canadian intellectual property law.

Assignment of Copyright as a Remedy for Defamation

A variety of news outlets have reported on the defamation action launched by scientist Andrew Weaver against the National Post, its publisher and some of its staff writers.  The Toronto Star's report, written by Tracey Tyler, indicates the nature of the reaction from some members of the legal community by the title given to the story: "Media lawyers not warm on climate scientist's lawsuit".

Media law experts say a libel lawsuit filed by a leading Canadian climate scientist could have enormous implications for newspapers and other online publishers, forcing them to police the Internet for stories picked up by everyone from bloggers to Twitterers.

... In his claim, he is asking the Supreme Court of British Columbia to order the Post to not only remove the articles from its own Internet site and any electronic databases where they are accessible, but to assist Weaver in obtaining their removal from any other website.

Toronto media lawyer Brian Rogers said this might be considered essential by someone who believes they have been the subject of a defamatory story that has “gone everywhere.”

But it would also impose a major new responsibility on mainstream media such as newspapers, which have direct control over a very limited aspect of their publications and can’t control what search engines and bloggers wish to do with a story once published, he said.

“The equivalent would be asking a book publisher to get all libraries to return a copy of a book,” Rogers said Friday.

A copy of Weaver's statement of claim is publicly available.  Simon Fodden, writing at slaw.ca, opines that he thinks the claim for relief is a "a fairly sensible and reasonable claim, particularly when the original publisher has not merely allowed but encouraged propagation".  As Fodden goes on to note:

the request is not for an order requiring the defendant to ensure the eradication of the fruit of a poisonous tree, so to speak. All that is requested is that the defendant be “required to assist the plaintiff” in the endeavour to get libellous material removed.

Moreover, the hunt would not be for wisps of paper tacked to random telephone poles, but rather for material that is meant to be discoverable on the web by search engines. The National Post is a big organization with, one hopes and expects, a sophisticated IT department likely better situated than a personal plaintiff to know the ropes of the internet and to be able to pull the right ones.

There is another element of the requested relief which seems not to be garnering much attention, but which is, to my knowledge, just as novel.  As set out on page 41 of the statement of claim, Weaver is seeking an assignment of the copyright in the articles:

(h) an Order requiring the defendants to assign and grant in writing to the plaintiff, all right, title or interest they have in the copyright for the defamatory expression and injurious falsehoods complained of in this statement of claim so that the plaintiff may in his sole discretion take any legal proceedings he considers necessary to restrain the continued republication of the defamatory expression and injurious falsehoods by third parties on the internet or elsewhere

In short, Weaver hopes to obtain a result whereby he will not only be able to sue individuals for defamation if they republish the purportedly defamatory statements, but for copyright infringement as well.

As mentioned, that seems an entirely novel claim for relief.  It is unclear on what basis the relief could be managed - would copyright be assigned in the entire article, or just the individuals words, sentences or paragraphs which are deemed defamatory?  Levying an award of damages deprives a defendant of their property (ie their money) - is that concept transferable to depriving them of a different kind of property (ie their intellectual property)?  It seems that this case has the potential to break new ground in more than one respect.

Canadian Conference of the Arts Call for Speakers

The Canadian Conference of the Arts has issued a request for proposals for its Emerging Thinkers Speed Speaker Series, to take place at the CCA's National Policy Conference scheduled for November 1-3, 2010 in Ottawa.  The Conference seeks to "investigate the shape of the evolving global economy and the roles played by Canadian artists within this innovative ecology". 

The request for proposals states:

We are looking for exciting, innovative, and creative presentations by 5-10 presenters under the age of 35. These emerging leaders will use visual presentations and vigorous public speaking to portray their vision for the artist within the creative economy. The Emerging Thinkers Speed Speakers will have 5 minutes to present 20 slides which will auto-advance.

Possible topics include:

‐ New business models for artistic practice
‐ Cultural policy: enabling artists to thrive in a creative economy?
‐ Digital media and their creators
‐ Users and creators: who is the artist?
‐ Promoting your art in a globalized market
‐ Emerging arts leaders and new professional paths
‐ What’s in a name? Content creator, artist, creator
‐ Fair dealing and fair compensation

Copyrights and Campaigns

Copyrights and political campaigns, that is.  Ben Sheffner has comprehensive post up about the lawsuit brought by Don Henley against a politician who used two of Henley's songs from his post-Eagles work in ads mocking Senator Barbara Boxer, a politician with whom Henley is simpatico in his political views:

Both sides in Don Henley's lawsuit against California US Senate candidate Chuck DeVore (R) over campaign "parody" videos that used Henley's tunes set to lyrics mocking Sen. Barbara Boxer (D) have now filed cross-motions for summary judgment, teeing up a case that will likely clarify the rules for political uses of third-party material.

The motions focus largely on one issue: whether the videos, which use the compositions "The Boys of Summer" and "All She Wants to do is Dance," are indeed "parodies," and thus likely fair uses, or, rather, unprivileged "satires."

Sheffner provides in-depth consideration of applicable precedent and the workability of the distinction between parody and satire.  (A short but also comprehensive article on the topic, "The Politics of Fair Use", was written by Denise Mroz and David Levenson, and can be found in NYSBA Entertainment Arts & Sports Law Journal, Vol. 18, No. 3 (Fall/Winter 2007).)  As Sheffner discusses, in a case involving an allegation of copyright infringement, all of the action is occurring in determining whether using the songs without permission constitutes an allowable "fair use" under US copyright law - because US copyright law recognizes a fairly robust parody exception to copyright infringement, as set out in the US Supreme Court decision in Campbell v Acuff-Rose.  The existence and extent of a parody exception (and/or a satire exception) has an importance well beyond political campaigns - it can be of significance in areas such as documentary and fictional film-making as well.  Of particular note for Canadians is the fact that under Canadian copyright law, it is unlikely that the debate could occur at all.

The interface of copyright law and political campaigns (and filmmaking) is likely only to increase over time - as digital media allows for an increased ability to mix and mash-up materials, the temptation to make use of elements which are subject to copyright protection will only increase.  Indeed, Canadians enjoyed their own brief flare-up a few years ago when copyright and political campaigns collided.  As the Toronto Star reported in January 2007:

Conservative attack ads fired at Liberal Leader Stephane Dion may end up sideswiping the ruling party after questions were raised about possible breach of copyright laws.

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Copyright in Jokes

Wikipedia maintains a "World's Funniest Joke" page - of the three currently on offer, this joke, which apparently won top honours in the UK, is my favourite:

A woman gets on a bus with her baby. The bus driver says: "That's the ugliest baby that I've ever seen. Ugh!" The woman goes to the rear of the bus and sits down, fuming. She says to a man next to her: "The driver just insulted me!" The man says: "You go right up there and tell him off – go ahead, I'll hold your monkey for you."

You can never go wrong with including a monkey in a joke.  So - what intellectual property rights, if any, protect that joke?  Could the originating comedian or writer of that joke sue for copyright infringement if someone "stole" the joke?

CBC Radio's Jian Gomeshi, on the Q program, hosted an interesting discussion on April 20, 2010 (podcast is available here - the discussion starts at about 01:45 of the episode) on the topic of copyright in jokes, and spoke with Dotan Oliar and Christopher Sprigman, the authors of the article "There's No Free Laugh (Anymore): The Emergence of Intellectual Property Norms and the Transformation of Stand-Up Comedy" (citation: 94 Va. L. Rev. 1787 (2008)).  As the abstract for the article notes:

In this paper, we analyze how stand-up comedians protect their jokes using a system of social norms. Intellectual property law has never protected comedians effectively against theft. Initially, jokes were virtually in the public domain, and comedians invested little in creating new ones. In the last half century, however, comedians have developed a system of IP norms. This system serves as a stand-in for formal law. It regulates issues such as authorship, ownership, transfer of rights, exceptions to informal ownership claims and the imposition of sanctions on norms violators. Under the norms system, the level of investment in original material has increased substantially. We detail these norms, which often diverge from copyright law's defaults.

Backstage Pass: Contract Riders

News outlets such as the Toronto Star are reporting on the publication by The Smoking Gun of Mariah Carey's 2010 concert rider:

No more Cristal Champagne and bendy straws for singer Mariah Carey. She’s all grown up now.

The concert rider for the just-turned-40 superstar excises a lot of the wretched excess and control freak details of past year

Performers' contract riders (really just an attachment to the main contract which sets out certain items in a level of technical detail which is unsuitable for the "contractese" which permeates the main contract) can address matters ranging from stage construction to the brand of bottled water to be provided backstage.  The rider on one of Carey's previous tours included some amazingly detailed instructions regarding catering (a box of bendy straws, a director's chair and spinach with hot bacon dressing are just some of the highlights).  The rider for the current tour, while being touted as less frivolous, is, if anything even more detailed than the previous rider, and includes its own interesting elements (such as the need for "8 tall, leafy plants").

Helpfully, The Smoking Gun has compiled an astounding collection of dozens of contract riders for acts ranging from Guns N' Roses (1 box of assorted candy bars; 1 assortment of adult magazines) to Lil Wayne (2 bottles of Grey Goose vodka; police escort) to Kenny Rogers (4 wedged lemons; 2 pounds of M&Ms).

Snopes.com offers some thoughts on the motivations for complicated riders, using the legendary (but true) Van Halen requirement of "no brown M&Ms" as an example:

The M&Ms provision was included in Van Halen's contracts not as an act of caprice, but because it served a practical purpose: to provide an easy way of determining whether the technical specifications of the contract had been thoroughly read (and complied with).

Taxes and Performing Artists

Yesterday was the tax filing deadline in the US, and April 30 is the date on which Canadians must file their tax returns.  So, you think you've got tax problems?  MTV reports on what happens when performers ignore the advice of their accountants:

Paying taxes as a rock star can be difficult, as you usually have dozens of different income streams, spend most of your time on the road and can't often keep track of your own payroll (or, you know, what month it is). Sometimes it helps to move to a tax-free foreign country, like David Bowie (who moved to Switzerland), the Rolling Stones (France) and Cat Stevens (Brazil).

Though it seems like you could avoid the burden forever, the IRS tends to catch up with everybody.

MTV's story focuses on rock and rap stars and the sometimes inventive ways in which they raise funds in order to meet their obligations (Willie Nelson released The IRS Tapes to help pay down $16.7 million in outstanding taxes; Jerry Lee Lewis "set up a phone number that allowed callers to hear the Killer tell stories from his childhood for the price of $2.75 per minute" - which proved popular enough to enable the Killer to pay the more than $500,000 he owed).

Actors have their own history of trouble with taxes: Wesley Snipes was sentenced to three years in prison for refusing to file tax returns (Snipes has appealed the sentence); Nicolas Cage has also faced financial and tax troubles recently, and is currently enmeshed in a lawsuit with his former business manager - the IRS has demanded more than $6 million in unpaid taxes from Cage.

Helpfully, our colleagues Mark Jadd, Norm Bacal and Kay Leung wrote a definitive paper on the topic of the tax treatment of non-Canadian artists and athletes performing in Canada: "Performing in Canada: Taxation of Non-Resident Artists, Athletes and Other Service Providers", which was published in the Canadian Tax Journal (citation is 56 (3) Canadian Tax Journal 589 (2008)) and an abstract can be read here:

This article reviews the current state of Canadian tax law and administrative practice applicable to non-residents who provide services in Canada and to the businesses that engage them. Particular emphasis has been placed on the rules pertaining to foreign athletes and service providers within the entertainment industry, including an overview of the special provisions governing taxation of non-resident actors. The article examines the substantive tax liability for foreign service providers under Canadian domestic law and the effect that tax treaties may have on such liability. In particular, the impact of the fifth protocol to the Canada-us income tax convention is considered.

Saskatchewan Entertainment Funding at Risk

CBC is reporting that the planned closing of the Saskatchewan Communications Network, the province's public educational broadcaster, could jeopardize nearly $1 million of Canada Media Fund money that had been allocated to the province.  That amount, according to SCN Matters (which describes itself as "an ad-hoc group of viewers, voters and television industry personnel concerned with the government’s decision to terminate the operations of SCN"), could be distributed between around 20 different programs.

The SCN Matters website includes links to a variety of different news stories covering the announced closure of SCN and the reaction, including this story in The La Ronge Northerner:

The government’s decision to eliminate the Saskatchewan Communications Network (SCN) met with dismay among local filmmakers.

“It limits our opportunities for production. I’m not sure who will fill the gap of Saskatchewan- based production,” Randy Johns, of Keewatin Career Development Corporation (KCDC), a La Ronge-based production company, said in an interview with The Northerner.

The SCN website includes an annual report, which provides detailed information on the revenue and expenses of the network.

 

Entertainment Software Association Report

The Entertainment Software Association of Canada (ESAC) has released its report and recommendations on a "national digital economy strategy", entitled Game On, Canada! Playing to Win in the Digital Economy.

The report is content-rich, including statistics on the size of the Canadian video game industry, and offers proposals for policy and legislative initiatives in areas such as labour market mobility, video game financing incentives (such as direct investments and tax credits), infrastructure updating and copyright reform.

How Do Movie Theaters Decide Which Trailers To Show?

Slate's ever-useful Explainer column provides the details:

The "quadrant" system. As many as six trailers play before features at major chains, like AMC and Regal. The studio releasing a given film typically has automatic rights to two of these slots, and theater executives (in consultation with higher-ups from various studios) select the remaining four. Though theoretically studios and theaters could attach any trailer to any movie, they usually decide which releases to promote by using the "quadrant" system, which divides potential audiences into four different categories: men under 25, women under 25, men over 25, and women over 25.

The piece provides some nice details on how the quadrant system works and exceptions to it.  Plus, there's some good bits about the time a studio paid $100,000 to encourage theatres to show trailers for a Rob Schneider vehicle, and also a link to this in-depth story about the politics and shenanigans (who knew?) behind getting trailers placed in front of big ticket movies.

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First Sale Doctrine and Canadian Law

Over at IP Osgoode's IPilogue, Billy Barnes writes about a situation where intellectual property law rubber meets the entertainment law road: the "first sale" doctrine and digital content.

Normally when a consumer purchases a copyrighted work embodied in a tangible object (e.g., a book or a CD) they are completely free to lend or resell that object without the permission of the rightsholder. In the United States, this is called the doctrine of first sale and it has been recognized for over a century. Business practices, prices, and consumer expectations all reflect the assumption that sale of a book is just a regular property transaction. This article discusses how this changes when we switch from tangible objects to digital distribution.

(Also worth checking out, as noted by Barnes, is the IP Colloquium episode devoted to the first sale doctrine.) As Barnes points out, the durability of the first sale doctrine is increasingly being tested in a world where entertainment products (such as books and movies) are delivered not as a physical product but as a digital stream.  I used to be able to take my CDs down to the used CD store and sell them once I was no longer interested in listening to them - to what extent, if any, do or should I have the same right if what I purchased was not a physical disc but a downloaded track (or book, or movie, etc.)?

These questions are even more pertinent in Canada because, unlike in the United States, we do not have a clearly defined "first sale" doctrine, particularly with respect to copyright law.  Outside the United States, the "first sale" doctrine is more commonly referred to as the concept of "exhaustion" (as in, the sale has "exhausted" the owner's rights in the product). 

Macklin and Leger wrote this report for the International Association for the Protection of Intellectual Property which gives a basic background on the lack of an exhaustion doctrine in Canada.  More recently, Jeremy de Beer and Robert Tomkowicz have written "Exhaustion of Intellectual Property Rights in Canada" (not available online, but can be found in the Intellectual Property Institute of Canada's journal at 25 Canadian Intellectual Property Review 3).  de Beer and Tomkowicz examine recent Supreme Court of Canada cases to tease out the contours of Canada's "exhaustion" doctrine, and encourage the courts to more precisely define its limits.

Privacy Rights and Street Photography

David T.S. Fraser muses on the privacy law issues raised by photographing or filming individuals in public places:

It's an issue that has come up in all the discussions about Google Street View and other street imaging products out there on the 'net. ... Obviously, taking photos of people raises privacy issues but I don't have much of a problem when photos are taken in public places. People simply have diminished expectations of privacy on a public street ... when the images are being taken primarily of places and the people are incidental, I don't think this is what privacy laws were designed to protect us against.

The matter can be of particular significance when filming movie and television projects in public spaces where identifiable individuals (who are not hired performers or extras) are clearly depicted in the background.  The traditional approach counsels getting all identifiable individuals to sign a release (and, generally, preventing people who don't sign a release from appearing on camera); failing that, the posting of clearly-marked signs advising pedestrians that they are entering a filming location where they may be photographed can be an acceptable alternative. 

Fraser points to Section 4(2) of the primary federal privacy statute, the Personal Information Protection and Electronic Documents Act (PIPEDA), which excludes from the application of PIPEDA uses of personal information for "journalistic, artistic or literary purposes".  However, as he notes in the comments, even if PIPEDA does not apply, there are still common law "appropriation of personality" tort concerns (for a discussion, see, eg, Robert G. Howell, "Publicity Rights in the Common Law Provinces of Canada" 18 Loyola of Los Angeles Entertainment Law Journal 487) and also invasion of privacy tort concerns.  To that we can add, at least in the Province of Quebec, concerns arising under the Quebec Charter of Human Rights and Freedoms, as outlined in the Supreme Court of Canada decision in Aubry c. Éditions Vice‑Versa, [1998] 1 SCR 591, wherein the Court held that an individual's right of privacy was violated by the publication of a photograph of the individual when she was seated on the steps of a public library.

The Canadian Look, Canadian Films and Canadian Tax Incentives

Peter Howell writes in the Toronto Star about how "Canadian films don't have to 'look Canadian' any more" - describing the aesthetic improvement resulting from increased production budgets.  On the one hand, Howell notes, Canadian locations, particularly films shot in Canadian urban centres, seem increasingly capable of functioning as "every place and anyplace".  On the other hand, some directors are increasingly willing to expressly set their movies in identifiably Canadian locales (Atom Egoyan's recent work Chloe is set in Toronto).

One item which Howell touches on warrants further attention:

[Kari] Skogland presents a pragmatic truth that all filmmakers must accept, Canadian or not: financing often determines your setting. Tax incentives are often doled out on the proviso that a film be shot in a certain location...

The bolded portion deserves to be unpacked a little.  When financing a Canadian film, there are generally two different types of "tax incentives" a producer can try to obtain: tax credits, which are payments made by the government (federal and/or provincial) on the basis of how much money has been spent on paying "production" or "labour" costs to Canadians in a given jurisdiction (eg if you film a movie in Toronto, you can qualify for federal tax credits and for Ontario tax credits); and "direct incentives", such as equity investments or (recoupable) grants made by a government agency such as Telefilm Canada or the Canada Media Fund.  (Heenan Blaikie's publication Producing in Canada, available here, offers a comprehensive guide to the various types of incentives available.)

 Tax credits, whether the somewhat confusingly named "Canadian content" credits (which are for projects which include a sufficient number of individuals who are Canadian working in creative roles, such as directors, screenwriters and actors, as measured by the Canadian Audio-Visual Certification Office (CAVCO)) or (the less lucrative) "production services" credits (which are for projects shot in Canada, but which do not have the required Canadian nationals fulfilling the required creative roles), are not required to be set in Canada or to be "about" Canada or Canadians.  A sci-fi movie such as Resident Evil: Apocalypse, which was shot in Toronto, can qualify to obtain tax credits just as Passchendaele can.

Direct government incentives, on the other hand, where the government is effectively using taxpayer money to directly invest in a movie, generally do require that a project, in addition to qualifying as "Canadian content" due to the nationality of the people working on it, have some kind of "Canadian content" in respect of the story itself.  Thus, the Canada Feature Film Fund guidelines state that, when considering which projects to invest in, they will prioritize projects which

"present a distinctly Canadian point of view (for example: Canadian characters, setting, themes, talent and stories reflecting Canadian society and cultural diversity)"

The basic requirement is that a project be filmed in Canada and make payments to Canadian residents - but that bare minimum entitles a producer only to receive the bare minimum of available incentives (the "production services" tax credits).  The more "Canadian" a project is, in terms of Canadians working in creative roles, and in terms of being "about" Canada, the more incentives for which it can potentially qualify.

Bands as Brands

Fascinating article in the Wall Street Journal (hat tip: Tamera H. Bennett) about The Black-Eyed Peas (dubbed "The Most Corporate Band in America"), and the metrics of success in the contemporary music industry.  Pull-quotes:

"I consider us a brand. A brand always has stylized decks, from colors to fonts. Here's our demographic. Here's the reach. Here's the potential. Here's how the consumer will benefit from the collaboration."

... Selling records used to be the secret to success. The trajectory of the Black Eyed Peas has been about corporate connections.

The Optimization of Product Placement

For some, we're entering "a golden age of TV product placement" (Seth Abramovitch writing in the Globe, describes some of the more recent examples, including an iPad-centric episode of Modern Family).  For others, though, necessity, and not virtue, are the driving forces behind the increasing prevalence of prominently branded products appearing on your TV and theatre screens - as Stefania Moretti writes in "Canadian TV takes product placement further than Hollywood",

Cash-strapped Canadian television shows are increasingly integrating brand-name products into their scripts, according to the president of the Writers Guild of Canada.

Moretti's article nicely covers many of the commercial issues relating to product placement: the increased revenues for producers which can go towards paying for budgeted costs, as well as the attraction for advertisers of having an embedded "ad" which can't be skipped over by fast-forwarding on your DVR.  The New York Times also recently had a nice piece on product placement, focusing on theatrical releases, and highlighting the economic imperatives which drive the increased use of branded products.  The Times piece also alludes to some of the elements which go into the drafting of contracts for product placements: ensuring a positive and prominent depiction of the brand, and negotiating fess which (for studio films, at least), can range "from a few hundred thousand dollars to several million a film".

The increased use of product placement has, however, led to some concerns about its impact on the creative elements of the craft of film and TV production.  Though a judicious use of product placement can be beneficial for everyone involved (not least because the revenues it brings in or discounts it generates can ensure that a project gets made), over-reliance might jeopardize creativity (or at least result in self-censorship for fear of being less palatable to potential advertisers) - hence the Writers Guild of Canada is organizing a meeting for later in April to discuss the matter.

The Rise of the Transmedia Producer

Nikki Finke reports that the Producers Guild of America has ratified a new credit: "Transmedia Producer".  The new credit would be given to individuals "responsible for a significant portion of a project's long-term planning, development, production, and/or maintenance of narrative continuity across multiple platforms, and creation of original storylines for new platforms".

The Producers Guild website provides extensive resources for determining the proper allocation of producer credits:

US Performance Rights Act and Canadian Neighbouring Rights

Ben Sheffner notes that the Obama Administration, via the Department of Commerce, has expressed its support of the Performance Rights Act (Open Congress has a page dedicated to the House of Representatives version of the bill, HR 848).  According to Sheffner, the bill "has been approved by the House and Senate Judiciary Committees and is awaiting floor action in both bodies".  (Ars Technica has a good roundup of competing views.)

As the Department of Commerce's letter indicates, passing the Act would address "a long-standing omission in US copyright law that may have harmed American performers and record companies".  As the law currently stands, when a song is played on an "over the air" radio station, the owners of the publishing in the composition (normally the songwriter(s) and their publishing companies) receive a royalty (the "public performance" royalty) - however, the performer(s) of the song (ie the artist or band) and the owners of the sound recording itself (normally the record company) receives nothing.  (Oddly, under US law, if the song is transmitted by digital means (eg webcasters and satellite stations), a royalty is payable to the performers and sound recording owners.)  Thus, if a band records a cover version of a previously-released song which becomes a hit, the composers of the original song get a royalty, but the band and its record company (whose track is being played) receive nothing for radio broadcasts of the track.

In Canada, the "neighbouring rights" provisions of the Copyright Act, which were enacted in 1997, created a right on the part of performer's and sound recording "makers" to receive "equitable remuneration" for the use of their performances and recordings - meaning the right to collect the type of royalties now being contemplated by the Performance Rights Act (see Sections 15, 18, 19 and 20 of the Canadian Copyright Act).  Re:Sound (previously the Neighbouring Rights Collective of Canada), collects and administers the royalties owing to Canadian performers and owners on account of the playing of their tracks. 

How much are these royalties worth?  It's difficult to obtain definitive numbers, but according to the Copyright Board the commercial radio tariff (ie the royalty paid by commercial radio stations on account of their exploitation of neighbouring rights) resulted in $15.9 million worth of royalties being paid to Re:Sound (then the NRCC)  in 2005 (see para. 95 of this February 22, 2008 decision by the Board).  If one were to apply the 10:1 rule of thumb when translating US and Canadian numbers, you're looking at upwards of $150 million per year in royalties.

Producer Protection Checklist

Mark Litwak provides a helpful and insightful list of 17 things movie producers can do to protect their interests.  Aspiring producers, successful producers, even practicing entertainment lawyers would be well-served by printing up that list and keeping it in an easily-accessible location.  A sample of Litwak's advice:

1. OBTAIN ALL PROMISES IN WRITING. Don’t accept oral assurances from a producer or studio executive. If they promise to spend $50,000 to promote your film, put that promise in writing. If there is not enough time to draft a long-form contract, insist on a letter agreement spelling out the essential terms.

8. TERMINATION CLAUSE: If the other party defaults, it is best if you have the right to terminate the contract and regain all rights to your film in addition to monetary damages. Writers should insist on a reversion clause so that if a script is bought and not produced within a reasonable amount of time (e.g., five years), all rights revert to the writer.

All 17 items are nuggets of good advice.  Mr. Litwak is obviously too gracious to add an important 18th item (but we're not, so we will): it can't hurt to consult an experienced entertainment lawyer...

Legal Protection for Games

How entertaining is playing a game?  Gordon P. Firemark offers some thoughts, in his post  Asked and Answered: Protection for a game, on the various legal strategies (such as copyright and trade-marks) available for protecting games.  For an academic treatment of whether games can be the subject of copyright protection under US law, Bruce Boyden offers this post, and also a paper (entitled "Games and Other Uncopyrightable Systems") which has been uploaded to SSRN (the issue is a live one in the US because of Section 102(b) of the US Copyright Act., which limits copyright protection for "systems").

For those who are really interested in the topic, also well-worth checking out are Boyden's comprehensive four-part series of posts (1, 2, 3, 4 plus this supplemental post) exploring the issue of games and copyright, using the Scrabulous (now Lexulous) litigation as a starting point.