Online Defamation - The Need for Digital Corrections

The recent English Court of Appeal decision in Flood v Times Newspapers Ltd. [2010] EWCA Civ 804 provides some useful (and, thankfully, technologically adept) advice for online news publishers: if you seek to cloak yourself with the protection of "responsible journalism", then make use of the features that online publishing makes available, and update news pieces so that defamatory allegations which have been shown to be false are modified or corrected.  In short, online publications can be easily corrected - and so they should be.

The Flood case concerns an invocation by a newspaper publisher of what in English law is referred to as the Reynolds privilege (first articulated in the House of Lords decision in Reynolds [2001] 2 AC 127 and expanded upon in the Jameel decision [2007] 1 AC 35) a privilege which inspired the creation by the Supreme Court of Canada of the new defamation defence of "responsible communication in the public interest'" (Grant v Torstar Corp., 2009 SCC 61).  While the English Reynolds privilege and the Canadian "RCPI" defence are different, they share much of the same legal DNA, and so developments of the former should be viewed as important for the latter.

The Flood case involved answering two distinct questions: first, was the initial publication (both in print and online) of certain allegations (ie an accusation of bribe-taking) about Mr. Flood protected by Reynolds privilege and, second, if the answer to the first question was yes, once it became clear that the allegations were false and that Mr Flood had not accepted any bribes, did the Reynolds privilege continue to protect the unmodified online version of the story which was originally published?  Put somewhat differently, if the publisher became aware that the defamatory allegations which it had published were false, did the publisher have any obligation to correct or modify the online version of the story to make it clear that the allegations had no factual basis?

The trial and the appellate decisions in Flood (brief comment on the case from John Gregory at Slaw; a longer treatment by Amanda Carpenter at IPilogue) differed as to whether the initial publication was protected by Reynolds privilege (the trial judge decided yes; the court of appeal decided no).  But both courts were in accord that an online version of a defamatory statement has to be modified to take account of subsequent exculpatory evidence if the publisher of that statement wishes to shelter under Reynolds privilege.  As Lord Neuburger noted at paras. 77-78 of his reasons:

The Judge concluded that, even though the original publication, on 2 June 2006, of the article on the Times website, like the publication of the article in the Times newspaper, attracted Reynolds privilege, it ceased to do so after early September 2007, once TNL had been told the result of the DPS investigation and the conclusion reached in the Report. As the Judge put it, at [2009] EWHC 2375 (QB), paragraph 249, "The failure to remove the article from the website, or to attach ... a suitable qualification, cannot possibly be described as responsible journalism. It is not in the public interest that there should continue to be recorded on the internet the questions as to [DS Flood's] honesty which were raised in 2006, and it is not fair to him. It is not in the public interest ... "

On the face of it, at least, that conclusion appears to be not merely one which the Judge was entitled to reach: it was plainly right, and indeed appears to be consistent with the decisions of this court in Loutchansky [2002] QB 783 and (on effectively the same facts) of the European Court of Human Rights in Times Newspapers Ltd v UK (Nos 1 & 2) (application nos 3002/03 and 23676/03), 10 March 2009. If the original publication of the allegations made against DS Flood in the article on the website had been, as the Judge thought, responsible journalism, once the Report's conclusions were available, any responsible journalist would appreciate that those allegations required speedy withdrawal or modification. Despite this, nothing was done.

To echo Lord Neuberger, that conclusion seems manifestly correct: given the ease with which online stories can be corrected, it is astonishing the extent to which they so often are not (I commented on the problem briefly in this piece: Corrections in the Digital Age).  As Lord Justice Moses noted in his reasons in Flood (at para. 119):

That a person is accused is generally of far greater interest than his or her subsequent triumphant acquittal. Once an accusation is dismissed, the blaring headline of accusation on page 1 becomes a tepid reference in the graveyard of page 2.

There seems no compelling reason to allow an online publication to preserve a defamatory statement as if it were in amber - indeed, there seems little cogent argument as to why incorrect (never mind defamatory) statements are not immediately corrected once the correct information is known.  Hopefully the possibility that a lack of correction will suffice to strip a statement of Reynolds protection will properly incentivize publishers to undertake such corrections.

Collecting Entertainment Law Questions and Answers 07.29.10

Given the volume of material available, we've decided to make our round-up of entertainment law questions posed and answered a recurring feature.  Readers should heed the usual caveat that many of the links are to US-based blogs, and so the answers provided may be different than what would obtain under Canadian law.

Fox Redux: Quebecor Media to launch an all-news cable television service

It has been hard to avoid the extensive media coverage of Quebecor Media’s announcement of its plans to launch a new all-news specialty television channel (selected media coverage: Hill Times; CBC; Globe and Mail). The news channel will have a decidedly populist, right-of-centre perspective, hence the dubbing of the new service as "Fox News North". What is significant from a regulatory perspective is the fact that Quebecor is seeking a rare type of licence from the CRTC, a “Category A” licence, which would grant it the privilege of receiving “mandatory carriage” from major cable and satellite broadcast distributors.

Quebecor argues that mandatory carriage of its channel would counter what it views as a left-of-centre skew by mainstream media. Quebecor will leverage off its current brand of Sun Media properties including its over-the-air television stations serving the Toronto market and its chain of daily Sun newspapers across the country to offer a more conservative take on news.

Whether this channel is of “national importance” is for another debate.  The rhetoric about the need for balance in the current panoply of news choices has overshadowed the key regulatory issues.  The “Category A” licences mandating carriage on basic cable are rarely granted by the federal broadcast regulator.  The Commission had announced a public process earlier this year to consider a new batch of Category A services.  However, that process was delayed until the fall of 2011.  Quebecor is attempting to convince the Commission that its application for mandatory carriage is so important that this process should be ignored.

A more difficult hurdle for Quebecor is the fact that the regulator has now opened up competition to the formerly exclusive genres of mainstream news and sports.  Services such as Newsworld, CTV Newsnet, TSN and Rogers Sportsnet are now subject to open entry and unregulated wholesale rates.  The very essence of Quebecor’s proposed service appears to fall under the mainstream news genre suggesting that Quebecor’s options are limited to obtaining a Category B licence while trying to persuade a broadcast distributor to distribute the service. Quebecor has tried to avoid having its proposed news service categorized under the standard paradigm of a competitive mainstream news service.  It has described the service as an “information and analysis channel” and, therefore, distinct from the competitive all news format. 

However, in a recent staff letter sent to Quebecor, the CRTC rejected Quebecor’s approach, noting that there is little to distinguish SunTV from all other news services. The CRTC has offered Quebecor three options.  First, it could pursue a standard Category B licence requiring it to negotiate agreements with broadcast distributors who would not be required to offer the service.  Second, it is open to Quebecor to recast its current Sun TV over-the-air television station in the Toronto market as an all news service and hope that cable and satellite distributors across Canada will pick it up as a “distant signal” thereby patching together a patchwork network across the country.  Quebecor’s third option is to bide its time until the CRTC considers a batch of Category 1 applications in the fall of 2011.

 Standby for more talking heads on this issue.

The Gibson Conundrum - Recording Telephone Calls

Depending on the type of news websites and television shows you frequent, it was difficult last week to escape the near-constant reporting surrounding the public release of telephone conversations between Mel Gibson and his ex-girlfriend (Howard Kurtz at the Washington Post has a detailed discussion of the matter ("Mel Gibson hits the Radar screen"), with particular focus on the behind-the-scenes maneuvering among various competing media outlets). 

One peripheral issue which the Gibson drama raises is the question of when, if ever, an ostensibly "private" telephone conversation can be recorded.

In the United States, the answer to that question varies from state to state.  So, for example, in California, it is illegal to record a telephone conversation unless all parties on the call have consented (subject to some exceptions where a crime is being discussed).  The Citizen Media Law Project has a useful summary of the relevant federal and state laws in the United States.  THR, Esq. also has a short piece on how some of those laws may impact on the Gibson matter.

In Canada, the answer is somewhat more straightforward: so long as one party to the conversation consents to the recording, there is no legal prohibition on recording a telephone call (see Section 184 of the Criminal Code).  In other words, you can legally record a conversation which you are a part of, but you cannot legally record a conversation on which you are simply eavesdropping, unless one of the parties to the conversation is aware that you are recording and consents to it.

Michael Dew has written a comprehensive analysis of the issue: "Is it legal to record a private conversation? Wiretapping and the one party consent exception to the rule against interception".

A Saw Two-fer - Successful Movies + Guinness World Record

A shout-out to our friends at Evolution/Twisted Pictures who were recognized this past weekend for the success of the Saw horror film franchise: the Guinness World Record for most successful movie horror series was bestowed on the Saw series as a result of the six installments released to date having grossed more than US$700 million.

Collecting Entertainment Law Questions and Answers

Never let it be said that entertainment lawyers are unwilling to give freely of their time and advice (readers should note that the links below are to US-based blogs, and so the advice dispensed is limited to situations governed by US law):

 

Made in Canada Thanks to Government Tax Credits

The Globe and Mail published an article today announcing that Canada is among the top video game developers in the world. The Entertainment Software Association of Canada, a non-profit trade association which serves for the needs of developers of video games, have stated that Canada is the 3rd largest producer of video games behind only Japan and the United States.

The article in the Globe and Mail made it clear that the federal and provincial tax credit programs are to be thanked for the growth of Canada’s video game industry. The incentives offered have been effective at drawing global and independent producers to Canada. It was also noted that Canada’s post secondary education programs have helped to produce a talented and good quality workforce for the video game industry. Games that have been produced in Canada include Ubisoft Montreal’s “Assassin’s Creed” and “Splinter Cell”. The “FIFA Soccer Series” and many others have also been produced in Canada by Electronic Arts Canada.

Recently, there was some exciting news from Warner Bros. Interactive Entertainment who announced that they will be opening a development studio in Montreal in the next few years. Their studio is looked forward to as it will create many jobs for up and coming Canadian talent in the video game industry. The Globe and Mail received a statement from Warner Bros. stating that

Quebec is a perfect fit for the company with its skilled workforce and universities, as well as its tax credits and other incentives.”

Quebec was visionary in seeing the potential value of attracting and encouraging video game developers to settle in their province. However, in a changing economic landscape, attracting the high-value (high paying and highly skilled) jobs associated with the video game industry has become a priority for other provinces as well.

Canada's Digital Economy Consultation Ends

The Government of Canada held an online public consultation on a digital economy strategy for Canada. The website is continuously updated and can be found here.

The consultation process began on May 10th 2010 and officially closed on July 13th 2010. According to a statement, made by Minister Clement on the consultation website, more than 2000 individuals and organisations made submissions and comments to the Digital Economy Consultation. The number of people and organisations who actively took part shows how successful this consultation was. Many of the organisations involved made submissions based on ideas and comments made by their members which often included many thousands of people.

The Government of Canada is now in the process of reviewing all submissions and comments made in order to develop Canada's first Digital Economy Strategy. This is an important step for Canada since many countries, such as New Zealand, already have a strategy in place. All submissions and comments made can be viewed at the consultation website.

FilmOntario, a private sector consortium of stakeholders in Ontario's screen-based industries, made a submission on behalf of all their members on July 9th 2010. The FilmOntario submission is called "Canada's Digital Economy Strategy Through Content". The submission concluded with nine recommendations to the Government of Canada which are based on three main components:

1) Completing the transition from analogue to digital,

2) Becoming globally and economically competitive through increasing investment in professional development; and

3) Increasing intellectual property development and ensure Canada's copyright laws are strengthened and digitally compatible.

If implements, FilmOntario stated that their recommendations will

bring economic growth and jobs, and Canadian screen-based content producers and distributors will be positioned to have a significant impact on the global market.

Given the number and variety of submissions received during the consultation period, we look forward to seeing which concepts and ideas find their way into the next stage of the development of Canada's Digital Economy Strategy.

'Down Under' vs. 'Kookaburra'

On July 6, an Australian Federal Court Justice ruled that Australian band, Men at Work, had copied their signature flute riff on the 80's hit "Down Under" from a children's campfire song. The Australian children's song known as "Kookaburra Sits in the Old Gum Tree" was written more than 70 years ago by Australian teacher Marion Sinclair.

The judge in the case ruled that Men at Work's recording company, EMI Songs Australia, and songwriters Colin Hay and Ron Strykert, must pay 5 percent of royalties earned from "Down Under" since 2002 and from its future earnings to Larrikin Music, the publishing company which holds the copyright in "Kookaburra". Larrikin Music was originally asking for 60 percent of royalties earned.

A musical comparison between the flute riff from 'Down Under' and the melody to "Kookaburra" can be heard here.

Expect the dollar amount of 5 percent of such royalties to be in area of several hundred thousand dollars as Larrikin can only collect royalties since 2002. 

For an excellent comparison of various "sound-alike" songs, check out this page from "JamsBio Magazine". 

 

 

 

Litwak on Investing in Film and Defaulting Distributors

Mark Litwak is a treasure: a resource for both entertainment lawyers and their clients.  He's the author of numerous books on the film and television industry and how to navigate their legal pitfalls.  He's also generous enough to make excerpts from his books available on his blog (the Entertainment Law Resources blog).  Two recent entries which I thought worth drawing attention to are Attracting Investors and When A Distributor Defaults, particularly the latter which includes a useful checklist of things to consider when assessing a distribution deal, of which here are the first five of fourteen items:

1. Media: Which media (e.g., theatrical, television, home video) does the distributor serve? Is the distributor an unnecessary middleman, or does it provide valuable resources and expertise? Any company can call itself a distributor. What services does this entity provide? To what extent does it use subdistributors? If subdistributors are used, do they take an additional commission?

2. Territory: What geographical area does the distributor serve? American independent filmmakers often use multiple distributors: a foreign sales company for international sales and a domestic distributor(s) for release in North America.
3. Reputation: Has the distributor left a trail of unhappy filmmakers in its wake? Is the distributor known for distributing films of a similar genre, budget, and stature? Does the distributor have a good reputation among its licensees or exhibitors?

4. Advance/Minimum Guarantees: What is the amount of any advance? When is it payable, and what conditions need to be satisfied? When are minimum guarantees payable? Will the distributor pay this guarantee if the film is not successful?

5. Division of Proceeds: How will revenues be shared? How much does the distributor take in fees or commission? Can the distributor recoup any of its overhead or staff expenses? Are there caps on marketing and distribution expenses?

Study Released on the Digital Rights of Independent Producers

On June 9th the Canadian Film and Television Production Association (CFTPA) released the study, Towards a Framework for Digital Rights. It was shown in the study that independent producers receive little or no compensation for the digital rights of their projects from Canadian Broadcasters.

During the study, both producers and broadcasters were interviewed to gain a better view of the situation. In a press release by the Ontario Media Development Corporation (OMDC) it was said that:

More than half (56%) of respondents indicated that they did not receive any additional compensation for the digital (Internet and mobile) rights to their shows, whether in the form of an incremental licence fee or a revenue share. At the same time, a majority of respondents indicated that they were not confident about their estimates of the market value for digital rights in Canada.

John Barrack commented on this information, saying:

What the study really demonstrates is that independent producers don’t have access to the data they need in order to be full participants in the Canadian digital rights marketplace,

It was also made clear in the press release that many major Canadian broadcasters refused to be interviewed for the study. Reynolds Mastin suggested that greater transparency would be beneficial for all industry stakeholders and that confidential information would not have to be revealed in this process.

This lack of transparency could potentially slow Canada’s goals of a digital economy by 2017. Without accurate estimates of the market value for digital rights, little can be done to create a successful digital economy as producers are unable to effectively negotiate. 

Previews of Music as Fair Dealing (Redux)

Further to this earlier post about the Federal Court of Appeal's decision in Society of Composers, Authors and Music Publishers of Canada v Bell Canada, et al., 2010 FCA 123, which held that an online "preview" of a music track constitute "fair dealing" for purposes of research, Emir Aly Crowne-Mohammed and Yonatan Rozenszajn have written a nice little summary of the decision over at the charmingly-named JIPLP (otherwise known as the "weblog of the Journal of Intellectual Property Law and Practice").  As Crowne-Mohammed and Rozanszajn note,

Given the nature of the ‘research’ involved in users listening to the 30-second clips or previews of songs online, the court felt that research be given its primary and ordinary meaning, this being the use of previews to help consumers in their search for a particular song as to ensure its authenticity and quality before purchasing it. In this context, ‘research’ included consumer research.

The court then examined whether a 30-second preview, or less, was fair. The Federal Court of Appeal agreed with the Copyright Board in holding that the amount of the dealing is presumptively fair, given the length of the complete work.

Copyright Board on Collective Administration of Performing Rights and of Communication Rights

UPDATED BELOW

The Copyright Board of Canada has issued its decision and reasons on the commercial radio tariffs of SOCAN, Re:Sound, CSI, AVLA/SOPROQ and ArtistI.  (See Decision of the Copyright Board, July 9, 2010, the Board's news release, a useful fact sheet from the Board which summarizes various aspects of the decision and provides some useful information about the radio broadcasting industry as a whole, and, finally, the tariff itself).  In short, the decision spells out how much money commercial radio stations will be paying to the various collectives as a license fee for the years 2008-2012 (with some qualifications, since not all of the tariffs cover the entire four year period) for the right to reproduce and communicate to the public the musical works which form the bulk of a commercial radio station's programming.  

The decision is notable for a number of reasons.  Howard Knopf points out the financial implications of the decision (quoting from the Board's fact sheet):

How much will the new rates generate in royalty payments, compared to the old rates?

The Board estimates that commercial radio stations will pay a total of $85 million in royalties. This is based on total station revenues of slightly over $1.5 billion in 2009. Using the previously certified rates, radio stations would have paid about $72 million. The new rates thus increase the amount of royalties by $13 million. Of this amount, $10.2 million represent royalties resulting from the introduction of two new rates, for AVLA/SOPROQ and ArtistI.

How much will each collective society receive?

Of the total amount of royalties of $85 million paid by radio stations, the Board estimates that $51 million will go to SOCAN, $13 million to Re:Sound, $11 million to CSI, $10 million to AVLA/SOPROQ and $200,000 to ArtistI.

Of particular worth from the decision itself is that it provides a useful summary of all of the rights which are engaged when a song is played on the radio and the collectives responsible for administering those rights (see paras. 8-13 of the decision):

These proceedings involve six rights or sets of rights. They are reviewed in the order in which the Board was asked to set a tariff.

The first set of rights is the exclusive right of the owner of the copyright in a musical work to communicate it to the public by telecommunication and to authorize such a communication. SOCAN administers these rights in Canada for virtually all copyright owners. SOCAN is subject to sections 67 to 68.2 of the Act (the “SOCAN regime”) and if it does not file a proposed tariff, it cannot, in practice, collect royalties.

The second and third rights are the remuneration rights that performers and makers each enjoy when a published sound recording of a musical work is communicated to the public by telecommunication. These two rights are treated together because they always trigger a single payment; in the case of sound recordings of musical works, that payment is always made to a collective society authorized by the Board to collect it. Re:Sound administers these rights for the vast majority of eligible performers and makers. It too is subject to the SOCAN regime. The remuneration rights are subject to a number of conditions.

The fourth set of rights is the exclusive right of the owner of the copyright in a musical work to reproduce it and to authorize such a reproduction. Together, SODRAC and CMRRA administer most, but not all, of this repertoire in Canada. SODRAC represents the vast majority of rightsholders in Québec and most works written in French by Canadians as well as many of its foreign counterparts. CMRRA represents a large number of Canadian and foreign Englishlanguage music publishers. Both collectives are subject to sections 70.1 to 70.6 of the Act (the “general regime”) and as such, they can negotiate licensing agreements directly with users or ask the Board to certify tariffs. Where both collectives opt to use a tariff, CSI acts for them.

The fifth set of rights is the exclusive right of the owner of the copyright in a sound recording to reproduce it and to authorize such a reproduction. SOPROQ represents mostly Francophone record producers from Québec. AVLA acts for the major record companies and for many independent labels, artists and producers. Together, they represent the vast majority of the repertoire. These collectives are subject to the general regime.

The sixth set of rights is the exclusive right of the owner of the copyright in a performer’s performance to reproduce any reproduction of an authorized fixation of the performance for a purpose other than that for which the authorization was given and to authorize such a reproduction. Three collective societies administer these rights: ArtistI, ACTRA PRS and AFM Canada. Only ArtistI, which acts predominantly but not exclusively for Frenchspeaking performers from Québec, has filed a tariff. ACTRA PRS represents professional cinema, television, radio and recording artists who work in English. Its mandate includes the collection and distribution of fees, royalties, residual fees and all other forms of compensation or remuneration to which members and permit holders of the Alliance of Canadian Cinema Television and Radio Artists (ACTRA) may be entitled. AFM Canada, acting for musicians in the United States, Canada and other countries, collects and distributes government mandated or other compulsory royalties or remuneration that are subject to collective administration. These collectives are subject to the general regime.

There are two is one additional points worth noting in relation to the decision.  First, if Bill C-32 (the Copyright Modernization Act) is passed in its current form, it will eliminate the tariffs for "ephemeral reproductions" payable to CSI, AVLA/SOPROQ and ArtistI (for an explanation of how and why the tariffs will be eliminated, see my post "Bill C-32 - An Anticipatory Requiem for What We'll Lose" at IPilogue). ; Finally, as noted in the last quoted paragraph, above, with respect to the right to reproduce a performer's performance, only one collective (out of the three collectives who administer that right) has elected to file a tariff - meaning that there could be yet further monies payable by radio broadcasters for making use of musical works.

UPDATED (July 14, 2010): Thanks to the insight of my colleague Stephen Zolf, I need to correct the record with respect to the language struck out in the last paragraph, above.  Bill C-32, which contains a provision which repeals the "exception to the exception" found in Section 30.9(6), even if passed, will actually not eliminate the tariff for "ephemeral reproductions" (more accurately, "pre-recorded recordings").  That is because, as the Copyright Board found in their reasons of March 28, 2003 respecting the initial CSI tariff, as a practical matter, the activities of commercial radio broadcasters simply do not fall within the ambit of Section 30.9 because they generally do not abide by the requirement to delete their pre-recorded recordings within 30 days - so, the elimination of the "exception to the exception" won't actually impact in any meaningful sense the obligation to make payments under the tariffs.  Indeed, the factors which prompted the Board to make its findings in 2003 (ie the comprehensive reproduction by radio stations of works and sound recordings onto servers and hard drives in order to facilitate broadcasting activities) are even more pronounced today.

Canada 3.0 has Nothing on Other Leading Countries

The Canada 3.0 Digital Media Forum that took place in May 2010 set out ambitious goals for the future of our digital economy. Fifteen top priorities were listed which are thought will help us to achieve our targets of a digital nation by 2017. It is widely believed that Canada will become a leader in the digital arena as posted on the Financial Post. One of the many speakers at the Forum, Tony Chapman, also believes that Canada will be a "Launch Lab" for the digital revolution.

However, it seems as though Canada is all talk and no action when it comes to our digital economy. The Canada 3.0 forum was just a discussion on our digital future. Though there were many great idea's at the forum, no actions were made to forward Canada's progress towards a digital nation. Micheal Geist, Canada Research Chair in Internet and E-commerce Law at the University of Ottawa, recently pointed out on his blog that Canada has no leadership or obvious source of funds for a digital strategy. Therefore, although the ideas are there, we have no true strategy for achieving our goals. Geist commented that:

Canada has inarguable lost considerable ground in comparison with many other countries around the world that were quicker to identify and implement digital strategies.

New Zealand is an excellent example of a country that is far ahead of Canada as a leader in the digital arena. Just visiting their website shows how much more advanced their strategy is. The website immediately lists what their strategy is, funding, resources and leadership for achieving a digital nation. Australia also has a similarly advanced strategy.

Though it is thought that Canada is and will continue to be a leader in the digital arena, when compared with other countries we are lagging behind in the digital revolution. We must speed up the process if we wish to remain ahead.

 

 

Federal Court of Appeal thwarts any prospect of an "ISP Levy" to support new media content

In a Decision released on July 7th (see CBC News story (ISPs not broadcasters, court finds),  on-line version of decision not yet available), the Federal Court of Appeal has ruled that ISPs that merely provide access to broadcasting are not "broadcasting" under the Broadcasting Act. Therefore, the CRTC cannot justify imposing contribution levies on ISPs as it currently does for cable and satellite broadcast distributors (BDUs) under broadcasting legislation.

The Court's ruling effectively thwarts (subject to any appeals) the proposals by Canadian creator groups to require ISPs to contribute toward the funding of Canadian new media content. The Court's ruling is based on the ISPs' "content-neutral" approach in providing access to users. In an analysis similar to that of the Supreme Court of Canada in a leading copyright case (the Tariff 22 decision between SOCAN and the Canadian Association of Internet Providers), the Federal Court of Appeal determined that the definition of “broadcasting” under the Broadcasting Act is also directed at the person who "transmits" a program. A person whose sole involvement is to provide the mode of transmission is not transmitting the program and hence, is not “broadcasting”.

An ISP whose sole involvement is to provide the mode of transmission would have no control or input over the content made available to Internet users by content providers. The ISP acting in this way does not "select, originate or package programming", which is precisely what a BDU does. ISPs are therefore not an element of the broadcasting system (although their activities would continue to be governed by the Telecommunications Act). This in turn means that ISPs cannot be required to achieve broadcasting policy objectives through measures such as financial levies. Only those who “transmit” the “program” can contribute to these objectives. 

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Queen Witnesses Canada's Presence in Film

 The Queen and the Duke of Edinburgh spent their second last day in Canada visiting Pinewood Toronto Studios on Monday. The Studio is the third largest in North America and has been involved in many notable productions in film and television such as ABC’s series “Happy Town”.
 

Built in 2008 the complex, previously known as FilmPort, has been described as the “Godzilla of studios” by the Toronto Star. Queen Elizabeth and Prince Phillip began their visit to the studio with a luncheon hosted by the Province of Ontario where they were greeted by the Premier of Ontario and distinguished persons in the Canadian film and television Industry. They were then treated to a tour of the studio to be shown the ins-and-outs of movie making.
 
Acclaimed Canadian film director Deepa Mehta gave a short presentation on film and then the Queen and Duke were treated to a 3-D Recording of Elizabeth’s 1953 Coronation ceremony. The studio has been increasingly involved in 3-D productions since early February 2010 when they hosted a 3-D workshop for industry professionals from all over the world.

The Queen's visit to the studio implies that Canada’s Film Industry is worth noting and that we are a major player in the world of film and television production. The only problem is that the studio has yet to host a big movie production that would give the studio the chance to get it’s name out there. So far the studio hasn’t been as busy as they’d prefer, according to comments made by managing director Edith Myers. This somewhat undermines the notion that Canada’s film industry is doing well. However, it is important to note that at least we have the space available if its needed for a large production. 46,000 square feet to be exact.

 

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'Geo-blocking': what's past is prologue

Michael Geist provides an interesting discussion on the business practice of "geo-blocking" (see 'Geo-blocking' websites is a business rather than legal issue). Broadcasters, sports leagues, music services and other rights holders employ geo-blocking (also referred to as "geo-gating") to protect the value of their content on the Internet. Not surprisingly we are increasingly seeing the Internet adopt geography-based licensing as rights holders wish to maximize the value of their rights. A common misunderstanding among Canadian-Internet users is to blame "outdated laws" for the inability to access audio or video links due to geo-gating practices. Geist correctly observes that, in reality, geo-gating is "invariably a business issue, not a legal one".

But the subtext in Geist's piece is somewhat puzzling: he appears to suggest that geo-blocking practices are outdated. Geist argues that geo-blocking will only disappear "only if the business models they support give way to global approaches that make the borderless Internet a reality". But Geist's vision for a more ideal Internet environment is arguably unrealistic and at the very least runs afoul of ordinary business practices. Geo-blocking is a perfectly rational response to bringing some order to the chaos of the Internet.  To use Geist's phrase, the Internet is a "a 'borderless' world that has little regard for the physical location of users". Micro-economists and other organizational theorists have recognized that there are "bounds to rationality" on many types of arrangements including in the business world.  In the absence of measures such as geo-blocking, right holders would find it difficult if not impossible to clear rights in multiple jurisdictions. Without  some mechanism to enforce program rights across multiple territories, the potential economic returns from the distribution of high-cost high revenue programs such as feature films or World Cup games would be threatened.

In fairness, Geist is correct that the business arrangements around geo-gating have in some cases resulted in delays for Canadian users in accessing content on the Internet until distribution platforms such as iTunes could sort out the rights issues. But the point is, these issues were sorted out. As Geist himself concedes, Canadian platforms have successfully secured Internet rights for domestic Internet audiences (eg, Canadian users must view The Daily Show on CTV's Comedy Network site and cannot access the content on the US broadcaster's site). These internet fences should not be viewed as shackles. Rather they are perfectly reasonable tools to ensure the continued ubiquitous access to content on all platforms across the inter-connected world.

An Entertainment Lawyer's Dictionary

Schuyler Moore offers some hilarious insight into various "terms of art" which crop up in entertainment-related contracts (particularly those for film and television deals) (Do You Know Your Showbiz Deal Terms?) - a sampling:

United States means the United States (including our 51st state, Canada, and, for the hell of it, all of the Caribbean).

First look means, depending on whom you ask, either (a) a right of first negotiation, the weakest form of a right to acquire something; or (b) an option, the strongest form of a right to acquire something. So, if you like litigation, use this term often.

Gross. How could "gross" need a definition? Well, if that's all you say, then based on custom and practice, it actually means that only 20% of video is included, and it also means that a bunch of "off-the-top" expenses are deducted (see below).

Adjusted gross means, well, actually the same as "gross," unless you are an agent that wants to tell your client that he got a share of "adjusted gross," in which case it might mean "net" (see below).

Net means you go hungry.