Top 10 Hollywood Lawsuits of 2010

Canadian entertainment lawyers are forced to live with the latent suspicion that our US-based peers are just having more fun at work - as evidence, we present THR, Esq.'s Top 10 Hollywood Lawsuits of 2010, which includes Axl Rose suing Activision, US$319 million verdicts related to Who Wants To Be a Millionaire?, and Don Johnson (yes, Crockett) winning more than US$23 million for unpaid profits on a show I would have sworn few people actually watched.  By comparison, our own list of the year's Top Ten Canadian Entertainment and Media Law Stories was distressingly technocratic.

Interactive Entertainment Incentives in Canada and the US

With a hat tip to Entertainment Law Reporter, Sean Kane of Pillsbury Winthrop Shaw Pittman has released two reports on government incentives for the production of interactive entertainment - one covering federal and provincial incentives available in Canada and one covering state incentives available in the United States.  Pillsbury also publishes the Virtual World Law Blog, which covers "virtual worlds and other social media issues".

Ontario Expands Laws Against Ticket Scalping

The Ontario government today proclaimed into force the Ticket Speculation Amendment Act, 2010 which amends the Ticket Speculation Act, RSO 1990, c. T-7.  According to this CBC story, the new legislation is intended to "stop U.S. entertainment giant Ticketmaster and others from selling and reselling tickets to the same event".

As it stands, the Ticket Speculation Act makes virtually all sales of (or even attempts to sell) a ticket to a sports or entertainment event (whether a "theatre, opera house, public hall, show, game, grandstand, race meeting, exhibition or amusement of any kind") for any amount over the face value of the ticket an offence subject to a fine of not more than $5,000.

Municipalities may also have by-laws which speak to the matter of "scalping" - the City of Toronto's Municipal Code contains Chapter 743-2 which prohibits using or occupying "a street for the purposes of the sale, or offering for sale, of event tickets".  Violating that provision of the Municipal Code carries its own fine of up to $5,000.  (There have been a couple of unsuccessful attempts by persons charged with violating the Code to argue that the provincial law somehow supercedes or renders unenforceable the municipal law - see City of Toronto v. Cacciatore (2007 ONCJ 92 (CanLII), affirmed Toronto (City of) v. Cacciatore (2002 CanLII 44998 (ONCA)), and R. v. Koverko (2005 ONCJ 420 (CanLII)).)

Julie Gibson, in 2008, wrote a nice overview in the Lawyers Weekly of ticket scalping legislation throughout Canada: Hot tickets - The move from streetside scalping to online ticket speculation

Ontario Anti-SLAPP Report

The Ontario government has released the Report to the Attorney-General of the Anti-SLAPP Advisory Panel.  (A "SLAPP" is a "Strategic Lawsuit Against Public Participation" - in other words a lawsuit intended to silence criticism by employing a strategy of financial attrition).  As the government's summary indicates, Quebec passed anti-SLAPP legislation in 2009 (the relevant provisions are in Section 54.1 of the Code of Civil Procedure, RSQ c. C-25).  The Ontario Ministry of the Attorney General has a comprehensive website available which includes links to the Uniform Law Conference of Canada's anti-SLAPP report, a previous Ontario bill aimed at SLAPPs, British Columbia's now-repealed Protection of Public Participation Act, and a plethora of other articles and materials, including comparable United States legislation.

A Festivus Legal Miracle

We at the Signal have previously discussed the availability of protection for fictional beer brands created for a television series - and now for some news about protecting yourself by making reference to a fake holiday popularized by a television series.  Really, there's very little we can add to this story:

Festivus for the rest of us, O.C. Jail style

Festivus may only come around only come around once a year – more often if you watch "Seinfeld" reruns – but longtime county inmate Malcolm Alarmo King was able to celebrate it three times a day while locked up at the Theo Lacy jail in Orange.

The menu selection at Theo Lacy apparently didn’t please King, 38, when he was booked into the jail on drug charges in April.

King’s quest for a healthier eating option while behind bars ended with ... a Superior Court judge recognizing the holiday – which lodged its place in pop culture on an episode of "Seinfeld" – as a legitimate religion.

Details, such as they, on Festivus can be found in this Wikipedia entry.

Best part of the story: when first questioned about his religious beliefs, the inmate answered "Healthism".  While the court was evidently not willing to countenance anything quite that ludicrous, his second response of "Festivus" was enough to entitle to a court order of "three non-salami meals a day".

Entertainment Arbitrations

Mark Litwak points towards a useful resource: the Independent Film and Television Alliance (IFTA) website, in particular the portion of the website which includes summaries of recent arbitral decisions.  While the summaries are generally quite abstract, the names of the parties are included, so it could prove useful when doing due diligence on potential participants in a project.  The website also contains sample arbitration clauses for use in agreements, and the text of the IFTA rules for international arbitrations.

2010 Top Ten Canadian Entertainment and Media Law Stories

In proud defiance of the fact that 2010 is not yet over, we offer our humble thoughts on this year's most noteworthy entertainment and media law events (and we define those two areas of practice in fairly broad strokes).  Without further ado, and in no particular order:

  • Bill C-32

How to summarize? The introduction of Bill C-32 (The Copyright Modernization Act), the third attempt in the last decade at large-scale reform of the Copyright Act (Canada), has resulted in a tsunami of commentary, debate and political action - and it hasn't even yet been passed, so we can only imagine what's going to happen once we start getting actual court decisions on the thing.  If passed in its current form, Bill C-32 would have significant impact on creators (such as the new photograph provisions), owners (such as the new TPM protections) and users (such as the expansion of fair dealing or the user-generated content provision) - basically everybody who affects or is affected by copyrighted works. (Signal coverage on Bill C-32 is collected here.)

  • Launch of Canada Media Fund

On April 1, 2010, the Canada Media Fund (CMF) was launched - combining the operations and mandates of the former Canadian Television Fund and the Canada New Media Fund, the CMF has an annual budget of $350 million and provides funds to "assist in the creation of successful, innovative Canadian content and applications".  Making funds available through an Experimental Stream and a Convergent Stream, the creation of the CMF, with its attendant publication of new guidelines for qualifying for funding, has meant that producers and their lawyers are both spending time learning to navigate the new system - with the commendably pro-active support of the CMF itself, which has taken pains to reach out to the industry and facilitate the adjustment to the new regime. (Signal coverage on the CMF is collected here.)

  • Journalist-Source Privilege in Canada - R v National Post and Globe and Mail v Canada

In these two "companion" decisions, the Supreme Court of Canada confirmed that, whether in civil or criminal trials, whether in Civil Code- or common law-Canada, while Canadian law does not recognize a class-based journalist-source privilege, and nor does the Charter guarantee of press freedom entail such a privilege, there is a common law (and, in Quebec, civil law) basis for recognizing a case-by-case journalist-source privilege.  (Signal coverage of the decisions is collected here.)

  • Online Previews of Music are Fair Dealing in Canada

In SOCAN v Bell Canada et al, the Federal Court of Appeal confirmed that online previews of music (like, say, the 30-second clip you listen to before deciding whether to purchase a song) constitute "fair dealing" for the purposes of "research" - and so no royalty is payable to the owners of the publishing rights in those songs.  The decision confirmed that not only is "fair dealing" going to be given expansive interpretation by the courts, but the concept is in some cases evidently even more broad than the US "fair use" defence (in the US online previews do not constitute "fair use").  (Signal coverage of the decision is here.)

  • Federal Court of Appeal Eliminates Prospect of ISP Cultural Funding Levy

Canadian television broadcasters are required by the terms of their CRTC licenses to contribute money to various initiatives which fund the development and production of Canadian content programming. A coalition of Canadian cultural groups sought to extend that funding obligation to Canadian internet service providers - in July 2010, the Federal Court of Appeal held that ISPs who provide only "content neutral" access are not "broadcasting" within the meaning of the Broadcasting Act (Canada), and so are exempt from any requirements under the Act to contribute to cultural funding initiatives. (Signal coverage of the decision is here.)

  • Copyright Board Issues Decision and Reasons for Commercial Radio Tariffs

The Copyright Board's July 9, 2010 decision and July 10, 2010 tariff spell out why and how much money commercial radio stations will be paying to SOCAN, Re:Sound, CSI, AVLA/SOPROQ and ArtistI 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 tracks (including the compositions, the recordings and the performances embodied therein) which form the bulk of programming for most commercial radio stations.  The Board's decision was itself notable for a number of reasons - not least the $13 million per year increase in total estimated royalties. (Signal coverage of the decision is here.)

  • Documentary Organization of Canada Issues Fair Dealing Guidelines

For documentary filmmakers, few aspects of copyright law are as baffling, frustrating and, potentially, useful as the "fair dealing" provisions of the Copyright Act (Canada).  The need to obtain permission for the inclusion of copyrighted materials in their films (amplified by the need to obtain errors and omissions insurance coverage) often leads to delays and additional expenses - both of which can be lethal to a project.  In May 2010, DOC (the Documentary Organization of Canada) published Copyright and Fair Dealing - Guidelines for Documentary Filmmakers.  As I have argued, the Guidelines "will hopefully serve as a welcome first step in the ongoing process of clarifying and simplifying how Canada's copyright laws can, and should, interface with day-to-day film and television production activities". (Signal coverage on the DOC Guidelines is collected here.)

  • CRTC Issues New Television Policy

In March 2010 the CRTC re-jiggered (note: not a technical term) its policies covering English-language privately-owned television, issuing Broadcasting Regulatory Policy CRTC 2010-167. The new Policy introduces a “group-based licensing approach” which effectively permits corporate groups with multiple broadcasting services to pool some of their Canadian programming obligations. Notably, the new Policy gives significant flexibility for the large ownership groups to allocate their required Canadian program expenditure requirements across all of their over-the-air stations, specialty channels and pay TV services. The new TV Policy also introduced a market-based solution to allow private local television stations to negotiate with cable and satellite companies to establish a fair value for the distribution of their programs (also known as “fee for carriage”). To settle the question of whether the CRTC has the authority to implement such a negotiation regime, the CRTC initiated a reference to the Federal Court of Appeal seeking clarification on its jurisdiction under the Broadcasting Act. The TV Policy also triggered a series of proceedings relating to the transition to digital television for consumers. Local television stations in major markets, as well as provincial and territorial capital cities, must complete the switchover to digital by August 31, 2011 in “mandatory markets” and in markets where a station broadcasts above channel 52 (which will be reallocated to other digital uses). (Signal coverage of the new policies is here.)

  • Shaw Completes Acquisition of Canwest; CRTC Launches Consultation on "Vertical Integration"

Shaw Communications' acquisition of control of CanWest Global Communications Inc., thereby creating one of the country's largest media conglomerates, will reverberate into next year: at the same as it approved Shaw's acquisition, the CRTC announced a public review process to assess whether CRTC policies need modification in light of what they described as a growing trend of industry consolidation and vertical integration taking place in the Canadian broadcasting industry”. (Signal coverage of the acquisition and the CRTC announcement is here.)

  • Grant v Torstar - Defence of Communication on Matters of Public Interest

Sure, this is a bit of a fudge, since the Supreme Court of Canada's decision in Grant v Torstar was issued in 2009, but it's our blog and we'll include what we want - and the decision was issued on December 22, 2009, nine days before the commencement of 2010, so it's close enough (we're lawyers, not accountants).  The decision was important enough to warrant attention in 2010 - the Court introduced a new defence to defamation claims: responsible communication in the public interest.  A significant relaxation of the strict liability contours of the tort, the new defence heralds a new approach to defamation by Canadian courts, allowing journalists and, of critical importance, other members of the public, to avail themselves of a defence which seeks to effect a new balance between freedom of expression and the protection of reputation.  (The Signal did not cover the decision, since we were born after it came out, so check out coverage by The Court and the Defamation Law Blog.)

Stevie Harper and the Herringbones - A Copyright Case Study

One of the more charming characteristics of lawyers is that we continually feel the need to subject virtually every event or interaction to... well, to persnickety legal analysis.  We're boring that way.  In any event, here goes another example - but, since it is also the time of year when law students will be writing exams for courses from their first semester of the school year, this post will be somewhat more interactive than it might otherwise be.

First, click through and read this Globe and Mail story:  Stephen Harper shows Tory faithful his rock star side.

Having read the story one will discover that Prime Minister Stephen Harper, at the 2010 edition of the Conservative Party Christmas party (held on December 8, 2010), took the stage to play some songs (including Neil Diamond's "Sweet Caroline" and "Jumpin Jack Flash" by The Rolling Stones) backed by a trio of musicians.  So far, so innocuous.  Click further on the Globe website (like, say, here) and you will find an uploaded video of Stephen Harper performing a variety of songs (the video is only viewable after watching a short advertisement and is book-ended by a Canadian Press intro and outro).  This YouTube channel also hosts six videos of the PM's performances.

This is an open-book examination.

  • what rights granted under the Copyright Act are implicated in the videos? assess the likelihood that proper documentation exists licensing or otherwise authorizing the use and/or other relevant reproductions of any such rights as embodied in the videos and as such videos are used on the websites in question (hint: bonus points for assessing the relevance of copyrights in the compositions, moral rights in the compositions and performer's rights in their performances)
  • can the posting of the Canadian Press video (and the consequent re-posting by the Globe) be properly considered fair dealing? (hint: assess not only what "category" of fair dealing might be applicable, but whether any relevant requirements, such as mentioning sources, have been complied with)
  • assuming for the purposes of this question that the compositions embodied in the videos are currently under copyright protection - what liability, if any, does YouTube face, in Canada, for hosting the videos? (hint: bonus points for coherently explaining the status of SOCAN's Tariff 22 as it applies to YouTube)
  • using the currently available wording of Bill C-32 (The Copyright Modernization Act), how, if at all, would the proposed exception for "Non-Commercial User-Generated Content" affect the liability of (a) the Canadian Press, (b) the Globe and Mail, (c) the individual who uploaded videos to YouTube, (d) YouTube?
  • explain, as precisely as possible (giving reasons both in favour of and in opposition to the position you adopt) whether (and why) you think recording the Prime Minister's and his band's performance as embodied in the videos in question and posting them online should or should not give rise to the legal intricacies inherent in the preceding questions

Answers (and additional questions!) are warmly encouraged in the comments.

Tags:

No More Bets - Applicants Wait For A Decision On CMF's Experimental Stream

All funding applications for the CMF's Experimental Stream program have been submitted and now the waiting begins. According to the CMF, the fund received almost 200 applications for digital media and interactive software applications. 

As applicants wait patiently, a jury of Canadian and international experts and the CMF Program Administrator at Telefilm Canada will sift through hundreds of applications and base their decisions on the following Evaluation Matrix:

15% - Production Team: Experience and achievements of producer and management team.

40% - Innovation & Originality: Originality of the content and potential for legacy to the industry.

30% - Business Plan: Viability of the project and financial stability of the applicant.

15% - Distribution Plan: Marketing and promotion plan.

(Note: The complete Evaluation Matrix can be found at Article 2.4 of the Experimental Stream Guidelines 2010-2011)   

The CMF hopes that projects selected for funding will be announced by the end of February 2011.

NY Law School Law Review Focus on Google Books

The New York Law School Law Review has published a special edition (55:1) which boasts seven articles focusing on the Google Books Settlement - the issue is available for download.

Nova Scotia Changes Film/TV/Digital Tax Credit

The Nova Scotia government has announced changes, effective December 1, 2010, to its Film Tax Credit and Digital Media Tax Credit:

Residency requirements for both credits were changed so that someone only has to so be a resident in the province during the production period. The total production cap for the Film Industry Tax Credit was also removed.

Film Nova Scotia has additional details, and the government's own websites for the credits can be found here (Film Tax Credit and Digital Media Tax Credit).

Crookes v Newton - Liability for Hyperlinks?

The Supreme Court of Canada is this morning hearing oral arguments in the case of Crookes v Newton, which will (hopefully) definitively determine the extent to which the act of hyperlinking to defamatory comments can itself constitute defamation.  The facta of the appellants and respondents are available at the SCC website.  Also worth reading are the decision of the British Columbia Court of Appeal (2009 BBCA 392) and the trial decision (2008 BCSC 1424).  Earlier this year, Sona Dhawan at The Court provided a nice summary of the case and its implications and David Crerar and Michael Skene offered some concise thoughts on the case over at AdIDEM.

Bill C-32: Commentary Round-up

Selected materials for consideration about Bill C-32 (The Copyright Modernization Act):

User-Generated Content - Liabilities and Prospects

Bill C-32 (The Copyright Modernization Act) contains a clause which would add to the Copyright Act a new Section 29.21, bearing the heading "Non-commercial User-generated Content", but being colloquially referred to as the "YouTube" or "mashup" provision.  "User-generated Content" being in the air, I thought it worth pointing to a couple of recent publications on that topic: Sheldon Burshtein wrote an interesting piece entitled Canada: Risks of User-Generated Content to Website Operators
and Sam Trosow has written Mobilizing User-Generated Content for Canada's Digital Advantage (executive summary available here).

 

2010 Clawbies Nominations

The 2010 Canadian Law Blog Awards (ie the Clawbies) has announced the opening of their nominations - in the spirit of the season, here are my three Clawbie noms:

  • James Gannon's IP Blog - wading into the copyfight with elbows up takes some guts, and James consistently delivers with thoughtful, detailed posts which help illuminate some of the denser parts of copyright law
  • Condo Reporter - Denise Lash is a colleague, but I'm not just saying this because we're on the same team: Condo Reporter, just launched in October, sets an awfully high standard for us over here in the Entertainment Law Group: content-rich (video! who knew?), informative, interesting and timely, Denise has taken to blogging like a fish to water
  • Legal Heresy -  for something completely different, I check out Jeremy Patrick's blog about "the law and politics of blasphemy, religious freedom, secularism, and more..." - Jeremy's incisive assessments of the interface where freedom of speech rubber meets religious sensibility road are always worthwhile

The attentive (okay, even the unattentive) will notice that I've focused on blogs which are comparatively new - the slaws, Geists, Sookmans and IPilogues of the world hardly need (more) props from this corner.  And that's a testament to how deep the bench is in the Canadian blawging community - we're at the point where the influence of some blogs is so pervasive that they're just part of the environment.  It's a good time to be a reader of Canadian law blogs, and here's hoping that continues into 2011 (and beyond).

Bill C-32: Commentary Round-up

Selected materials for consideration about Bill C-32 (The Copyright Modernization Act):

Bill C-32 Commentary: Parts of Bill C-32 Are Complex - And That's Okay

The good folks at The Hill Times were nice enough to publish an op-ed of mine about Bill C-32 earlier this week.  The core of the argument is this: because of the competing nature of the interests which it seeks to balance, some parts of copyright law are inevitably going to be complicated - and complexity which leads to certainty is better than a quixotic attempt at "simplicity" which will only lead to disputes and further litigation.  The full text of the op-ed is available after the jump, below.

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