On the heels of heard before the Supreme Court of Canada (SCC) in ,Ìýthe hostedÌýa fascinating event centered onÌýthe principle of technological neutrality from , and how it might be interpreted by the SCC whenÌýthe case is decided.
The event, held at theÌýRosewater Supper Club, brought together academics, intellectual property lawyers, and industry professionals for dinner and discourse.ÌýIP Osgoode's own moderated twoÌýspeakers: (partner of Borden Ladner Gervais LLP) and Richard Pfohl (General Counsel, , ).ÌýThe frank discussion comprehensively explored the major themes and driving factors of the background cases, along withÌýthe merits of the arguments of every party and intervenor in CBC. TacklingÌýthe vagueness of the principle of technological neutrality — as it was describedÌýseveral times throughout the evening, a "ghost" of the SCC'sÌýown making — was a recurring motif.
Professor D'Agostino
Professor D'Agostino's opening remarks laid outÌýthe background of technological neutrality (humourously confessingÌýit hasÌýbecome a favouredÌýsubject forÌýherÌýlaw school exam questions). She identifiedÌýthe definition ofÌýthe principle as set out by the SCC in ESA:Ìý"different forms of media should be treated the same for copyright purposes, regardless of their level of technological sophistication." She succinctly outlined theÌýmajorÌýcritical theme about the principle whichÌýwould punctuateÌýthe rest of the evening: there is significant disagreement about whatÌýthe principle means and how it should apply.
Professor D'Agostino emphasizedÌýto the room thatÌýthe principle was not new, havingÌýexistedÌýin other jurisdictions since 2001, including the US inÌý.ÌýThere, it was knownÌýas the principle of media neutrality. (°Õ²¹²õ¾±²Ô¾±Ìýwas referred to and followed by the SCC inÌý.)
The introductionÌýconcluded by accentuatingÌýthe principle's ambiguityÌýperceivedÌýby theÌýFederal Court of Appeal in their decision: "...ESA, while restating the principle of technological neutrality in copyright law, provides no guidance as to how a court should apply that principle when faced with a copyright problem in which technological change is a material fact." Professor D'Agostino highlighted this flaw by citing Justice Rothstein's dissent inÌýESA, where he suggested that "a principle should not override statutory rights in the Copyright Act."
Christina Pallotta
With the principleÌýdescribed and defined, Pallotta launched into a detailedÌýoverview of the background cases that led to its inception. SheÌýbeganÌýwith Ìý(a 1990 SCC decision case about incidental copies for a prerecording in a televised broadcast of a song) which affirmedÌýaÌýcrucialÌýdistinction between performances and recordings.ÌýBishop was quoted inÌýESA and faced a similar quandary asÌýCBC: what is to be done when "the introduction of new technology present[s] a situation not contemplated by the drafters of the original Canadian Copyright Act"? The Court in µþ¾±²õ³ó´Ç±èÌýdistinguished between recording and performing, but they alsoÌýunderlined theÌýimportance ofÌýbalancing needs of technology withÌýcreators' rights.
Pallotta then outlined the driving factors behind the majority and dissenting opinions inÌýESA. She notedÌýthat the majority sought to balance the public interest and creator rights (as inÌýBishop, and with more backing fromÌý)Ìýusing predominantlyÌýeconomic reasoningÌýto tip the scales. SheÌýreinforced this methodology by referencing the majority's statement that "[t]he Internet is simply a technological taxi that delivers a durable copy of the same work to the end user."
Pallotta characterized the dissent as takingÌýa divergentÌýapproach to the issue, with ParliamentaryÌýintent supersedingÌýeconomic reasoning. She first highlighted Rothstein J's dismissal of the majority's cab metaphor: "taxis need not give free rides." Rothstein J acknowledged the appeal of technologically neutral copyright law. However, Pallotta neatly summarized how hisÌýreluctance to employ technological neutralityÌýfollows a simple three-step argument: [1] copyrightÌýis a creature of statute; [2] it is comprised of a bundle of independent statutory rights; and [3] courts must respect the language chosen by Parliament – not override it. Pallotta's unbiased juxtaposition of majority and dissent in ESAÌýmade a strong case in favour ofÌýapplying Rothstein J's opinion.
Richard Pfohl
From there, Pfohl took over by leading the room through a history of CBCÌýv SODRAC.ÌýHeÌýstarted by outlining the Board'sÌý, and followed with a conciseÌýretelling of the FCAÌýÌýunder appeal (where theyÌýadmitted they did not know what to do with the principle in the first place due to the lack of guidance in ESA –ÌýPfohl called this a big "red flag"). HeÌýfinished byÌýdissecting every majorÌýargument of the appellant, respondent, and nearly every intervenor in CBCÌý(, , ;Ìýomitted were arguments from theÌý).Ìý
After an exhaustive listÌýof CBC's objections toÌýSODRAC's incidental copy licencing (including:Ìý“double-dippingâ€�,Ìý“royalty stackingâ€�,Ìý"triple-paying",Ìý“gratuitous costâ€� and “chilling effectâ€�), Pfohl explained how CBC wantedÌýthe principleÌýto be applied, synthesizing from their : “broadcast-incidental copies do not engage the reproduction rightâ€�, the principle "creates implied license in SODRAC’s synch license", andÌý“a technologically-neutral licence would attribute only nominal value to broadcast-incidental copies.â€�
SODRAC's Ìýto CBC's argumentsÌýresembled Rothstein J's dissent inÌýESA. Pfohl notedÌýhowÌýSODRAC posited that there is in fact no layering or double-dipping (the acts in question in this case are not simultaneous, unlike inÌýESA,Ìýwhere a video game wasÌýeither downloaded or bought in person, but not both) and the court should notÌýupset Parliament’s balance: “neither the Board nor the Courts can 'balance' away a right that is provided by statute.â€�
As Pfohl moved throughÌýthe intervenors, it was clear they provided the Court with unique and compelling arguments. CMRRA on the importance of the fundamental divisibility of copyright (owners are entitled to divide and subdivide their exclusive rights) andÌýa consistent application of the which has always protected broadcast-incidentalÌýcopies. Music CanadaÌý(a Ìýpromoting this interests of numerousÌýcompanies engaged in all aspects of the recordingÌýindustry, and which Pfohl represents ) Ìýto reject Functional Equivalence as being inconsistent with the language, structure, and history of the Act.
CIPPIC's addressed a peripheral yetÌýpressing contemporary issue at stake inÌýCBC: what do we do with the practical reality that ephemeral copies are ubiquitous in digital technology (you likelyÌýjust made an ephemeral copyÌýof my blog post in your web cache – I'll take cash or cheque)?ÌýCIPPIC suggests thatÌý“fleeting, transient, impermanentâ€� copies should not be protected, and those copies that are protected must be “durableâ€�.
Regardless of how theÌýSCCÌýappliesÌýstatutory language to the facts and context of CBC's ephemeral copies, the thresholdÌýissue raised by CIPPICÌýappears more thanÌýmerelyÌýtrivial. The Court would be wise to address this concern irrespective of the ultimate holding of the case.
Conclusion
A brief round of comments followed, enthusiastically kicked off by counsel for CMRRA, Casey Chisick, who provided an astuteÌýsummation of the principle of technological neutrality. ChisickÌýanalogized the criticism of the SCC majority'sÌýESAÌýprinciple as "wrestling with a ghost/monster of their own making, which creates an unpredictable situation."ÌýProfessor D'Agostino expanded onÌýthis comment in her closing remarks, saying that this case has the opportunity to "play ghostbuster" as dissents can often become majorities.
Perhaps Rothstein J's dissent in ESA will provide a more consistent methodology for the Court to apply the Copyright Act, and a catalyst for Parliament to recognize the need to "future-proof" their legislation so technology does notÌýimpede on creators' rights.
(The slides for the event mayÌýbe accessed .)
Jordan Fine is the IPilogue Content/Publication EditorÌýand a JD Candidate at Osgoode Hall Law School.
