Copyright reforms

By Alan Gahtan - January 21, 2002

Last summer, the Government of Canada released A Framework for Copyright Reform which outlined the copyright reform process that the Departments of Industry and Canadian Heritage would be undertaking for reforming Canadian copyright legislation over the years to come.   As a first step in the copyright reform process, the Government of Canada released two consultation papers on Internet issues: Consultation Paper on Digital Copyright Issues and Consultation Paper on the Application of the Copyright Act's Compulsory Retransmission Licence to the Internet. 

In October 2001, the departments of Industry and Canadian Heritage concluded a four month online consultation process which sought input on the retransmission and four other digital issues  being considered for reform.  Over 700 submissions, including 50 reply comments were received.  The result of the consultation process was the tabling on December 12, 2001 of Bill C-48.  The Bill would effect amendments to Section 31 of the Copyright Act to address the retransmission issue. 

The Copyright Act currently sets out a compulsory licence that requires cable and satellite companies to pay royalties (set by the Copyright Board) to rights holders (mainly film and television producers and broadcasters) when they provide their subscribers with access to the programs contained in broadcast signals. Because of this compulsory licence, cable and satellite companies are not required to obtain the consent of rights holders. The main issue addressed in the Consultation Paper on the Application of the Copyright Act's Compulsory Retransmission Licence to the Internet is whether the compulsory licence should apply to retransmission of these programs over the Internet, and if so, how it should apply.

This issue is of particular importance to companies such as iCraveTV and JumpTV, and future competitors who may wish to provide Internet users with access to over-the-air television signals which were received off-air, converted to Internet compatible format and streamed over the Internet.

The amendments proposed in Bill C-48 provide that existing distribution systems, such as cable and satellite, can continue to redistribute over-the-air television and radio signals.  These amendments also create a regulation making power that will allow the Government to establish conditions under which new entrants, such as Internet-based retransmitters and any other currently unforeseen technology-based retransmitters, can qualify for the compulsory license.

The proposed amendments to the Copyright Act are intended to provide the Government with flexibility to respond promptly to future questions surrounding retransmission.  Regulations are to be drafted according to principles which ensure a level playing field in the broadcasting system and are to include:

·        continued access for Canadians to a vibrant broadcasting system;

·        maintenance of an equitable balance among current stakeholders and potential new entrants;

·        respect for technological neutrality and enhancement of innovation;

·        certainty with respect to the rules of retransmission.

The Bill, which will not come into force until the first set of regulations is read, can be viewed on the Parliamentary Web site at http://www.parl.gc.ca

Other copyright issues will also be reviewed over the next few years.  The reform will be characterized by ongoing revisions, each involving manageable packages of issues and clearly-focused bills.  According to Canadian Heritage, this measured approach is consistent with the need to better respond to a fast-changing technological and business environment.

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