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The ADA Monthly Intellectual Property Wrap-Up
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A monthly summary of recent legislation, cases, reports and other events relating to intellectual property and the public interest, published by the Australian Digital Alliance.
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February 2004
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[1] About this Publication
[2] Australia- U.S. Free Trade Agreement Concluded
[3] CLRC reference: Crown Copyright Issues papers released
[4] KaZaa: Australian Attack
[5] EU developments
[6] Canadian Record Industry follows suit
[7] MGM v 321 Studios: Hollywood victory
[8] I can copy this, right?

[1] About this publication

This summary of recent IP (but chiefly copyright) happenings of relevance to Australia is published every month by email and on the Australian Digital Alliance website at http://www.digital.org.au/issue/issue.htm. If you have any suggestions as to what should go in the next issue, please let Miranda Lee know by email: (mlee@nla.gov.au).

Nothing in this publication constitutes legal advice.

[2] Australia- U.S. Free Trade Agreement Concluded

After a year in negotiation (see Jan IPW 2003 )and much speculation, the Department of Foreign Affairs (DFAT) announced the conclusion of the Australia- United States Free Trade Agreement on 8th February.

DFAT has released a Facts Sheet broadly outlining the terms of agreement.

The US Trade Representative has also released a Facts Sheet on the Agreement.

In respect of continued equitable access to copyrighted material and the future of the public domain, the announcements bodes ill. The broad outcomes of the negotiations will:

· set standards of intellectual property protection beyond those provided by multilateral agreements such as the WTO TRIPS agreement and WIPO Treaties
· require "harmonisation" of Australian law with US intellectual property laws
· create an extended term of copyright protection
· create an expedited process that allows for copyright owners, Internet Service Providers and subscribers to deal with allegedly infringing copyright material on the Internet
· set agreed criminal standards for copyright infringement

Australia and the United States have also agreed to work to further "harmonise" laws and practices relating to other areas of intellectual property such as patents, trademarks and designs.

The obligations created by AUSFTA will set standards that Australian copyright law and policy have to meet in the near future. The AUSFTA agreement will now go through an approval process in order to come into force. In Australia, the agreement will not be in effect until the agreement has passed through Parliament, necessary amending regulation has been passed and an agreed date for entry into force has been determined. The approval processes are outlined by DFAT.

No further details over the terms of the agreement have been released but the text of the agreement is expected to be available in early March.

[3] Crown Copyright Issues Papers released
In November 2003 the Attorney- General announced a reference for inquiry by the Copyright Law Review Committee (CLRC). The reference will focus on issues relating to government ownership of copyright material and an Issues Paper on the reference is now available and can be accessed through the CLRC website (go to "present inquiries").

The Issues Paper looks at:
- whether the legislative scheme establishing government ownership of copyright is appropriate;
- whether, as a matter of public policy, the government should own copyright in material produced by the executive, judicial and legislative arms of government; and
- any options for reform, legislative or otherwise, and the costs and benefits of those options.

There is no uniform international treatment of government copyright. In the spectrum of regimes, Australia's copyright laws gives relatively strong protection to Government materials. Currently the Copyright Act provides that copyright material will be granted to the Crown where works are made under the direction or control of the Crown or where work is first published by the Crown.

Most of the options for reform outlined in Issues Papers relaxes crown copyright and/or crown prerogative in varying degrees.

The window for public submissions is now open and the deadline for submissions is 26th March 2004.

[4] KaZaa; Australian attack

Early in February, Music Industry Privacy Investigations (MIPI) obtained court orders allowing its investigators to access documents and other electronic records about Kazaa's activities in Australia. Twelve premises were raided in three states including the premises of Brilliant Digital Entertainment, Akamai Technologies AAP, NTT Australia, Telstra Corporation and those of three universities - the University of Queensland, the University of New South Wales and Monash University.

MIPI used a special "Anton Piller" court order to seize material; the evidence obtained during the raids is intended for use in court proceedings in Sydney. Anton Piller orders are granted where the court has been satisfied the applicant has a very strong case. The order is used to seize evidence in cases where the item sought by the applicant is likely to be destroyed if another legal instrument, such as a subpoena or order of inspection, is obtained. The gathering of evidence through the use of an Anton Piller order (rather than by subpoena or pre-trial discovery) sets a dangerous precedent for P2P systems administrators because of the accompanying costs and obligations of compliance (due to the inability to prepare) with an Anton Piller order and the implicit dilution of their legal rights.

Sharman networks have applied to the federal court to have the order and material gathered invalidated, arguing that not all material facts were disclosed to the judge at the time the raiding parties applied for it. In particular, Sharman's lawyer highlighted the company's cooperation in producing documents to courts in other jurisdictions (parallel cases are currently in progress in the U.S. and the Netherlands) as one reason why the Anton Piller order should not have been granted.

The issue of duplication was also raised by Sharman's solicitors who submitted that the case should be set aside because it addressed substantially the same issues as the case currently being fought in the US. The judge accepted the submission by the counsel for the music industry who maintained that the Australian case was distinguished by the emphasis in the Australian law on the operation of the software rather than the structural aspects of the technology. This difference in emphasis was also offered as a possible reason why Anton pillor orders were necessary.

The parties agreed the information obtained under the order would be kept confidential until a further order was made.

A ruling on the order is expected in two or three weeks.

[5] Guidelines to UK Copyright Changes

The Libraries and Archives Copyright Alliance (LACA) (which is convened by CILIP) and Museums Copyright Group have released a guidebook to help staff in museums and galleries, archives, libraries and information services concerning the recent changes to UK copyright law in November last year (see IPW Nov 2003).

The guide is available from the LACA website.

[6] Canadian Record Industry follows suit
The Canadian Recording Industry Association (CRIA) has filed court requests seeking the identity of 29 subscribers from five ISPs. The information obtained from the requests will be used to file copyright infringement suits against the named subscribers in an action parallel to that currently in progress in the U.S. as initiated by RIAA.

The subscribers whose identities are sought are those held by the CRIA to have uploaded large amounts of copyrighted material for sharing.

The action follows a ruling issued in December by the Copyright Board of Canada in which the Board maintained that downloading from file-swapping services appeared to be legal under Canadian law (see Dec IPW 2003) as such activity were intended for non-commercial personal use. Although at the time, the CRIA disagreed with the Board's ruling, the CRIA has picked up on the other end of file sharing chain by targeting uploaders who have no such protection. The suit in Canada will raise the same issues and face substantially the same challenges as the ongoing suit currently taken by the RIAA in the US; the issues of privacy and ISP liability presents some obstacles to both the American and Canadian suits.

A hearing is scheduled in early March in Canadian federal court.

[7] MGM v 321 Studios: Hollywood victory
A Californian judge has ruled that 321 Studios must stop selling software that lets customers copy their DVDs for backup and personal use.

The case began last year when after immense pressure from studios, 321 Studios filed suit asking the court to declare that their product (a software package that allows owners of DVDs to make personal use backup copies) does not violate the DMCA (see IPW May 2003). 321 argued that its product had substantial non-infringing uses which fell within the "fair use" exception of the Copyright Act and asserted the need for researchers and programmers to discuss encryption and decryption methods. MGM countersued for damages and a permanent injunction from the sale of the product.

During arguments made last May the attorney for the studios said 321's software bypassed the encrypted locks (CSS) on his client's copyright movies and that this violated the DMCA which provides that any mechanism that breaks a digital lock that protects copyright content is illegal. The lawyer for 321 Studios, had countered that consumers had the right to access the encrypted content in any way they choose, if they had already purchased the DVD. The judge sided with the movies studios, maintaining that CSS, being an effective (although not strong) technological protection measure came within the express terms of the statute and circumvention of CSS thereby was a contravention of the DMCA.

The ruling ordered 321 Studios to stop "manufacturing, distributing or otherwise trafficking in any type of DVD circumvention software" in seven days. 321 Studios have said they intend to appeal the ruling, and will seek a stay from the judge during the appeal process.

The order can be accessed through EFF website.

[8] I can copy, right?
Yes, you can copy this publication. Feel free to send it to friends or colleagues, print it off or even archive it on your website provided that all text is included or, in the case of an excerpt, appropriate credit is given

 
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