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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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November 2003
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[1] About this Publication
[2] US Broadcast Flag get the go-ahead
[3] New Webcasting Treaty
[4] CLRC Reference: Crown copyright
[5] New UK Copyright Legislation
[6] P2P: Australia's first criminal presecution
[7] 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] US Broadcast Flag get the go-ahead

In early November the U.S. Federal Communications Commission (FCC) approved the use of "broadcast flags" for digital broadcast television. The "broadcast flags" proposal has been pushed heavily by the TV and motion pictures industry as a necessary step to the U. S. transition to digital television set for completion by 2006.

The "broadcast flag" proposal as originally raised is a combination of technical standards and federal regulations designed to curtail unauthorised redistribution of digital televisions. The technical part of the proposal or "the flag" is a simple method for marking digital television programs for copy protection. More controversial are the regulatory provisions that required that all digital television (DTV) receivers and devices that receive content- such as TV, computers, DVD recorders, digital video recorders etc- be built to protect DTV content marked by the flag.

The proposal had arisen out of fears that digital technology allows digital content to be copied effortlessly without degradation to quality. The broadcasting industry has raised concerns from observing the difficulties the music industry is currently facing.

The ruling made on 4th November by the FCC permits the use of the flag at the discretion of the broadcaster and are targeted only at products that are capable of receiving DTV signals over-the-air (thereby excluding digital VCRs, DVD players and personal computers without digital tuners). All broadcasters must comply with the broadcast flag requirements by July 1 2005. To facilitate the adoption of broadcast flag technology in television receivers and related equipment by 2005, the FCC has implemented an interim policy for "certification" of content protection technology.

The FCC has also adopted a Further Notice of Proposed Rulemaking (FNPRM) and is currently accepting submissions ( Until Jan 14) on a permanent objective process for the approval of digital recording and output content protection technologies . The broadcast flag proposal has raised many policy issues. Amongst them are public interest concerns such as ramifications for "fair use" and the continued ability to undertake activities such as "time-shifting" and other forms of reasonable copying and sharing which consumers have long enjoyed. Great concern has also been voiced by IT companies and consumer groups about the effect of the flag regulation on competition and innovation and also the possible "creep" of flag regulation.

Federal Communications Commission website .

[3] New Webcasting Treaty

In a similar vein, webcasters have also been agitating for the creation of a multilateral treaty creating more extensive rights to protect webcasters of audiovisual materials on an international level.

After many similar previous proposals and lobbying attempts by webcasters, the World Intellectual Property Organization's Standing Committee on Copyright and Related Rights has agreed to prepare a draft of the treaty by April 1, 2004. The final text of the proposed treaty will then be on the agenda for discussion by the Committee in another meeting in June 2004 with the aim of having the treaty available for signing at a diplomatic conference scheduled in mid 2005.

The push for the treaty has come primarily from US broadcasting industry groups who claim that current available technology has created an uncertain and discouraging environment for innovation and the creation of content for webcasting. The current proposal provides that webcast material will receive protection akin to that which traditional broadcasts and radio currently enjoy.

The proposed treaty remains controversial for many because of the ramifications on the use of and access to public domain materials. The proposals under discussion would give a new 50-year right over webcast material already in the public domain -such as news clips, government material or the broadcast of a classic movie. Under the provisions of the proposed treaty, no reproductions may be made from webcast transmissions of public domain material; a person wishing to store or redistribute such material will be forced to seek it from the original source. Critics of the proposed have further highlighted the fact that the current definition of a broadcaster in the treaty in effect generates a whole new class of right holders. According to the treaty language proposed by the U.S. delegation, the definition of Webcasting is "the making accessible of transmissions of the same sounds, images, or sounds and images or the representations thereof, by wire or wireless means over a computer network at substantially the same time". Commentators argue that the breadth of the definition is worrisome and could be construed as wide enough to include Web pages. The result of this might create a new intellectual property right for virtually all Internet publishers (perhaps even peer-to-peer networks), further jeopardising access to works in the public domain.

These issues are part of a larger proposal before the committee titled "Protection of the Rights of Broadcasting Organizations". A Report on the issues relating to the webcasting treaty and the 10th Session of the WIPO committee is available.

[4] CLRC Reference: Crown copyright

The Attorney-General announced a new reference for the Copyright Law Review Committee (CLRC) at the biennial Copyright Law and Practice Symposium in Sydney to review and make recommendations about government ownership of copyright.

The Copyright Act currently puts the Commonwealth and State governments in a privileged position in relation to ownership of copyright. Material which is created by, or on behalf of, a government is owned by the government unless there is a prior agreement which states otherwise. In addition the current legislation provides that copyright in material first published by a government automatically passes to the government, unless there is an agreement to the contrary.

This reference follows up on recommendations made by the Intellectual Property and Competition Review Committee (IPCRC) in 2000 in the Review of Intellectual Property Legislation under the Competition Principles Agreement (the Ergas Committee). In that review the IPCRC recommended that the Copyright Act be amended to ensure that the Government is not provided with preferential treatment compared with other parties. In response to the IPCRC recommendations in 2001, the Government however opted to develop best practice policy guidelines rather than repealing the government provisions in the Act.

The full terms of reference is available in from CLRC's website.

The CLRC will have its first meeting in January 2004 and expected to give its report by November 2004.

It is also interesting to note that simultaneous to the CLRC review, government use of patents and designs will also be reviewed by the Advisory Council on Intellectual Property (ACIP). The ACIP review will assess whether the current provisions for crown use of patents and designs is properly balanced and determine whether the current provisions support or undermine the rationale for intellectual property regime.

A discussion paper on the ACIP review has been released and submissions will be accepted until 20th February.

[5] New UK Copyright Legislation

The UK joins Austria, Denmark, Germany, Greece, and Italy in ratifying new legislation to meet the obligations under the EU Copyright Directive. The new UK legislation, Copyright and Related Rights Regulations 2003 (Statutory Instrument 2003 No. 2498 ) commenced on 31 October and introduced some significant changes to the copyright regime which will dramatically affect library practice.

One of the most important changes is that copying for commercial purposes is no longer allowed under the exception for research or private study. This amendment in the law requires librarians and organisations to assess the purposes of any copying to determine whether they are of a commercial nature. The British Library has made available some general guidelines to assist organizations to determine the nature of their intended copying. The guidelines suggest that "commercial purposes" is fairly wide and cover copying that is or in the future may be used for a commercial end. For instance the guidelines suggest that an amateur writer researching a book with the intention or hope of getting it published will be copying for commercial purposes. The main focus in this assessment is the intention of the copying rather than nature of the organisation or position of the person carrying out the copying. The guidelines suggest that copying carried out by a charity for the purpose of raising funds will be considered as commercial. Likewise a commercial law firm copying for a pro bono matter will generally be considered as non-commercial (although if the pro bono work was carried out in the hope of generating more work, the copying would be considered commercial).

The responsibility for determining whether the copying is of commercial or non commercial nature lies with the individual or organisation carrying out or requesting the material. The new legislation can be accessed through the UK copyright office.

[6] P2P: Australia's first criminal presecution

Australia's first criminal prosecution for internet music "piracy" ended with two university students from Sydney receiving 18-month suspended jail terms The students were the webmasters in charge of the popular digital music site MPW3/WMA Land, which offered 390 CDs and more than 1,800 tracks for download.

In delivering the judgment Deputy Chief Magistrate Graeme Henson said that the students were aware that their activities were illegal and had gone to some lengths to avoid detection. The judge held that the seriousness of the offences warranted a jail but suspended the sentences on account of the students' youth and the fact they did not profit from their website.

The case headlined newspapers and has generated a variety of reactions. Music recording companies have criticised the decision as being too "weak" while music fans have noted the decision as an call for widespread file sharing practices to be better recognised and embraced by legislature and music industry. Ironically, a few days after the decision, a survey conducted by music industry services film Inmedia, Music -The Business, Law and Technology report was released which lent support for the changing attitudes towards filesharing. The survey showed that out of the 200 musicians and music professionals surveyed, less than half (48 per cent) of respondents felt that downloading free music constituted theft from artists and composers, while only 25 per cent felt it was theft from record labels.

The case has also been closely followed by announcements of the launch of legal file-sharing ventures by three separate companies anticipated early next year which will offer pay per song services much like the services offered by iTunes currently in the US and Canada.
The survey can be found on Inmedia site


[7] 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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