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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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September 2003
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[1] About this Publication
[2] RIAA Amnesty
[3] RIAA Subpoena Process examined
[4] Digital Agenda Review Update
[5] Libraries lend support in Grokster case
[6] 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] RIAA Amnesty

The Recording Industry of America Association (RIAA) has announced an amnesty program for people willing to admit they illegally share music files across the Internet. In return for the admission, the RIAA is promising not to sue those who have raised their hands so long as they pledge to delete the infringing material from their computers and undertake not to engage in any further file-swapping.

The offer of amnesty does not apply to the (approximately) 1,600 people who are already on the RIAA's subpoena list or are considered "under investigation" (although there is no way of ascertaining whether or not one is on the RIAA list). Of these 1,600 people who have already attracted the attention of the RIAA, 261 individuals have had cases filed against them in early September.

Commentators have been sceptical of this RIAA initiative, noting that the RIAA has no power to protect anyone from all civil suits; while the RIAA may not file against these individuals, its members are not bound by the arrangement. In addition, information pertaining to identity and acts of infringement by those who sign up for the program, could be turned over in response to any valid subpoena. The Electronic Frontiers Foundation (EFF) has also noted that individuals who sign the template affidavits (provided by the RIAA as part of the campaign) may in fact, open up themselves to criminal prosecution (through the U.S. No Electronic Theft Act) as the signed admission may be used against individuals to argue that these individuals were "wilful infringers".

At 29th September, 838 affidavits had been received in response to the amnesty program.

It will be interesting to see how these affidavits will be handled and how many others will sign up to the initiative.

[3] RIAA Subpoena process examined

A US federal appeals court has heard arguments over the controversial subpoena provision introduced by the 1998 Digital Millennium Copyright Act (DMCA).

Earlier in the year, the RIAA sought to force Verizon Internet Services to reveal the identity of a Verizon subscriber in relation to the subscriber's alleged use of peer-to-peer software to share music online. Verizon refused to divulge the subscriber's identity, claiming that the subpoena provision didn't cover alleged copyright-infringing material that resides on individuals' own computers, arguing instead that the subpoena only covers material that resides on an ISP's own computer.

A U.S. district court rejected Verizon's interpretation of the DMCA subpoena provision, ordering Verizon to reveal the subscriber's identity. The decision was appealed and hearings for the appeal were held in mid September. Although the judges are yet to hand down their decision, the exchange in the hearing suggested that the judges lent more credence to Verizon's argument than the primary judge. All of the judges, however, seemed to accept without issue that the copyright infringment is rife on peer to peer networks.

If Verizon is successful in the appeal, RIAA's court actions against file-swappers will be made more difficult as the RIAA will be forced to file thousands of "John Doe" lawsuits with implications for litigation costs (and further negative publicity).

Their decision is expected in November.

[4] Digital Agenda Review Update

The deadline for submissions to the Digital Agenda Review closed on September 30. Over 70 submissions have since been published on the Phillips Fox website (go to "Hot News" and then to "Digital Agenda Review") including a few international submissions (submissions were received from Electronic Frontier Foundation, Motion Picture Association, Business Software Alliance).

The most contentious issues out of the 30 that were outlined seem to be those issues surrounding technological protection measures, circumvention devices and ISP liability.

Despite the repeated emphasis on the need for claims in submissions to be based on "hard evidence", little data was available. It will be interesting to see how Phillips Fox will reconcile the assertions in the submissions and what recommendations they feel they are able to make given the scarce reliable data produced by the submissions. The submission made by the Copyright Agency Limited (CAL) indicated that it had commissioned some research in respect of the effects of the copying provisions on the electronic publishing market.(carried out by AMR interactive). Unfortunately the report by AMR has been provided to Phillips Fox on a confidential basis, though, unsurprisingly the conclusion reached by the report is that the current provisions unfairly prejudice the interests of copyright owners.

The announcement of the review of the Digital Agenda reforms by the Government were accompanied by statements that the Review would NOT re-evalute the policy considerations behind the reform. Accordingly, Phillips Fox's presentation of the issues sought to simplify complicated issues of debate by treating each as distinct while clipping opportunities for discussions on policy. This has resulted in a very technical legal approach to analysing the relevant matters and an agenda which did not encourage any real discussion on the substantive issues.

A few submissions voiced concerns about limitations of the Digital Agenda review process in particular the "lack of discussion about the right of communication, the application of the defence of fair dealing in the digital environment, and the relationship about copyright and contract" (See p 2, submission from Matthew Rimmer).

Phillips Fox is due to give their report to the Government by the end of this year, a few months earlier than announced previously (presumably timed with the anticipated conclusion of Free Trade Agreement with the USA).

[5] Libraries lend support in Grokster case

In April this year, a few major record labels and Hollywood studios lost their case against Streamcast (distributor of the Morpheus software) and Grokster software in the US district court over issues in relation to allegations of contributory and vicarious copyright infringmen. The case was immediately appealed.

Five major U.S. library associations (American Libraries Assoication, the Association of Research Libraries, the American Association of Law Libraries, the Medical Library Assoication and the Special Libraries Assoication) filed an amicus brief in September, supporting the arguments of Streamcast and Grokster. The central argument of the brief is that the district court accurately applied the 1984 Supreme court decision of Sony v Universal City (better known as the Betamax case) to the Internet. The Betamax decision stated that Sony could continue to manufacture its Betamax VCR because Sony cannot be liable and cannot be a contributory infringer where it has no direct involved with any infringing activity.

The amicus brief submitted by the library associations was prepared by the American Civil Liberties Union (ACLU). The action taken by the library associations in an indication of the gravity and importance of the issue not only for the entertainment industries but also for its effects on education and research.

The brief can be viewed from the Electronic Frontiers Foundation (EFF) case archive.

[6] 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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