I'm happy to be here. Thank you for inviting me back.
My name is Casey Chisick. I'm a partner at Cassels Brock in Toronto. I'm certified as a specialist in copyright law and I've been practising and teaching in that area for almost 20 years. That includes many appearances before the Copyright Board and in judicial reviews of decisions of the board, including five appeals to the Supreme Court of Canada.
In my practice, I act for a wide variety of clients, including artists, copyright collectives, music publishers, universities, film and TV producers, video game developers, broadcasters, over-the-top services and many others, but the views I express here today will be mine alone.
I want to begin by thanking and congratulating the committee for its dedication to this important task. You've heard from many different stakeholders over the course of many months, and I agree with many of their views. When I was first invited to appear last month, I planned to focus on Copyright Board reform, but that train has now left the station through Bill C-86, so I'm going to comment today a bit more broadly on other aspects of the act. I will come back to the board, though, toward the end of my remarks.
On substantive matters, I'd like to touch on five specific issues.
First, it's my view that Parliament should clarify some of the many new and expanded exceptions from copyright infringement that were introduced in the 2012 amendments. Some of those have caused confusion and have led to unnecessary litigation and unintended consequences.
For example, a 2016 decision of the Copyright Board found that backup copies of music made by commercial radio stations accounted for more than 22% of the commercial value of all of the copies that radio stations make. As a result of the expansion of the backup copies exception, the Copyright Board then proceeded to discount the stations' royalty payments by an equivalent percentage of over 22%. It took that money directly out of the pockets of creators and rights holders, even though the copies were found in that case to have very significant economic value.
In my view, that can't be the kind of balance that Parliament intended when it introduced that exception in 2012.
Second, the act should be amended to ensure that statutory safe harbours for Internet intermediaries work as intended. They need to be available only to truly passive entities, not to sites or services that play more active roles in facilitating access to infringing content. I agree that intermediaries who do nothing more than offer the means of communication or storage should not be liable for copyright infringement, but too many services that are not passive, including certain cloud services and content aggregators, are resisting payment by claiming that they fall within the same exceptions. To the extent that it's a loophole in the act, it should be closed.
Third, it's important to clarify ownership of copyright in movies and television shows, mostly because the term of copyright in those works is so uncertain under the current approach, but I disagree with the suggestion that screenwriters or directors ought to be recognized as the authors. I haven't heard any persuasive explanation from their representatives as to why that should be the case or, more importantly, what they would do with the rights they're seeking if those rights were to be granted.
In my view, given the commercial realities of the industry, which has dealt with this for years under collective agreements, a better solution would be to deem the producer to be the author, or at least the first owner of copyright, and deal with the term of copyright accordingly.
Fourth, Parliament should reconsider the reversion provisions of the Copyright Act. Currently, assignments and exclusive licences terminate automatically 25 years after an author's death, with copyright then reverting to the author's estate. That was once standard in many countries, but it's now more or less unique to Canada, and it can be quite disruptive in practice.
Imagine spending millions of dollars turning a book into a movie or building a business around a logo commissioned from a graphic designer only to wake up one day and find that you no longer have the right to use that underlying material in Canada. There are better and more effective ways to protect the interests of creators, many of whom I represent, without turning legitimate businesses upside down overnight.
Fifth, the act should provide a clear and efficient path to site blocking and website de-indexing orders on a no-fault basis to Internet intermediaries and with an appropriate eye on balance among the competing interests of the various stakeholders. Although the Supreme Court has made clear that these injunctions may be available under equitable principles, the path to obtaining them is, in my view, far too long and expensive to be helpful to most rights holders. Canada should follow the lead of many of its major trading partners, including the U.K. and Australia, by adopting a more streamlined process—one that keeps a careful eye on the balance of competing interests among the various stakeholders.
In my remaining time, I'd like to address the recent initiatives to reform the operations of the Copyright Board.
The board is vital to the creative economy. Rights holders, users and the general public all rely on it to set fair and equitable rates for the uses of protected material. For the Canadian creative market to function effectively, the board needs to do its work and render its decisions in a timely, efficient and predictable way.
I was glad to see the comprehensive reforms in Bill C-86. I'm also mindful that the bill is well on its way to becoming law, so what I say here today may not have much immediate impact. For that reason, and in the interest of time, I'll just refer you to the testimony I gave before the Senate banking committee on November 21. I'll then touch on two specific issues.
First, the introduction of mandatory rate-setting criteria, including both the public interest and what a willing buyer would pay to a willing seller, is a very positive development. Clear and explicit criteria should result in a more timely, efficient and predictable tariff process. That's important because unpredictable rates can lead to severe market disruption, especially in emerging markets, like online music.
I'm concerned that the benefits of the provision in Bill C-86 will be undermined by its language, which also empowers the board to consider “any other criterion” it deems appropriate. An open-ended approach like this will create more mandatory boxes for the parties to check, in addition to things like technological neutrality and balance, which the Supreme Court introduced in 2015, but it won't guarantee that the board won't simply discard the parties' evidence in favour of other, totally unpredictable factors. That could increase the cost of board proceedings, with no corresponding increase in efficiency or predictability.
If it's too late to delete that provision from Bill C-86, I suggest that the government move quickly to provide regulatory guidance as to how the criteria should be applied, including what to look for in the willing buyer, willing seller analysis.
Last, very briefly, I understand that some committee witnesses have suggested that rather than doing it voluntarily, as the act currently provides, collectives should be required to file their licensing agreements with the Copyright Board. I agree that having access to all relevant agreements could help the board develop a more complete portrait of the markets it regulates. That's a laudable goal.
However, there's also an important counterweight to consider: Users may be reluctant to enter into agreements with collectives if they know they're going to be filed with the Copyright Board and thus become a matter of public record. The concern would be, of course, that services in the marketplace are operating in a very competitive environment. The last thing they want to do is make the terms of their confidential agreements known to everyone, including their competitors. I can say more about this in the question and answer session to follow.
Thank you for your attention. I do look forward to your questions.