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### Viewing cable 05OTTAWA3244, EVOLUTION OF INDUSTRY RESPONSE TO CANADA'S DRAFT

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05OTTAWA3244 | 2005-10-31 19:46 | 2011-04-28 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Ottawa

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

    311946Z Oct 05

` `

    UNCLAS SECTION 01 OF 02 OTTAWA 003244

    SIPDIS

    SENSITIVE

    DEPT PASS USTR FOR CHANDLER AND CHOE-GROVES

    E.O. 12958: N/A
    TAGS: ETRD KIPR CA
    SUBJECT: EVOLUTION OF INDUSTRY RESPONSE TO CANADA'S DRAFT
    COPYRIGHT AMENDMENT LEGISLATION

    REF: A. OTTAWA 2970 (CANADIAN STAKEHOLDERS' CONCERNS ON

            COPYRIGHT AMENDMENT)
         ¶B. OTTAWA 2833 (DEMARCHE ON SPECIAL 301 OUT OF
            CYCLE REVIEW)

    ¶1. (SBU) Summary:  Canadian rightsholders seem to be
    positioning themselves to accept notice and notice as a step
    in the negotiations surrounding Canada's proposed amendment
    to the Copyright Act.  Internet service provider (ISP)
    liability waivers in the draft text have rightsholders
    fearing that Canada may again become an IPR "wild west" with
    legal filesharing.  Rightsholder industries are also united
    in their despair over the weakness of remedies against
    technological protection measures (TPMs).  Proponents of weak
    or nonexistent copyright continue to publish and lobby
    Parliament, where a special committee to review the proposed
    legislation is expected to be formed by mid-November. End
    summary.

    ¶2. (SBU) Although most Canadian rightsholder industry
    associations still publicly hope for a notice and takedown
    regime, industry reps have privately told econoff that they
    are preparing to accept the currently-proposed notice and
    notice system in the course of negotiations with GOC.  In
    fact, some industry associations plan to use the anticipated
    USG insistence on notice and takedown as a chance to play
    good cop to our bad cop, and they will present their
    acceptance of notice and notice as a signal to the GOC that
    they are willing to be "more reasonable than the Americans".

    ¶3. (SBU) Industry representatives are newly concerned that
    the wording of the internet service provider (ISP) liability
    waiver in the proposed amendments may be interpreted to again
    make peer-to-peer filesharing legal in Canada, an eventuality
    that industry representatives on either side of the border
    will see as disastrous.  Section 31.1(1) of the draft
    amendment states, "A person who, in providing services
    related to the operation of the Internet or other digital
    network, provides any means for the telecommunication of a
    work or other subject-matter or a reproduction of it through
    that network does not, solely by reason of providing those
    means, infringe copyright..." and section 31.1(2) adds that
    "a person...who performs any other acts related to the
    telecommunication that render it more efficient...does not,
    by virtue of those acts alone, infringe copyright..."
    Industry representatives fear that peer-to-peer filesharing
    services could be argued to be a "means for the
    telecommunication" and an act to "render it more efficient"
    and therefore could be exempted from liability under these
    sections.

    ¶4. (SBU) The question of technological protection measure
    (TPM) circumvention continues to focus on two concerns: the
    need to prove intent to infringe in order for circumvention
    of TPMs to be considered illegal, and the fact that the bill
    as drafted contains no language making the trafficking of
    circumvention "tools" (such as video game mod chips or
    DVD-hacking software) illegal.  Both of these concerns have
    been prevalent in industry commentary since the draft text
    was first tabled (see reftels).  Some commentators have
    suggested that "trafficking in tools" could be somehow folded
    into or added to the section that provides legal remedies
    against a person who "offers or provides a service to
    circumvent" (section 34.02(2)).

    ¶5. (SBU) Meanwhile, in the midst of this chorus of industry
    displeasure at the content of C-60, a lone happy ISP
    representative presented a very upbeat reaction at last
    week's C-60 conference in Toronto.  Seemingly, ISPs have no
    complaint with the text of C-60 as drafted--in fact, this
    representative's only substantive input was to ask that
    rightsholders be required to pay ISPs to forward and retain
    the notices of infringement under the notice and notice
    scheme (as currently laid out in section 40.2(2) of C-60.)
    The fact that ISPs are the sole enthusiastic and
    fully-satisfied stakeholder in the process highlights the
    bargaining power of the ISPs in this process.  They have been
    given a bill which exempts them from any liability for
    infringing content on their members' sites and does not
    require them to take down such infringing material unless
    there is a court order; in addition, they will potentially be
    able to charge stakeholders for the notice process itself.

    ¶6. (SBU) "Copyleft" academics who argue against copyright in
    general continue to receive significant press time and seem
    to be increasing their lobbying efforts directed at
    Parliament.  University of Ottawa professor and columnist
    Michael Geist has published a collection of papers claiming
    to put the reform proposals into context ("In the Public
    Interest The Future of Canadian Copyright Law" available at
    www.michaelgeist.ca for C$50 or for free download).  His
    University of Ottawa colleague Ian Kerr addressed a breakfast
    in the Parliamentary dining room last week on the subject of
    C-60.  Dr. Kerr is another "information wants to be free"
    advocate, and he focused on what he sees as a need for
    protection against TPMs, since in his opinion they can too
    easily become surveillance devices that invade the privacy of
    users. (Comment: an econ staffer was present in the audience
    and attempted to provide a balancing view, pointing out that
    Canada's existing laws do not put excessive power in the
    hands of rightsholders.  End comment.)

    ¶7. (SBU) We expect the bill to be put before an as-yet
    unformed special committee, which should be assembled by the
    middle of November.  Parliamentary insiders suggest that the
    special committee may make the process faster, but few
    observers expect that the bill will pass before Parliament
    faces another election which is expected by Spring 2006
    (comment: faced with such a flawed document, some industry
    representatives are stuck hoping that the legislation, for
    which they pushed so long and hard, will die in committee.
    See ref A for details.)

    Visit Canada's Classified Web Site at
    http://www.state.sgov.gov/p/wha/ottawa

    WILKINS

`