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Showing posts with label Digital Economy Act. Show all posts
Showing posts with label Digital Economy Act. Show all posts

Sunday, 12 June 2011

UK response to file-sharing is still in trouble -- but should it be?

Some folk never could
understand the fuss
about file-sharing ...
Since so many big and exciting things have happened since the passage in the United Kingdom of the Digital Economy Act with its provisions on file-sharing, that one might think that the Act has been quietly forgotten and that the dust is starting to settle.  However, this is clearly not the case.  In this guest post, the IPKat's friend Fredericka Argent takes a look at recent developments involving the Act and concludes that it is likely to remain at the eipcentre of debate both in the UK and beyond for some time to come.  Says Fredericka:
"Oh DEA... 
Two recent news items on the United Kingdom's Digital Economy Act 2010 (DEA) have questioned the Act’s legitimacy and put its very existence under strain: 
1.  Appeal against the High Court judgment rejecting judicial review of the DEA 
In April 2011, Mr Justice Kenneth Parker ruled against BT and TalkTalk in their application for judicial review of the DEA [noted by the IPKat here]. The applicants challenged various parts of the Act which they considered contrary to EU law, such as the E-Commerce Directive. They argued that the DEA infringes users’ rights and freedoms and that the statute was rushed through parliament with insufficient scrutiny. 
In particular, BT and TalkTalk took issue with the DEA’s ‘graduated response’ system, which asks Internet Service Providers (ISPs) to keep anonymous records on and send notices to their subscribers who have committed multiple copyright infringements. Rightsholders, upon obtaining a court order, would then be permitted to sue those subscribers for copyright infringement and impose ‘technical obligations’ on ISPs to limit their Internet access e.g. through bandwidth-capping or temporary suspension. This measure will be underpinned by an Ofcom code of practice, yet to be completed [you can read about Ofcom's first thoughts and initial consultation here]. 
Deciding in the respondents’ favour, the judge held that “from the point of view of both copyright owner and subscriber, the DEA represents a more efficient, focused and fair system than the current arrangements” (para 228). 
On 27 May 2011, BT and TalkTalk released a joint statement that they are seeking leave to appeal to the Court of Appeal against the High Court ruling on the DEA: 
“The two companies have chosen to seek an appeal on four of the five grounds addressed in the initial High Court case. These relate to the EU’s Technical Standards Directive, the Authorisation Directive, the E-Commerce Directive and the Privacy and Electronic Communications Directive. BT and TalkTalk believe the DEA is not consistent with these directives.” 
They have dropped the challenge on proportionality, deferring to the Court’s view that the DEA could not be considered a disproportionate response to file-sharing prior to the publication of Ofcom’s code of practice. 
If the ISPs are successful in the Court of Appeal, it would serve to absolve Internet intermediaries of responsibility for illegitimate copyright content communicated across their networks by users. Further, rightsholders would be required to go back to the drawing board to devise alternative means of legally enforcing the protection of their copyright against pirates.  A win by BT and TalkTalk would undoubtedly also create hurdles for the legal fight against counterfeiting more generally. 
2. The DEA may breach international human rights law according to a UN Report 
Frank La Rue, the Special Rapporteur for the UN’s Human Rights Council has stated that Internet access is a human right, and that any restriction on that right, except in limited circumstances, constitutes a violation of international law: 
“the Internet has become a key means by which individuals can exercise their right to freedom of opinion and expression, as guaranteed by article 19 of the Universal Declaration of Human Rights and the International Covenant on Civil and Political Rights.” 
The Internet is described as a tool for the development of society, enabling social, economic and political debate across borders. The report raises concerns about increased censorship and restrictions on Internet access, for example through blocking content and the criminalisation of legitimate expression, creating a ‘chilling effect’. 
The report examines certain types of restrictions to freedom of speech on the Internet, including the ‘imposition of intermediary liability’ on ISPs following the adoption of laws that require them to filter, remove or block content generated by users which is deemed illegal. The Rapporteur is worried that intermediaries, as private entities and gatekeepers to the Internet, are determining questions of legality of users’ content without the need to be transparent or accountable for their decisions, and without considering the human rights of end users (this is not true of all nations: for example, in the UK, under section 97a of the Copyright Design and Patents Act 1988, copyright owners must obtain an injunction from a court against intermediary service providers in order to enforce their rights). 
The report mainly focuses on those governments that have used Internet restrictions to stifle legitimate free speech (for example, the cutting off of Internet access by various Middle Eastern states during the recent Arab Spring uprisings or the censorship of content in China). However, on page 14, the DEA is used as an example of legislation that causes the UN to be ‘alarmed’, due to its potential to lead to the disconnection of users from the Internet for violation of intellectual property rights via the graduated response system. Other legislation that is mentioned in the same vein is France’s HADOPI law and the Anti-Counterfeiting Trade Agreement. The report concludes: 
“The Special Rapporteur considers cutting off users from Internet access, regardless of the justification provided, including on the grounds of violating intellectual property rights law, to be disproportionate and thus a violation of article 19, paragraph 3, of the International Covenant on Civil and Political Rights.” 
States are urged by the report to repeal or amend existing IP laws permitting users to be disconnected from the Internet.  
My assessment
The report makes bold statements on the protection of fundamental rights in the digital age, including in the context of cybercrime, data protection, personal privacy and the ‘digital divide’ between the developing and developed world. In those countries where online freedom of speech is restricted on political grounds, the UN’s concerns may be valid. However, on the issue of Internet disconnection for violations of IP rights, sweeping generalisations are made, without any further analysis or evidence, that this legislation is necessarily bad because it may lead to Internet users’ disconnection from the Internet. There is no acknowledgment that 
(i) violations of IP rights are against the law, and therefore that appropriate punishments are warranted; 
(ii) measures leading to temporary suspension from the Internet may be a proportionate attempt to stymie the widespread online piracy that has led to severe job losses and created barriers to innovation; 
(iii) the DEA only proposes to cut off a user’s Internet access as a last resort after that person has repeatedly flouted copyright law despite multiple warnings or 
(iv) under international law, rightsholders have a human right to property and a right to an effective legal remedy following infringement of the law. 
The UN makes recommendations without attempting to balance the competing rights of the various stakeholders (copyright owners, intermediary service providers and end users). As such, the UN’s approach runs contrary to recent jurisprudence [C-275/06 Promusicae v Telefonica], literature from the US [Obama’s International Strategy for Cyberspace] and the European Commission [Strategy on a Single Market for Intellectual Property Rights]. Finally, the report fails to suggest any alternative approaches to tackling online infringement of IP rights. It seems a shame that a document that is clearly intended to identify genuine global concerns about freedom of expression and related human rights in the online environment has taken such a one-sided approach, arbitrarily drawing a connection between unjustifiable State censorship on the Internet and the legitimate protection of intellectual property in the face of prolific online piracy".
The IPKat would be curious to know what readers think, particularly in light of the forthcoming debate on the whys and wherefores of copyright law. Do let us know!

Thursday, 21 April 2011

Digital Economy Act Looks Set to Stay

It is not often that this particular Kat stumbles into the realm of the Administrative sub-division of the High Court, however when the occasion demands he is ready to take one for the team and roll up his furry sleeves to get to work. As reported in most of the main news outlets this morning, the Administrative Court, wearing the face of Mr Justice Kenneth Parker, handed down its judgment yesterday in R (on the Application of British Telecommunications Plc & TalkTalk Telecom Group Plc) v The Secretary of State for Business, Innovation and Skills [2011] EWHC 1021 (Admin), concerning BT and TalkTalk's application for judicial review of the Digital Economy Act 2010. For those interested in the numbers, it took Mr Justice Parker just under 35,000 words, split into 265 paragraphs, to dismiss BT and TalkTalk's application on all grounds. The Kat hands over to the Department for Culture, Media and Sport, which issued the following press release:
"The High Court today ruled in favour of the Government in a judicial review of measures to tackle online copyright infringement in the Digital Economy Act. Mr Justice Kenneth Parker upheld the principle of taking measures to tackle the unlawful downloading of music, films, books and other copyright material. BT and TalkTalk had brought the judicial review, claiming that the measures in the Act were not compliant with EU law and were not proportionate. The judge rejected the challenge.

The judicial review also considered the statutory instrument that splits the cost of the Act’s mass notification system between rights holders and internet service providers. The judge ruled ISPs could be made to pay a share of the cost of operating the system and the appeals process but not Ofcom’s costs from setting up, monitoring and enforcing it. The Government will now consider changes to the statutory instrument.

The Government has asked Ofcom to review section 17 of the Digital Economy Act. Ofcom are assessing whether the Act’s reserve powers to enable courts to block websites dedicated to copyright infringement could work in practice. They are due to report to the Government shortly.

Responding to the judgement, a DCMS spokesperson said:

“We are pleased that the Court has recognised these measures as both lawful and proportionate. The Government remains committed to tackling online piracy and so will set out the next steps for implementation of the Digital Economy Act shortly.”"

Tuesday, 2 November 2010

Tuesday Tiddlywinks

Another dreary day in Londontown, but the IPKat Team is here to wish you a very happy day filled with intellectual property goodness.

US Supreme Court to hear Stanford v Roche patent fight: Yesterday the US Supreme Court justices agreed to hear Stanford University's
claim against Roche Holding AG in respect of patents for methods of testing the effectiveness of AIDS treatments by measuring the HIV concentration in blood plasma. Scientists at Stanford created the invention while under a contract to promise to assign the inventions to the university. However, one of the inventors, Professor Mark Holodniy, had also, prior to the invention, actually assigned his rights in future inventions to Cetus (now Roche). Stanford filed a patent application and demanded a royalty from Roche for their use of the patent. The case reached the US Court of Appeals for the Federal Circuit (the appeals court where all the appealed patent cases go to from the federal district courts) who held that Roche was not liable for patent infringement because they held ownership rights derived from Holodniy's assignment. In their appeal to the Supreme Court, Stanford are arguing that because they were beneficiaries of federal funding for the research, under Sections 200-212 of the Bahy-Dole Act their rights trump that of Roche. The university's question to the Supreme Court reads as follows:
Whether a federal contractor university's statutory right under the Bayh-Dole Act, 35 U.S.C. §§ 200-212, in inventions arising from federally funded research can be terminated unilaterally by an individual inventor through a separate agreement purporting to assign the inventor's rights to a third party.
The US Department of Justice (DoJ) filed an amicus curiae brief in support of Stanford's writ and argue that the Bahy-Dole Act does indeed trump the general proposition that ownership of a patent vests first with the inventor. This case will be a somewhat obscure but important case for university and federally funded research institutions. The lesson being, make sure your researchers and scientists have entered into strict assignment agreements with your institution. Thanks to Dr. Ward for alerting the AmeriKat to this story.

UK MP to "bang heads" of ISPs and music industry: The UK Minister for Culture, Communications and Creative Industries, Ed Vaizey, (picture, left)has called for a joint meetin between music industry and ISP representatives to progress the implementation of the Digital Economy Act (DEA). Readers will note that the crucial piece to this legislative nightmare is Ofcom's final "Initial Obligations Code", which is still missing. Ofcom received a further three month extension for the Code in September to allow for consultation about its costs provisions with the EU. Judicial review of the DEA applied for by BT and TalkTalk is expected any time. For more information see this report from MusicWeek. This IPKat has searched online to find any further information about the agenda for this meeting without joy. If anyone has any info on this, please let the IPKat know.

Apple sues Motorola: This Kat has just given up trying to follow who is suing who in the mobile patent wars (see previous posts here). As of Friday, Apple has again gotten into the mix by filing two complaints (here and here) in the the US District Court for the Western District of Wisconsin against Motorola for infringement of a number of patents of its android handsets. The patents, for the most part, are for touchscreen technology. Motorola, maybe anticipating the descending cloud of Apple, filed four separate complaints against Apple as well as applying to the court to invalidate over 20 iPhone patents for want of novelty. It hasn't been a good month for Motorola who was on the receiving end of another lawsuit from Microsoft earlier last month. For more information see this report in the Wall Street Journal and CNet.

Court of Appeal Judgment Alert! Mr Justice Kitchen, sitting in the Court of Appeal with Lord Justice Jacob and Longmore, dismissed the appeal in the case of Softlanding Systems Inc v KDP Software Limited and Unicom Systems Inc ([2010] EWCA Civ 1172) last week. The case was on appeal from Mr Justice Wilcox of the Technology and Construction Court for England and Wales (see previous 1709 blog post by IPKat Jeremy). This Kat has not had an opportunity to digest the judgment, but there will be a full IPKat report on the judgment soon!

Thursday, 8 July 2010

Odd Couple challenge Digital Economy Act

Not everyone, it is safe to say, is enamoured over the provisions of the UK's Digital Economy Act 2010 (DEA). This piece of legislation, rushed through its various legislative stages via a process of "washing up" before the recent General Election, is now coming under challenge from an unlikely pair of internet service-providing foes -- the (relatively) stately and dignified former telecommunications monopolist BT and the bright, brash, bouncy and boastful TalkTalk.

According to the BBC, this odd couple are seeking a judicial review of the Act on the basis that it received "insufficient scrutiny" [says Merpel, if that alone were sufficient to scupper a piece of legislation, there's many a statute that would be quaking in its legislative boots], also questioning whether its proposals to curb illegal file-sharing harm "basic rights and freedoms". The DEA was treated to a much shorter debate than most other Acts get, and MPs from all parties, including deputy prime minister Nick Clegg, protested at the time that this complex piece of law should have been debated for longer.

The communications sector's regulatory body Ofcom, charged with drawing up detailed plans of how the legislation will work, has recently said that plans to remove peoples' internet connections would not come into force until at least 2011; in May Ofcom drew up a policy for dealing with illegal file-sharers, requiring ISPs to send warning letters to customers who illegally download films, music and TV programmes (on which see the 1709 Blog here).

Initially Ofcom's code is proposed to cover only the seven fixed-line ISPs with over 400,000 subscribers. This, says Andrew Heaney (executive director, TalkTalk) puts BT, TalkTalk and the other large ISPs at a business disadvantage, since huge swathes of customers might move to smaller ISPs in order to avoid detection. The odd couple also feel that the DEA conflicts with EU legislation, since the E-Commerce Directive says ISPs that are merely conduits of user content, of which they have no direct knowledge and which they do not control, should not be held responsible for the traffic on their networks. There may also be issues concerning privacy [all of which suggests that, even if the challenge is ultimately unsuccessful, the issues may have to go to the Court of Justice of the European Union for preliminary guidance, thus buying years of status quo before any changes are implemented].

The BBC notes that BPI, which represents the UK's recorded music industry, has lobbied hard for the Digital Economy Act and has taken legal action against file-sharers in the past. BPI has pointed to the immense damage inflicted on existing rights holders through unrestricted file-sharing, while critics believe the music industry is seeking to protect its old business models with legislation rather than finding new ways to distribute music online.

Will the government forestall the need for lengthy litigation? Deputy prime minister Nick Clegg said that the Digital Economy Act "badly needs to be repealed", but a statement from the Department of Business, Innovation and Skills suggests otherwise:
"The Digital Economy Act sets out to protect our creative economy from the continued threat of online copyright infringement, which industry estimates costs the creative industries, including creators, £400m per year. We believe measures are consistent with EU legislation and that there are enough safeguards in place to protect the rights of consumers and ISPs and will continue to work on implementing them".
To be continued ...

The Odd Couple here
How TalkTalk sells itself to BT customers here
Digital economy for music lovers here and here

Friday, 16 April 2010

The Digital Economy Act 2010

Since so much noise has been made about the UK's brand new love-it-or-loathe-it Digital Economy Act 2010, the IPKat thought he should say a few words about it. This Act, which received the Royal Assent on 8 April, implements some chunks of the Digital Britain report (see earlier posts here, here, here and here). The Act is 60 pages long, but most of it does not specifically concern intellectual property. Other areas tackled include public service broadcasting and content, network infrastructure, mobile spectrum and digital safety.

Right: yet another device designed to enhance digital security

From an intellectual property perspective, the Act contains controversial provisions which the Secretary of State the power to order internet service providers to take technical measures against subscribers (the obvious one being suspension of online access) in order to tackle online copyright infringement. The Secretary of State is also empowered to make regulations giving the courts the power to order blocking injunctions in relation to specific websites. Maximum financial penalties for copyright offences are standardised and given an uplift. There are some non-contentious bits too. Public lending right is extended to cover publications in non-traditional formats like e-books.

Some provisions are aimed at gathering data, which is in keeping with the UK government's praiseworthy intention to make sure that legal changes are at least evidence-based. Thus Ofcom ("the independent regulator and competition authority for the UK communication industries") has the job of reporting at three-year intervals on the UK's communications infrastructure, internet domain name registration and the manner in which media content contributes to public service objectives. Ofcom is not the only body that will take an interest in how domain name registration works though: the Secretary of State now has the power to intervene in the operation of internet domain registries.

It's probably safe to say that this is not one of the best-loved pieces of British intellectual property legislation. It has been criticised, among other things, for going too far in pandering to the demands of the copyright lobby, for not going nearly far enough, for ducking the issue of orphan works, for being rushed through without proper thought and for being poorly organised and arranged. There is no embodiment of a "three strikes and you're out" policy, another exampled of "damned-if-you-do, damned-if-you-don't".

The IPKat suspects that the controversial bits relating to ISPs and copyright will prove to be of only transient interest. However large the penalties, neither the public -- which consists principally of people who don't believe they'll get caught -- nor the public enforcement agencies appear to regard any form of criminal IP offence as a big deal. And suspension of online services is not the most difficult thing in the world for an infringer to circumvent. Merpel says, most of the provisions of this Act constitute amendments of other statutes. This poses two problems: (i) it's often difficult or impossible to understand the full import of its provisions if you don't also have the underlying Act to hand and (ii) we now need consolidated versions of all the amended legislation so that we can work with them in the confident knowledge that we have the most up-to-date version of each statute to work with -- but when can we expect to receive official consolidations?

Poll on whether the Act is fair or farce here

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