Law


Well, well, well: those of us who, in the fine tradition of lawyers everywhere thinking their own area is sexy, had decided that the High Court would take any old IP case that sounded vaguely interesting, will have to revise their views.

Not only did the High Court refuse special leave in the BP colour trade mark case, but now they’ve refused special leave in the Cooper case on authorisation liability (transcript not yet available).

This one, I have to admit, surprised me. I was very critical of the Full Court judgment when it came out late last year. Now we are stuck with it. Despite the fact that it is arguable that Australian authorisation liability for copyright infringement is now more restrictive (ie, more copyright-owner protective) than elsewhere. Certainly Canada is less restrictive – there, our caselaw was explicitly rejected. Arguably things are less restrictive in the UK, too. Interestingly, our law is more copyright owner protective even than the US: and it’s not just me who thinks so: see this paper by acknowledged experts Sam Ricketson and Jane Ginsburg).

Judge Eduardo Robreno of the United States District Court for the Eastern District of Pennsylvania has handed down a very interesting judgment dismissing two motions by Linden Labs (the makers of Second Life) in a lawsuit brought by lawyer Marc Bragg.

Bragg signed up to Second Life in 2005. He said he was induced into “investing” in virtual land by representations made by Linden and Rosedale in press releases, interviews, and through the Second Life website, and paid real money as “tax” on his virtual land. (more…)

BDW has alerted me to the fact that:

‘The NSW Legislative Council Standing Committee on Law and Justice has released their final report on the inquiry into unfair terms in consumer contracts. This is likely to have a direct impact on users of internet, mobile phone and cable television services, amongst others. … The Committee has recommended creating a taskforce within the NSW Office of Fair Trading to develop and implement a scheme for the protection of consumers in relation to unfair terms in consumer contracts. The scheme will be based on the Victorian model.’

I think this is an interesting development, but it also puts me in mind of something that Mark Lemley points out in a new paper – that it’s not just consumers who are affected by so-called ‘unfair contracts’:

‘The rise of terms of use has drawn a great deal of attention because of the mass-market nature of the resulting agreements. Terms of use are drafted with consumers or other small end users in mind. Commentators – myself among them – have focused on the impact of this new form of contract on consumers. But in the long run they may have their most significant impact not on consumers but on businesses. … Businesses … are presumed to know what they are doing when they access another company’s Web site, so courts are more likely to bind them to that site’s terms of use. Sophisticated economic entities are unlikely to persuade a court that a term is unconscionable. And because employees are agents whose acts bind the corporation, the proliferation of terms of use means that a large company is likely agreeing to dozens or even hundreds of different contracts every day, merely by using the Internet. And because no one ever reads those terms of use, those multiple contracts are likely to have a variety of different terms that create obligations inconsistent with each other and with the company’s own terms of use. ‘

And another thing, about the November government draft of a new law for internet censorship (see my previous comments here and Pete Black’s comments here).

One thing that is fundamentally wrong with the government approach is the ‘cover everything, create specific exemptions’ approach. The government proceeds by creating a default position that everyone doing anything online (even vaguely related to commercial life) is covered, and then creates a long list of exemptions so that certain kinds of sites are free from regulation.

Three serious problems with this approach:

  1. The obvious problem: new kinds of sites are automatically censored. Since we don’t know what might happen online next, why make the default regulation? Why not single out the specific things you want to cover?
  2. The ‘bob each way’ approach: for most exempt categories, the definition states that the site must fit the definition AND ‘comply with other requirements in the regulations’. This would enable the government at any time to impose additional requirements on, say, user-generated sites or search engines – by regulations, which can only be DISALLOWED, not amended, by Parliament. Ick.
  3. Lawyers’ paradise. I foresee many arguments by people saying they fit within categories. That’s what always happens when you have a specific list. Again, ick.

Oh, and here’s a question. do you think massive multiplayer online games are covered by this regime?

Ah, censorship. What is it about censorship that brings out the silliness in legislators? Why is it that the idea of censoring the Internet gets people so excited they forget to work out whether the laws are at all sensible?

Crikey has today leaked a November draft proposed Australian Internet censorship law: the Communications Legislation Amendment (Content Services) Bill 2006. I’ve had a look. It’s unbelievable.

Crikey report that the bill has been redrafted. It had better be. Better still would be to forget it altogether. Because this draft doesn’t pass the laugh test. Really. It is inconsistent with fundamental values like freedom of speech and freedom of information; it is broad, draconian, and wouldn’t work, it is completely out of step with the way the Internet works (it seems to require pre-emptive monitoring of content by hosts before it even goes online). I think I’m back in the year 2000 – the last time this same government tried to write an Internet censorship law. More on why this draft is so bad over the fold. [update: Pete Black has also commented, along very similar lines to me, here]
(more…)

The Sydney Morning Herald has an article on Vista’s EULA. The EULA (available here in PDF format) provides for Vista Home Basic and Vista Home Premium the following “additional licence term”:

USE WITH VIRTUALIZATION TECHNOLOGIES. You may not use the software installed on the licensed device within a virtual (or otherwise emulated) hardware system.

Leaving aside the issue of whether an EULA actually is a contract (as against an attempt to turn a copyright licence into a contract) a few interesting points emerge. (more…)

Random question for the day: where does the tortured language used in newspapers to describe offences with which people have been charged come from?

For example, in this article on 15 January, the SMH wrote of a man accused of raping a woman after hiding in her car’s boot:

“He was charged with aggravated sexual assault, aggravated detain person for advantage, take and drive conveyance and escape police custody.”

Only the first offence is reported in normal English. The remainder are described curiously ungrammatically. The terminology isn’t based — as one might initially suspect — in the language of the Crimes Act. So why use it? (more…)

Various reactions to the linking is authorisation’ Cooper decision handed down yesterday by the Full Federal Court:

  1. I commented yesterday (summary? ‘troubling’. ‘Have we, or have we not just had a very extended debate about copyright law in Australia? Was not one of the memes in that debate the idea that copyright ought to ‘work’ in a digital environment? Are not search engines, and links, fundamental to the way the Internet and digital environment work? Did all this debate completely pass the members of the court by?’)
  2. Techdirt have commented (‘the idea that it’s the technology creator’s job to build in protections against infringement in how they design a tool is also extremely problematic in placing the burden on the technology makers. It’s a guaranteed recipe for slowing down innovation by putting in place both chilling effects against innovation and additional development costs’)
  3. Boing Boing comments here (‘If that precedent were adopted worldwide, there would be no Google, no Wikipedia, no internet as we know it’)
  4. Black comments here (‘I agree with Kim’)
  5. The Age has the story here.

As you can see, the tenor of this commentary is – ‘shock horror Australian law says linking is infringement; Google’s in trouble’.

Take a deep breath. It’s important to appreciate the limitations of this decision. (more…)

As I anticipated on Friday, and noted earlier today: the Full Federal Court judgment in the Cooper case has been handed down. This is a significant, appeal judgment on the scope of secondary liability in copyright law: that is, when can one person be responsible for the infringing activities of another?

In this case, the Full Federal Court had to consider whether a website, structured and designed both to provide links to infringing MP3 files, and to provide facilities for the easy, automatic upload of such links, could lead to liability for authorising infringement of copyright for the website designer (Cooper), and the hosting ISP (E-Talk) (the website itself, now down, can still be seen (though not used) via the Internet Archive Way Back Machine (the URL was www.MP3s4FREE.net) To be completely clear, Cooper was not hosting infringing mp3s. But his website did provide easy access and a central point for placing links.

At first instance, Tamberlin J held both liable – leading to much commentary, particularly on the breadth of the Australian concept of authorisation. If you’re interested in where Australian law on secondary liability for copyright infringement lay prior to this judgment, and how it compares to US concepts, have a read of this article by copyright leading lights Sam Ricketson (australia) and Jane Ginsburg (US).

Summary: in this judgment, the Full Federal Court has pretty much affirmed the reasoning of the Trial Judge. Overall, I find the reasoning pretty troubling in this case: particularly the reasoning of Branson J, which seems to me to endorse a broader view of appropriate liability than the other judgment of Kenny J. I think the judgment shows three things:

  1. That Australian law is out on its own in terms of potential liability for authorisation of copyright infringement. The law is certainly broader – that is, the scope of activities that will potentially lead to liability is wider – than equivalent concepts in the UK (as illustrated in cases like the Amstrad case) or Canada (as illustrated by cases like CCH). And, as Ricketson and Ginsburg point out, it is broader, even, than US law post-Grokster. Anything that would be caught by post-Grokster inducement liability would also be caught by Australian authorisation liability – and then some.
  2. More broadly, the case illustrates that Australian copyright law is increasingly becoming a strange, independent beast. The judgments in this case are truly remarkable for their lack of reference to, or engagement with, recent overseas authority or legal developments. Just remarkable.
  3. Most remarkably to anyone outside that arcane society of the High Priests and Initiates of Copyright: linking to another website that carries an infringing file does carry some legal risk under the reasoning in this case.

Over the fold, I have some more detail. But let me give you a flavour of what I think. As I read the judgment, quite honestly, I was amazed by the absence of any explicit conscious engagement with the real world. To read this judgment – as I said, particularly the broader one of Branson J – you could be forgive for wondering how much the honourable members of the court actually use the Internet. It’s not way the law is described, it is the fact that the judgments can make comments about the potential liability of a website operator for copyright infringement for the most mundane acts – like, oh – linking to another website – without any acknowledgment that that might be an issue, or a problem, or an even slightly undesirable development in the law. (more…)

Judgments (2 of them) are here.
Helpdesk employee wins; Cooper and the ISP lose.
Enjoy!
More when I’ve read it.
Hat tip: Starkoff again, naturally.

Well, the final report of the Gowers Review of Intellectual Property has been released. The 140+ page report can be downloaded from here.

This is a big deal for the UK – a wholesale review of the efficiency and effectiveness of the whole UK IP system – albeit it has been easy to ignore the goings on, while we struggle locally with what is now, officially, the Australian Copyright Amendment Act 2006 (Cth). Below, a brief background, some links to the UK commentary, and some thoughts on how the recommendations stack up against/compare to what we’ve seen in the just-completed round of Australian copyright and other IP amendments. (more…)

The ACCC (Australia’s consumer and competition watchdog) has released a draft guide to copyright licensing and collecting societies. It is seeking comments by 31 January 2007 (at least, a timeline for comments in copyright that’s not utterly unreasonable!!!).

From the press release: (more…)

My colleagues at Melbourne, Sally Young and Joo-Cheong Tham, have published a new study, Political Finance in Australia: A Skewed and secret system.

From the Executive Summary:

‘This audit directly addresses the controversial role money plays in Australian politics by asking the question: how democratic is the way political parties are funded in Australia?

It identifies two central problems with the funding of Australian political parties: a lack of transparency, with secrecy a hallmark of private funding, political spending and the use of parliamentary entitlements and government resources; and the political inequality that is maintained and perpetuated by Australian political finance. The distribution of private funds favours the Coalition and ALP and so do election funding, parliamentary entitlements and state resources like government advertising. This is especially the case when these parties hold government. The broader picture then is one of institutional rules designed to protect the joint interests of the major parties by arming them with far greater war chests than minor parties and new competitors. While electoral competition exists, it is largely confined to the major parties,with players outside this cartel disabled by financial disadvantages.

To address these problems and other deficiencies, 35 recommendations are made in four areas: private funding, public funding, government advertising and political expenditure.
Important stuff indeed, for anyone who is at all interested in our system of government here in Australia.

Google has announced that out-of-copyright titles are now available for download via Google Book Search (formerly known as “Google Print”).

Remember Project Gutenberg? 19,000 public domain titles are currently available at what is one of the first book digitization projects. The focus in this project is on providing the text (generally as ASCII files or HTML) of out-of-copyright works. By contrast, the aim of Google Book Search is to provide scanned images of actual published works — both in copyright and in the public domain. As I’ve commented before, Google’s approach to generating its library of scanned works has been controversial, particularly to publishers of works contained in libraries that are participating in the project.

Unfortunately, my expectations of Google’s library were not met. While the collection of works available on Google Book Search is broad, the access to full images of public domain works is not what I had hoped. (more…)

Today’s funny moment is from The Australian, which is carrying a story that French cosmetic company L’Oreal has won a copyright suit against a Dutch company for copying a perfume. The story appears to have originated in The Times, but does not as yet appear to have been widely syndicated. The bizarre thing, of course, is how such a claim could be brought in copyright. (more…)

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