Bell wants Federal Court to clarify copyright penalties for ISPs

BCE Inc. is asking the courts how penalties should be applied under the Copyright Act, as the Canadian telecoms giant faces a yearslong lawsuit from several movie production studios. Nearly five years ago, Millennium Funding Inc., which produced The Expendables franchise and Olympus Has Fallen, along with a host of other American movie studios sued Bell for allegedly breaching its responsibilities under Canada’s Notice and Notice regime. Under the system, copyright holders can notify internet service providers (ISPs) of any instances involving theft online, and the ISP is then responsible for identifying the IP address in question and informing the accused copyright thief of their violation. The Copyright Act dictates any ISP that fails to perform its duty under Notice and Notice is liable to a penalty between $5,000 and $10,000. As such, the movie studios suggest the penalty should be applied to each individual failed notice, and they have asked for $397 million in damages from Bell. As previously reported by The Wire Report, research conducted by a coalition of ISPs determined that, if the law is applied on a per notice basis, large companies could face annual fines of more than $2.1 billion. Meanwhile, ISPs insist the legislation should only apply on a per work basis, which would significantly reduce any penalties they might face. “Under a proper statutory interpretation of this provision, the maximum amount of damages that each claimant is entitled to is $10,000 from a single defendant or, in the alternative, $10,000 with respect to each work or other subject-matter alleged to be infringed,” wrote Bell in a motion filed in Federal Court on March 25. “Accordingly, Bell’s maximum liability in this action is limited to approximately $60,000 and not the $397 million claimed by the Plaintiffs.” However, the copyrights holders have suggested that applying the penalties on a per work basis would render the Notice and Notice regime largely obsolete, arguing the penalties, while exorbitant, are foundational pillars on which Canada’s copyright regulations rest. This debate is central to the ongoing lawsuit facing Bell, which is why the ISP has served notice of motion asking the Federal Court to rule in advance whether penalties “apply per claimant, per work or other subject-matter, per notice, or by another measure.” “As pleadings have not yet closed, and the trial date is not set, this is the most appropriate time for the Court to determine this pure question of law,” read Bell’s motion. “Importantly, as described in more detail below, a preliminary determination would resolve an almost $400 million disparity between the parties.” Bell contended that the most recent iteration of the Copyright Act, passed in 2012, did not intend “absurd, disproportionate or otherwise unacceptable consequences in enacting legislation.” “ accepting the Plaintiffs’ interpretation… would lead to exactly those types of consequences.” Bell also wrote that, regardless of the court’s decision, providing an in-advance answer to the lawsuit’s primary question “will significantly shorten the proceeding and the trial, in the interests of the sound administration of justice.” There is no timeline for the Federal Court to render a decision on the question, as a determination must first be made on a prior proceeding in the case. None of the mentioned claims has been fully tested in court. dlegree@thewirereport.ca

Bell wants Federal Court to clarify copyright penalties for ISPs

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By Davis Legree
|April 29, 2026

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Bell wants Federal Court to clarify copyright penalties for ISPs

Court | By Davis Legree |April 29, 2026

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