Government introduces murky amendment to retransmission regime

The federal government introduced an amendment to the Copyright Act on December 12 that would mean Internet players would have to meet certain unspecified conditions before they could qualify as a retransmitter under Section 31. The legislation, Bill C-48, establishes a new regulation-making power that would give Cabinet the power to decide which Internet companies qualify and which don’t. With the legislation, Ottawa has signalled that it is opening the door to allow different types of distribution systems, including the Internet, to retransmit broadcast signals. The problem is that it hasn’t yet spelled out under which conditions. The regulations have not yet been drafted and the bill won’t come into force until they are ready. Because the conditions remain elusive, both sides on this copyright debate put a positive spin on the development. "There are regulations to deal with and that’s all part of the process. But, we’ve made an important step forward...We’re finally moving ahead in a substantive way to address the grey issues in the Copyright Act," comments Elizabeth McDonald, president and CEO of the Canadian Film and Television Production Association. Janet Yale, president and CEO of the Canadian Cable Television Association, which favours a technologically neutral retransmission regime, also applauded the regulation (CCR, Nov. 9/00). "We’re extremely pleased that the government is moving quickly on this issue and acting in a way that ensures copyright-holders are protected, while not inhibiting innovative uses of new technologies like the Internet," she says. While the legislation could allow Internet retransmission, observers say that the regulations for determining the conditions to qualify could be so inflexible that they could put a nail in the coffin of the business plans of such companies as JumpTV (CCR, Oct. 11/01; Aug. 2/01; April 26/01; April 11/01; Feb. 14/01; Oct. 26/00). The regulations, say copyright experts, are almost certain to contain conditions pertaining to territorial protections and could prescribe conditions relating to advertising or other presentation elements that might make the business model for Internet retransmission impossible. Michael Geist, an Internet law expert at the University of Ottawa, says the government has largely put off to another day the contentious issue of under what circumstances can Internet retransmitters retransmit. "...In fact, I think this issue is very divisive – and so, ultimately (the Industry and Canadian Heritage ministers) have put in place the framework that will allow them to address this issue, but I don’t know that they’ve necessarily addressed the issue itself," he notes. At the Canadian Association of Broadcasters convention in October, Canadian Heritage minister Sheila Copps vowed to introduce legislation before Christmas that would close the Section 31 loophole that appears to allow Internet retransmitters to operate. At that time, Industry minister Brian Tobin also hinted that changes were in the works. While Bill C-48 remains unclear for Internet players, it specifies that cable and satellite may continue to rebroadcast over-the-air radio and television signals by paying royalties set by the Copyright Board of Canada and respecting other conditions set out in the Copyright Act without seeking the authorization of content producers. For a detailed analysis and reaction to Bill C-48, see the Dec. 13 edition of CCR affiliate publication, Canadian NEW MEDIA.

Government introduces murky amendment to retransmission regime

Broadcast | December 19, 2001

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