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  • 8/19/2019 AC Factum Re Provincial Tariff Searchable

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    Court

    F i l e No.

    A

    - 2 9 ; - I

    S

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    EDERAL

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    ETWEEN:

    The Canadian

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    Operating as

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    Copyright)

    Applicant

    -

    and

    Her

    Majesty The Queen n Right of

    h e Province

    of

    l b e r t a ,

    Her Majesty

    The

    Queen n

    Right

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    Province

    of

    Manitoba,

    The Province

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    New runswick,

    H r

    Majesty

    n

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    H

    er Majesty

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    Province

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    Nova c o t i a ,

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    r

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    EMOR NDUM

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    3 .

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    5

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    Statement o f

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    stated B.C.

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    he Copyr igh t

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    14 of

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    Statement ofO b j e c t i o n s

    filed

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    with the

    Board

    stated,

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    ob j ec t s to

    se c t i o n

    5

    of

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    tariff,

    `Additional

    LimitationsRe~ard in~ Digital C op ies ' ,

    ' N o t i c e of

    Application

    dated June

    22,

    2015,

    Applicant's

    R e c o r d

    ( AR ), Vol. 1, Tab 1,

    p.

    1.

      Applicant's

    Supplementary

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    Vol.

    1, Tab H,

    p.

    878.

     

    AR,

    Vol. 1,

    Tab

    I,

    p.

    885.

     

    AR,

    Vol. 1, Tab

    J,

    p.

    896.

    -2 -

  • 8/19/2019 AC Factum Re Provincial Tariff Searchable

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  • 8/19/2019 AC Factum Re Provincial Tariff Searchable

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    1 5 .

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    22.

    3   AR

    o

    l. 1 ,

    Ta

    b

    6

    . 231

    and

     242-

    243.

    - 1 0 -

  • 8/19/2019 AC Factum Re Provincial Tariff Searchable

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    e v e r y t h i n g

    t h e y can

    t h i n k o f ;

    and t h e n go t o r i g h t s

    - h o l d e r s

    f o r permission

    a f t e r w a r d s i f t h e y g e t a

    f

    a v o u r a b l e r o y a l t y

    r a t e

    c e r t i f i e d by

    t h e Board.

    This s an

    u n f a i r

    way

    o

    p r o c e e d . . ,

    33

    3

    1 .

    T h e

    Consortium

    a l s o

    n o t e d

    i n

    i t s

    submission

    t h a t

    Access

    Copyright

    had

    not

    i l e d

    anv

    e v i d e n c e

    of

    e r m i s s i o n

    t o l i c e n s e d i g i t a l

    copying

    w i t h o u t

    t h e D e l e t i o n P r o v i s i o n ,

    t h a t

    t h e

    ` t i m e f o r

    i n t r o d u c i n g

    n ew

    evidence[was]

    ong

    p a s t ,

    and t h a t

    Access

    Copyright

    could

    have proposed

    t s

    p u r p o r t e d

    `compromise n

    i t s

    A p r i l

    26, 013 submission on

    t h e

    two

    a r i f f s '

    a d m i n i s t r a t i v e p r o v i -

    s i o n s wh en t h e i s s u e had i r s t

    a r i s e n .

    3 a

    3

    2. On u l y 21,

    014,

    h e

    Board

    i s s u e d an   Order

    e t t i n g

    out

    t s

    p r e l i m i n a r y

    c o n c l u s i o n t h a t

    2 6 ou t

    o

    f

    h e

    291 copying

    e v e n t s

    i d e n t i f i e d i n t h e Vo l u m e

    Study

    were compensable.

    T h e

    p r e l i m i n a r y l i s t of

    c

    ompensable

    copying

    e v e n t s

    excluded

    a l l

    d i g i t a l

    copying e v e n t s . T h e Board

    r e q u e s t e d t h e p a r t i e s

    t o

    make a

    n u m b e r

    of

    athematical c a l c u l a t i o n s ,

    which

    r e l a t e d

    t o t h e

    t o t a l

    nunnber

    of

    ages

    o p i e d ,

    p e r

    FTE, e r

    a n n um, o r each

    genre

    of work d u r i n g t h e

    y e a r s

    covered

    by h e F i r s t and

    Second T a r i f f s .

    I n

    i

    t s

    Order,

    h e Board

    d i d

    not e f e r

    t o any

    e g a l

    c o n c l u s i o n s t m a y have reached,

    e q u e s t any

    u r t h e r

    l

    e g a l

    submissions

    from t h e

    p a r t i e s , or

    r a i s e

    t h e i s s u e

    of h e D e l e t i o n

    P r o v i s i o n .

    3 s

    33 . On ugust 28, 014,

    Access

    C o p y r i g h t ,

    i n

    a d d i t i o n t o p r o v i d i n g t h e

    mathematical a l c u l a -

    t i o n s

    r e q u e s t e d

    by

    t h e

    Board,

    i l e d

    a

    e p a r a t e

    l e t t e r

    c h a l l e n g i n g

    a n u m b e r

    of

    h e

    Board s

    p r e l i m i n a r y

    co n c l u s i o n s r e l a t i n g

    t o

    t h e 26 ompensable

    copying

    e v e n t s . This

    l e t t e r

    a l s o informed

    t h e Board t h a t

    a

     

    n a j o r i t y of

    h e

    Access C o p y r i g h t ' s p u b l i s h e r

    a f f i l i a t e s

    had a g r e e d t o waive

    t h e D e l e t i o n

    P r o v i s i o n

    w

    i t h r e t r o a c t i v e e f f e c t t o

    3anuary

    1 , 2010, h e s t a r t d a t e

    of h e

    Second

    T a r i f f .

    3 6

    3

    4.

    On

    e p t e m b e r

    2,

    2014,

    h e

    Consortium

    and

    B r i t i s h Col u mb ia o i n t l y

    wrote t o t h e

    Board

    o

    b j e c t i n g

    t o Access

    C o p y r i g h t ' s

    l e t t e r

    of August 28, 014 on

    h e ground t h a t

    t

    went

    beyond t h e

    3

    2

    AR ol. 1 ,

    T ab 6 B , . 249.

    3

    3

    AR ol.

    ,

    T ab

    6B

    . 252.

    3

    a

    AR

    ol. 1 , T ab

    6B p. 253 and 255.

    3 s

    AR

    ol. , T a b 6 C , .

    270.

    3

    6

    AR ol. ,

    T a b

    6D .

    273.

    -11-

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    m a t h e m a t i c a l

    c a l c u l a t i o n s

    r e q u e s t e d

    by

    h e

    Board i n i t s

    Order

    of

    u l y 21,

    014.

    This

    e t t e r

    r e q u e s t e d

    th a t

    Access C o p y r i g h t ' s

    s u b m i s s i o n s be r u l e d

    p r o c e d u r a l l y

    i n a d m i s s i b l e .

    3 7 

    T h e

    Board

    s u b s e q u e n t l y

    p

    r o v i d e d

    Access

    C o p y r i g h t w i t h an

    p p o r t u n i t y t o

    r e s p o n d , w i t h a

    u r t h e r

    r i

    g h t

    of

    e p l y

    by h e

    C

    o n s o r t i u m and

    B r i t i s h

    Columbia. $

    35 .

    On eptember

    1 1 ,

    2014,

    h e Board

    i s s u e d

    a u l i n g t h a t

    t h e

    r e p r e s e n ta t i o n s i n Access

    Co p y r i g h t ' s

    l e t t e r of

    ugust

    28,

    014,

    were i n a d m i s s i b l e

    f o r

    t h r e e

    r e a s o n s . F i r s t , Access

    C o p y r i g h t ' s

    s u b m i s s i o n s on t h i s

    p o i n t

    had

    n o t been r e q u e s t e d

    by

    h e

    Boaxd and were r r e l e v a n t t o t h e c a l c u l a t i o n s

    s

    ought

    by

    h e Board. Second,

    ccess

    o p y r i g h t ' s

    s u b m i s s i o n s

    c a m e almost two

    y e a r s

    a f t e r t h e

    co n c l u s i o n

    of i n a l

    o r a l a r g u m e n t s . A n d

    h i r d ,

    t h e

    A p p l i c a n t ' s

    s u b m i s s i o n s were

    e n t i r e l y s p e c u l a t i v e .

    T

    he Board

    u l e d

    . . . w e

    d i s m i s s Access t t e m p t t o

    adduce

    n e w e v i d e n c e . T h e s s u e

    of

    i g i t a l

    c o p y i n g

    wa s  l i v e f rom

    h e

    b e g i n n i n g

    of

    h e

    2010-2014

    a r i f f

    p r o c e e d i n g s . I n t h e s e n s e

    t h a t

    t h e e v i d e n c e

    can

    be

    o n s i d e r e d

    t o

    be

    n ew, t i s o n l y so because Access has

    w a i t e d t h i s long t o seek w a i v e r s t o

    t h e

    p

    r o v i s i o n s

    i n

    i t s agreement

    w i t h a f f i l i a t e s .

    Access began

    e e k i n g t h e s e w a i v e r s

    o n l y

    a f t e r

    t h e Board

    pu t q u e s t i o n s t o

    t h e

    P a r t i e s i n

    r e l a t i o n

    t o

    s . 5 ( d ) of h e 2010-2014

    Proposed

    T a r i f f n

    an  

    a t t e m p t

    t o

    change h e

    scope of

    t s

    a u t h o r i t y t o

    l i c e n s e

    d i g i t a l u s e s ,

    Nothing

    p r e v e n t e d

    Access

    from

    d o i n g

    so a t

    an

    a r l i e r

    s t a g e . °

    39

    3

    5 .

    T i e

    Boyd e l e a s e d

    i t s

    D e c i s i o n

    o n

    May

    2,

    015

    e r t i f y i n g

    a

    i n g l e

    t a r i f f

    o r t h e

    24U5-2014

    pe r i o d . T h e Board r e j e c t e d t h e market

    comparable a p p r o a c h

    a d v o c a t e d

    by Access

    o p y r i g h t and

    i

    n s t e a d

    a p p l i e d

    t h e

    VTV

    volume i m e s

    v a l u e )

    p p r o a c h u s i n g t h e

    d a t a

    f r

    om h e

    Vol u m e S t u d y .

    3

    7 .

    With r e s p e c t t o

    t h e D e l e t i o n

    P r o v i s i o n ,

    t h e

    Board

    d i d

    n o t i n c l u d e

    t h a t p r o v i s i o n

    i n

    t h e

    T a r i f f ,

    f

    o r

    r e a s o n s

    t h a t a r e s e t out t l e n g t h i n i t s

    d e c i s i o n .4 0 

    T h e

    f f e c t of

    x c l u s i o n was

    x p l a i n e d

    a s

    f

    o l l o w s

    a t

    p a r a g r a p h s

    164

    h r o u g h

    167

    of

    h e

    Board s e c i s i o n :

    3 7

    AR o l . 1 , T ab 6E, .

    282.

    38 AR o l . 1 , T ab 6E, .

    285.

    3

    9

    AR

    o l . 1 , T ab

    6F, .

    293.

    `

     

    Board D e c i s i o n ,

    p a r a . 156-159, AR

    ol.

    1 ,

    Tab

    4,

    p .

    ~ 9 - 6 0 .

    - 1 2 -

  • 8/19/2019 AC Factum Re Provincial Tariff Searchable

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    [ 6 4 J

    As 

    A

    ccess 

    t s e l f

    s

    t a t e d ,

    t h e

    d e l e t i

    o n  of

    i g i t a l

     

    f i l e

    s  f o l

    l o w i n g t h e  

    t e r m

    i n a t i o n

     

    o

    a

    l

    i c

    e n c e i s

    a

    o

    n d i t i o n

     

    of h e g

    r a n t

    of i

    g h t s

    p r o v i

    d e d by

    Acce

    ss

    C o p y r i

    g h t ' s  

    a f f i l i

    a t e s t o

     c c e s s

     C o

    p y r i g h t

    . We

    e l i

    e v e t h i s t o

    be  a c o r r

    e c t

    i n t e

    r p r e t a t i

    o n of

    h

    e  e

    f f e c t

    o

    f

    c c e s s

    '

    a

    greement

    w i t h  

    a f f i l i a t e s  

    which

    s t a t e s

    t h a t

    Access 

    may

    i c e n s e

    p r i n t- t o

    - d i g i t

    a l

    an d

    d

    i g

    i t a l - t o

    - d i g i t a

    l

    c o p y

    i n g ,

    p r o v i d

    e d  t h a t

     Access

     

    p

    r o v i d e [

    s ]

    o r

    t

    h e

    d e

    l e t i o n

    of

    l l

     

    d i g i t

    a l f i l

    e s

    n

    o  a t e r

    t h a n t h e

    t e r m i n a

    t i o n

    of ur

    i c e n c e .

    [

    165] 

    t

    i s

    c l

    e a r

    from  

    t h i s

    r e s p o n

    s e  t h a

    t

    A

    ccess d i

    d

    n o t ,

    a t

    t h e

    tim

    e

    t

    f i l e d t

    h e p r o p o s e

    d

    t a r i f f s  

    an d t i l l

    doe

    s

    n o

    t ,

    ha

    ve

    t h

    e

    a u t

    h o r i z a t i

    o n

    fr o

    m l

    l

     o r

     

    p e r

    h a p s

    an y —

    of

    t s

    a f f i l i a

    t e s

    t o l i c e n s

    e

    t

    h

    e

    mak

    i ng o

    i g i t a l

    c o p

    i e s w i t

    h o u t su

    ch

    a

    e l e

    t i o n

    r e q u i

    r e m e n t

    . Whe

    th e r

    h e

    Board 

    of

    D

    i

    r e c t o r s

     has

     

    a u

    t h o r i z

    e d

    Access

     

    o

    d o som

    ething

     

    o r

    n o t

    i

    s

    n

    o t

    s u f f i c i

    e n t .

    A c c

    e s s '

    a u

    t h o r i t y

    t o

    l i c e

    n s e t h e

    copyi

    ng of a

    wor k

    l

    o

    ws 

    r

    om 

    i c e n

    c e

    g r a

    n t e d

    by

    h e

    ow

    n e r of

    o p y

    r i g h t ;

    w

    here

    i

    t  does

    not h

    ave such

    a i

    c e n c e ,   t

    has  

    n

    o

    u

    t h o r i t y

     t o  

    l i c e n s

    e

    t h e u s

    e t s e l f .  

    Acc

    ess 

    Board

     

    of

     

    i r e c

    t o r s

    c

    an not r a

    n t

    t o Acc

    ess i

    g

    h t s which owner

    s

    of

     

    o p y

    r i g h t

    d

    i d  no

    t h e m s e l

    v e s

    g r a n t

    t

     

    t .

    [

    166] Thi

    s i n d i n g

     doe

    s n o t  

    d

    e p r i v e

     

    t h e

    c

    o p y r i g

    h t

    h o l d e r

     

    i n

    t h e

     works

    so

    c o p i

    e d  

    of

     

    an y r i g h

    t s

    a

    n d re

    medies

     

    s

    he may

      t h e r w

    i s e

    h a v e .

    These e v

    e n t s  s

    i m p l y  r e

    p r e s e n t

    copyin

    g o r

     

    whic

    h t h i

    s

    T

    a r i f f

    do

    es n o t

     

    p r

    o v i d e a i c e n c e ,

     

    and,

    s a  e s

    u l t f o r

    whi

    ch

    Acces

    s can not

      o l l e

    c t

    r

    o y a l t i e

    s

    u

    n d e r t h i

    s  T a r i f f

    .

    C

    .

    o n c l u s i o n

    [

    167] i n c

    e

    Access

     

    c

    an not g r

    a n t a

    i c e n

    c e f o r

     t

    h e

    m akin

    g of

     

    i

    g i t a l

    c o p i

    e s w i t

    h o u t  

    t h e

    p

    r e s e n c e

     

    of

    h e

    D e

    l e t i o n

     

    P r o v

    i s i o n ,  

    s i n

    c e t h e

    T a r i f f

    can

    not

    have

    t h e

    e f f e c t of

    r o v i d i n

    g a

    l

    i c e

    n c e

    f o r

    u

    s e s

    t h a t Ac

    cess t s e l f  

    can

    not   r a n t ,

     and

    s

    i n c e

    we

    ha

    ve

    e x c l

    u d e d p a

    r a g r a p h

     

    5 ( d )

    f

    rom

     h e 2010

     Propos

    ed T

    a r i f f , t h e

    making

     of i g i t a l

    c o p

    i e s

    i s

    n o t

     

    an

    a c t t h a t

    w i l l  b

    e

    p

    e r m i t t e d

     

    unde

    r

    h e  

    T a

    r i f f ,  and

    s t h u s

     n o t  c

    ompens

    able o r t h e

    p u r p o s e

    s

    of

     

    s t a b l i

    s h i n g

    a

    ro y a l

    t y r a t e .4

     

    8 .

    T h e  Boa

    rd a l s o

     e x c l

    u d e d from

    co

    mpensa

    ble

    e v e n t s

     

    i n

    t h

    e

    V

    ol u m e

    Study

    i v

    e  

    c o p y i

    n g

    e v e n t

    s

    on

    t h e

    b a s i s t

    h a t

    t h e

    y

    excee

    ded

    t h e

    cop y

    ing l

    i m i t s p e r m i t

    t e d

    under t h e

     

    propos

    ed a r i

    f f s . T h e

    i v e

    - 1

    3 -

    ~

  • 8/19/2019 AC Factum Re Provincial Tariff Searchable

    14/32

    e v e n t s

    i n

    q u e s t i o n

    were

    77,

    119, 49,

    180

    and

    234.

    4 2 

    At

    paragraph

    171 and

    172 the Board s t a t e d

     

    opying

    events

    where

    the work copied

    w a s w i t h i n Access e p e r t o i r e

    must

    be

    a u t h o r i z e d

    under t h e

    T

    a r i f f

    o r

    those events

    t o

    be cam~ensabie.

    Where

    h e

    T a r i f f has i m i t a t i o n s

    whereby a copying

    event

    i

    n

    t h e

    Volume

    Study

    would

    not

    be

    p e r m i t t e d ,

    h a t

    event

    s

    not

    compensable

    o r

    t h e purposes

    of

    determining

    t h e

    r o y a l t y

    r a t e

    f o r

    t h i s

    T a r i f f .

    Suc h c t s of

    opying

    a r e

    not cove red

    by t h e

    T a r i f f

    and

    remain

    p o t e n t i a l

    a c t s

    of

    opyright

    n f r i n g e m e n t .[172]To

    count

    such copying

    as

    comp ensable would

    h

    ave

    t h e

    e f f e c t of making

    the Objectors

    pay

    o r

    a c t i v i t i e s

    t h a t

    the

    T a r i f f

    does not u t h o r i z e .

    Th e r e f o r e ,

    those events

    t h a t would

    not

    have been a u t h o r i z e d by

    the

    T a r i f f ,

    had

    t

    been

    n

    p l a c e

    a t

    t h e

    t

    ime

    w h e n

    the

    copies

    were

    made,

    r e not

    compensable

    o r

    t h e

    purposes

    of

    h e

    T a r i f f . ` ~3

    3

    9 . As xplained a t paragraphs

    173-176

    of

    h e

    Board

    Decision, n

    r e l a t i o n

    t o

    books,

    he 2010

    Proposed T a r i f f does

    not u t h o r i z e

    the copying

    of

    more than 10 per

    cent of

    work, n l e s s

    such

    c

    opying i s of n e n t i r e c h a p t e r

    from

    a

    book,

    n

    which case t does not

    u t h o r i z e t h e copying of

    more

    t

    han

    2 0

    e r

    cent

    of

    h a t

    book.

    n

    r e l a t i o n

    t o

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    2 . Did t h e Board exceed

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    -

    1 5 -

  • 8/19/2019 AC Factum Re Provincial Tariff Searchable

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    I I I .

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    -

    1 6 -

  • 8/19/2019 AC Factum Re Provincial Tariff Searchable

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    45.

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    (Canadian

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    h e l d

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    i n McLean

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    a f f i r m e d t h e

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  • 8/19/2019 AC Factum Re Provincial Tariff Searchable

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