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Court
F i l e No.
A
- 2 9 ; - I
S
F
EDERAL
COURT
OF
APPEAL
B
ETWEEN:
The Canadian
Copyrig ht Licensing Age n c y
Operating as
Access
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
of h e
Province
of
Manitoba,
The Province
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New runswick,
H r
Majesty
n
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er Majesty
The Queen
n
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he
Province
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Nova c o t i a ,
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unavut,
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r
Majesty
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H r
Majesty
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askatchewan,
Government of
Yukon
an
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he Province
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r i t i s h Cohunbia
Respondents
EMOR NDUM
OF
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L W
OFHERMAJESTY
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NRIGHTOF
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.
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the Memorandum f
act
and Law f
he Respondent, Her
Majesty T ' h e Queen
n
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i g h t of
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SC ).
2.
This
proceeding i s an
a p p l i c a t i o n by The
Canadian
Copyright
Licensing
Age n c y
Access
C
o p y r i g h t )
f o r j u d i c i a l review
of
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he Copyright Board the
Board )
a t e d May
2,
2
015 n r e s p e c t
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3 .
Access
Copyright
s
a o l l e c t i v e
s o c i e t y w i t h i n
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meaning
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p c t t h e
A c t ) .
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31,
2004
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i l e d a proposed
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s e c t i o n s 70.12 and 70.13
o f
h e
Act i t h
r e s p e c t
t o
r o y a l t i e s
t h a t i t
proposed
t o
c
o l l e c t ,
f o r
t h e y e a r s
2005
o
2009,
o r
t h e r e p r o g r a ph i c r e p r o d u c t i o n , n
Canada,
f
works
n
t s
r
e p e r t o i r e
by
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d e r r i t o r i a l
governments,
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than Quebec
t h e
F i r s t
T
r i f f } .
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h e
f i r s t
proposed t a r i f f of Access
Copyright
o r t h a t c l a s s
o f
s e .
T h e i r s t
T a r i f f
w
as
p u b l i s h e d i n
t h e Supplement o
t h e
Canada c r . : e t t e
o n
A p r i l 24,
2004.
2
.
Pursuant
o s e c t i o n
67.1 5) o f
h e
Act,BC i l e d a
Statement o f
b j e c t i o n s
t o
t h e
F i r s t
T a r i f f
o n
June
17,
2004.
On
ar ch
31, 2009,
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r e s p e c t
o f
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p u r s u a n t
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70.12
an
d
70.13 o f
h e
Act
~ ~ t l ~
r e s p e c t
t o
r o y a l t i e s
t h a t t proposed
t o
c o l l e c t ,
o r t h e y e a r s 2010
o
2014,
o r
t
he
r e p r o g r a p h i c r e p r o d u c t i o n ,
n
Canada,
f
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i t s r e p e r t o i r e by employees
o f
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an d
t
e r r i t o r i a l governments,
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than
Quebec
t h e S e c o t Z d
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i
n
h e Supplement
o t h e
Canada
G a z e t t e o n May , 2009.
T h e
Second
T a r i f f i f f e r e d
f r
om h e
F i r s t
Ta r i f f n
t h a t i t a l s o i n c l u d e d
t h e
making
o f
i g i t a l c o p i e s
a s a
l a s s o f
i c e n s e d
c o p y i n g .3
5
.
BC i l e d a
Statement o f
O b je ctio r► s to
the
S e co nd
Tariff
with he Boa rd on July
6,
2009.
Paragraph 7 ofBC's
Statement ofQbjec t i on s
stated B.C.
o b je c t s
to t he tariff
as
a
who le as
extend ing
b e y o n d
the rights under s ec t i on 3 of
he Copyr igh t
Act
which
A c c e s s
C op yr ig h t
has th e
ri
ght to l i c en s e .
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9
of
its
Statement of O b je c t i o ns ,
B.C.
o b je c te d to
t he
definition
of
`
`Copy
as b e i n g
overly b ro a d
as including
act iv i t ies b e y o nd the r i g h ts
admin is te red
by
A c c e s s
C
opyr ight .¢
6.
Pazagraph
14 of
BC's
Statement ofO b j e c t i o n s
filed
.iuly
6,
2009
with the
Board
stated,
B.C.
ob j ec t s to
se c t i o n
5
of
t he p r o p o s e d
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
Application R e c o r d ( SAR ),
Vol.
1, Tab H,
p.
878.
AR,
Vol. 1,
Tab
I,
p.
885.
AR,
Vol. 1, Tab
J,
p.
896.
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8/19/2019 AC Factum Re Provincial Tariff Searchable
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a
s bein
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sona
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verl
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nder
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opy ri
g h t
c
t ,
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t h o u
t i m
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f
o r e g o
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t h
e
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c t s
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unde
r
su
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t i o n 5(d
)
r e
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ason
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y
t h e
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nd
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r i g h t s
wh i c h Acce ss
Copyri gh t
s l i c e n s i n g . '
Su b
- s e c t i o n
5(d)
f
h e
Se c o nd
T
a r i f f
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re
f e r r e
d
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graph
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o f
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s D e
c i s i o
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ver e
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ki n g
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d i s t
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o
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pi es
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e
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g i t a l
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ie s
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blis
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orks
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o p y r i
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e p e
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t e
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s
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etwo
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nd
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e
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b l e
e
f f
o r t s t o d e l e
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fr o
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othe
r
devi
ce
o
r
medi
um
capab
le o f
t o r
i n g D
i g i t a
l C
o pie
s ,
h
o s e D i g
i t a l
op
ies a
nd
u po n
w r i
t t e n
r
e q u e s
t fr o
m
A
cce s
s
Co p
yr ig
ht
h a l
l c e r t i
f y
t
h a t
t h as
do n
e
s o
. ~
7
BC ad
t
h e r e f
o r e s p e
c i f i c
a l l y
r a i s e
d
t h e i
s s u e
o f
h e
p r o p
r i e t y
o f h
e D e l e
t i o n
P r o v
i s i o
n
a
nd
t
h
e
prop
er
sc
ope
o f
h e r i g h
t s
w
h i c h
Acc
es s
Cop
yrig
ht wa s
p
u r p o r
t i n g
t o
l i c
e n s e as
e a
r l y a
s . l
u l y 6,
2009
.
T
he
g o
v e r n
men t
s o
f
l b e r
t a ,
Sa s
katch
ewan
, Man
i to b
a, Y
u ko n
, Nu
n a v u
t ,
Nov
a
c o t i
a ,
P r i n
c e
E
dwa
r d
I s l a
n d ,
N
ew
r u
n s w i
c k
and
Ne w
fo u n
dl a n
d
a
n d L
abr a
do r
e l e c
t e d t o b e
o i n
t l y
r e p
r e s e n
t e d .
T
h e y
a
r e
r e f
e r r e d
t o
c o l
l e c t i
v e l y
h e r e
i n a
s t
h e Con
so r ti
um'.
B
C l e
c t e d
t o
b e
r e
p r e s e
n t e d
o
n t
o
wn BC
nd t h e
C
o ns o
r t iu
m
a r e ,
c o l
l e c t i
v e l y ,
t
he Ob j
ecto
rs a n
d t h e
Ob
ject
ors
a nd Acc
e ss
o p y r
i g h t
a r e
r e f e
r r e d
t o h e r
e i n
a s
t he P a
r t i e s
.
9.
O
n
a r c h
2,
20
10, he
Bo a r
d i s s u
e d
a
D i
r e c t i
v e
o n
Pr o c
edu r
e t o
go
v e r n
t h e
c
ondu
ct
o f
h i s
p
ro
ceedi
ng.
T
he
i
r e c t i
v e
prov
ide d
a t
pa r
agrap
h 5 o r t h
e f i l
i n g o f
h
e
p a r t
i e s '
Stat
emen
ts o f
Cas
e
l i s t i
n g
t
h e
p a r t i
e s '
w i t n
e s s e s
, t
h e i r
wi tne
ss s t a t
e m e n
t s ,
e x p e
r t
r
e p o r t
s a
nd
a l l
o t h e r
evid
ence
u po
n
- h i
c h t
h e p a r
t y
i n t e n
d s t o r e
l y .
I n
p a
r t i c u
l a r ,
t h
e D i r e c
t i v e
o n P
r o ce
du re r
e q u i
r e d
i n p a
r a g r a
p h
iv
)
t
h
a t
th
e
p a r t i
c i p a n t s
i n c l u d e
a l l
other
ev ide nce
n n
wh ic h
they
i n t e n d t o
r e l y i n
t h e
St atement
o f
Ca s e.
P
arag
raph 6
rov
ided
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o r r
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iden
ce t o
be
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d
b y
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t i v e
s o c
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y
t
h e
d a t
e
s
e t f o r
t h a t
SA
R
ol. 1 ,
T
a b J , p .
89
7.
- ~ -
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p u r
p o s e ,
only
i n
r e s p o
n s e
t o
t h e
evidenc
e i l e d by t h e O b j e c t
o r s ,
which
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l u d e
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e
th a t
c o
u l d
have
been
f i l e d w
ith
t
h e c a s e i n
c h i e f .
Paragr
aph9
f h e
D i
r e c t i v e o n
Pro
ced ure a l s o
p
r o v i d
e d r e s t r
i c t i o n s
o n t h e
f i l i n g
o f
o c u me n
t s d u r i n g t h e
h e a r i n g
.?
1 0.
I n
2010
,
Access
Co py rig
ht and
t h e
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d
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co n du
c t
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stu
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e
v o l u
me
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n d
n
a t u r e
o f
u b l i s h e d
w
o r ks re
prod uced
b
y go v e r
nment e m
p l o y e e s
t h e Volum
e t u d y ) .
On
e c e mb
e r 17 ,
20 10,
h e
B
o a r d
o r d e r e
d
t h a
t a
r e t e s t be c a r r i e
d out n o r
d e r t o
a s s e s s t h e
o v e r a l
l
r
e l i a b i l i t y
o f
h e V o l u
m e
St
udy.
Th
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p r e -
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took
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we e n Ma
y
,
011
an d
Ju n e 20 , 20
11 and
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1 1 .
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C o p y r
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BC n d
t h e
Co ns
o rtium
concl
uded a
M
emorand
um o f
ndersta
nding
d
a t e d
February 17,
20I
t o
g o v e r n
t h e
co n du ct
o f
h e
Vo l u m e
S t u d y .
9
The
r e s u l t s
o f
h e
Vo l u m e
S
tudy
wo u
l d be
used
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p r o v i
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t e
o
f h e
annual
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me
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wo rk
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Ac c e s
s
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by
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p r o v i n c i
a l an d
e r
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go v
ernments
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e u
sed
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m a t i n g
t h e f a i r
market v a
l u e o f h e
an
nual
r o y a
l t y
f
o r
t h e
F i r s t
an d
Seco n
d T a r i f f
s .
The
Vo l
u m e S t
u d y
wa s
c on
ducted i n
two
p h a
s e s ,
P hase
an
d
Ph
ase
I
whi
ch
wer e
c
o
mplete d
by
De c e
mbe r
2011.
1
2 .
The p
a r t i e s
f
i l e d t h e i r
Sta
tements
o f
C a s e
i n
ad
van ce o f
h e
o r a l
h e a r i n g
whi c h w
a s c h e
d u l e d
f
or October
23,
0 12.
BC's
Statement
o f
ase,
i l e
d
A u ~ * u s t
31,
0 0 9,
o n t a i n e d
t h e w i t n e s s
s
t a t e m e n
t
o f i c t o r i a
L e s t
e r ,
D i r e c t
o r
o f
BC '
s n t e l l e c t
u a l
P
r o p e r t y P
r o g ram.
Ap p e
n d i x
A
o BC's
S
t a t e m e n t
o f
Case s e
t
ou
t
BC's
A d d
i t i o n a l
Ch
an g es t o
t h e
Propose
d
T a r i f f
.
I n
p a r a g r a p h
27 f
A
p pendix A o
BC's State
ment o f
Case,
B
C
g a i
n
arg ue d a g a i n s t
t h e D e l e t i
o n
Claus
e a s f o
l l o w s :
e
garding S e c
t i o n
5, A d d i t i o n
a l L i m i
t a t i o n s
Regard
ing
D
i g i t a l
Cop
ies' o f h e
Pro p o
sed
20 1
0
T
a r i f f
B.C. subm
its
h a t
t h e
L i
c e n s e e havin g
been
l
i c e n s e d t o
make i g i t a l
c o p i e s , r e
q u i r i n g
d
e s t r u c t i
o n
o f
uch
c o p i e s
when
a a r i f f
ha
s e
x p i r e d
i s
impro per
an
d
u n r e a s o
n a b l e . T
he p r o v i s i o
n
6
SAR
ol.
1 , Tab
p .
88
9.
S
AR
ol.
1 , Ta b
K p.
956-95
8.
g
Bo
ar d D e c i s i o n ,
p a r e .
9
,AR ol .
1 , Ta
b
4
, .
3 .
9
Cons
o rtium Res
po n dents'
R e c o r d ( C R
R ),
Vol. I
Tab
B8 ,
.
374.
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s h o u l d t h e r e f o r e
be
removed.
1 0
Paragraph
36 of Ms.
e s t e r ' s w i t n e s s s t a t e m e n t r e p e a t e d t h a t
s
ubmission)~ and
i n
h e r o r a l t e s t i m o n y a t
t h e
h e a r i n g , Ms.
e s t e r
a f f i r m e d
t h e
t r u t h of
h a t s t a t e -
ment. z
Access Copyright
chose
not
o c r o s s - e x a m i n e Ms. e s t e r on
h e r
evidence c o n c e r n i n g t h e
i
m p r o p r i e t y
and
u n r e a s o n a b l e n e s s
of
h e D e l e t i o n P r o v i s i o n .
1
3 . I n
i t s
May ,
2012
Statement
of
ase, Acc ess
Copyright chose
not
o
r e l y o n
h e
r e s u l t s
o
b t a i n e d i n
t h e
o i n t l y designed Volume Study,
which
showed t h a t
government
employees do
r
e l a t i v e l y
l i t t l e
photocopying.
1 3 I n s t e a d , Access
Copyright
proposed a t a r i f f = s e t t i n g methodology t h a t
r
e l i e d on
a market
comparable
approach b a s e d
on
o y a l t y
r a t e s
t
had
p r e v i o u s l y n e g o t i a t e d
w i t h
t h e
f d e r a l government,
h e
governments of l b e r t a ,
Saskatchewan a n
d
O n t a r i o ,
a nd
a n
agreement
b
etween
Copibec
a e l a t e d c o p y r i g h t
c o l l e c t i v e
based
i n
Quebec)
n
d
h e
government of
Quebec.
1 4
1
4.
t o
t s
Statement
of
ase, Ac cess
Copyright p rovided evidence of t s i n a b i l i t y 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 on . As x h i b i t AC
-2E
o
i t s Statement
of
ase,
Access
C
o p y r i g h t
p r o v i d e d c o p i e s of t s
s t a n d a r d a f f i l i a t i o n
agreements
w i t h i t s
a u t h o r s a n d
p u b l i s h e r
a
f f i l i a t e s . Both t y p e s of
t a n d a r d
agreements x p r e s s l y
p r o h i b i t Access Copyright from l i c e n s i n g
d
i g i t a l copying
of
u b l i s h e d
works n
t h e
absence of
h e
D e l e t i o n
P r o v i s i o n .
Access C o p y r i g h t ' s
S
t a n d a r d
A f f i l i a t i o n
Agreements
promise
t o
i t s
a f f i l i a t e s i n Appendix
A
h a t
We • i l l . . .
p r o v i d e f o r
th e d e l e t i o n
of
l l d i g i t a l e s
n o
l a t e r than t h e
t e r m i n a t i o n
of ur
l i c e n c e . This
promise i s
m a d e
b
o t h
f o r
p r i n t - t o - d i g i t a l
uses(pages 1 0 , 2?) n d
d i g i t a l
- t o
- d i g i t a l
u s e s
(pages
11,
3 ) . t
wa s
a p p a r e n t
t h e r e f o r e
s i n c e t h e
o u t s e t of h e p r o c e e d i n g s t h a t
f a i l u r e
t o
i n c l u d e
t h e
D e l e t i o n
P r o v i s i o n
wo u l d
i n v a l i d a t e
t h e
l i c e n s e ,
as was a t e r argued by
Access
Copyright
n
favour of e t a i n i n g
t
i n
l
e t t e r s
t o
t h e
Board
d a t e d
Janu ary 18,
2013
and A p r i l 26,2013 d e s c r i b e d
below.l
~
0
AR, ol.
2,
T a b 7,
.
418.
~ ~
CRR,
ol.
I T a b
B2,
p.
231-232.
~
` P u b l i c
T r a n s c r i p t ,
Vol.
8, .
1760;
CRR, ol. I T a b F,
.
504.
3
Board D e c i s i o n ,
p a r a .
515,
AR,
ol.
1 , T a b 4, .
149.
~ ~ Statement of ase, x h i b i t AC
1 ,
SAR, ol. , T a b
M,
.
982.
5
E~ibit AC
-2E,
Standard
A f f i l i a t i o n
Agreements,
Appendix
A, . 3 A ( i ) ( i i )
and
s.
3 B ( i ) ( i i } ,
AR,
Vo l . 2, T a b
9 , p.
455,
56, 67,
68 .
6 E x h i b i t
AC
-26,
.
6,
AR,
ol. 2,
T a b
12,
.
603; x h i b i t AC
-28,
.
9 ,AR, ol.
2,
a b
1 5 , p . 642.
-
5-
8/19/2019 AC Factum Re Provincial Tariff Searchable
6/32
1 5 .
The
e a r i n g began on
October 23, 012
an
d
a s t e d
8
a y s ,
n c l u d i n g
f i n a l
arguments.
The
r
e c o r d
was o t
p e r f e c t e d
u n t i l
A ug u st
28, 014
as
h e Board
r e q u i r e d
t h e P a r t i e s
t o
p r o v i d e f u r t h e r
i n f o r m a t i o n and perform
a d d i t i o n a l a n a l y s i s and
c a l c u l a t i o n s .
I
6. On
ctober 24, 012,
h e B o a r d ' s
counsel
e l i v e r e d a
T a r i f f
Wording
r o c e s s Note o t h e
p
a r t i e s
s e t t i n g out
h e
i n f o r m a l
p r o c e s s
t h a t t h e Board
i n t e n d e d t o
implement o d e a l w i t h t a r i f f
w
o r d i n g an
d
a d m i n i s t r a t i v e
p r o v i s i o n s . ~ ~ The a r t i e s o t h e r than
BC ad not d d r e s s e d i s s u e s
w i t h
the
a r i f f
Wording n t h e i r
Statements
of ase.
Consequently
h e p r o c e s s
s p e c i f i c a l l y d i r e c t e d
Ac c e s s
Copyright
o
confirm
o t h e
Board and
h e
O b j e c t o r s
t h e
e x t e n t t o which
h e
t a r i f f wording
an
d
a d m i n i s t r a t i v e
p r o v i s i o n s
of
h e
o t 7 g i n a l
proposed
s t a t e m e n t s
should
be
used
i n
t h e c e r t i f i e d
t a r i f f .
Access
w i l l
inform t h e
Board and h e
o b j e c t o r s of
ny
changes
t
wishes
o
p r o p o s e .
Access
w
i l l
a l s o
e x p l a i n
why
h e
Board
should
a c c e p t t h e
p r o p o s a l s
of
ccess
on
a r i f f
wording an
d
a
d m i n i s t r a t i v e
p r o v i s i o n s . t
w i l l
a d d r e s s t h e
wording
and
a d m i n i s t r a t i v e
i s s u e s a l r e a d y r a i s e d by h e
o
b j e c t o r s ,
and
e s p e c i a l l y
t h o s e r a i s e d
i n
p a r a g r a p h s
2 3
o
3 3
of
. c h i b i t
BC-1.
i g
As
o t e d above,
p
a r a g r a p h
27
f
Appendix A o
E x h i b i t
BC- 1
d e a l t
w i t h B C ' s
b j e c t i o n s t o t h e D e l e t i o n
P r o v i s i o n .
T
he
p r o c e s s
t h e n provided o r
submissions
from t h e
O b j e c t o r s , and
a u r t h e r
r e s p o n s e from
Access
C
o p y r i g h t .
Counsel
o r
t h e
P a r t i e s ~ ~ e r e
given h e
o p p o r t u n i t y
t o d i s c u s s
t h e
p r o c e s s and
i m e l i n e s ,
f
o l l o w i n g which h e Board's
Order of
ovember
26,
012 was
s s u e d .
That
Order of
h e
Board e t a
s
c h e d u l e governi~~ h e ~ . c c h ~ n g e
of
n f o r m a t i o n
and
r g u r r i e n t s
concerning h e
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 .1 9
Pursuant
o
t h e
Board's
Order of ovember
26, 012
h e P a r t i e s
exchanged
submis-
s i o n s
i n t h e
p e r i o d
January
o
A p r i l ,
2013.
1
7 .
On
anuary
18,
013,
Access
Copyright
i l e d i t s
submissions
concerning
h e
t 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 . With
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 i t s t a t e d :
Access
Copyright
l s o
n o t e s
t h a t
t
he
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 of
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 Access
o p y r i g h t ' s
a f f i l i a t e s
t o Access
C o p y r i g h t . See
AC-2E,
Appendix A A ( i ) ( i i )
AR
ol.
, Tab 24T,
.
1051.
SAR ol.
, Tab
24T,
.
1051-1052.
~ AR ol. 2,
Tab 11, . 597.
8/19/2019 AC Factum Re Provincial Tariff Searchable
7/32
and 3 B ( i ) (
i i ) wh
ich t
a t e
t h a t
Acce
ss
Copy
right
w
i l l
` p r o v i
d e f o r d e l
e t i o n
o
f l
l
d i g i t
a l
f i l e s no
a t e r
t
h
an t h e
t
e r m i n a t
i o n o f
ur
i
c e n c e ' .
... Based
o n
h e g r a n t o f
i c e
n c e from
t s
a f f i l
i a t e s , Acces
s
C
o p y r
i g h t
doe
s
not
a g r e e
t o
t h
e
ame
ndmen t
p
ropose
d
by
B
C. 2 0
1 8 .
T
he
O
b j e c t o r
s ma
d e h e i r
submi s
sions a r g
u i n g f o
r
r e
moval o f
h e D e l
e t i o n P
r o v i s i o
n
o n
r c
h
2
8 and
29 , 2013.
BC
a i
n t a i n e d
t h e
o b j
e c t i o n
t
o
t h e D e l e
t i o n P r
o v i s i o n
i
n p a r a g r a
p h s I
S
and
1
6
f
t s
s
ubmissi
on
o n
t h e
b a s
i s
t h a t ,
The c o p
y r i g h t o w
ner w i l
l ha
ve been comp
ensate
d
f o r
t h e
maki
ng o f
h
e
d i g
i t a l copy
. The
e g
i t i m a t e
c
o p y so
ma
de
b
y
h e l i c
e n s e e then
ha
s bec
ome
h e
l e g i t
i m a t e p h y
s i c a l
p r o p
e r t y
o f
h e
l i c e n s
e e j u s t as
n t h e c
a s e o f
paper
c
opy,
and
t h e r e
i s no e g a
l
r
eason
w i l
y t
h e l i c e n
s e e
sho
uld
be
d e p r i v
e d
o f
h e use
or
p o s s e s
s i o n o f h e
l e g i t
i m a t e l y
made
co p
y
a
f t e r
t h e
l i c e n s e
has
e r m i
n a t e d . The
c o n
t i n u i n
g p o s
s e s s i o n
o f
h e
l a w f u l l
y
made
copy
do
es
not
i
n f r i n g e
an
y
i g h t
s
o
f
h e
c o p y r i
g h t
o wne
r f t
e r t e r m i
n a t i o n
o f h e l
i c e n s e .
...
u r t h
e r
fr o
m a
p
r a
c t i c a l
s t a n d p o
i n t
t
h e r e
wo u
ld be no way o r
BC
o e
f f e c t i v
e l y
mo n
itor
d
e l e t i o n
o f
uch
d i g i t a l
co p i
e s t o
en
sure co
mplian
ce i n
t h e
event
o f
e r m i n a t
i o n / e x p
i r y o f
h e l i c e n s
e . M o r e
m p o r t a
n t l y ,
t
h
e r e i s
t h e p o l i c y
and l e g i s l a
t i v e
fr a
mewor k
f
o r t h e r
e t e n t i o n
o
f e c o
r d s by
t h e BC
o vern
ment
n
t h e
o c
ument Dispos
al
A
ct RS
BC
9
96,
.
99) s
d
e s c r i b e
d
i n pa
ragraph
s
17-22 o f
BC
's
R
eply e g a
l
b
r i e f .
2
T
h e Co
nsortiu
m
a l s o
ar
gued f o r r emova
l
o f
h e
p
r o v i s i o
n and not
ed
t h a t ,
` F i r
s t , t
i s
a
p r a c t i
c a l
i m p o s s
i b i l i t y
f o r g o v e rn
ment f
f i c e s
t o t r a
c k whic
h d i g i t a l
f i l e
s
i n
i t s p o s s e s s
i o n
w
ere
made
p
u r s u a n t
t o
a
a r t i c u l a r
Access
Copyright
a r i f f
I t i s
t h e r e f o r e not
o s s i b l e f o r
a
g overnment
f f i c e
t o
de
t e r m i n e
which
i l e s need
t o
be
d e l e t e
d o nce
t h e prop
osed
t a r i f f
n o
l o n g e r
a p p l
i e s .
2 2
1
9.
A
ccess Co
pyright
i l e d i t
s
r e p l y
t o such subm
issions
o n
A p
r i l
26,
2
013
and
a
g a i n
s
t a t e d
a s
o l l o w s
:
` A c c
e s s
Cop
yright
l s o n o t
e s
t h a
t
t h e
d e
l e t i o n o
f
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 f
l i c e n c e
i s
a
o n d i
t i o n o f
h e g
r a n t
o f
i g h t
s
p
rovide
d
by A
ccess
C o p y r
i g h t ' s
a f f i l i a t
e s
t
o
Acce
ss
Co p y r i
g h t . Th
e
evid
ence t
h a t w
as i l
e d
wi
th
t h e
Boar
d
a t
t h e
h e a r i n
g o n h i s p
o i n t
i s s e t
gut
n
t h e
J
an
u a r y
18 L e
t t e r , a t
page
6.
h e r e
f o r e
ba s
ed
o n
t h e
g r a n t o f
i c e
n c e from
t
s
a f f i l
i a t e s ,
Access
E x
h i b i t AC
-26,
. 6 ,
AR,
o I.
2,
Ta
b
12,
.
6
03.
2
E ~ c h i b i
t
BC-12,
pp. -
4 AR
,
ol
.
2,
Ta
b 14,
pp. 62
8-629.
2
E : c h i b i t
C o ns
o r tium
-37,
.
4 ,
A
R, ol.
2, Ta
b
13
,
.
616.
-7-
8/19/2019 AC Factum Re Provincial Tariff Searchable
8/32
Copyright does not
and
cannot) agree
t o t h e
d e l e t i o n
o f e c t i o n ~ ( d ) . 2 3 I t was
c l e a r o n
t h e
r e c o r d
by
Ap r i l 26, 2013 t h a t the
Objectors opposed the
D e l e t i o n P r o v i s i o n and
t h a t removal o f h e
D e l e t i o n
P
r o v i s i o n would n e g a t e Access
Copyright s a f f i l i a t e s '
g r a n t o f a
l i c e n c e
o f i g i t a l
r i g h t s , and
Access
C
o p y r i g h t
had
been given
a t l e a s t
t w o
o p p o r t u n i t i e s
t o
make
w r i t t e n
submissions
o n
t h o s e
i s s u e s .
20.
On e c e m b e r 4, 2012,
he
Board
i s s u e d tw o n o t i c e s .
The
i r s t ,
dated Dec ember 3,
2012,
asked t h e
P a r t i e s t o
make v a r i o u s c a l c u l a t i o n s ,
submissions
o n v a l u e ,
an
d o
c l a r i f y
c e r t a i n
s
t a t e m e n t s
made
by
Access i n previous submissions.2~ The
second
n o t i c e asked t h e
P a r t i e s
t o
p
r o v i d e
a
e g a l b r i e f
o address
i s s u e s
r e l a t e d
t o
e x c e p t i o n s t o c o p y r i g h t , and
t o
c o m m e n t o n t h e
B
o a r d ' s
statements
r e g a r d i n g
Access
e p e r t o i r e .
2 5
21 .
The
responses t o
t h e
f i r s t
n o t i c e
were completed by February
1 ,
2013,
an
d
t h o s e t o t h e second
n
o t i c e by
February
22, 2013. The a r t i e s had completed
making
t h e i r
submissions
e g a r d i n g
a
d m i n i s t r a t i v e
p r o v i s i o n s
by
A p r i l
26, 2013.
l l were
o f h e
view
t h a t a
i n g l e
t a r i f f
could
be
c
e r t i f i e d f o r
t h e e n t i r e
2005-2014
e r i o d
(the ` T a r i f f ' ) .
22 . On a r c h 14,
2013,
h e Board i s s u e d a n o t i c e in which
t
asked the P a r t i e s
t o
c o m m e n t o n
c
a l c u l a t i o n s
made by
t h e
Board s s t a f f
with
r e s p e c t
t o
t h e
a p p r o p r i a t e n e s s o f using c e r t a i n d a t a from
t
he
Volume
Study. t
a l s o
expressed
a r e l i m i n a r y
view
o n the events c a p t u r e d
i n
t h e
Volume
Study
t
h a t
should
be used
i n t h e c a l c u l a t i o n
o f a
r o y a l t y r a t e ,
and
d i r e c t e d t h e
P a r t i e s t o submit d d i t i o n a l
d
a t a r e l a t i n g t o
t h
ose
e v e n t s .
Those
submissions were r e c e i v e d by
Apri130,
2013.On
May
,2
13,
the
Board
ordered
Access
Copyright and the O b j e c t o r s t o prepare d a t a samples and t o a n a l y z e t h e
d
a t a
f r
om h e s e
samples
with
r e s p e c t t o
compensability
and
r e p e r t o i r e .
2
~
23 . On
May 7,
2013,
he
Consortium wrote t o
t h e Board
informing
t
t h a t
t h e r e
remained a
d
i s c r e p a n c y
o f
our
copying
events
between t h e
sample
prepared by
t
and by Access.
Subsequently,
23
E x h i b i t
AC
-28,
.
9,
AR ol. 2,
Tab
15,
. 642.
2
~
AR ol. 2, Tab 16, . 655.
Z
AR
ol. 2, Tab 18, . 696.
26
AR ol. 2, Tab 23, .
868.
- 8 -
8/19/2019 AC Factum Re Provincial Tariff Searchable
9/32
~ , - .
t h e P a r t i e s
f i l e d
an
agreement n
which
t h e y a g r e e d t h a t t h e sample c o n s i s t e d
of
91
copying
e v e n t s .
T
he n a l y s e s were
completed
by
August 6,
01 3
2
4.
On
May
,
014,
h e
Board
i s s u e d
an
Order
h a t s e t
out
t s
p r e l i m i n a r y
view
t h a t
i t
would
not
i
n c l u d e t h e
D e l e t i o n P r o v i s i o n
s e t
out
n
s e c t i o n
5 d)of h e
Second
T a r i f f
an
d
d i r e c t e d t h e P a r t i e s t o
respond t o a
n umbe r
of
u e s t i o n s .
Question
4
as t h e e f f e c t
t h a t
non
- i n c l u s i o n
of
h i s
c o n d i t i o n
w
ould
have
on
t h e
c o m p e n s a b i l i t y of i g i t a l Copies,
n c l u d i n g
whether
Access
Copyright
o u l d
i
s s u e a i c e n c e
i n
r e l a t i o n
t o
t h e D i g i t a l
Copies
m a d e n t h e
e v e n t s
i n t h e
S t u d y .2 7
2
5 .
The a r t i e s
f i l e d r e s p o n s e s
t o
t h e B o a r d ' s
Order of
May
,
01 4
on June 6, 014.
Regarding
t
he
e f f e c t t h a t non- i n c l u s i o n
of
h e D e l e t i o n P r o v i s i o n
would have on h e
c o m p e n s a b i l i t y of i g i t a l
C
o p i e s ,
n t h e O b j e c t o r s '
view,
non
- i n c l u s i o n
of
h e
D e l e t i o n P r o v i s i o n
would
e n d e r
t h e
making
of
d
i g i t a l
c o p i e s ,
i n c l u d i n g
t h o s e m a d e
n t h e e v e n t s
i n
t h e
Volume
Study,
u t s i d e
of c c e s s ' s
l i c e n c e
a
nd
t h e r e f o r e
non-compensable.2 S
2
6.
I n i t s June
6, 014
responding submission,
Access
Copyright
provided
u s t i f i c a t i o n
f o r t h e
e l e t i o n
P r o v i s i o n .
Access
Copyright,
n
answer o
Question
4,
e i t e r a t e d
i t s
January
28,
2013,
s
ubmission
t h a t t h e
D e l e t i o n P r o v i s i o n was a
o n d i t i o n
of t s g r a n t
of
i g h t s
from t s
a u t h o r s
and
p
u b l i s h e r
a f f i l i a t e s .
I n an
swer t o
Question
2,
Access
Copyright
l s o
proposed
an
amendment
o t h e
pr o v i s i o n .
Given t h e
d a t e
upon
which
t h e t a r i f f would l i k e l y
be c e r t i f i e d ( i , e .
a f t e r
December
31 ,
2
014),
Access
Copyright agreed
t h a t
t h e
D e l e t i o n P r o v i s i o n
s e c t i o n 5 ( d ) )
n
i t s
e n t i r e t y
c o u l d be
r
e m ov e d
from t h e
t a r i f f
t o be e r t i f i e d .
9
27 .
Access Copyright l s o
a d v i s e d t h e
Board,
n
answer o
Question
4 ,
h a t
Access
C o p y r i g h t ' s
Board
of
i r e c t o r s
had
a u t h o r i z e d t h e
l i c e n s i n g
of i g i t a l
c o p i e s 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
and
t h a t
t
would
r e q u e s t
express permission
from t s
p u b l i s h e r
a f f i l i a t e s t o
remove
t h e D e l e t i o n
P
r o v i s i o n
from
the express
g r a n t s
of
i c e n s i n g
a u t h o r i t y
i n t h e
p u b l i s h e r
a f f i l i a t i o n
a g r e e m e n t s . I n
i t s
27 AR
ol.
1 , Tab
6A p.
214-215.
z ~ AR ol.
1 , Tab
6B , p.
231
and
242-243.
6~
8/19/2019 AC Factum Re Provincial Tariff Searchable
10/32
r e s p
o n s e ,
A
ccess
C
opyri
ght
t a t e
d
t
h a t i t
has
o b t a
i n e d
p e r
m i s s i
o n
f r
om
t s
Bo a
rd
o f
i
r e c t o r
s
t o
a
u t
h o r i z
e
t h e
l i
c e n s i
n g o
f i
g i t a l Copie
s
und
er
h e
P
ropos
ed T a r i f
f s
wi
thout
t h e
c
o n d i t
i o n
s e t
out n
s
e c t
i o n
5 ( d ) . Acce
ss C
opyr i
ght w i l l
r e
q u e s t
e x p
r e s s
p e r m i
s s i o n
f
r om
t s
a
f f i l i a t
e s t o
r e
move
h i s
p
r o v i s i o n
fr om
i t s
l i c e n c e s
and we
e a s o n a b l y expect
h a t
p e r m i s s i o n
t o
be
forthcoming.
Access
o p y r i
g h t
a l s o
s
u b m i t
t e d t h a t i t can i s s
u e
a i c e n
c e i n r e l a t
i o n
t o
t h e
d
i g i t a l
c o p i
e s
m
a d e
i n
t
h e
e
v e n t s
n t h
e Vo
lu m e
St
udy
ev
en
witho
ut
h e D e l e t i
o n P r o v
i s i o n ,
o
n
h e
b a
s i s t h a t
t h e
c o
n d i t i o
n i s
u n
l i k e l y
to
be
r i g g e r
e d and
o n t h e
b a s
i s t h a t i
t h
as r e c
e i v e d
a p p r o
v a l f rom
t s
Bo a r
d o f i
r e c t o r
s t o
r e
mo ve
t
h e
p r
o v i s i o
n .
o
2
8 .
I
n i
t s
l u ~ 1
e
6,20
14 s
ubmis
sion,
h
e
C o n
s o r t i
u m ' s
p
o s i t i o
n
w a s
h a t
, a
l t h o u g
h
i t
w o
uld p r
e f e r
t
h a t
t h e t a r i f
f
cov
er i g
i t a l
w
or ks,
f
Acce
ss
Copy
right
w a s
n a
b l e
t o l
i c e n s e
d i g i t
a l
cop
ying
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
e co
pying
o f
i g i t
a l w
o r k s
sho
uld
not
be c o n s i
d e r e d
com
pensa
ble.
i m i
l a r l y ,
B r
i t i s h
C
olumb
ia's
subm
issio
n
n o
t e d
t h a
t
n o n
- i n
c l u s i o
n
o f
h e
D e l e t i
o n
P
r o v i s
i o n
wo ul
d
r
ender
i g i t a l
copyi
ng
o u t s i
d e
o f
h e
sco
pe
o
f cc
ess C o
p y r i g
h t ' s
l i
c e n c e
a n
d
t h
e r e f o r
e r e n
d e r d i
g i t a l
c
op
ying
non-
compe
nsabl
e.
3
29.
Th
e
a r t i e s
w
ere p e r
m i t t e d
t
o
f i l e
r e s
p o n s e
s t o
each
o t h e r '
s
su
bmiss
ions
by w
a y o f i
t h e r
s
ubmis
sions o n
June
13,
2014
.
n i t s r e s p
o n s e ,
r e g a
r d i n g
Qu
estion
4
,
A
ccess
C
opyri
ght t a t e d
t h a t i t
h
a c i
proposed
a
r e a s ~ n a h l e
cn mp r o mi se
n
i t s
June
6,
2014
submi ssion
t h a t r e c o g n i z e s
t h e r e
i s
n o
n
eed
t o
r e q u
i r e
t h e d e l e t
i o n
o f i g i t
a l
c o p
i e s
w h e
r e
t h e r e
i s
n o
f u r t
h e r i n f
r i n g i n
g
u s e .
3
0
.
I n
i t s r e
s p o n s
e t o Ac
cess
Co
pyrig
ht
e g a r d
i n g
t h
e
B
oard'
s o u
r t h q u e s t
i o n , t
h e
C ons
ortiu
m
d
i s p u t e
d Acce
ss C o
p y r i g h
t ' s
a t t
e m p t ,
i n
i t s
Jun
e
6, 20
14
submis
sion,
o
r e t r o a
c t i v e l
y
b u i l d
i t s
r e p e
r t o i r e
of i g h t
s , a r g u i
n g t
h a t : I t i s
f u n d
a m e n t a
l l y u
n f a i r
t o
b u i l d
a
a r i f
f
o n
i g h t s
t h a t
a
o
p y r i g h
t
c
o l
l e c t i v
e
do
es
not ha
ve.
Th ere
i
s
n o
way
o r
t h e
Bo
ard t
o c e r t i f
y
a
a i r
an d e
q u i t a b
l e
t a r
i f f
b a s e d o n
r i
g h t s
t h a t
do
not
y e t
e x i
s t .
C o l l e
c t i v e
s c
ould s
imply
p rop
ose
t
a r i f f s
t h a t
l i c e
n s e
a n y t
h i n g
and
2
~
AR
o
l.
1 ,
T
a b
6B
.
219
-
221.
3
o
AR
ol. 1 ,
Ta
b
6
B
p .
221-2
22.
3 AR
o
l. 1 ,
Ta
b
6
B
. 231
and
242-
243.
- 1 0 -
8/19/2019 AC Factum Re Provincial Tariff Searchable
11/32
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-
8/19/2019 AC Factum Re Provincial Tariff Searchable
12/32
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.
`
0
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
13/32
[ 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
f
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
f
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
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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
genres
of
works not
d e n t i f i e d
i n
paragraph
3 ( a ) , t h e ?010
P
roposed
T a r i f f
does
not
u t h o r i z e t h e
copying of
more
than 10
per
cent of
h a t
work. Th e
i v e
ev e n t s
excluded
by
h e Board
were
o u t s i d e t h o s e l i m i t s and s o w r e r e
not
u t h o r i z e d
under t h e
t a r i f f
and hence
not c~mpensable
;
and
could
p o t e n t i a l l y
be c t s
of opyright n f r i n g e m e n t . ~ 4
I
I .
POINTS
INISSUE
4
0.
Access
Copyright has i s t e d a t
P a r t I I of t s
Memorandum
f
act
and
Law
h e
seven
p o i n t s
h i c h
i t c o n s i d e r s t o be
i n i s s u e i n
t h i s
u d i c i a l review a p p l i c a t i o n , as o l l o w s :
1
.
What
s t h e
s t a n d a r d
of
eview
t o
be a p p l i e d with r e s p e c t t o t h e c h a l l e n g e s t o t h e Deci-
s i o n
advanced by Access
Copyright?
4
AR ol.
, Tab
4,
p.
61-62.
`
2 Board
Decision,
Table
2,
AR
ol.
, Tab
4,
. 1 7 0 .
~
3
AR
ol. 1,Tab
4, .
63.
4 AR
al. 1 , Tab
4, . 63-64.
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2 . Did t h e Board exceed
t s
j u r i s d i c t i o n
by
removing
h e
D e l e t i o n
P r o v i s i o n ,
t h e
e f f e c t
of
w
h i c h
was removing t h e
making
of
i g i t a l
c o p i e s
a s a
l a s s
of se under
t h e
second
t a r i f f
010-2014)?
3
.
Was
ccess
Copyright
denied p r o c e d u r a l
f a i r n e s s
i n t h e
manner
n
which
t h e
i s s u e
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 copying was
i r s t
r a i s e d ;
and was Access
Copyright
denied a
me a n i n g f u l o p p o r t u n i t y
t o p r e s e n t t s
evidence
e s p o n s i v e
t o t h e i s s u e
and
have
such
e v i -
dence
u l l y
and
a i r l y c o n s i d e r e d by h e
Board?
4.
Was ccess Copyright
denied
p r o c e d u r a l
f a i r n e s s
i n t h e manner n which
t h e
Board
ex-
c l u d e d
f i v e
copying
e v e n t s
on
t h e b a s i s
t h a t t h e y exceeded t h e copying
l i m i t s
under h e
p r o -
posed t a r i f f s , d e s p i t e
n e i t h e r
t h e
Respondents
nor
h e
Board
e v e r having
a i s e d t h e
i s s u e
p r i -
o r , d u r i n g
or f t e r t h e h e a r i n g ?
5
. Was h e
Board c o r r e c t i n
concluding
t h a t t h e i s s u e of what o n s t i t u t e s
a u b s t a n t i a l
p a r t
o
f
work may e
determined
s o l e l y on
a
u a n t i t a t i v e assessment of
h e p o r t i o n s
c o p i e d
and
wi t h o u t r e g a r d t o
whether a u b s t a n t i a l p a r t of h e
a u t h o r s
s k i l l and
judgment
has been cop-
ied?
6 Was h e Board c o r r e c t
i n
a s s e s s i n g f a i r
d e a l i n g
without
e g a r d t o t h e
r e c o g n i z e d e v i d e n -
t i l
and
p e r s u a s i v e
burdens
or
misapplying
t h o s e
burdens given
t h e
e v i d e n c e , r
absence of
e
v i d e n c e ,
b e f o r e
i t ?
7
Was h e
Board
o r r e c t i n
d e t e r m i n i n g
t h a t
f a i r
d e a l i n g
i s
t o
be
s s e s s e d
w i t h o u t
c o n s i d e r -
i n g t h e p u b l i c
i n t e r e s t
i n
b a l a n c i n g
t h e
o b j e c t i v e s
of h e
Act;
h a t
f a i r n e s s
i s
t o be
a s s e s s e d i n
an t o m i s t i c
and
s o l a t e d view
of
h e
f a i r n e s s
f a c t o r s ; and t h a t t h e
q u a l i t a t i v e
n a t u r e
of
h e
a
m o u n t
of
h e d e a l i n g
and
t h e a g g r e g a t e v o lu m e
of opying r e not
o
be o n s i d e r e d i n
t h e
f
i r n e s s assessment?
4
1 .
While BC oes
not
g r e e t h a t
t h e
f o r e g o i n g
l i s t
a c c u r a t e l y
and
p r e c i s e l y
o u t l i n e s
t h e
p o i n t s i n
s s u e , t
w i l l
respond
t o
each i n t u r n w i t h any e q u i r e d c l a r i f i c a t i o n
of
h e i s s u e s .
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I I I .
SUBMISSIONS
A
tandard
of
Review
4
2.
As i r e c t e d by
h e Supreme Court of Canada
n Canadian
Broadcasting
Corp.
SODRAC
2
003
n c . ,
2015
SCC
7
C B C ] t p a r a g r a p h 42, v e r y s t a n d a r d
of
eview
a n a l y s i s r e q u i r e s
i
d e n t i f i c a t i o n of h e
i s s u e s
under
review, i t i n g Dunsmuir
New
r u n s t i v i c k ,
2008
SCG
, 2 008]
S.C.R. 190
[ Dunsniuir ]
t
p a r a s .
51-64.
4
3 . BC i l l t h e r e f o r e a d d r e s s t h e
a p p r o p r i a t e s t a n d a r d
of eview
i n
connection w i t h
each
of h e
p
o i n t s
i n
i s s u e
i n t u r n . In
summary,
BC ubmits h a t
t h e
s t a n d a r d of
eview of
h e
Board's D e c i s i o n
i
s
h e
r e a s o n a b l e n e s s s t a n d a r d
i n
r e s p e c t
of
s s u e s 2,
5,
6 n
d
7 bove,and t h e c o r r e c t n e s s s t a n d a r d i n
r
e s p e c t
of
s s u e s
3
nd
4,
l b e i t a p p l i e d i n t h e
c o n t e x t
of
h e Board's p r o c e e d i n g s .
S
oard's J u r i s d i c t i o n to Not Lulude t h e D e l e t i o n Y r o t i ~ i s i o n
i
t a n d a r d
of eview
~
A , t
p a r a g r a p h
47(a)
of
Access
o p y r i g h t ' s
Factum,
Access
Copyright
i t e s D a e n s n z a ~ i r
a s
au t h o r i t y f o r t h e p r o p o s i t i o n t h a t t h e
a p p r o p r i a t e
s t a n d a r d
of
eview
w i t h r e s p e c t
t o
i s s u e s
c o n c e r n -
i n g
t h e Board's u r i s d i c t i o n
t o
a l t e r t h e terms t t a c h e d
t o
t h e
c l a s s e s
of se p r e s c r i b e d
by
Access
Co p y r i g h t i n t h e
proposed
t a r i f f
i s
t h e s t a n d a r d
of
o r r e c t n e s s . The
Supreme
Court of anada n
D
unsmuir
d i d
i n d e e d
s t a t e t h a t
[ a ] d m i n i s t r a t i v e b o d i e s must
l s o
be o r r e c t
i n
t h e i r
d e t e r m i n a t i o n s
of
r u e
q u e s t i o n s of
u r i s d i c t i o n
or
v i r e s . . . t r u e
j u r i s d i c t i o n a l q u e s t i o n s
a r i s e where h e
t r i b u n a l
must
ex p l i c i t l y
d e t e r m i n e whether
t s
s t a t u t o r y
g r a n t of
power
i v e s
t
t h e
a u t h o r i t y
t o
d e c i d e
a
p a r t i c u l a r
m
a t t e r
p a r a g r a p h
5 9 ) .
Subsequent
o
Dunsmuir,
owever,
h e
Supreme Caurt
of
anada
has
c
l a r i f i e d t h e
concept
of t r u e
j u r i s d i c t i o n a l q u e s t i o n
t h a t was a i s e d
i n
D u n s n z u i Y ,
and
t h e a p p l i c a b l e
s
t a n d a r d
of eview t h a t
should a t t a c h
t o
such q u e s t i o n s .
-
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45.
I n
Canada
(Canadian
Human i g h t s
Commission)
Canada A t t o r n e y G e n e r a l ) , 2011
SCC
5
3, 2011)3 .C.R. 471, h e
Supreme Court of Canada
h e l d
t h a t i s s u e s
which
have p r e v i o u s l y been
co n s i d e r e d t o be
j u r i s d i c t i o n a l ' ' should
now
e d e a l t
w i t h under t h e
s t a n d a r d of
eview
an
a l y s i s i n
o
r d e r
t o
determine
whether
a
t a n d a r d
of
o r r e c t n e s s
or
of
e a s o n a b l e n e s s
should
a p p l y , because
t h e
d
e c i s i o n
maker may have
e x p e r t i s e i n t h e m a t t e r and
be
i n a
b e t t e r
p o s i t i o n
than
a o u r t t o d e t e r m i n e
t
he
scope
of
t s
j u r i s d i c t i o n . I f
h e
i s s u e r e l a t e s
t o
t h e
i n t e r p r e t a t i o n
and
a p p l i c a t i o n of
h e t r i b u n a l ' s
o
wn t a t u t e ,
i s
w i t h i n
i t s
e x p e r t i s e
and
does
nat
r a i s e i s s u e s
of
e n e r a l
l e g a l
importance,
h e
t r i b u n a l
w
i l l
be e n t i t l e d t o d e f e r e n c e and
t h e s t a n d a r d
of
e a s o n a b l e n e s s
w i l l g e n e r a l l y
apply
and
t h e
T r i b u n a l
wi l l
be
e n t i t l e d
t o d e f e r e n c e
(parabraph
2 4 ) .
4
6.
The
Supreme
Court
of
Canada
n A l b e r t a ( I n f o r m a t i o n
and
Privacy Commissiv»er) A l b e r t a
T a c h e ~ s ' A s s o c i a t i o n , 2011
SCC
1, 2011]
3 .C.R.
6 5 4
went
u r t h e r and h e l d a t p a r a g r a p h
3 9
h a t
t ] r u e
q u e s t i o n s
of
u r i s d i c t i o n
a r e
narrow
an
d w i l l be
e x c e p t i o n a l . When o n s i d e r i n g
a
d e c i s i o n of
an
a d m i n i s t r a t i v e t r i b u n a l i n t e rp r e t i n g
or a p p l y i n g
i t s
home t a t u t e ,
t
should he
presumed
t h a t t h e
ap p r o p r i a t e s t a n d a r d
of
eview
i s r e a s o n a b l e n e s s . As
ong
as
t h e
t r u e q u e s t i o n
of
u r i s d i c t i o n
c
a t e g o r y
remains,
h e p a r t y
seeking t o invoke
t
must be r e q u i r e d
t o
demonstrate why
h e
c o u r t
s
hould n o t
review
a r i b u n a l ' s
i n t e r p r e t a t i o n
of
t s h ome s t a t u t e
on
t h e d e f e r e n t i a l s t a n d a r d
of
r
e a s o n a b l e n e s s .
4
7. The Supreme Court
of Canada
i n McLean
B r i t i s h
Columbia S e c u r i t i e s
Commission),
013
S
CC
7,
2013]
3
.C.R.
895
a t
p a r a g r a p h s 19-33
a f f i r m e d t h e
presumption
t h a t t h e
s t a n d a r d of
r
e a s o n a b l e n e s s
a p p l i e d
t o a
d e c i s i o n
marker's
i n t e r p r e t a t i o n
of
t s
own
u r i s d i c t i o n ,
but
h e l d
t h a t
t h e
presumption
was not a r v e d i n
s t o n e
but
r a t h e r
r e b u t t a b l e . I t i s
t h e a p p e l l a n t ' s
burden
t o
d e m o n s t r a t e
t h a t t h e s t a n d a r d
of o r r e c t n e s s should
apply
because
t h e i s s u e
a t
hand i s one
t h a t f a l l s i n t o
t h e
ex c e p t i o n a l
c a t e g o r i e s
w a r r a n t i n g
c o r r e c t n e s s
review.
4
8 .
Most e c e n t l y i n CBC upra, a t p a r a . 39,
h e Supreme
Court f f i r m e d t h a t
a p p r o a c h ,
i t i n g
Al b e r t o ( I n f o r m a t i o n and
rivacy Commissioner)
.
A l b e r t a
Teachers'
s s o c i a t i o n ,
supra a t p a r a .
3 4
th a t :
While
t
i s p o s s i b l e
t o
frame any i n t e r p r e t a t i o n
of a
t r i b u n a l ' s home
s t a t u t e
a s a q u e s t i o n of
-
17-
. , ~ , j
8/19/2019 AC Factum Re Provincial Tariff Searchable
18/32
whe
ther t h e
t r i b u n a
l
has
t h e
u r i s
d i c t i o n
t o
t a k e
a
p
a r t i c u l
a r
a c t i o n
,
t h i s
Cou
r t
h
as e
j e c t e d
t h i s
d
e f
i n i t i o n
of u r
i s d i c t i o
n i n
t h e c o n t e x t
of
t a n
d a r d o f
e
view
and
empha
sized
t h a t
t h e
c a t
e g o r y of
`
t r u e
q u
e s t i o n s
of
u r i s d i
c t i o n ' , i f
t e x i s t s
a t
a l l
i s
narrow
.
49.
Si
nce t h e
Copyr
ight Board
i n t h i s
c a s e i s
i n
t e r p r e t i
n g
i t s
h
ome t a t u t e
,
t h e Copyr
ight
4 c t
i n
p a r t i c u l
a r
s e c t i o
n
70.15
of
h e
Copyri
g ht A
ct in
r e s p e
c t
of t s
a u t h o r
i t y
t o
m
ke
a l t e r a t i
o n s t o
t h e
r
o y
a l t i e s and t o t h
e
t
erms a n
d
c o n d i t i
o n s
r e l a
t e d
t
h e r e t o
as t h z
B
oard
c o n s i
d e r s
n
e c e s s a r
y ) ,
t h e
p
res
umption
i s t h a
t
t
h e a p p r o
p r i a t e
s t a n d
a r d
of
evie w
i s
r e
a s o n a b l
e n e s s . Gi v e
n h a
t
Acc es
s
Co p y r i
g h t
has
no
t e b u t t
e d
t h a
t
pre
sumpti
on by
s ho
wing
t h a t t h i s
i s
s u e i s
one
of h e e x c
e p t i o n a
l
i n s t a
n c e s
of
r u
e q u
e s t i o n
of
u
r i s d i c t i
o n ,
t h e a p p l i
c a b l e
s t a
n d a r d
of
e v
ie w
i n
r e s p e
c t
t
o t h i
s i s s u e
s
h o u
l d be
r e a s
o n a b l e n
e s s .
0.
S e e
a l s o Neig hb
ouring
R i g h
t s
C o l l e c t
i v e of a n a d a
S o c i
e t y o
f
ompo
s e r s ,
Author
s a nd
.
usic u b
l i s h e r s
o
f
a n a da
,2UU3
FCA
02
, 2
004]
FCR
0
3,
t p a r a
63:
As
o r t h e
p
u r p o s e
of
s
u b s e c
t i o n
68(3
)
t s
e l f P a r l i
a m e n t
pr
esumab
ly
i n t e n d
e d i
t t o
equip
t h e
Boa r
d
w
i t h
t h e po w e r s
ne c
e s s a r y
t o
e n a
b l e
i t t o
i
mpleme
nt
t s
d e c i s i o
n s
i n
a n
e f f e
c t i v e a
n
d
e f f i
c i e n t
ma
nner . Henc
e ,
t
co n f e r