While concern over Bill C-32's digital lock rules has garnered the lion
share of attention, the other major issue in the bill is the extension
of fair dealing to cover education, parody, and satire. I have
characterized those changes as a reasonable compromise - not the full
"such as" flexibility that would have been preferable, but helpful
extensions that attempt to strike a balance. Some writers groups
have
reacted angrily to the changes, claiming it will cost them millions in
revenue and
arguing
that it amounts to an "expropriation of property."
Last week, the Federal Court of Appeal issued its
much-anticipated
ruling
in the K-12 case, which specifically addressed fair dealing in the
context of education. The ruling was a major win for Access
Copyright,
as the court dismissed objections from education groups on a Copyright
Board
of Canada ruling and paved the way for millions in compensation from
school boards.
The case is notable since it demonstrates how critics of greater fair
dealing flexiblity have greatly exaggerated claims of potential
harm.
For example, former PWAC Executive Director John Degen
wrote
this week that "the introduction of an overly broad exception to
copyright for educational use would all but eliminate fair compensation
for this established use." Access Copyright reacted to the court
victory by
stating
it was "bittersweet" given the C-32 changes. While there is no
doubt
that extending fair dealing to education (the law currently covers many
educational activities under research, private study, criticism, and
review) will bring more potential copying within the scope of fair
dealing, this
case reinforces the fact that fair dealing is a fair for all, not a
free for all and that fears that the extension of categories will wipe
out
all revenues bear little relation to reality.
The court held that Canadian fair dealing analysis involves a
two-part test. First, does the use (or dealing) qualify for one
of the
fair dealing exceptions (the Supreme Court of Canada has called these
user rights). Second, if it does qualify, is the use itself
fair. In this particular case, the court affirmed that the
copying in
question qualified under the first part of the test (ie. for research
or private study), but that it did not meet the six-part test for
fairness and thus was not fair dealing. In other words, claims
that a new category would eliminate compensation is plainly wrong since
the copying in question already qualified under a category of fair
dealing.
It is critical to note that extension of fair dealing to education,
parody and satire in Bill C-32 only affects the first part of the
test.
In other words, while the bill will
extend the categories of what qualifies as fair dealing, it does not
change the need for the use itself to be fair. The Supreme
Court of Canada has identified six non-exhaustive factors to assist a
Courtâs fairness inquiry: (1) the purpose of the dealing; (2) the
character of the dealing; (3) the amount of the dealing; (4)
alternatives to the dealing; (5) the nature of the work; and (6) the
effect of the dealing on the work.
Whether the use of the work qualifies as fair dealing depends upon both
meeting both parts of the test. In fact, the court notes:
I am also aware that Bill C-32, An
Act to amend the Copyright Act, 3rd Session, 40th Parliament, 59
Elizabeth II, 2010, section 21 would amend section 29 to state that
"Fair dealing for the purpose of research, private study, education,
parody or satire does not infringe copyright". However, this amendment
serves only to create additional allowable purposes; it does not affect
the fairness analysis. As the parties agree that the dealing in this
case was for an allowable purpose, the proposed amendments to the Act
do not affect the outcome of this case and no more will be said about
Bill C-32.
The case represents a big win for the copyright collectives, but it
also demonstrates that their concerns about C-32's fair dealing reforms
are overstated. The bill will open the door to other potential
uses
being treated as fair dealing, but the requirements for fairness remain
unchanged.