Archive for the ‘Copyright’ Category

Important ECJ case for copyright disputes and copyright litigation

Wednesday July 29th 2009, by Piers Strickland

SUMMARY: ECJ holds that even 11 word long extracts from newspapers can amount to acts of copyright infringement if such reproductions are “the expression of the intellectual creation of their author”.

In a the recent case of Infopaq International A/S v Danske Dagblades Forening, Case C‑5/08, 16 July 2009, the ECJ considered whether reproduction of extracts from newspaper articles infringed copyright.

Facts

Infopaq International A/S (“Infopaq”) operated a business which collected summaries of selected articles from Danish daily newspapers.

Danske Dagblades Forening (“DDF”), a professional association of Danish daily newspaper publishers, became aware in 2005 that Infopaq was scanning newspaper articles for commercial purposes without authorisation from the relevant rights-holders. Taking the view that such consent was necessary, DDF complained to Infopaq about this procedure.

Infopaq denied that consent was required, and brought an action against DDF before the Østre Landsret (Eastern Regional Court), claiming that DDF should be ordered to acknowledge that Infopaq was entitled in Denmark to apply its data capture procedure without DDF’s or its members’ consent. The Østre Landsret dismissed that action, so Infopaq then appealed to the Højesteret (the Danish Supreme Court).

The Højesteret stayed the proceedings and asked the ECJ for a preliminary ruling on:

•    Whether the concept of ‘reproduction in part’ within the meaning of the Copyright Directive is to be interpreted as meaning that it encompasses the storing and subsequent printing out on paper of a text extract consisting of 11 words;

•    Whether acts of reproduction occurring during a data capture process, such as that at issue in the main proceedings, satisfy the conditions laid down in Article 5(1) of Copyright Directive and, therefore, whether that process may be carried out without the consent of the relevant rightholders, since it is used to draw up summaries of newspaper articles and consists of scanning those articles in their entirety to produce a digital file, storing an extract of 11 words and then printing out that extract.

The Law

Article 2(a) of the Copyright Directive states that:

“Member States shall provide for the exclusive right to authorise or prohibit direct or indirect, temporary or permanent reproduction by any means and in any form, in whole or in part:

(a) for authors, of their works”

Article 5(1) of the Copyright Directive provides that:

“Temporary acts of reproduction referred to in Article 2, which are transient or incidental and an integral and essential part of a technological process and whose sole purpose is to enable:

(a) a transmission in a network between third parties by an intermediary, or

(b) a lawful use

of a work or other subject-matter to be made, and which have no independent economic significance, are exempted from the reproduction right provided for in Article 2.”

The exceptions and limitations provided for in Article 5(1) can only be applied in certain special cases which do not conflict with normal exploitation of the work or other subject-matter and do not unreasonably prejudice the legitimate interests of the right-holder (Article 5(5), Copyright Directive).

Decision

The ECJ held that Infopaq’s data capture process did come within the concept of reproduction as set out in Article 2 of the Copyright Directive, if the elements reproduced were the “expression of the intellectual creation of their author”.

The ECJ also ruled that the act of printing out an extract of 11 words, during such a data capture process, was not transient in nature as required by Article 5(1) of the Copyright Directive. Therefore, that process could not be carried out without the relevant right-holders’ consent.

Comment

The battleground in copyright disputes and in copyright litigation will be over the question of whether the reproduction in question will constitute an “expression of the intellectual creation of their author”.   It has been left for the national courts to decide upon this issue.

In the courts of England and Wales, copyright infringement matters have been recently decided by assessing whether a “substantial part” of the copyright work has been reproduced.  The substantial part test is part qualitative and part quantitative.

The new test introduced by the ECJ seems to be different.  It doesn’t seem to place the reproduced text in its originating context, but instead asks whether this text alone is the expression of the intellectual creation of their author.  This will be difficult for the national court to decide during copyright litigation proceedings and will provide hours of fun for barristers in court (and thus hours of frustration for clients…).

The ECJ also gave some useful guidance about Article 5(1) of the Copyright Directive.  In particular, in respect of what amounts to a “transient” act for the purposes of that provision. The ECJ made clear that, amongst other things, in order to fall under this condition the process had to be automated so that the copy created was deleted automatically, without human intervention.  Again, the ECJ left it for the national courts to decide whether such acts of reproduction were transient given this guidance.

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English Premier League’s claim against YouTube hits copyright registration hurdle in the US courts

Friday July 10th 2009, by Piers Strickland

Executive Summary: US Judge holds that foreign companies are required to register their copyrights in order to safeguard their rights to claim statutory damages under US law.

The English Premier League is one of the plaintiffs alleging infringement of copyright before the US Courts against YouTube in respect of unauthorised football content appearing on the YouTube platform.

YouTube (now owned by Google) argued that because the Premier League had failed to register its copyrights, then this prevented the Premier League from claiming statutory damages for copyright infringement.

The Premier League argued that requiring foreign copyright owners to register their copyrights would violate the Berne Convention.  The Berne Convention is an international copyright treaty, to which the US has signed up. The Berne Convention states that the enjoyment and exercise of copyright “shall not be subject to any formality“, i.e. such as registration.  In the UK, copyright subsists automatically upon creation, subject to certain qualifying criteria.

The US Judge disagreed, stating that the US considered that the requirement, that foreign copyrights must be registered, was compatible with the US’s obligations under the Berne Convention.  The Judge went on to state that that non-US companies must register all works with the US Copyright Office, within three months of first publication of such works, if they ever wish to claim statutory damages for any subsequent infringement of these works.

Ultimately, the Premier League’s case for copyright infringement against YouTube in this respect wasn’t fatally damaged as it appears that they were able to rely on a different legal provision to retain their right to claim statutory damages.

However, this case serves as a reminder for copyright owners to consider registering their copyrights in the US, if they want to protect their ability to recover statutory damages before a US court.

Sources: Reuters and Outlaw.

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Are TV format rights protectable under English law?

Thursday July 2nd 2009, by Piers Strickland

The phrase “TV format rights” is used as though it is a distinct and codified body of law in the UK.  However, this issue is not as clear-cut as some would have you believe.

In fact, TV format rights have not yet been recognised by the English Courts.  The English Courts did get the chance to have a look at this issue in the case of Hughie Green v NZ Broadcasting Corporation [1989] 2 All ER 1046.  Hughie Green claimed format rights in the show Opportunity Knocks.  In this case the Court held that there was no “format right”, at least in the manner claimed by Green.  This claimant perhaps fell down by not specifically detailing and expressing his rights in a way that would have been more likely be protected under the law of copyright.

Despite the lack of judicial recognition of format rights, as such, the television industry widely recognises and trades in format rights.  However, this is not mere self-serving delusion and folly by the television industry.  As the legal basis for protecting format rights becomes better known and understood (i.e.the various protective aspects of copyright and perhaps trade marks, design law etc), so format rights “owners” can be increasingly confident that if they had to enforce their rights in Court, they would be successful in doing so.

An excellent study into format rights has just been published by Bournemouth University, which has further details on this fascinating area: link.

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Major changes by UK Customs will impact upon intellectual property rights holders

Thursday June 25th 2009, by Piers Strickland

It has been reported by the IPKat that HM Revenue & Customs (“UK Customs”) has significantly departed from previous practice.  UK Customs was previously prepared to detain allegedly infringing goods upon receipt of a witness statement from the intellectual property rights holder alleging infringement.  Now, UK Customs is requiring intellectual property infringement proceedings to be issued.

UK Customs’ made the following statement:

“Our [previous] practice has been to seize these items accepting a witness statement from the right holder as confirmation that the goods are infringing and therefore liable to forfeiture. Should the owner disagree with this determination they have the right to challenge this through judicial proceedings.

We now accept that the burden of proof should be upon the right holder who must confirm the infringing nature of the goods by taking legal proceedings. More pertinently any proceedings must ordinarily be instituted within ten working days but no later than twenty working days after notification of detention. Right holders must therefore be prepared to institute proceedings within the time period set out in the Regulation. Goods will be seized only if the right holder gains a successful judgment and we are directed by the court to seize the items in question.

UK Customs has defended these changes on the basis that they are needed to comply with Article 13 of Article 13 of Council Regulation 1383/2003, which has been implemented into the UK via SI 2004 No. 1473.

This is a blow for intellectual property rights holders, as UK Customs had been a very effective (and cheap!) way of acting against infringements coming into the UK.

However, no doubt some rights holders may have been over-using UK Customs in this respect.  This may be another reason why UK Customs felt that the balance needed redressing by putting the burden of proof on the intellectual property rights holders.

The new regime may well impose a significant costs burden onto intellectual property rights holders.  Issuing court proceedings for each infringement will certainly be an expensive business.  Also, while some intellectual property infringements will be quite straightforward, others, such as those involving parallel / grey imports, may be legally much more uncertain.  Therefore, intellectual property rights holders may even be forced to issue proceedings on weak / uncertain grounds, which is a recipe for even more expensive potential litigation.

In a time of recession and continuing problems with counterfeit goods, this news has probably gone down with intellectual property rights holders about as well as a cup of cold sick. Nice.

Mind you, HM Customs may end up saving some money, which might  go some way to repaying the Government’s £Gazillions of debt. Some good news for Gordon, at last.

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US antitrust department probes deeper into Google Books copyright deal

Thursday June 11th 2009, by Piers Strickland

Further to my earlier post, it has been reported that the US antitrust authorities are looking closely at the Google Books project (link) and the settlement with the US Authors’ Guild and others (link).

Part of the concern seems to be that Google is trying to exert exclusive rights over certain works, specifically orphan works.  Any kind of exclusivity, particularly when one party is one of the largest IT companies in the world, and the leader in this specific field, raises significant potential competitions concerns.

As a result, it seems that Google’s attempts to clear the copyrights in question is just the first part of a larger legal battle.  The various competition authorities may prove an even tougher hurdle to overcome than the US authors.

The Google Books project is also an interesting example of the complex interplay between intellectual property rights (here copyright) and competition law.   Certain intellectual property rights offer monopolies, whereas competition laws seek to prevent (unlawful) monopolies.  The tension between these two positions add another dimension to this Google Books saga.

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