Opinion: Copyright or copy wrong

 

The wash-up of the iiNet case reveals conflicting legal and moral views about copyright and ISP liability, writes David Havyatt.

The judgment in the appeal of Roadshow vs iiNet in the Federal Court has triggered a further round of activity to address alleged piracy on internet networks. 

The content rights holders are reported to be seeking new and constructive engagement, while iiNet itself has released a discussion paper offering its own solutions to the problem.  

Reasoned legal commentary suggests “copyright dependent industries now have guidance on how to give ISPs notices that will require ISPs to take reasonable steps to limit the notified infringing activity”. The IT press took that as householders faced disconnection or suspension “from the internet if they pirate films or music online.”

Ultimately what is at issue is different views of what constitutes property and the individual moral obligation is to ensure laws aren’t broken.

Rights holders base a lot of anti-piracy campaigns on the principle that copyright infringement is theft, and that the whole of society has a responsibility to protect property. 

In the case of physical property, dealers in second hand goods have specific requirements to record the identity of people who sell them goods. It’s in the store owner’s interests because they can be found in receipt of stolen goods if they don’t follow the rules.

Society appears to think differently when it comes to protecting intellectual property. A different values system seems to come into play.

Exploring the differences

Perhaps one reason for that difference is that we all have physical property we want protected, but not all of us have (commercially valuable) intellectual property.

Another reason could be that copyright is no longer viewed as a protection for creative individuals but for the money men and corporations in between - a view compounded by the way that the length of copyright has been extended.  (These are sometimes called Mickey Mouse rules as they seem to come around every time the copyright in Mickey Mouse is about to expire).

A third potential reason is a belief amongst members of the online community in the co-operative creation of goods.  The view is that the Internet itself is evidence of the beauty of non-proprietary intellectual property creation, but it passes over the fact that most of the early work was actually government-funded as military capability (a survivable network) and tools for academics (the purpose of the web). 

Most of the Internet’s content is proprietary.  Wikipedia remains the exception, not the rule. And user-generated content on social networking sites has a place, but is not mainstream. Success from a video on YouTube is still measured in terms of getting a contract to make movies or record music. 

A final view is that the copyright holders bring it on themselves by not making their content available on-line in a legitimate way.  This line is deployed in the iiNet paper which criticises the “window” model of movie rights.  This sees a cinema release followed by a DVD, then later subscription TV and lastly free-to-air TV.  

People want the content online and, so the argument goes, will keep getting it illegally till they can get it legally. It is claimed the rights holders need to come up with different business models and implies they don’t know how to maximise their own returns. 

The window system works just like the process of book publishers who release a hardcover or large format paperback first, and only later offer a cheaper alternative. It is a form of price discrimination that actually works in the long run to increase the number of people who can buy the book. The higher prices for the initial release mean the paperback can be cheaper than it would otherwise have been. 

The book model has shown some change with e-books.  Movies might do the same when broadband speeds are such that high-definition content can be streamed rather than downloaded.

A moral question

Even if the rights holders’ line is accepted - that there is a “theft” of intellectual property taking place and that only rights holders are entitled to decide how they distribute content - the question remains: How much responsibility should internet service providers bear in relation to that “theft”?

Legally this is the question of “authorisation”, but what is the moral as opposed to the legal issue?  Here the discussion often degenerates into a series of analogies.  For example, if I lend you my gun and you shoot someone, how liable am I?  Does it change if I’m told that you intend to kill someone before I lend you the gun? 

The ISPs say that the messages they are bombarded with asserting illegal activity aren’t sufficient to take any action. The rights holders paraphrase that position by saying ISPs won’t take action under any circumstances.

iiNet’s discussion paper suggests it is time for new thinking to change that dialogue. That is a good step. ISPs do need to show that they are prepared to act to ensure their services aren’t used for illegal purposes.

But the paper also claims that disconnecting an offending user from the internet isn’t appropriate because the account holder can’t be responsible for all the things the service is used for.
The correct response to that is “why not?” After all it is what every contract for internet service says.  It also forms one basis for rejection of filtering, which is that users should be free to see what they want and to otherwise control access to their service. 

There is much to be done before there is an enduring solution to internet piracy. It is not as simple as rights holders needing new business models or just tightening the disconnection rules. 

We need to begin by acknowledging the property right but also recognising that the right has become too extreme. ISPs need to acknowledge their responsibility to ensure their services aren’t used for illegal purposes.

Everyone needs to accept the need to work together.

What is our moral responsibility to protect property rights of all kinds? Have your say below.

Copyright © iTnews.com.au . All rights reserved.


Opinion: Copyright or copy wrong
"My objection to the behaviour of the copyright owners is not that they seek to protect their intellectual property from theft but the bullying tactics they use to set a new legal precedent of ..."
By my_2_cents_is_worth_it
 
 
 
Comments: 12
cootified
Mar 18, 2011 9:54 AM
No business will risk the income they are getting.
If you were a business, would you stop an income stream just because they are 'alledged' pirates?
That's stupid.
zacdog
Mar 18, 2011 11:43 AM
I have never downloaded a movie. I have stopped a teenager using his mothers computer on my LAN from using Kazaa and I don't use torrents to donload the open source source code I work on even though it's perfectly legal to do so.

Why? Grabbing a movie is illegal, I believe Kazaa carried out illegal sharing and using bit-torrent is likely to get me accused of illegal copying.

I don't condone copyright breaches but I don't condone the kind of behaviour I see from people like the MPAA either.

For a start they seem to be running lots of protection scams in the US. Those are where the alleged "pirate" is given the choice of paying a "fine" (not ordered by a court) or going to trial. The "fine" is much less than the cost of a lawyer to defend the accused.

Secondly the accusers are often using shoddy methods of obtaining "evidence" e.g. http://dmca.cs.washington.edu/

I believe that the accusers should need a court order to have an ISP inspect the content being downloaded to an identified client.

At present they go around as if they are themsleves the law. Some in the USA refer to the MPAA as the Mafia Police Association of America. It's getting harder to accept that they want to totally stamp out illegal downloads - after all the protection racket is a great little earner.

We DO NOT want those tactics here.
scooter
Mar 18, 2011 12:03 PM
The problem with the whole take down notice regime is that the activity is alleged not proven.
If you follow the rights holder argument, then if I see and hear you take a corner quickly, you must be speeding. Where is the proof? If the police started handing out speeding tickets on a bystanders say so all hell would break loose.
When a crime is proven then punitive action can and will be taken. There will be no avoiding it.
When an allegation is levelled then nothing more should happen until it is proven. For the Service Provider to prove it they would have to intercept communications. Currently they are not legally allowed to do that.
The rights holders don't want to be the bad guys. OK, if it is theft then make the allegations to the appropriate law enforcement agency (AFP) and have them pursue the thieves and prove it in court. When people start getting fined or going to jail the behaviour will be reduced. It won't increase their profits but at least piracy will be mitigated to some extent.
Statistically most people speed at some point, maybe only when overtaking but that it still technically speeding. The car manufacturers are aware of this. Are they therefore liable. I don't think so, so why should an ISP? They also make cars that do far more than any legal limit in Australia. Does that make them doubly liable because they know and facilitate? Don't think so.
This is a complex problem that won't be solved by legislation or Government intervention except maybe funding the investigations.
Maybe we could start by making sure people understand that they are responsible for their own actions in all aspects of life. They might change their attitude to piracy ... maybe not.

BTW I can fly to the US and watch a rerun (including getting a passport issued) faster than a movie or TV show is released in this country. How does that make sense in this day and age?
arkayenro
Mar 18, 2011 12:48 PM
the law cannot be written such that only movie and music studios have access to it. everyone has to have access because everyone is a copyright holder at some point.

weve all seen that those very same studios commit copyright infringement themselves, although they call them royalty disputes. they seem to assume that copyright is only applicable to corporate holders.

realistically whats wrong with following the current legal procedure? its been around for ages yet not one studio, or AFACT, have bothered to tread down that legal path.

if these companies had proof that would stand up in a court of law then im quite happy for the offender to have their net disconnected, even for a first offence. until then though, its just an allegation and should be treated as such.
RB
Mar 18, 2011 4:19 PM
I had a conversation with senior legal counsel for one of Australia's leading movie distribution companies.

He said "It's our role to protect the rights of the artists".

My response "That's funny, I thought your role was to monetise those rights."

The biggest thing with ISP liability is that the ISPs know that it won't work. Even under iiNet's scenario, as soon as a person is identified and gets an infringement notice they will Google "anonymous file sharing" and then copy files without detection.

If only the movie distribution companies would focus on their real job of "distributing" content for the benefit of the artists rather than this never-ending losing battle.

As a consumer, I'm disgusted that I can't pay-for and download new release movies.

If I was an artist, I would probably think the same (why can't consumers pay-for and download my latest creation?).
dook
Mar 20, 2011 2:00 AM
The biggest problem that needs to be solved around this issue is the language used to describe the issue. Copyright infringement is neither "theft" nor "piracy", it is unauthorized duplication. If theft or piracy has occured, then there needs to be evidence supporting. I do not not see the loss/denial of a physical/intangible asset nor robbery/violence on the high seas. Until the language used from both sides is correctly identifying the issue, the issue can not be resolved correctly. I guess it could be argued that there is loss of the right to monetize on a intangible asset, but the intangible asset itself is still held by its owner, as the asset is merely duplicated not relinquished. There is a difference.
Bourkie
Mar 20, 2011 4:59 PM
dook wrote "Copyright infringement is neither "theft" nor "piracy"..."

Actually, although it is definitely not theft, it has definitely been known as piracy since about the 16th century... so I don't think anyone born in the last century has any right to say something's wrong if it's been known by that noun for several centuries prior!
Tom Brown
Mar 21, 2011 3:04 PM
Bourkie; this is essentially correct, but!

IP rights are given by society they are not some kind of personal property(once it is disseminated).

Prior to legislation which enacted copyright protection there was none. The printing guild at the time in England were strongly lobbying to get copyright recognised as property and so subject to the common law property laws so that they could have a monopoly. This was not achieved and that is still the case and laws governing copyright are statutory i.e. act of parliament. It can therefore be controlled for the public good.

AFACT only want to take and offer nothing in return.
The two facedness of AFACT,their contention that without the protection the community would be the loser but AFACT's only interest is money, no money no contention. There should be a much stricter licence by society for IP rights. If the creator does not like it, they can withhold it, I am sure there are plenty of others to fill the gap.

Just because one person gets a headstart does not mean another will not independently create the same thing.

Hustla
Mar 22, 2011 9:19 AM
I am your typical pirate.. I do it because i can, if you shut down one venue i will find another until you force me to expand too much effort to make it worthwhile. I will not pay for the content if i cannot get it for free, therefore you are not losing money from my activities as i will not pay for it in the first place.

However, i did pay to watch Battle: LA in the cinemas on release, as around once a year a movie comes out i am willing to pay to see.
David Havyatt
Mar 22, 2011 9:36 AM
Tom Brown wrote "IP rights are given by society they are not some kind of personal property(once it is disseminated)."

Personal property rights are also a social construction, especially when it comes to things like land.

As an example indigenous Australians had little concept of private property before the arrival of the Europeans. They used to come into Sydney Town and "take" whatever they wanted - to them it wasn't theft, all property was communal. (For an interesting account of the first meeting I recommend Inga Clendinnen's Dancing with Strangers (http://textpublishing.com.au/books-and-authors/book/dancing-with-strangers/).

The fact that much of the law of private property rests on common law rather than statutory law makes the concept no more natural nor immutable from legislative action than intellectual property.

RB says he's "disgusted" that he can't download the latest movie. The answer is the price discrimination point - there are a different set of consumers prepared to pay more to see the movie while on limited release (in the cinema). The average price per consumer the movie maker gets is much higher than the average price people are prepared to pay for the download. Without the higher price sales in the first "window" the average price for all would need to be higher - and the upshot would be some of the higher cost films would never be made. The solution to this will be when on-line distribution can reliably mean streaming not download. Wise copyright holders will put a price premium on the "new" movies - but ask yourself what the movie industry would look like if there wasn't enough demand for cinema sales (I can tell you - pretty sick like it was just before the birth of the multiplex).
RB
Mar 22, 2011 4:20 PM
@David:
I fully support (fair and equitable) price tiers in content distribution. This already exists in DVD distribution and some online channels. BUT, there are no new-release movies online so there's no way that anyone can say "price per consumer the movie maker gets is much higher than the average price people are prepared to pay for the download". Because, no one has proven that consumers won't pay an equivalent price.

Further to this, let's look at cinema pricing - discount tickets are available at under $10. That suggest to me that the movie maker is getting only a small fraction of the actual box-office revenue.

I am actually a firm believer that the movie industry would look a lot healthier and more diverse (better access to long-tail content) if the studios would engage with the Internet. I believe that "first weekend" sales would be higher and that overall returns to staff working within the industry would be higher.

The studios current method of business actually deters me from spending on content at the moment and I am absolutely convinced that if they engaged with the Internet I (and many others) would spend more on content.

Proof? ... The success of iTunes and Amazon Music are evidence that the Internet as a distribution medium does work. I believe that there is still improvement possible in the music industries engagement with the Internet but it has proven that it works.

AND, in terms of "streaming", I don't see that as an answer. I don't want to watch a movie several times but if my wife falls asleep 1/2 way through I'd like her to be able to watch the ending next Tuesday without having to "rent it again".
my_2_cents_is_worth_it
Mar 23, 2011 12:09 PM
My objection to the behaviour of the copyright owners is not that they seek to protect their intellectual property from theft but the bullying tactics they use to set a new legal precedent of forcing proof of innocence on the defendants in their litigation.
For example if my computer is hacked without my knowledge and used for some nefarious use by the hacker, I have no legal protection of an assumption of innocence with the misuse of my property.
I object to the copyright owners using technology means to pick infringing IP addresses and therefore owner of target IP address MUST be guilty.
What if I have a wifi service on my home router? If the wifi is hacked by someone in a neighbour's house and used to download a song or movie without my knowledge, then how can I be guilty of copyright infringement?
Based on the current system, I can be raided by the police, have my computer gear confiscated and then be arrested for criminal copyright infringement without having done the crime.
With regular laws and property, the police need to provide reasonable evidence to get a warrant to raid a premises. Wiretapping is supposedly illegal except in rare cases but with internet and copyright, near enough seems good enough under the law. Why?
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