Issue 14 - June 2000


Welcome to the fourteenth copyright newsletter of the Intellectual Property Branch of the Attorney-General's Department.

Copies of this newsletter are available on the e-News on Copyright website at http://law.gov.au/copyright_enews. You may (and please do) forward this newsletter to friends and colleagues.

What's in this issue?

This issue provides brief information on some recent copyright developments. In particular, this issue notes the passage through the House of Representatives of the Copyright Amendment (Digital Agenda) Bill 1999. This issue also contains information about the following:

In this newsletter we also answer the following questions:
DIGITAL AGENDA BILL PASSES THROUGH HOUSE

Copyright Amendment (Digital Agenda) Bill 1999

The Copyright Amendment (Digital Agenda) Bill 1999 passed through the House of Representatives on the evening of 28 June 2000. The Government and Opposition moved amendments to the Bill to implement a number of the recommendations of the House of Representatives Standing Committee on Legal and Constitutional Affairs (the Andrews Committee).

The Bill was introduced into the House of Representatives on 2 September 1999 and referred to the Andrews Committee for inquiry and report. The Andrews Committee received some 100 written submissions on the Bill in addition to undertaking a number of public hearings. Following the tabling of the Committee's report in December 1999, the Government carefully considered the recommendations and, in some instances, undertook further consultation on certain aspects of the Bill.

The Bill as passed by the House, including Government and Opposition amendments, implements 22 of the Committee's 38 recommendations.

The following recommendations were accepted, either partially or in full:

Key amendments

The Government accepted in part the Committee's recommendation that the Bill should incorporate a right of first digitisation. This has been done through a package of amendments that both specifically recognise the right of first digitisation and address the Committee's concern regarding the additional risk of infringement to copyright material that has been converted into digital form. The amendments addressed the Committee's first digitisation recommendation in a way that protects legitimate access to information by students, researchers, schools, universities, libraries, and people with print and intellectual disabilities.

The Bill has been amended to explicitly recognise, by way of a legislative note, that the right of first digitisation is a sub-set of the right of reproduction. The enforcement provisions have been amended to increase the criminal penalties for an infringement which involves the first digitisation of copyright material. The amendments also specifically provide that a court may take into account the first digitisation of copyright material when determining the award of additional damages in a civil action for copyright infringement.

The Government also adopted the Andrews Committee's recommendation that the definition of "library" be removed from the Bill. Implementation of this recommendation removes the revised definition which would have excluded libraries owned by for-profit businesses from the library exceptions. The Government has decided to consider further the impact of a changed definition on the ability of private libraries to participate in the inter-library loan system and to provide material to public libraries. This issue will be dealt with as part of the Government's response to the Copyright Law Review Committee's Report on the Simplification of the Copyright Act 1968.

The Government amended the provisions in the Bill relating to the statutory licences for educational institutions. As recommended by the Committee, amendments were made to extend the Part VA statutory licence for educational institutions to the communication of broadcasts. Other amendments fine-tune the operation of the Part VB statutory licence for educational institutions to reproduce and communicate works.

The Opposition moved a number of amendments in response to the Andrews Committee's recommendations. The Government accepted an amendment which limits the circumstances in which a preservation reproduction of an original artistic work may be displayed on the premises of a library or archives. The Government also accepted the Opposition's proposals to introduce additional safeguards into the permitted purposes exemption to the enforcement measures against the manufacture and commercial dealing in circumvention devices and services.

The Opposition proposed that the new scheme remunerating all recognised copyright owners of underlying material included in retransmitted free-to-air broadcasts should be extended to include remuneration for directors. The Government rejected this amendment on the basis that directors are not currently recognised as the owners of copyright in films. The Government is of the view that the issue of directors should be more fully considered in the context of the Government's forthcoming consideration of the Copyright Law Review Committee's Report on the Simplification of the Copyright Act 1968.

Other amendments to Bill

The Government also moved amendments resulting from further consultation on certain issues. Amendments were made to exclude the retransmission of free-to-air broadcasts via the Internet from the proposed Part VC statutory licence. This is in response to concerns that Internet retransmissions will have an adverse effect on existing program licensing arrangements. This amendment will not prevent retransmission over the Internet. However, retransmitters will be required to negotiate on a voluntary basis with all relevant underlying rights holders when retransmitting a broadcast via the Internet.

The Government further made amendments to overcome problems posed by the recent High Court decision in Data Access Corporation v Powerflex Services Pty Ltd (1999). The amendments provide, for the purposes of Division 4A of Part III of the Copyright Act, that data incorporated in, or associated with a computer program (such as a compression or look-up table) which is essential to the effective operation of the program, can be reproduced without infringement. This amendment will ensure that the exceptions introduced by the Copyright Amendment (Computer Programs) Act 1999 remain of practical use.

It is likely that the Bill will be considered by the Senate in the Spring sittings which commence on 14 August and, with various breaks, are scheduled to conclude on 7 December 2000.

Further detailed information about the contents of the Digital Agenda Bill as introduced can be found in Issue 9 of e-news at http://law.gov.au/publications/copyright_enews/issue9.html . The Bill (as amended) and the Explanatory Memorandum (as amended) are available on the Parliament House website at http://www.aph.gov.au/legis.htm . Copies of the Parliamentary debates, including the Attorney-General's second and third reading speeches can be found at http://www.aph.gov.au/hansard/index.htm . Copies of the Andrews Committee's report are available at http://www.aph.gov.au/house/committee/laca/digitalagenda/contents.htm .

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PARALLEL IMPORTATION

Government announces freeing of parallel importation restrictions

The Government announced on 27 June 2000 that it will amend the Copyright Act 1968 to allow for parallel importation of legitimately produced books, periodicals, printed music, and software products including computer-based games. When implemented, this decision will remove the legal impediment imposed by the Copyright Act on Australian importers obtaining these products and making them available to consumers as soon as they are released anywhere in the world. They will not be obliged to wait for the Australian copyright owners to release them in Australia.

Software products affected by the changes include popular computer games, video arcade games, and popular applications for word processing, database management and graphical analysis.

The current anti-piracy measures covering sound recordings, requiring the importer or seller to prove the legitimacy of the imported product in any civil cases for infringement, will be extended to apply to all these parallel imported products.

Early last year, the Australian Competition and Consumer Commission (ACCC) conducted an analysis of the potential consumer benefits of the repeal of the importation provisions in the Copyright Act in relation to parallel importation of books and software early last year. The report indicated that consumers would indeed benefit from their removal. The ACCC noted the prospect of improved choice, removal of price discrimination and speedier access. The amendments will eliminate the control over imported books and software which has enabled significant price differentials over the past decade. The Commission's findings indicated that the price differentials are sensitive to relative movements in the Australian currency. Declines in recent times have reduced the differential but the longer term data suggests that large differentials have been the norm. In a closed market, there is no guarantee that the differentials will not rise again in future, when the Australian dollar appreciates.

The introduction of parallel importation for books, periodicals and printed music will be implemented 12 months after the passage of amending legislation. This timeframe aims to assist the publishing industry in the transition to the new legal regime. The Government will introduce the relevant amendments as soon as possible.

A copy of the press release: 'Consumers the winners from reforms to import laws' is at http://law.gov.au/aghome/agnews/2000newsag/joint5_00.htm or http://www.dcita.gov.au/nsapi-graphics/?MIval=dca_dispdoc&ID=5084&template=Newsroom .

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WTO PANEL REPORT - EC/US COPYRIGHT DISPUTE

"Homestyle" decision handed down

On 15 June 2000 a WTO panel report was handed down on the EC-US copyright dispute known as the "homestyle case". This dispute concerned an amendment to the US Copyright Act, passed in 1998, which exempts approximately 70% of all US restaurants and bars and 45% of US retail stores from paying royalties for the use of television and radio broadcasts of music to entertain their customers.

The WTO panel held that this amendment, known as the "business exemption", violates the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). The pre-existing exemption for "homestyle" music systems, as narrowed by the 1998 amendment, was found to be TRIPS consistent.

Australia played an active role in this dispute by putting forward a third party submission which was aimed at protecting Australia's trade interest - at stake was the right of Australian composers and songwriters to receive royalties for the public performance of broadcasts of their music in the important US market. The Government also wanted to ensure that trade rules relating to intellectual property were applied in a balanced and fair way.

The panel report is an important milestone in international copyright law as it is the first WTO panel to consider substantive TRIPS provisions relating to copyright. Copies of the report are available from http://www.wto.org/english/tratop_e/dispu_e/distab_e.htm .

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VISITING OFFICIAL

Canadian Copyright Board official visits AGD

On 14-15 June, the Intellectual Property Branch hosted a visit by Mr Mario Bouchard, General Counsel of the Canadian Copyright Board. As well as discussions with members of the Branch, Mr Bouchard took part in a round table with representatives of the Australian Government Solicitor, the Department of Communications, Information, Technology & the Arts and the Department of Foreign Affairs and Trade.

Mr Bouchard provided valuable insights into the Canadian approach to regulating the licensing of copyright and the role of the Copyright Board. Of particular interest to those present was a comparative analysis of the roles of the Canadian Copyright Board and the Australian Copyright Tribunal. Mr Bouchard had fully familiarised himself with the report of the Copyright Law Review Committee on the Tribunal, and probed officers about aspects of the report.

While at the Attorney-General's Department, Mr Bouchard also discussed the latest Australian developments in administrative law, in which Mr Bouchard has a strong interest. In a busy fortnight spent in Melbourne and Sydney, Mr Bouchard met with prominent intellectual property academics, the Copyright Tribunal and copyright collecting societies.

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LEGISLATION UPDATE

Copyright Amendment (Moral Rights) Bill 1999

The Copyright Amendment (Moral Rights) Bill 1999 is currently awaiting debate in the House Representatives where it was introduced on 8 December 1999. The Government has received submissions from a range of interested groups, and has held discussions with representatives of some of those groups. The Government hopes to bring on debate on the Bill during the Spring sittings of the Parliament.

The Bill and the Explanatory Memorandum are available on the Parliament House website at http://www.aph.gov.au/legis.htm . The Attorney-General's second reading speech when introducing the Bill is also available at http://www.aph.gov.au/hansard/index.htm .

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WHO DO I CONTACT IN THE INTELLECTUAL PROPERTY BRANCH?

1. Copyright Amendment (Digital Agenda) Bill 1999 and related matters (eg. retransmission of copyright, Information Economy matters)

(Contact officer: Carolyn Hough, Senior Legal Officer, tel: 02 6250 6326; fax 02 6250 5929; email carolyn.hough@ag.gov.au or Simon Cordina, Principal Legal Officer, tel: 02 6250 6608; fax: 02 62505929; email: simon.cordina@ag.gov.au

2. Copyright Amendment (Computer Programs) Act 1999 and related matters

(Contact officer: Simon Cordina, Principal Legal Officer, tel: 02 6250 6608; fax: 02 62505929; email: simon.cordina@ag.gov.au

3. Moral rights issues

(Contact officer: Chris Creswell, Consultant, tel. 02 6250 6318, fax 02 6250 5929 - email: chris.creswell@ag.gov.au)

4. Performers' rights issues

(Contact officer: Chris Creswell, Consultant, tel. 02 6250 6318, fax: 02 6250 5929 - email: chris.creswell@ag.gov.au)

5. Competition Review of Intellectual Property legislation

(For the secretariat contact Kay Collins, Director IPCR Secretariat, Tel: 02 6250 6875 Fax: 02 6250 5929 Email: ipcr.secretariat@ag.gov.au)

6. Protection of arts and cultural expression of Indigenous People

(Contact officer: Maureen Grant-Thomson, Senior Legal Officer, tel. 02 6250 6658, fax: 02 6250 5929 - email: maureen.grant-thomson@ag.gov.au)

7. Copyright Law Review Committee (CLRC)

(Contact officer: James Barker, Principal Legal Officer, tel. 02 6250 6323, fax: 02 6250 5989 email: james.barker@ag.gov.au)

8. Enforcement issues

(Contact officer: Stephen Fox, Principal Legal Officer, tel. 02 6250 6613, fax. 02 6250 5929 - email: stephen.fox@ag.gov.au)

9. Copyright Importation issues

(Contact officer: Stephen Fox, Principal Legal Officer, tel. 02 6250 6613, fax. 02 6250 5929 - email: stephen.fox@ag.gov.au)

10. WTO, bilateral and regional intellectual property liaison and cooperation including APEC

(Contact officer: Stephen Fox, Principal Legal Officer, tel. 02 6250 6613, fax. 02 6250 5929 - email: stephen.fox@ag.gov.au)

11. Government use and ownership of copyright

(Contact officer: Chris Creswell, Consultant, tel. 02 6250 6318, fax: 02 6250 5929 - email: chris.creswell@ag.gov.au)

12. Copyright Tribunal

(Contact officer: James Barker, Principal Legal Officer, tel. 02 6250 6323, fax: 02 6250 5989 - email: james.barker@ag.gov.au)

13. Collecting Societies and related issues

(Contact officer: Chris Creswell, Consultant, tel. 02 6250 6318, fax: 02 6250 5929 - email: chris.creswell@ag.gov.au)

14. Circuit Layouts Act

(Contact officer: Simon Cordina, Principal Legal Officer, tel: 02 6250 6608, fax: 02 6250 5929 - email: simon.cordina@ag.gov.au)

15. WIPO Standing Committee on Copyright and Related Rights and other WIPO matters

(Contact officer: Chris Creswell, Consultant, tel. 02 6250 6318, fax: 02 6250 5929 - email: chris.creswell@ag.gov.au)

If you wish to contact the Intellectual Property Branch on another matter, please contact: Joan Sheedy, Assistant Secretary, Intellectual Property Branch, (tel: (02) 6250 6313; fax: (02) 6250 5929; email: joan.sheedy@ag.gov.au

If you wish to contact the Attorney-General's Office, the Departmental Liaison Officer responsible for copyright matters is Mr Michael Argy (tel: 02 62777300)

For administrative matters, please contact: Kelli Marchant (tel: 02 6250 6655; Fax: 02 62505929 email: kelli.marchant@ag.gov.au)

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WHERE CAN I ACCESS PAST ISSUES OF AGD e-NEWS ON COPYRIGHT?

All past issues of the AGD e-News on Copyright newsletter are available online permanently at the AGD e-News on Copyright website at http://law.gov.au/copyright_enews/pastissues.html.

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WHERE CAN I GET MORE INFORMATION ABOUT COPYRIGHT?

The Intellectual Property Branch in the Attorney-General's Department has produced a booklet on copyright law entitled "Copyright Law in Australia: A Short Guide". For copies please phone (02) 6250 6875 or access the booklet online at the Attorney-General's Department website, Window on the Law: http://law.gov.au/publications/copyrightaus99.htm.

The Intellectual Property Branch does not give legal advice on specific copyright matters to members of the public. Of course, the Branch does provide Government departments and agencies with legal advice on copyright law matters.

If you have a specific copyright inquiry please contact the Australian Copyright Council tel: 02 9318 1788 or visit them at http://www.copyright.org.au

For information on patents, trade marks and designs contact IP Australia (formerly the Australian Industrial Property Organisation) tel: 1300 651 010 or access information at http://www.ipaustralia.gov.au

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HOW CAN I SUBSCRIBE OR SEND COMMENTS ON THIS NEWSLETTER? ?

Please email ip_branch@ag.gov.au to subscribe to this newsletter or if you would like to be removed from this email list. We would also like to hear from you if you have any feedback on this newsletter.

If you have a specific inquiry about the particular matters raised in this newsletter please contact the person listed as the contact officer.

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Attorney-General's Department. Intellectual Property Branch.
e-News on Copyright June 2000.
© Commonwealth of Australia 2000.