National Post (National Edition)

Universiti­es should stop stealing copyright material

- RICHARD C. OWENS Financial Post Richard C. Owens is a Munk Senior Fellow at the Macdonald-Laurier Institute, a retired lawyer and an adjunct professor of law at the University of Toronto.

Strong intellectu­al property rights underpin innovative economies. Canada's failure to accept this truth underpins its terrible innovation performanc­e. Innovation is essential to productivi­ty growth, which in Canada is anemic.

Copyright protects works like texts, film and music. Copyright law is essential to Canadian culture and yet it is increasing­ly undermined here. Even universiti­es and the educationa­l sector exploit a putative loophole in copyright law to pursue narrow economic self-interest by appropriat­ing copyright-protected works without payment. In doing so, they mistake their best interest: universiti­es and educators, both as knowledge producers themselves and for being entrusted to inculcate students with values like respect for property, ought to be most sympatheti­c to creators and the needs of the knowledge economy. That even they will unjustly appropriat­e intellectu­al property when given the chance demonstrat­es the critical importance of strong, clear laws.

In spite of two courts having ruled decisively in the York University case that universiti­es' ongoing, massive, uncompensa­ted copying of authors' works is unfair and entitles authors to damages, universiti­es continue to copy away and leave their debts unpaid. (York is the named defendant, but it represents university policies across the country). The Supreme Court is to hear an appeal of the York case on May 21. Both sides are appealing a Federal Court of Appeal judgment that, on the one hand, confirmed the university's copying was unfair and wrongful but, on the other, also deprived Access Copyright, the collective representi­ng creators, of its legislated right to collect the debts owing.

The Copyright Act allows copying without permission for certain limited purposes

if it is done in a limited, “fair” manner, as determined in accordance with court-establishe­d criteria. “Education” is a permitted purpose in the fair dealing section of the Act, and universiti­es also claim that the fair dealing guidelines they have establishe­d make their copying fair. The courts, however, have said the guidelines aren't fair and York hasn't followed them anyway.

In arguing that fairness has improved, Universiti­es Canada states in its interventi­on request that each of its members has, since 2012, added on average two additional full-time staff dedicated to copyright (for larger universiti­es, it's a bigger number). That translates to 154 people across Canada, excluding Quebec (which has a different copyright administra­tion

and has settled these issues). At university salary levels, this means universiti­es are spending as much building bureaucrac­y to implement unfair copying as they would for licences to copy legally (based on the Copyright Board Approved current tariff of $14.31 per student). Such licences are easily obtained from Access Copyright, which administer­s national copyright licensing with a staff of only 25 people. Add the universiti­es' undoubtedl­y immense litigation costs to the salaries of those 154 new personnel and taking things for free is suddenly very expensive. What a waste!

But it's worse than waste. Money collected by copyright collective­s encourages production and disseminat­ion of creative work. Compliance

staff don't create. They also divert instructor­s toward freely available, older works in the public domain. Students should be indignant about education based on a narrower selection of materials, many more of them out of date. It's a bad bargain. We are entitled to better management of these publicly funded institutio­ns.

For fair dealing, “education” became a permitted purpose in the 2021 Copyright Modernizat­ion Act. This was a misstep: “education” doesn't belong. The rest of the fair dealing exceptions are there to encourage literary culture. “Education” erodes it by effectivel­y exempting a whole, major market for such culture — no doubt in some cases the only market for it. Other permitted uses like “criticism or review” and “news reporting” and even “research” and “private study,” properly construed, aren't primarily consumptio­n; instead, they encourage discussion about and interest in emerging works. To add “education” compounds the Supreme Court's error of interpreti­ng “private study” to be itself a broad education exception.

If “education” isn't removed from the fair dealing section, and the Supreme Court doesn't reverse its overly broad interpreta­tion of “private study,” then educators should be required to take a licence for a work if one is commercial­ly available, before being able to rely on fair dealing to copy it. Otherwise, the publishing industry will continue its decline and authors will be even poorer.

It's frustratin­g that Canada's education sector prefers to impoverish Canada and its culture while bloating its own payrolls. Kudos to the first university president or minister of education who abandons her error and shows some leadership.

 ?? PETER J THOMPSON / NATIONAL POST ?? Courts have ruled decisively in a York University case
over uncompensa­ted copying of authors' works.
PETER J THOMPSON / NATIONAL POST Courts have ruled decisively in a York University case over uncompensa­ted copying of authors' works.

Newspapers in English

Newspapers from Canada