Society of Composers, Authors and Music Publishers of Canada v. Canadian Assn. of Internet Providers

Society of Composers, Authors and Music Publishers of Canada v. Canadian Assn. of Internet Providers

Majority held that Canadian copyright can apply to international Internet transmissions that have a real and substantial connection to Canada; Parliament intended s.2.4(1)(b) to exclude from 'communication' intermediaries who provide content‑neutral means of telecommunication (including routine caching done for technical economy and efficiency); caching by ISPs for technical reasons does not by itself create liability; authorization requires sanction, approval or conduct beyond mere provision of facilities and may in some facts be inferred from notice and failure to take down. Appeal allowed in part (restore Board on caching); cross‑appeal dismissed.

Citation
2004 SCC 45
Parties
Appellants/respondents on Cross Appeal: Canadian Association of Internet Providers; Canadian Cable Television Association; Bell ExpressVu; Telus Communications Inc.; Bell Canada; Aliant Inc.; MTS Communications Inc.; Respondent/appellant on Cross Appeal: Society of Composers, Authors and Music Publishers of Canada (SOCAN); Interveners: Internet Commerce Coalition; European Telecommunications Network Operators’ Association; European Internet Service Providers’ Association; Australian Internet Industry Association; Telecom Services Association; U.S. Internet Industry Association; Interveners: Canadian Recording Industry Association; International Federation of Phonogram Industry
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
30 June 2004
Procedural Posture
Appeal and Cross Appeal From Federal Court of Appeal / Final Judgment of the Supreme Court of Canada (appeal Allowed in Part; Cross Appeal Dismissed)
Outcome
Appeal allowed in part; cross‑appeal dismissed
Legal Topics
Extraterritorial Application of Statutes, Copyright: Communication to the Public by Telecommunication, Liability of Internet Intermediaries, Caching and Temporary Storage, Authorization Liability, Statutory Interpretation
Source Language
English

Case Brief

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Parties

Canadian Association of Internet Providers; Canadian Cable Television Association; Bell ExpressVu; Telus Communications Inc.; Bell Canada; Aliant Inc.; MTS Communications Inc.

Appellants/respondents on Cross Appeal

Society of Composers, Authors and Music Publishers of Canada (SOCAN)

Respondent/appellant on Cross Appeal

Internet Commerce Coalition; European Telecommunications Network Operators’ Association; European Internet Service Providers’ Association; Australian Internet Industry Association; Telecom Services Association; U.S. Internet Industry Association

Interveners

Canadian Recording Industry Association; International Federation of Phonogram Industry

Interveners

Procedural Posture

Appeal and Cross Appeal From Federal Court of Appeal / Final Judgment of the Supreme Court of Canada (appeal Allowed in Part; Cross Appeal Dismissed)

  1. 1 Whether Canadian copyright law applies to Internet communications with international participants and on what connecting factors
  2. 2 Whether Internet Service Providers that act as intermediaries 'communicate' or 'authorize' communications under s.3(1)(f) of the Copyright Act
  3. 3 Interpretation and scope of s.2.4(1)(b) — who qualifies as providing 'the means of telecommunication necessary'

Ratio Decidendi

Majority held that Canadian copyright can apply to international Internet transmissions that have a real and substantial connection to Canada; Parliament intended s.2.4(1)(b) to exclude from 'communication' intermediaries who provide content‑neutral means of telecommunication (including routine caching done for technical economy and efficiency); caching by ISPs for technical reasons does not by itself create liability; authorization requires sanction, approval or conduct beyond mere provision of facilities and may in some facts be inferred from notice and failure to take down. Appeal allowed in part (restore Board on caching); cross‑appeal dismissed.

Court Disposition

Appeal allowed in part; cross‑appeal dismissed

Orders

  • Restore Copyright Board decision to the extent that caching done for purely technical, content‑neutral reasons does not attract copyright liability
  • Dismiss cross‑appeal seeking to impose tariff liability on ISPs acting solely as conduits