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May 2012

Digital Locks: a Controversial Change to Canada’s Copyright Law

Canada’s Copyright Act is 27 years old. In that time, there has been a technological revolution: the Internet, MP3 players, file sharing, smart phones and broadcasting websites like YouTube have arrived on the scene.

This new digital landscape is creating challenges for copyright rules. To modernize these rules, the federal government is proposing a new law –the Copyright Modernization Act. The changes are being hotly debated. But they will probably become law by June 2012, when the current session of Parliament ends. This article discusses one of the main features of the proposed law: digital locks.


Digital Locks Explained


People who own the copyright to digital works can use digital locks (also known as technological protection measures) to control how their work is used. These locks also ensure consumers have the right to access their work.

There are different types of digital locks. Some digital locks are connected to the format of the digital work. For example, some MP3 manufacturers use digital locks to prevent songs on an MP3 player from being copied to another player. For example, the digital lock in this case would make it impossible to transfer songs from an MP3 player to a computer.

Other digital locks are connected to the work itself. An example of this type of digital lock is when you need to enter an activation key to use computer software. Without the key, you can’t use the software, even if it’s installed on your computer.

No Hacking of Digital Locks

The goal of the new federal law is to prevent hacking of digital locks installed by copyright owners, even when the consumer legally obtained the work. For example, if a song purchased online from iTunes is locked for exclusive use on a computer, it will be illegal to copy the song and listen to it somewhere else. Consumers will be allowed to make private copies only if there is no digital lock. (There will be a few exceptions to this rule.)

With digital locks in place, consumers who buy digital works will be treated like renters. They will have to follow conditions set by the copyright owner, similar to the rules of book borrowing from a library or renting a DVD from a video store.

The proposed law also targets people who make hacking possible, such as hackers who develop software to delete protections and digital locks. If the new law is passed, it will be illegal to make this kind of hacking technology available.

Penalties


The current fines for violating copyright are very severe. They have been criticized because they are difficult to apply. Right now, the fines range from $500 to $20,000 per work. Therefore, if someone copies the contents of an MP3 player, the fine could be as high as several million dollars.

The proposed law provides fines that are easier to apply. For violations for personal purposes, they range from $100 to $5,000 for several works. For commercial purposes, they range from $500 to $20,000 per work.

Also, copyright owners can directly sue people who make hacking possible. This means hackers might have to pay for the damage the copyright owner suffers. In the most serious cases, fines can be up to one million dollars and prison sentences up to five years.
Important
This article is for general informational purposes only. If you have a specific problem, consult a legal professional.
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