Copyright Law

New Zealand ?3-Strikes? Passes 1st Reading

By Jared Moya

Under the Copyright (Infringing File Sharing) Amendment Bill, file-sharers could face damages of up to $15,000 NZ ($10,700 USD), and suspension of Internet connections for up to six months. Now heads to the to the Commerce Select Committee, which will report back to Parliament in six months.

New Zealand nears closer to implementing a “three-strikes” graduated response system of its own after a new Copyright (Infringing File Sharing) Amendment Bill unanimously passed its first reading in Parliament a few days ago.

The govt first began attempting to amend the Copyright Act of 1994 back in 2008, trying to include, among other things, the controversial section 92A which would’ve required ISPs to permanently disconnect repeat copyright infringers.

Following a great deal of public outcry, and the refusal of at least one ISP to participate, New Zealand Prime Minister John Key later announced the government would throw out Section 92A, and work on a replacement that could satisfy both sides of the debate.

True to his word, the govt slowly began resurrecting “three-strikes” last June, this time vowing to heed concerns that people could be cut off without proper proof of their guilt, and by December had a formal plan to present to Parliament for consideration.

The Copyright (Infringing File Sharing) Amendment Bill was formally presented to Parliament by Commerce Minister Simon Power early last month, and does indeed repeal the controversial Section 92A, replacing it with, in his words, a more “fair and balanced process to deal with online copyright infringements occurring via file sharing.”

The new version received near unanimous support in its first reading in Parliament a few days.

The biggest difference in the new Bill is that a court order is now required to disconnect file-sharers who fail to heed repeated warnings, facing temporary suspension of their Internet connections for up to 6mos.

“The three-notice process ensures that file sharers are given adequate warnings that unauthorized sharing of copyright works is illegal, at the same time as providing effective methods for copyright owners to enforce their rights,” says Power in a press release.

The Bill also extends the jurisdiction of the Copyright Tribunal, allowing copyright holders to petition for compensation awards of up to $15,000 ($10,422 USD) for cases of infringement.

However, critics still abound.

Creative Freedom Foundation, a New Zealand digital rights advocacy organization, already voiced its concern that Internet disconnection is still on the table, be it even a temporary suspension of service.

?The internet has become a core, vital service ? you wouldn?t terminate someone?s right to post a letter,? said the group?s director, Bronwyn Holloway-Smith.

She also questioned the wisdom of fines and their proportionality to actual losses.

The country’s Labor Party, who I mentioned a few weeks ago had a change of heart on the subject, says that outdated business models are to blame, and that the “government should invest more time and money investigating how to enable New Zealand content creators to use new technologies to promote and distribute their work to national and international audiences, in such a way that allows them to build profitable and sustainable businesses.”

In other words, instead of focusing on a dead end effort of disconnection and filtering that will never address the lack of a viable business model relevant to the digital age, copyright holders will be better served by embracing new technology and adapting to it.

“Instead of focusing solely on punitive measures, more effort needs to be applied to finding a balanced solution to the issues, such as exploring new business models which better protect creative industries,” it says. “Labour believes the Government should be an enabler not an inhibitor of creativity and connectiveness.”

It also points out that disconnected file-sharers can simply switch to another ISP, meaning that the bill really does nothing to help copyright holders succeed in the era of digital distribution.

The bill has been referred to the Commerce Select Committee, which will report back to Parliament in six months.

Stay tuned.

jared@zeropaid.com

Full post as published by ZeroPaid on April 26, 2010 (boomark / email).