App Law: Update on Privacy
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iOS devices generate a trove of personal information. Do app-developers have access to the personal information of iOS device users? This is the basis of a complaint launched by a US group, as a nationwide class action lawsuit against Apple and a number of iOS app developers. The claim suffered a setback in September when a US judge dismissed the suit (see the PDF; the dismissal makes for interesting reading), with leave to amend.
There are more than 200 million iOS devices in play around the planet, several hundred thousand available apps, and reams of personal info generated by users: address book entries, cell phone numbers, file systems, geolocation data, subscriber identity numbers, keyboard cache, photographs, SIM card numbers, and unique device identifiers. Who has access to this info, and for what purpose, are questions that have cast a cloud over Apple’s popular ecosystem.Â
This story is one that will likely come back through an amended complaint.
Calgary – 07:00 MDT
No commentsSCC Defamation Decision
This is a story we’ve been following for several years (see our past posts here: Update: Canadian Online Defamation & Hyperlink Case). It’s based on an allegation of online defamation brought by businessman Wayne Crookes, which ultimately focussed on one issue. To succeed in an action for defamation, a person must prove on a balance of probabilities that the defamatory words were “published”. If you hyperlink to defamatory content, can you be liable for “publishing” that defamatory content?
In a decision this week in the case of Crookes v. Newton, 2011 SCC 47, the country’s top court has upheld the lower court decisions, and decided that there was no publication of the defamatory content in this case. A hyperlink, by itself, is not “publication” of the defamatory content to which it refers. To decide otherwise would “seriously restrict the flow of information on the Internet and, as a result, freedom of expression,” according to the court.
Some in the court pointed out that a blanket statement that hyperlinks can never constitute publication is too broad, since links can take many forms. The consensus is that a mere general reference to a website is not enough to find publication. Anyone who links to salacious gossip can now breathe a little easier.
Calgary – 07:00 MDT
1 commentDomain Name Update: .CA
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Just when you thought it was safe to go back in the water….along comes another change to the domain name world.
This is a final reminder that the Sunrise period for the .XXX blocking process runs until Friday, October 28, 2011, to protect Canadian trade-marks. To be eligible for this procedure, the request must correspond to a trade-mark that was registered by Sept. 1, 2011. For more info, see this link.Â
Next up:Â The Canadian Internet Registration Authority (CIRA) recently announced its own changes within the .CA domain. CIRA is currently proposing to introduce French-accented letters. The current system only recognizes .CA domain names in ASCII or non-accented letters (a-z) and numbers. CIRA is considering the implementation of French Internationalized Domain Names (IDNs) at the second level (to the left of the dot). What does this mean? This would permit the use of accented letters such as those listed below:
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é, ë, ê, è
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â, Ã
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ô
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ù, û, ü
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ç
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î, ï
Yes, this would come complete with its own Sunrise period, to permit existing registrants to preregister and a landrush protocol which is similar to other domain name changes such as the introduction of the .XXX domain. For more info on CIRA’s proposed changes, see this link. Calgary – 07:00 MDT
No commentsTwo Software License Decisions
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Here are two recent U.S. software decisions to note. Both decisions strengthen the hand of software vendors:
- In a follow-up to our earlier post (Software License Upheld), the Ninth Circuit Court of Appeals decision in Vernor v. Autodesk Inc. has been denied leave to appeal, meaning the US Supreme Court has elected not to review the decision. This case dealt with resales by Vernor of used copies of AutoCAD software. Vernor claimed the resales were permitted under the “first sale doctrine”. The decision stands for the proposition that a software license is an important exception to the “first sale†defence. This is because the court found that Autodesk had not sold copies but merely licensed copies of the copyrighted work.Â
- In another Ninth Circuit decision (
Apple Inc. v. Psystar Corp., 9th Cir. Cal. Sept. 28, 2011), a small computer reseller operated a business re-selling Mac OS X pre-installed into non-Apple computers. Apple complained that this was an infringement of copyright and a breach of the Mac OS X license agreement. Specifically, Apple’s software license agreement requires Mac OS X users to run their copies only on Apple computers. Psystar raised the defence that this was restrictive and constituted “copyright misuse”. The court sided with Apple, pointing out that to demonstrate “copyright misuse”, the license agreement would have to restrict creativity or restrict competition. In this case, the Mac OS X license agreement did neither. Apple’s license does not restrict a competitor’s ability to develop its own software, nor does it prohibit customers from using non-Apple components with Apple computers. Instead, Apple’s license merely restricts the use of Apple’s own software to its own hardware.
Calgary – 07:00 MDT
No commentsPrivacy & Freedom of Expression (Part 2): Who is a “journalist” anyway?
In our previous post (Privacy & Freedom of Expression: Alberta Court Says Privacy Law is Unconstitutional), we discussed the recent Alberta decision that struck down portions of a provincial privacy law (the Personal Information Protection Act), because of the way it limited protections for organizations other than “pure journalists”. Let me put this another way: collection and use of personal information is regulated by PIPA; in that Act, if you collect personal information for “journalistic purposes” and no other purposes, then you would be exempt from the regulations set out in PIPA. It’s like a get-out-of-jail card for journalists. The hitch is that the collection of personal info has to be “journalistic purposes” and no other purposes. However the court in United Food and Commercial Workers, Local 401 v. Alberta (Information and Privacy Commissioner), 2011 ABQB 415 (CanLII) said that is an infringement of the right to free expression for all those organizations who aren’t “pure journalists” – that is, organizations who might collect personal info for some purpose other than journalism. The Supreme Court of Canada in its 2009 decision of Grant v. Torstar Corp. (2009 SCC 61), defined “journalist” broadly to include bloggers and anyone “publishing material of public interest in any medium”. So is the effect of these two decisions to create a loophole for anyone to collect personal information so long as they are “publishing material of public interest”? Anyone with an internet connection can set up a blog, Facebook page or Twitter account (or all three) in about 5 minutes, so the barriers to entry to qualify as a “journalist” and start publishing personal information appear low. It appears we have a pretty big hole in Alberta’s privacy laws.  Calgary – 07:00 MDT
No commentsThe IP Arms Race
The Globe and Mail carries an interesting article penned by John Manley on intellectual property protection for software and IT companies and the trouble with patent trolls: Intellectual property: A new kind of arms race, with patents as ammo.
Calgary – 07:00 MDTÂ
No commentsUS Court finds host liable for copyright infringement
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In Louis Vuitton Malletier SA v. Akanoc Solutions, Inc., No. 10-15909 (9th Cir. Sept. 12, 2011) the US Ninth Circuit Court of Appeals found that “providing direct infringers with server space” qualifies as a material contribution for contributory copyright infringement of copyright. In Canada, we have the concept of a “authorizing infringement”, but generally, a person does not authorize infringement by authorizing the mere use of equipment (such as server space) that could be used to infringe copyright (according to the Supreme Court in the CCH case). “Authorize” means to approve, permit and encourage the infringement. However, a court in Canada may find that copyright infringement is “authorized” in circumstances where there is something less than less than direct and positive approval and encouragement, for example, if there is some level of control over the infringing actions. This concept dates back to early cases  from the 1920s (Falcon’s case) and 1940s where “certain mechanical contrivances” (transcription turntables) were used to copy musical recordings, and became the subject of copyright infringement claims.
Calgary – 07:00 MDTÂ Â Â
No commentsCalgary Event: A Practical Guide to Royalty Rates
On October 27, 2011 the Calgary Chapter of the Licensing Executives Society will be meeting on the topic of: Finding and Analyzing Royalty Rates: A Practical Guide, with David Jarczyk of ktMINE, including a review of the “25% Rule†in technology and patent licensing. For details and registration, please see the linked invitation. Calgary – 07:00 MDT
No commentsPrivacy & Freedom of Expression: Alberta Court Says Privacy Law is Unconstitutional
A striking union recorded video of a picket-line outside a casino in Edmonton. Photo and video was then posted online at a union protest site. Three people complained that their personal information had been collected in breach of the Personal Information Protection Act (PIPA). A decision by the Privacy Commissioner said that the union’s practice breached PIPA. The union appealed and an Alberta court has handed down a surprising decision that some of the privacy restrictions in PIPA are unconstitutional, because they tread on the right to freedom of expression.
In United Food and Commercial Workers, Local 401 v. Alberta (Information and Privacy Commissioner), 2011 ABQB 415 (CanLII) , the court surveyed the law in this area and focussed on two issues:
- First, what constitutes “publicly available” information? PIPA provides an exception for such information, which is defined in the Regulations and includes such things as information in phone books and directories and records held in public registries. The definition does not cover information that could be collected at public, social or political events. The court decided that this restriction violated the union’s Charter-protected freedom to express itself through video and photos taken at a public political event Â
- The other exception examined by the court is the “journalistic purposes” exception in PIPA. The union argued that PIPA limits the “journalistic purposes” exception to traditional media such as newspapers, magazines and television and excludes “non-traditional media” such as the union, who collect information for purposes other than journalism. Again, the court decided that this restriction violated the union’s freedom to express itself for purposes that may include journalism and other purposes.
Thus, the court quashed the decision of the Privacy Commissioner, and struck down portions of PIPA as being in violation of the Charter of Rights and Freedoms. This leaves some holes in PIPA that will have to be plugged by the government. Either they have to appeal the decision (which is likely) or they have to amend the legislation. This one will be interesting to watch since it touches on all kinds of fascinating topics such as a right to privacy in the Facebook era, what is in public sphere, “citizen journalism” and free expression through posting photos and videos online.
Calgary – 07:00 MDT
No commentsApp Take-Down
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An app developer in Vancouver has been threatened with a take-down notice by CBC, in connection with his radio-streaming app sold through the Mac App Store. The CBC has complained of copyright and trade-mark infringement, and Apple has reportedly threatened to pull the app if the developer and the CBC cannot come to an agreement. The dispute raises the classic issues of what constitutes copyright infringement: is an app, a photocopier, or an MP3 player, or a car radio for that matter, a tool which facilitates copyright infringement by allowing the copyright-protected works to be copied without the consent of the owner? Canadian law says …. it depends. In the CCH case , the Supreme Court of Canada reviewed the question of when someone is liable for facilitating or “authorizing” infringement. The court was clear that “authorization” means to approve of the infringement, and concluded “a person does not authorize copyright infringement by authorizing the mere use of equipment (such as photocopiers) that could be used to infringe copyright.” The mere act of providing the means of infringement is not an act of infringement.
Calgary – 07:00 MDT
No commentsUS Patent Reform: Status Update
To follow on our earlier post (US Patent Update), the America Invents Act (the US patent reform bill)Â has passed and was signed into law by President Obama on September 16th. Among the changes:
- Adopting a “first to file” system (from the previous “first to invent” system), which bring U.S. patent law into line with many international patent laws; a one-year grace period is built into the legislation to allow for the transition;
- Changing some aspects of the test for patentability and the assessment of prior art;
- The rules regarding confidential sales have been amended – such sales prior to filing of a patent application will not be considered a bar to patentability.
Calgary – 07:00 MDT
No commentsPatents: The Basics
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In a new series, we review the basics of Canadian trade-mark, copyright and patent law.
- Canadian Patents: Patents protect inventions, such as a process, machine, manufactured article, or composition of matter, or any new and useful improvement to an existing invention. Patents provide the patent owner with the right to exclude others from making, selling, or using the patented invention for a period of 20 years from the date of filing. In exchange, the patent owner must fully disclose the invention. To be patentable, the invention must be new (in other words, be the first in the world); it must be useful (functional and operative); and it must be non-obvious (in other words, it shows “inventive ingenuity” and is not obvious to someone skilled in that area). Abstract ideas, a mathematical formula or algorithm, or scientific principles are not patentable.
- Best Practices:
- Non-Dislosure: Any public disclosure of the invention prior to filing can result in loss of patentability. Canada has a 12 month grace period, permitting the filing of a Canadian patent application within one year of disclosure, but this grace period is not available in most countries.
- Patent Searching:Â A patentability search is recommended before the patent application is prepared. The search and opinion will confirm the patentability of the invention, and can provide insight to a patent agent on how to craft the patent application.
- Provisional Patent: In the US, inventors can file what is known as a “provisional patent application”, and while there is no exact equivalent in Canada, it is possible in Canada to file a simplified form of a patent application, which is often used as a way to quickly secure a filing date. Some inventors fall into the trap of thinking “I’ve got a provisional patent” since an application of this type has been filed. But a provisional will never be examined and will never issue as a patent. Think of this as an incomplete application, since that’s what it is. The provisional or incomplete application must be followed up with a complete application within 12 months in the US, and within 15 months in Canada, after which the patent rights will be lost. Â
- Use a registered patent agent: Even the Canadian Intellectual Property Office warns of unauthorized and incompetent advisors who are not qualified to prosecute patent applications before the patent office.Â
- Patents Outside Canada:  Patent rights are granted country-by-country, so an issued patent in Canada is not enforceable in the United States, for example, without obtaining patent rights in that country. A patent application must be filed in each country. Canadian inventors can apply for foreign patents from within Canada through the Patent Cooperation Treaty (PCT), which provides a standardized international filing system. Through the PCT, a Canadian company can access the application process for 142 PCT member countries.
- Design Patent: See Industrial Design.
For more information and assistance with your patent and intellectual property needs, visit Field’s Intellectual Property & Technology Group.Â
Calgary – 07:00 MDT
No commentsCloud Computing in Calgary
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Save the date: On November 1 & 2, 2011, the 3rd Cloud Computing Law conference will be held in Calgary, hosted by Federated Press.
Richard Stobbe will be presenting on the topic of risk-allocation in cloud-based services such as iCloud and other enterprise cloud computing contracts, including warranties, indemnification and limitation of liability clauses. Â
IT lawyers and in-house counsel from top companies will review:
- the risks & legal pitfalls of cloud computing
- legal and compliance issuesÂ
- the implications of virtual storage on legal jurisdiction questions
- key issues that need to be addressed when negotiating and drafting a cloud computing agreement Â
For registration details: Cloud Computing Law Conference (Calgary)Â
Readers of ipblog.ca are eligible for a 15% discount – use this code when registering: CCL1111/PR
Calgary – 07:00 MDT
No commentsEuropean Community Trade-marks & Designs
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If you followed the headlines regarding the ongoing battles between Apple and Samsung this summer, you will have noticed that Apple succeeded in shutting down sales of the Samsung Galaxy Tab in the EU, based on its allegation that Samsung’s Galaxy Tab 10.1 infringed Apple’s industrial design (See: Industrial Design in Canada & US). Samsung succeeded in limiting that court order. That is a battle over the design of the iPad (part of the appeal of Apple’s designs are that they are minimalist and functional, which raises the question of what exactly is protectable… but we’ll leave aside for the moment).
Designs and trademarks are both useful intellectual property tools to ward off competitors. Canadian companies can register their industrial designs in the EU, as well as their trademarks across the EU (through a Community Trade Mark or CTM). In the recent case of DHL Express France SAS v Chronopost SA, Case C-235/09, 12 April 2011, the EU Court of Justice ruled that injunctions to prevent infringement of a CTM can be enforced across the EU. The scope of an injunction against infringement of a CTM extends to all 27 countries of the European Union.
Related Reading: Apple’s worldwide court battles against Samsung: where they stand and what they meanÂ
For assistance with your international brand protection, including in the US and EU, contact us at Field Law.Â
Calgary – 07:00
No commentsBanff Venture Forum
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The Banff Venture Forum is in one month: October 6 and 7, with streams focussing on information technology, cleantech and life sciences. This is a well-attended networking event that serves as a showcase for emerging technology companies from across North America. Also see the  Road to Banff Pitch Competition (Alberta).
Calgary – 10:30 MDTÂ
No commentsApp Law Update – Part 3
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Are you a Canadian app-developer? One of the most common concerns I hear from my app-developer clients is this: how do you comply with laws around the world when your app is published on the App Store? Not an easy question to answer as these stories show. Here are a few updates from the wonderful world of app-related disputes and litigation:
- This story notes the importance of reviewing app-related privacy issues: a recent US Federal Trade Commission (FTC) settlement with app-developer W3 Innovations shows that the FTC will be scrutinizing the mobile app market for privacy violations, particularly violation of children’s privacy. In the US, the Children’s Online Privacy Protection Act (COPPA) is specific privacy legislation that does not have an equivalent in Canada.
- The Lodsys patent infringement attack against iOS app developers has expanded to target Android developers and (reportedly at least one) BlackBerry app developer (updates here), as well as established game developers, including EA and Atari. Apple has sought to intervene in the case, to argue that their license agreement with Lodsys should shield iOS developers from patent infringement. Google may feel compelled to go to bat for Android developers. Which means Lodsys is locking horns with Apple, Google, RIM and EA. Â
Related Reading: When an iPhone App Infringes a PatentÂ
Calgary – 07:00 MDT
No commentsDomain Name is “Personal Property”
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Courts have often struggled with how to characterize a domain name using traditional legal concepts. On one level it’s just a “bundle of rights” – a registration that provides the registrant with rights to exclude others from the use of the domain name, and point the domain name to a certain IP address on the internet. The question of whether this intangible bundle is “property” has not been settled by any Canadian appeal court, until now.
In Tucows.Com Co. v. Lojas Renner S.A., 2011 ONCA 548, the court had to decide if the domain name renner.com was intangible personal property “located in Ontario”. This was an important issue in the case, since a finding that the domain name was property located in Ontario would permit the court to take jurisdiction and the lawsuit to proceed. The court decided that there is an emerging consensus among other courts that domain names are a form of property, and found that domain names, for the purposes of Ontario law, can be considered intangible personal property.Â
Calgary – 07:00 MDT
No commentsCleanTech Investment
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A recent article in the Globe and Mail shows that VC and government investment in Canadian cleantech remains strong, but the markets are not responding due to the relatively small size and short-term underperformance of the sector. In Alberta, cleantech investment has been given a boost by the federal government’s Sustainable Development Technology Canada (SDTC) fund, which announced $53 million for 17 new funded projects in July, four of which are either based in Alberta or have a direct connection to Alberta technology.
SDTC is now accepting applications under the NextGen Biofuels Fund™, and information on the Fund and applications details are available at www.sdtc.ca. On a related note, the Global Clean Energy Congress takes place in Calgary in November.
Calgary – 07:00 MDT
No commentsCopyright: The Basics
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In a new series, we review the basics of Canadian trade-mark, copyright and patent law.
- Canadian Copyright: The Canadian Copyright Act gives authors the right to control their creative works, such as books and pictures. Under copyright law, the concept of “author” is understood broadly and includes software programmers, photographers, musicians, mobile-app developers, animators, graphic designers, artists, dancers, writers, cinematographers, painters and poets. Original creative works are protected automatically under the Copyright Act, which gives authors the right to make copies for the term of copyright. Copyright generally lasts for 50 years after the death of the author. It is an infringement of copyright to makes unauthorized copies of a work that is protected by copyright. One important point to remember is that copyright law does not protect ideas or concepts, but protects the expression of the idea – as expressed in written or fixed form, such as a book, a sound recording, a photo or a painting.
- Best Practices:
- Notation - A standard copyright notation is “© ABC Company Inc. 2011, all rights reserved.” A notation of this type is not required by the Copyright Act but it is recommended on copyright protected works.
- Register Copyright – Registration is relatively easy and inexpensive, and provides the owner with proof of ownership of copyright . In Canada, you are not required to submit a copy of the work with your application for registration.
- Public Domain – Just because something is publicly available on the internet does not mean that it’s in the “public domain” for copyright purposes. The concept of “public domain” refers to the expiry of copyright protection. So, for example, the original works of Shakespeare or an 18th century painting can be said to be in the public domain since the term of copyright has lapsed.
- Copyright in Software: Software, even open source software, is subject to copyright. The owner of the software could be the author of the code, or a company employing the author. To protect the intellectual property rights in software of any kind – whether it’s sold on a disc at the retail level, or is downloadable, whether an operating system or a mobile app -Â the owner should use proper copyright notations and implement a well-drafted license agreement. An end-user software license is a contract between the owner and the user that deals with topics such as ownership, use restrictions, warranties, liability, tech support, and related terms.
- Copyright Outside Canada: Under the Copyright Act and international copyright conventions, Canadians enjoy copyright protection in countries who are parties to treaties such as the Berne Convention, Universal Copyright Convention and the Rome Convention. Even with this legal framework in place, enforcement of copyright is challenging in the context of the internet, since infringement can occur easily and anonymously in multiple jurisdictions on multiple servers. Specialized assistance is usually required in combatting copyright infringement outside Canada. Â
For more information and assistance with your copyright and software licensing needs, visit Field’s Intellectual Property & Technology Group.Â
Calgary – 07:00 MDT
No commentsReminder: .xxx Blocking Process
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As a follow-up to our earlier post (Domain Name Update: .xxx Blocking Process), this is a reminder that on Wednesday, September 7, 2011, the “Sunrise B” period will commence to permit the owners of registered trade-marks to block their marks from becoming part of a .XXX domain name. The opt-out process blocks eligible trade-marks at the .XXX registry so these trade-marks cannot be registered by others.  As an example, Microsoft might make use of this procedure to block the registration of “microsoft.xxx†as a domain name. This Sunrise period runs for 52 days until Friday, October 28, 2011. By that date, trade-mark owners must submit their Reservation Request under the Sunrise B procedure.
Calgary – 07:00 MDT
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