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Canadian record companies seek names in piracy battle

Shaw to fight legal action that would force disclosure of information about customers

Courtesy The Globe & Mail

by Patrick Brethour

With a report from John Saunders

Friday, February 13, 2004 - The Globe & Mail

CALGARY — Canada's recording industry has launched a legal hunt for at least 29 consumers it says illicitly share music files over the Web, but it must first win an opening skirmish against Internet service providers who are refusing to hand over customer information.

The case pits the Canadian Recording Industry Association against at least one major ISP, Shaw Communications Inc., which provides high-speed cable Internet service to 900,000 Canadians. Telus Corp., Rogers Cable Inc., Bell Canada's Sympatico unit and Quebecor Inc.'s Vidéotron Télécom Ltée will also be in court.

Shaw said it is among a number of ISPs that have been asked to disgorge names, phone numbers and other information related to Internet protocol addresses used to share files. The Calgary-based company will argue Monday that obligations to its consumers under the federal privacy law, which came into effect last month, trump the rights of the recording industry under copyright law. "We're absolutely compelled under the privacy act not to provide that information," Shaw Communications president Peter Bissonnette said.

The recording industry contends that people who share music files over the Internet are violating copyright laws and are hurting the sales of albums and singles. There are some, however, who argue that on-line music swapping stimulates demand for music and that the industry is to blame for falling sales.

Telus Corp. and Rogers Cable Inc. each confirmed that they have received requests from CRIA to hand over information about three and nine customers, respectively. Shaw said it has been asked for information on eight addresses and Sympatico, seven. Vidéotron said it was asked for information on a number of customers, but gave no figures. Other major ISPs could not be reached for comment.

Telus spokesman Nick Culo said the suit targets individuals who have uploaded files. The company has not supplied any information to CRIA, but it has dispatched registered letters to its three customers, informing them of the situation.

CRIA would not confirm it has launched an action against the ISPs, but the group vowed in December that it would eventually do so, following the lead of the Recording Industry Association of America, which has sued hundreds of individuals in the United States, chiefly for uploading files rather than simply downloading a copy.

That same month, a U.S. appeals court dealt the recording industry association a setback in its campaign against music piracy, ruling that the recording industry could not force ISPs to identify customers unless it launched a formal lawsuit and obtained a subpoena. That ruling might be considered by a Canadian judge, but it would not be a binding precedent.

The Canadian case goes to court in Toronto on Monday, with Shaw actively opposing CRIA. Telus said it will ask for an adjournment, while Rogers has not yet decided whether to join Shaw in arguing against the application.

Shaw's Mr. Bissonnette said his firm will comply with any court order, but he questioned the practicality of obtaining accurate information. His company uses dynamic Internet Protocol addresses, meaning that a single address is reassigned to different customers continually. That means that an IP address used to upload music files in the past may now be assigned to a different customer who may not have engaged in any copyright infringement, Mr. Bissonnette said, adding that he is quite worried that Shaw could be compelled to provide information that wrongly identifies someone.

Giving a hint of Shaw's legal strategy, he said he does not believe that the recording industry can defend its copyrights only by forcing his company to give out customer information. "Is this really the only way the recording industry has to go in terms of finding information about what's happening in peer-to-peer relationships?" he asked.

In Toronto, a Rogers Cable Inc. official said his company has been notified of demands for information on nine subscribers and has not decided whether it will comply. David Bennett, marketing director of the company's high-speed Internet division, said Rogers does not yet know where the nine live.

He said the company has misgivings about aspects of the CRIA application and will decide what legal stand to take as the court hearing proceeds. Mr. Bennett said it was not clear how the new federal privacy law might affect the case.

Vidéotron said it would enthusiastically comply with any court order, adding that Quebecor is concerned about safeguarding copyright in other parts of its business.

Montreal-based Quebecor Inc., whose interests include newspapers, television, Internet services and CDs, said its Vidéotron unit will be happy to hand over information on subscribers if it receives a court order.

"Our position is that we will obey," Quebecor executive vice-president Luc Lavoie said, acknowledging the company's financial stake in the dispute.

"We're involved in everything from the production to the distribution to the retailing to the broadcasting [of music]," he said, "so we're everywhere in this. . . . We've been saying publicly there's no difference in our mind between stealing a pair of shoes in a shoe store and stealing music on-line. A theft is a theft is a theft. In terms of protecting the identity of our subscribers, we're doing everything we can, but if there's a court order we certainly won't fight it and we're actually delighted that the CRIA is doing what it's doing."

Column courtesy The Globe & Mail © worldwide 2004

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