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Jones, Grant --- "Loose Strands in the Web: Meta Sites, Intellectual Property and Cyber-Consumers" [2001] MurdochUeJlLaw 6; (2001) 8(1) Murdoch University Electronic Journal of Law
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Loose Strands in the Web: Meta Sites, Intellectual Property and Cyber-Consumers
Author: |
Grant Jones BCom, LLB
Solicitor, Blake Dawson Waldron Solicitors
|
Issue: |
Volume 8, Number 1 (March 2001)
|
Contents: What's
important - increasingly important [in the Information Economy] - is
the process by which you figure out what to look at. This
is the
beginning of the real and true economics of information - not who owns
the books, who prints the books, who has the holdings.
The crux today
is access, not holdings. And not even access itself but the signposts
that tell you what to access - what to pay attention
to. In the
Information Economy, everything is plentiful - except attention.[1]
- Ever
since the emergence of the World Wide Web into mainstream social use,
communitarians and social libertarians have touted it as
a medium
capable of enlivening social discourse and dialogue through its
technology of instantaneous communication. As Phan states,
This
vast network transforms the way people interact with information by
creating the possibility of ongoing, instantaneous, reflexive
dialogue
that was heretofore technologically impossible. The distribution of
knowledge and learning is radically transformed by the
Internet, partly
through the ease of access...and the ability to link previously
disparate pieces of information and thus create
a new understanding of
the way knowledge is formed.[2]
- It
has further been commented that the incumbent ethos of the Internet is
post modern as it seeks to replace the modern concept of
fixed meaning
in text with notions that "meaning" from a work is in constant
evolution via interactivity of the reader with the text.[4]
This "ethos" is naturally dependent on an uninhibited access to
content. It is as this point then, that rhetoric collides with reality
with the entry of intellectual property ("IP") into the debate.
- Intellectual
property is founded on notions of a fixed text and a fixed authorial
meaning encapsulated within the expression of a
work over which the
relevant author has some measure of exclusory control.[5]
As such it is removed from the post modern ideal that purportedly forms
the ethic of Cyberspace. Indeed, law makers both at legislative
and
judicial level have seen fit to extend existing laws of IP into
Cyberspace with variation catering only to the physical rather
than
sociological differences of the medium.[6]
Inevitably, therefore, conflicts have arisen from the application of
dated jurisprudence to a new medium that assumedly has a diametrically
opposed sociology. For purposes of example, this paper has focused on
the existence of meta-sites as one of these areas of conflict.[7]
- Meta
sites provide a service aligned with the post-modern, access related
sentiment of Cyberspace. They compile information on related
subjects
from a host of different sites in a manner that makes otherwise
fragmented content easy to access. Without such organisational
tools
like meta sites, the Internet would struggle to be a medium of expanded
social discourse. As Nathenson states,
The Internet
has often been characterised as a huge library. Although appealing,
this comparison is flawed. If the Internet is a library,
then it is one
with all the books scattered on the floor. Unbridled chaos could render
the World Wide Web useless as a form of discourse
unless we can
reasonably rely on our retrieval and filtering tools.[8]
- As
the favoured method of content compilation used by meta sites usually
takes the form of either a wholesale copying of portions
of content or
framing through an IMG link, meta sites inevitably raise the hackles of
copyright infringement[9]
as it has in the currently pending matter between popular Internet
auction site eBay and the auction information meta site Bidders
Edge.[10]
- What
has been interesting to note from inspection of the various legal barbs
that eBay and Bidders Edge have traded, are the foundations
on which
eBay has justified its position that IP should be protected in
Cyberspace. The principal argument that eBay has raised is
that the
preservation of IP in Cyberspace operates in the name of consumer/user
welfare[11]
an argument that is interesting given the fact that both the
post-modern Cyberspace ethic and Bidders Edge as the proxy
representative
of that ethic have argued that it is access to
information rather than exclusion that is in the interests of
Cyber-consumers/users.
As James Carney, CEO of Bidders Edge, stated:
"The long term implications of eBay's actions affect the entire
industry. If eBay is
successful, the value of the Web as an easily
accessible and useful information source for consumers will be forever
changed."[12]
- This
paper seeks to support the continued existence and operation of meta
sites such as Bidders Edge. As such, the methodology used
in this paper
will be one that seeks to erode the cogency of the conceptual bases
upon which IP claims to have a legitimate application
to Cyberspace,
one of those bases being IP's claim to be consistent with consumer
welfare.
- Note that as the author is arguing in support
of the position that access to information (including information
unrelated to the correction
of information asymmetry's in transactions)
operates in consumers' welfare, this paper is taking an expansive view
of the term "consumer".
For the purposes of analysis, the author has
adopted the concept of the consumer as espoused by Ralph Nader, where
the interests
of an individual as a citizen are included within the
term "consumer interest."[13]
As such, "consumer welfare" is not a term, for the purposes of this
essay, that is limited to narrow economic concepts such as consumer
sovereignty and control of the production process.
- This
essay is structured into two main parts. The first part contains the
actual conceptual attack on IP's claims to legitimate purchase
in
Cyberspace. Selected avenues of analysis include the genuity of IP's
claim that it maintains a concern with consumer welfare in
Cyberspace,
the arguments of IP by which it seeks to refute a philosophy that
regards the products of intellectual creation as items
the subject of a
"commons" ownership, and also an exploration of the nature of
information and its relationship with IP as a channel
to justify the
exemption of meta sites from claims of copyright infringement.
- The
second part of the paper, noting the irreversible intent of law makers
to apply existing legal instruments to the Internet, attempts
to
construct a method of achieving access to protected content. The
administrative framework that this essay will suggest is that
of Part
IIIA of the Trade Practices Act 1974 pertaining to Access to Services
("Access"). This paper will also suggest, as part of the substantive
organs within that framework,
that fair dealing doctrine and precedent
as developed under the Copyright Act 1968 be included as an
interpretive tool to be considered by regulators in their application
of Part IIIA access to the context of IP.
- The
term "information" is one that has become generic in describing all
manner of content, whether factual, original, or artistic.
It has
become a misnomer that belies the incorporation of the verb "inform"
within the term.[14]
Content only becomes "information" when it conveys a message to the
subject upon whom it is conferred and provides a conduit from
a given
level of ignorance to a lesser level of ignorance.[15] As Bateson states, "Information is a difference which makes a difference."[16] Barlow further states as follows,
- Even
where it has been encapsulated in some static form like a book or a
hard disk, information is still something that happens to
you as you
mentally decompress it from its storage code. But whether it is running
at gigabits per second or words per minute, the
actual decoding is a
process that must be performed by and upon a mind.[17]
- Content which is divorced from an interpretive context that will attribute meaning to its recipient is known as data[18]
and, as it is of little value by itself without an interpretive
explanation from its creator, it cannot be considered a discrete
commodity or as the subject of exchange. Mandeville terms data as
"uncodified information" and states: "Highly uncodified information
is
not a commodity; it is so intangible that transaction costs will be too
high to facilitate convenient exchange via the market
mechanism." [19]
- It
is at this point where comparative chords sound with the language of
copyright, as copyright aims to create property rights in
works so as
to make them discrete units of exchange.[20]
Furthermore, copyright will only confer protection on "information",
that content that is sufficiently developed so as to be understood
by a
consumer without separate explanation from the creator. In Hollinrake v
Truswell, Davey LJ stated as follows,
...a
literary work is intended to afford information and instruction...The
[sleeve chart] before us gives no information or instruction.
It does
not add to the stock of human knowledge, and is not designed to give,
any instruction by way of description or otherwise.[21]
- This rationale extends from the well known maxim that "copyright does not protect ideas, only expression." [22]
"Ideas" only have internal meaning to an author, and therefore, mean
little by themselves to an unrelated party without the interpretive
shell of an expression. Ideas may be conceived as the equivalent of
data, as "data becomes information only when an individual...attributes
meaning to [it]."[23]
- Under
conventional copyright analysis, the requirement that a work must
attribute sufficient interpretive meaning to the core data/ideas
of the
author in order to warrant protection is termed as the requirement of
"originality or creativity". Abstracting banal requirements
of
"qualified person", "physical publication" and "fixed form"[24]
"originality or creativity" is the only remaining tendon between an
unprotected idea and a protected expression. Even by simple deduction,
therefore, it must be that element of the work that attributes a
contextual meaning to the ideas of the author. This position is
supported by Ginsberg, who states as follows,
...original authorship only describes those works manifesting a
subjective authorial presence. The prevalent contemporary understanding
identifies authorial subjectivity as the hallmark of original works of
authorship...original works [must] at least, embody their
creators
subjective choices in the selection and arrangement of material.[25]
- Of
course, it could be expected that copyright owners in Cyberspace would
invoke this rationale of copyright to their favour in regards
to meta
sites, as they would inevitably argue that their works, prior to
compilation and organisation by the defendant meta site,
possessed the
requisite "subjective authorial presence" that conferred the status of
"information" upon their content. The question
is, therefore, whether
Cyberspace has any qualities that alter the nature of "information" to
the effect that, for content to impart
a "message" value to users, more
than just creativity/authorial presence is required.
- Cyberspace is a data dense environment[26] one criticised as being characterised by "data overload."[27]
As Shenk comments, "..the glut of information no longer adds to our
quality of life, but instead begins to cultivate stress, confusion
and
even ignorance."[28]
- This
data explosion has resulted from a number of things, but largely
responsible is the almost complete removal of transaction costs
of
publication for online content and also the latent lack of editorial
control prior to publication of content into Cyberspace.[29]
The inevitable consequence of this data explosion is, however, the fact
that consumers, encumbered by high levels of "white noise",
are finding
the search for information increasingly more costly and difficult.
Indeed, the "..search for knowledge or, at least,
the search for a
meaningful dialectic [has] drowned under a deluge of information."[30]
- It
is typical of content creators in Cyberspace to flavour their content
with hyperbole and exaggeration in order to extract their
works from
the homogeneity of similar works. This forced sales element that is
infused into the content dulls its otherwise informational
worth to the
ultimate consumer. Gowder states that,
...information providers vying for the recipients' attention have an
incentive to increase their volume. An information provider
wishing to
have his communication noticed will use more dramatic language, leading
to hyperbole. It will be more prone to exaggeration
and sensationalism.
Of course, this creates a collective action problem - everyone
individually has an incentive to increase the
volume and quantity,
while all would gain from an overall reduction. The result is a vicious
cycle of increasing numbers of increasingly
"loud" communiques.[31]
- The
addition of hyperbole to an existing work, ironically, reflects a
desire to send a signal of quality or worth to potential consumers.
Certainly, in the environs of Cyberspace that is filled with "random,
unexamined, raw data"[32]
such signals are necessary as it is only "works of quality" that
maintain currency for consumers informational needs. This is recognised
by Dyson as follows: "[In Cyberspace] Much value will be in the
certification of...reliability. Brand name, identity, and other marks
of value will be important...Customers will pay for a stream of
information from a trusted source.[33]
- Thus,
it appears that for a work to be regarded by consumers as of
"informational worth" in Cyberspace, it will have to come attached
to a
signal of quality so as to stand removed from the deluge of content
"white noise"[34]
that otherwise exists. Ironic, indeed, has been the suggestion that, in
order to ensure that quality information is received, consumers
should
revert back to old sources of information such as books etc that have
been filtered through editorial controls of publishers.
Gowder states
that: "Information consumers must filter information themselves. This
is mainly accomplished by favouring information
not tied to haste -
books - over information, such as television and the Internet."[35]
- This
suggestion may yet be hasty given that services such as meta sites, in
the compilation and comparison of information, provide
a service
reminiscent of editorial control[36] or at least, electronic librarians[37]
and therefore may provide the quality signal needed for content
published on their respective sites. Meta sites provide what Michael
Heim terms as "formal clues" to consumers, in that they provide
"validation and authentication" of the quality of published works.
[38]
Pursuant to this, there is at least an academic argument that queries
whether works that are uncompiled and unfiltered by editorial
services
such as meta sites are able to claim an "informational worth." At very
least, such an argument must compel both law-makers
and IP owners to
re-evaluate infringement claims against meta sites given their value
both to users and to content creators. Sterling
states as follows,
What
is important - increasingly important [in the Information Economy] - is
the process by which you figure out to look at. This
is the beginning
of the real and true economics of information - not who owns the
books...who has the holdings. The crux today is
access, not holdings.
And not even access itself but the signposts that tell you what to
access - what to pay attention to. In the
Information Economy,
everything is plentiful - except attention.[39]
- In
summary, noting that copyright seeks to protect only works that
constitute "information", it can be seen that in the data dense
ether
of Cyberspace there are necessarily more robust requirements for a work
to be considered as "information". In addition to the
element of
creativity/authorial presence required for works in real space, the
lack of editorial and filtering mechanisms on the
Internet generate a
user demand for a quality signal to be attached to content as requisite
for a work to be considered of informative
value. As such, there is
some conceptual doubt as to whether a meta site may be the target of an
infringement claim at all, given
that content on the Net may be
considered as "information" and therefore entitled to protection only
once it has been given a quality
signal by a service providing a
quasi-editorial function.
- eBay
claimed that consumer welfare would suffer if the conduct of Bidder's
Edge was held not to be a breach of copyright. Implied
in this
statement, of course , is a warranty that IP has a genuine concern with
consumer welfare. Certainly, traditional IP theory
has always claimed
such, as is evident in a paper by the then known Trade Practices
Commission that set out objectives of intellectual
property, where
relevant, as follows: "To provide an incentive to persons to engage in
inventive activities from which society may
benefit and to
commercialise the results of those activities in trade".[40]
Even at first glance it is evident that the deference that intellectual
property pays to social/consumer welfare is ancillary to
the
propertisation of intellectual products. [41]
Curiously, however, the objective of IP as stated above appears to
define the notion of consumer welfare as a positive function of
the
quantity of innovation and production, and not as a matter of access to
existing works. This enumeration of consumer welfare
immediately
appears suspect, as increased output and an increased demand for output
are goals more in the fashion of corporate interest
as opposed to
consumer interest.[42]
Certainly, Bourgoinie claims that notions directed towards increasing
the rate and quantum of production would not necessarily be
consistent
with consumer welfare but may merely reflect a subtle form of corporate
control exercised through the manipulation of
consumer preferences and
demand. This is what he regards as the "social norm of consumption", a
concept that he explains as follows,
This norm
signifies the development of a system of mass consumption based on the
production and promotion of a growing number of goods
and activities
rather than on the expression of the sovereign and individual wish of
the consumer.[43]
- The
fact that the "social norm of consumption" may be a reflection of
corporate control over consumer preferences is a criticism elaborated
by Galbraith in The New Industrial State[44] where corporate interests, who are notably the largest group of IP rights holders[45] manage consumer demand so as to eliminate market uncertainty. Certainly, a prominent feature of The Affluent Society[46] was comment that corporate interest groups manufacture and create consumer wants so as to increase the "need" for production.[47]
The end result, Galbraith states, is that there has been: ...a popular
acceptance of the proposition that the production and consumption
of
goods, notably those provided by the planning system, are coordinate
with happiness and virtuous behaviour.[48]
- Therefore,
the very fact that IP claims consumer welfare to be a concept
commensurate with an increased quantum of intellectual production
and
remains silent as to consumer access to existing work casts a pallor
over any claim that IP has to be concerned with consumer
welfare. This
initial pallor is amplified when it is noted, as in the previous
section, that it is the enormous quantity of content
available on the
Internet that threatens to subsume social discourse and diminish
utility derived from the Net.[49]
- In
addition to the suspect manner in which consumer welfare has been
framed by IP policy, notice must be taken as to the identity
of IP
rights holders. IP rights are predominantly held by corporate
interests, a collective group whose interests can be thought
to be
intuitively counter to those of consumers[50]
Certainly Offe, notionally identifying the collective corporate
interest as "manufacturers", comments that, within the frame of
consumer
policy, the consumer collective and the collective of
manufacturers are engaged within a strategic struggle for dominance.[51]
- As
such, any casual concern that IP claims to hold with consumer welfare
must be viewed within this competitive relationship. Such
a perspective
duly realises the fact that in regards to the concerns of
manufacturers, consumer welfare would never occupy a place
of primacy
as against goals of wealth generation. As Offe notes,
To
the extent that they are engaged in the private sector, these actors
[manufacturers] endeavour to influence the welfare of consumers
in
manifold ways... However, their economic interest in profits and
profitability is a primary goal, and they therefore engage in
consumer
policy only to the extent that the (positive or negative) influencing
of consumer welfare serves this goal of profitability...manufacturers
or suppliers of goods and services are in general, therefore,
interested in the welfare of the consumer only in an indirect and
secondary
way.[52]
- This
disparity of interest between consumers and IP rights holders is even
broadened when one applies a historical analysis to the
terrain of
Cyberspace. The development of the "Information Superhighway" was
funded, after all, not by government but by private
enterprise[53] ,a factor which by its very nature retarded the growth of the World Wide Web (WWW) as a populist, dialogue enriching medium.[54] Drahos states that,
Despite
the many positive advantages of the information society, it turned out
not to be like the democratic dream that had been used
to sell it...The
astonishing growth of the Internet had occurred because institutions
rather than individual users had paid the cost...Internet
had been very
much about participation and critical exchange. The superhighway went a
different way. The cost of building it had
been met by private
enterprise.[55]
- The
fact that private enterprise funded the development of the WWW meant
that effectively, national governments had to cede policy
control over
the medium in order to attract private investment for its development.
One of the conditions for investment into creating
the WWW was the
strengthening of IP protection for content on the Net.[56]
Consequently, it is this dominance of private enterprise over
Cyberspace within which the pro consumer welfare claim of IP must be
read. At least within real space, IP policy, although subject to
criticism regarding the favouritism of corporate interest, could
still
be expected to maintain a residual concern with the genuine interests
of consumers.[57]
In Cyberspace, however, the "state" has in effect been superseded by
private enterprise, and therefore, consumer welfare would be
even more
forfeit to corporate interests than it is in real space. Drahos states
as follows,
In my imagined evolution of the
superhighway and information society the state cedes authority over the
control of information to
the market and private players. The capacity
of the state in the information age to protect its citizens, as in the
case of the feudal
age, becomes severely limited. States continually
complain of a loss of sovereignty but seem powerless to prevent it.[58]
- Therefore
it is appropriate that IP's deference to consumer welfare should be
suspiciously viewed, not only by virtue of the fact
that such rights
are in the hands of predominantly private enterprise whose interests
are in contradistinction to those of consumers,
but also that, in
Cyberspace, such corporate interests are not subject to the same
measure of State policy constraints as they are
supposedly subject to
in real space. It is a valid criticism that on the Internet, the
principal decision makers and policy pressure
groups will be corporate
interest, while "other players like the consumer movement...while
influential opinion makers, will not have
a voice."[59]
- As
IP effectively confers an exclusionary power to prevent others from
accessing a work, it depends on the construction of credible
arguments
as to why the products of intellectual endeavour should be removed from
the common pool of resources available to all mankind.
One such
argument is that clearly defined property rights are the only means of
preserving an incentive for creators to engage in
innovative
endeavours. [60]
- Abstracting
the reflex criticism that, in regards to copyright, intellectual matter
was still being abundantly produced prior to the
enactment of the Act
of Anne in 1709[61] this rationale of IP is clumsily framed in terms of a solution to the economic problems of "free riding" and "public goods"[62]
as it is argued that if there was no copyright, there would be no
incentive to create as unrelated parties could not be prevented
from
capturing surplus due to the author.[63]
- Property rights are designed to correct externalities[64] and consequent market failure that results from the public good nature of intellectual works. [65]
As Drahos states: "Property rights may internalise externalities by
bringing the effect of the decision to bear on all of the interacting
persons."[66]
- The
externality that is supposedly produced by the lack of property rights
in information is a lack of incentive to produce further
works because
of an inability of the producer to reap the marginal value of his
investment in creating the relevant work.[67]
- This
orthodoxy of intellectual property philosophy can be challenged by
several criticisms. For example, Demsetz's original analysis
of public
goods premised the creation of property rights upon an assumption that
if such rights were not conferred, the public good
would eventually
cease to exist. [68]
The above sections of this paper demonstrated, however, that even in an
environment where physical prevention of copying is almost
impossible,
information is far from being a finite resource in Cyberspace.
Furthermore, use of information does not erode the resource
as usage of
a physical good may.[69]
Rather, information may exhibit increasing returns to use as opposed to
the diminishing returns present in the public good analysis
of Demsetz.[70]
Therefore, a public good analysis may be subject to criticism that is
of little relevance when applied to information. As Dawson
states,
Traditional
analysis suggests open entry to the physical commons results in its
degradation as a resource, that is, all the fish are
caught. In
contrast, open entry to the intellectual commons cannot degrade the
intellectual commons. A piece of information in the
commons may be used
over and over again without being depleted...Because the intellectual
commons is nondepletable, much of the economic
literature examining the
tragedy of the physical commons would appear to be of little
application.[71]
- Another
premise upon which public good analysis to information relies is an
assumption that an author is unable to capture pecuniary
return from
his work in the absence of property rights. This premise loses some
relevance in Cyberspace upon an examination of a
business strategy
gaining purchase on the Internet: that of giving away IP protected
content free in order to generate a demand for
ancillary products and
services over which the creator has more pecuniary control.[72] Such a strategy pays deference to the difficulty of preventing and monitoring copying of content in Cyberspace.[73] Under this strategy, a contemporary example being that of "shareware"[74]
creators would not assert copyright in any content that they produce on
the Net and would instead concentrate on increasing user
exposure to
the relevant work in order to generate a derived demand for their
services in real space. The marginal value of the investment
in the
original free content is sought from the creation of a commercial
relationship with the user for ancillary services as opposed
to a
static sale of the original content.[75]
- The
effect of this strategy in aggregate terms is that in Cyberspace the
supply elasticity of information with respect to the scope
of copyright
protection is capable of being very small, thus undermining an
important condition for the application of a public good
analysis with
respect to the Internet and information.[76]
- A
further annexed rationale to applying public good analysis to IP is an
assumption that the grant of property rights would yield
an
allocatively efficient distribution of the relevant works[77]
as the ownership of the good would be transferred via private
transaction to the party with the highest willingness to pay ("WTP")[78]
This claim as to economic efficiency would attach to IP's overall claim
to be in consumers' interest as economic efficiency is a
noted
sub-factor considered within general notions of consumer welfare. [79]
- However , this essentially Coasian[80]
conclusion is also one that finds genesis more in a real property
analogue as opposed to one concerning information. An allocatively
efficient distribution of "property" will only occur where negotiation
between parties is costless.[81]
Abstracting physical costs of actual negotiation, a component of this
requirement is the possession of sufficient information by
both sides
as to be able to arrive at a pareto optimal solution. If the subject of
exchange is the copyright in an actual information
product, this
presents a problem for the purchaser as the information required to
correct asymmetry in bargaining position is exclusively
held by the
seller. Certainly there is no incentive for the seller to yield this
advantage, particularly as the source of bargaining
information is also
the subject of exchange.[82] Information, unlike a physical object like a house, cannot be viewed and assessed informatively prior to bargaining.
- As
such, where information is protected by IP rights, an economically
efficient outcome cannot result from a transaction pertaining
to that
information good.[83] This situation is known as "Arrows Information Paradox", a concept that is explained as follows,
...there
is a fundamental paradox in the determination of demand for
information; its value for the purchaser is not known until he
has the
information; but then he has in effect acquired it without cost. Of
course, if the seller can retain property rights in the
use of
information, there would be no problem, but given complete
appropriability, the potential buyer will base his decision to
purchase
on less than optimal criteria. He may act, for example, on the average
value of information in that class as revealed by
past experiences. If
any particular item of information has differing values for economic
agents, this procedure will lead to both
a non-optimal purchase of
information at any given price and also to a non optimal allocation of
the information purchased.[84]
As
such, ironically, the only "efficient" distribution of protected
information would be that where information is distributed free
of cost.[85]
- The
claim of IP therefore, to embrace consumer welfare through the
encouragement of innovation is fatally flawed. Abstracted from
the
criticism that information does not even come within the public good
analysis upon which the imposition of IP rights depends,
once
information has been made a unit of exchange, it can be seen that
inherent information asymmetry's will make an efficient disposal
of
such goods impossible. The reduction in allocative efficiency caused by
a "blind" exchange will act as a countervailing consideration
in any
measurement of consumer welfare claimed as resultant from the conferral
of the IP right.
- As a further aside, it can also be criticised that IP rights, in erecting artificial barriers around the products of innovation[86]
resides within a misbegotten and short run view as to the nature of
innovation. Innovation is predicated upon information flows and
an
evolutionary development of previously existing ideas and theories. As
Mandeville states,
...innovation is a broadly
informational process of which the encapsulation of information in
machinery, or the production of information
via R & D are only
parts. The innovation process needs to be viewed as a process of
information flow as well as information creation...innovation
becomes a
collective social learning, evolutionary process in contradistinction
to a one-off technical process.[87]
- As such, the concept of innovation sits uneasily within a framework of intellectual property[88]
Intellectual property is a constraint on the consumption of information
which may lead to the retardation in both the quality and
quantity of
innovation in successive periods.[89]
As Hettinger states: "Restrictions on the free flow and use of ideas
not only stifle individual growth, but impede the advancement
of
technological innovation and human knowledge generally."[90]
- The
employment of intellectual property rights as a means to encourage
innovation may inevitably add an element of finality to the
production
of innovative products and works. As such, even assuming that the
encouragement of innovation may be a factor within consumer
welfare,
the use of IP rights is neither an efficient nor unitary means of
achieving this result.[91]
In short, IP's flawed claim to encourage innovation is an
unsatisfactory means to qualify the imposition of rights in the name of
consumer welfare.
- In
the absence of a tenable economic rationale to steer away from the free
space ethos of the Internet, IP would instead have to rely
on
non-economic justification to warrant its existence. One of these is
the labour reward theory for the conferral of IP rights[92] a theory that finds foundation in the work of John Locke.[93]
Locke, in his famous Two Treatises of Government, states as follows:
"Whatsoever then he removes out of the State that Nature hath
provided,
and left it in, he hath mixed his Labour with, and joyned to it
something that it his own, and thereby makes it his Property."[94]
- Whilst
evidently Locke's theory resides in some notion of a common endowment
of resources, it comes into parity with intellectual
property law by
reason of the fact that the stock of resources is conceived as an
endowment that, whilst made to all mankind, is
not a resource that is
the subject of a commonly held property right. This is a conception
that Drahos describes as a "negative"
view of commons, an idea he
explains as follows: "Negative community is defined in terms of a
commons belonging to no one, parts
of which may be appropriated.
Positive community is defined in terms of a common which belongs to
all."[95]
- It
is only by describing the initial endowment of resources as a negative
commons that Locke is able to justify the imposition of
exclusionary
rights on portions of the endowment. However, further examination of
Locke's theory reveals that it does not adhere
entirely to the negative
view of the commons and this inconsistency suggests a certain frailty
in the rationale.
- Two provisos of Locke's labour
theory of property are that labour will only confer property rights
where enough endowment of resources
is left for others and that a man
is only entitled by that labour to that property which he can make use
of "before it spoils."[96]
- Respectively,
these provisos appear to warrant both a sustainable use of resources
and also a caveat against the accumulation of surplus.
The fact that
resources extracted from the commons as private property have to be
used sustainably defies the notion of the endowment
of resources
existing as a public resource over which no property right is initially
held; the concept of the negative commons. It
implies a residual claim
on the resources held by others for whom a stock of commons has to be
preserved which is consistent with
the concept of the positive commons.[97] In support of this assertion is the fact that copyright is not held in perpetuity.[98]
The limited term over which a copyright owner may exert property right
suggests a reversionary claim by the remainder of society
over that
component of the commons with which the creator mixed his labour.[99]
- The
application of Locke's second proviso becomes problematic when applied
to information. Locke's second proviso prohibits the assertion
of
property rights in so far as such rights would be result in the waste
of the propertied good. It has already been noted in this
paper that
information is a non-rival good in that the consumption of it by one
does not prevent the simultaneous consumption of
by another.
Intellectual property seeks to remove this non rivalrous quality from
information by the creation of an artificial scarcity.[100]
In this fashion, potentially beneficial uses of the information are
excluded by the existence of copyright. The opportunity cost
externality that these foregone uses represent would come within
Locke's wasteful appropriation proviso As Hettinger states,
Since
writings, inventions and business techniques are non-exclusive, this
requirement prohibiting waste can never be completely met
by
intellectual property. When owners of intellectual property charge fees
for the use of their expressions or inventions, or conceal
their
business techniques from others, certain beneficial uses of these
intellectual products are prevented. This is clearly wasteful,
since
everyone could use and benefit from intellectual objects concurrently.[101]
- A
further attack on the coherence of a Lockean justification for
intellectual property is the stress that it places upon the input
of
labour. The labour requirement has been criticised by Robert Nozick,
who comments that if one was to pour a can of tomato juice
into the
ocean then he could claim ownership of the ocean by virtue of the mix
of labour.[102]
The input of labour as sufficient to claim ownership over all resources
to which the labour is applied lacks an intuitive logic[103] and this incoherence is not addressed by Locke in Two Treatises.
- The
frailty of a labour input being the sole justifying rationale for
copyright has been recognised judicially, with the rejection
of the
"sweat of the brow" rationale for the conferral of copyright: Feist
Pubications Inc v Rural Telephone Service Co Inc [1991] USSC 50; (1991) 113 L Ed 2d
358; Exxon Corp v Exxon Insurance Consultants International Ltd [1982]
Ch 119. Moreso, a right granted under such a rationale would be wholly
inappropriate as intellectual works are usually the result of
successive
inputs of labour by various parties.[104] As Pendleton notes,
In
a technologically advanced society no one can meaningfully be said to
create information; rather they may innovate and synthesise,
but
necessarily they must build on existing stocks of knowledge. It follows
that in a limited sense, some aspects of technology are
the common
heritage of mankind...This necessary dependence on past knowledge gives
rise to claims that information ought not always
be treated as a
commodity, but rather as a community resource...[105]
- Lockean
theory, therefore, does not provide a wholly cogent justification for
the conferral of IP rights, and, as demonstrated by
the precedent
rejecting the input of labour as a sole rationale for asserting
copyright, it is not a justification that can exist
in the absence of
others. It is a theory that is troubled by its own internal
contradictions and does not, therefore, provide an
unassailable
conceptual bases to which IP may appeal for legitimacy.
- This essay has made clear that, whilst the predominant ethic of the Internet is anti-monopolistic[106]
it would nevertheless make little sense to recommend a wholesale
removal of intellectual property rights to accommodate this ethic.
Such
a recommendation would be wholly untenable given the clear intentions
of law makers to adhere to existing legal instruments[107]
Thus, any recommendation designed to further means of access to
protected content must be formed within the structure of an existing
legal instrument[108] preferably one that already sits in counterbalance to the exclusionary effects of IP rights.
- A
countervailing regulatory channel to compel access to content is
desperately needed. Although it has been noted that the Internet
is a
medium the technology of which has made copying instantaneous and
virtually costless, this technology has also afforded to copyright
owners various methods of blocking such copying, particularly copying
through the practices of IMG linking and framing favoured by
meta site
operators. [109]
The availability of such technological bars has been suggested as one
reason why no intellectual property litigation pertaining to
meta sites
has actually been completed.[110]
A regulatory channel to pursue access to content in the face of the use
of technological bars and the absence of a litigation forum
would be a
useful tool for meta site operators.
- Competition
policy is one such appropriate channel. Prima facie, "antitrust law
prohibits monopolies while intellectual property law
grants legal
monopolies to producers of creative works."[111]
However, the real usefulness of competition law as a tool for the
purposes of this essay lies in the fact that competition law pursues
similar principles of consumer welfare[112]
that IP purports to pursue, with the fundamental difference being that
competition law does not effect this goal via the preservation
of
monopoly and exclusion. As the FTC stated,
...antitrust
law and intellectual property protection have common policy goals; in
the broadest sense, both hope to maximise consumer
welfare...Intellectual property law achieves this goal by protecting
exclusive property rights in innovation while antitrust law
seeks to
ensure a vigorously competitive market structure.[113]
- Of
course, competition law is not so much a unitary instrument as it is a
structure containing an assortment of mainly prohibitional
tools to
prevent certain types of conduct. As such, a careful selection of an
appropriate instrument within competition law is necessary.
This paper
will recommend the adjustment of the "Access to Essential Services"
("Access") regime contained within Part IIIA of the Trade Practices Act
1974 ("TPA") as the appropriate schema through which to provide for
access to protected content.
- Note that the selection
of Part IIIA access is primarily based on the flexible structure of the
regime, and does not purport to apply the scheme as it exists now
without
alteration to an IP paradigm. Part IIIA was a regime designed
with reference to large physical infrastructure[114]
such as rail lines and gas pipes, and this is evidenced by existing
requirements including that the facility providing the service
be of
national importance (s44G(2)(c)(iii)), and that the definition of
"service" itself, for the purposes of the Part, is one that
expects to
be applied to physical structures such as "roads and railway lines"[115]
(even though in Re Australian Union of Students (1997) ATPR 41-573, it
was questioned without deciding whether a government database could be
considered a "service"). At any rate, the surface incongruence
that
exists between the current access regime and intellectual property is
only a superficial one that may be corrected by legislative
amendment,
and does not necessarily detract from the hypothetical effectiveness of
the scheme as a whole. Indeed, in the United States
for example, the
surrogate access regime contained within the doctrine of "essential
facilities" functions effectively without reference
to a requirement
that the facility be of national importance[116]
as the doctrine only requires that access to the service be proven to
be essential in order for a competitor to compete in a relevant
market.[117]
- Furthermore,
the US doctrine has recently been interpreted so as regard technical
information as "essential facilities" in Intergraph
Corp v Intel Corp ,
3 F.Supp. 2d 1255 (N.D Ala. 1998). Thus, as to the superficial points
of ill fit between the current Part IIIA and a proposed access to
intellectual property, a legislative model (US) even exists for any
amendments necessary to so shape the
regime. In addition, Part IIIA
access, as a regime designed to liberate access to infrastructure
facilities essential for a brisk economy seems intuitively suited
to
application to IP in the light of the fact that it is content and works
that constitute the principal infrastructure of the "information
economy."
- This selection of Part IIIA Access as an
appropriate instrument of competition policy is one that has been
arrived at by a process of both deductive and inductive
reasoning. By
process of deduction, most of the components of Part IV of the TPA
pertaining to anti-competitive conduct have been excluded with
reference to intellectual property by the existence of
s51(3) of the
TPA. This section substantively preserves only the operation of s46
(misuse of market power) and s48 (resale price maintenance) with
respect to arrangements or uses of intellectual property rights.
Abstracting the rather extraneous
s48, in order to argue that Part IIIA
access is the appropriate measure through which to seek access to
protected content, s46 litigation has to be compared as an inferior
solution.
- This is a harder task than first appears as
s46 and access to essential facilities have been generally regarded as
policies contained within each other.[118] So much was acknowledged in the Hilmer Report[119]
although that same report rejected the proposition that access to
essential facilities could be sufficiently dealt with through s46
litigation.[120]
The notion of s46 initially being considered sufficient to deal with
essential facility claims is probably co-extensive with expansive
constructions
of the section such as that in Queensland Wire Industries
Pty Ltd v Broken Hill Proprietory Co Ltd (1988) 78 ALR 407 that
expanded s46 to include refusals to supply where there had not been a
previous course of dealing.[121]
- Section
46, however, framed as a prohibition on the misuse of market power,
contains a cumbersome list of requirements to be fulfilled prior
to a
contravention being held. The terms of the principal prohibition are
contained within s46(1) that reads as follows,
(1)A corporation that has a substantial degree of power in a market shall not take advantage of that power for the purpose of:
(a) eliminating or substantially damaging a competitor of the
corporation or of a body corporate that is related to the corporation
in that or any other market;
(b) preventing the entry of a person into that or any other market; or
(c) deterring or preventing a person from engaging in competitive conduct in that or any other market.
- Some
of these requirements can prove problematic in application to
intellectual property and therefore erode the usefulness of s46 as a
means of obtaining access to protected content. For example, as to the
requirement of "market power", the ownership of an intellectual
property right does not confer market power ipso facto.[122]
The monopoly that is granted, after all, confers exclusivity over a
"product" contained within a broader market, and not over the
market
itself.[123]
- There has been contrary precedent in the United States as to whether the grant of the IP rights will confer market power[124]
but the relevant authorities involved patents and therefore it is
questionable whether the principle applies mutatis mutandis to
copyrighted content. After all, Van Melle notes that patents involve a
total product monopoly where the protection is extended to
the ideas at
the core of the technological advancement.[125]
As such, there is little likelihood of substitutes for the patented
product existing within a market, whereas in comparison, copyright
protection does not extend to ideas encapsulated within the work, and
therefore there is higher likelihood of substitute goods being
available within the relevant market.[126]
- Applied
to the meta site example of eBay/Bidders Edge, Bidders Edge was
compiling product descriptions etc of goods from a number
of different
sites. The content on eBay's site provided only one source of
comparative information. The injunction of Bidders Edge
from utilising
that content would not entirely prevent it from compiling its
comparative service. The nature of Bidders Edge's service
was premised
on the organisation of substitutable information, and thus it would be
unlikely that eBay would fulfil the "market power"
requirement of a s46
action.
- It is on this point where seminal cases that
have resulted in orders to supply copyrighted content may be
differentiated. In Radio
Telefis Eireann and Independent Television
Publications Ltd (Intellectual Property Owners Inc intervening) v EC
Commission (Magill
TV guide Ltd intervening) [1995] EUECJ C-241/91P; [1995] 4 CMLR 718, the TV
program listings that Magill sought access in order to compile its TV
Guide did not have a substitute. Without the relevant
program
information, Magill could not very well fabricate program information
in order to create its TV guide. It was the lack of
substitutes as to
program listings that precipitated the order for access.[127]
Similarly, in an Australian application of s46 to copyrighted content
in APRA v Ceridale [1991] ATPR 41-074 (copyright material held by
collecting society) and ASX Operations Pty
Ltd v Pont Data Australia
Pty Ltd [1991] ATPR 41-109 (stock exchange information held by ASX),
there were no effective substitutes for the relevant information other
that that held by
APRA and ASX respectively.[128]
- In
distinction to s46 requirements, however, access to services doctrine
does not require the presence of market power prior to a consideration
of declaration.
Section 44G(2) of the TPA sets out the factors to be
considered prior to the NCC making a declaration, and the most robust
requirement
is that "it would be uneconomical for anyone to develop
another facility to provide the service" (s44G(2)(b)). Therefore, where
access
to services provisions are used to obtain access to copyrighted
content, substitutes may well exist for the target, but the applicant
will only have to prove that it would be uneconomical for it to
duplicate the service itself. This requirement favours application
to
intellectual property. As has been noted in previous sections of this
paper, intellectual property, by its nature and especially
with regard
to the Net, has a high fixed cost of initial creation, but an almost
zero marginal cost of reproduction.[129]
This feature of intellectual property would certainly lend itself to
fulfilment of the requirement that the "service" be "uneconomical
to
duplicate."
- Section 46 also provides that the conduct
has to be undertaken for a "proscribed purpose" as enumerated in
s46(1)(a), (b), and (c). Whether a corporation has engaged in conduct
for a proscribed purpose is a question determined with reference both
to subjective and objective elements.[130]
Given that the "purpose" requirement includes subjective elements, an
issue that has arisen is the fact that if the conduct is merely
exercising a legal right, then it usually will not be held as
sufficient to satisfy any subjective intent to engage in conduct for
a
proscribe purpose: Helicruise Air Services Pty Ltd v Rotorway Australia
Pty Ltd (1996) ATPR 41-510; Williams v Papersave Pty Ltd (1987) 16 FCR
69. This rule is problematic when an intellectual property right is the
subject of the s46 claim.
- APRA v Ceridale [1991] ATPR
41-074 is one case in which the refusal to license copyrighted works
was not seen as conduct undertaken
for a proscribed purpose. The Court
found that the conduct of APRA: "...was merely to prevent unauthorised
use of the material...[A]s
we see it, this is a straightforward case of
a copyright holder seeking to restrain a group of people from using
copyright material
unless and until they first had obtained the
necessary licenses."[131]
The court did therefore not need to examine the potential effect of the
refusal to license on the relevant market as the conduct
was not
animated by the requisite intent needed to come within a consideration
of conduct undertaken for a "proscribed purpose."
- The
rule that a mere enforcement of rights is not sufficient to satisfy the
"purpose" requirement of s46 is equivalent to the doctrine of
"legitimate business justification"[132]
that exists in the US as a defence to an alleged contravention of s2 of
the Sherman Antitrust Act 1890 (US) which encompasses provisions
equivalent in substance to s46 of the TPA. Under this doctrine, the
enforcement of a right is a legitimate business justification
for the
refusal to grant a license etc and therefore will not be sufficient
conduct to contravene s2 of the Sherman Act. Data General
v Grumman
Systems Support [1994] USCA2 911; 36 F 3d 1,147 (Data General) was concerned with a s2
action for a refusal to license software. Data General, the
respondents, claimed that
enforcement of an intellectual property right
was a legitimate business justification for the prima facie
anti-competitive conduct.
Stahl J agreed and stated as follows: "...an
authors desire to exclude others from the use of its copyrighted work
is a presumptively
valid business justification for any immediate harm
to consumers."[133]
- Of
course, an opposing argument would claim that subjective factors are
but half of the equation from which to infer whether conduct
was
engaged in for a "proscribed purpose." The other half is of course
objective matters. This paper does not question that objective
elements
such as market structure and participation are persuasive factors in
the determination of a contravention of s46. Certainly,
in both
Queensland Wire and Magill, the objective fact that the respective
refusals to supply would afford the owners of the goods
to control the
market for any derivative products of the particular good (star picket
posts and TV Guides respectively) were important
considerations as to
the issue of proscribed purpose. Applied to meta sites such as Bidders
Edge, if a compilation of comparative
good descriptions etc is a
derivative "good" of eBay's content, then objective factors may very
much sway the court as to whether
the refusal to supply was undertaken
for a proscribed purpose. However, whatever result occurs, s46 is still
a cumbersome way to
achieve the same result that could be achieved
through Access provisions, with the advantage of Access being that as
it is not a
regime framed in the language of prohibition, is not laden
with complex evidentiary matters such as "proscribed purposes."
- The
criticisms of this paper have, in part, rotated around the criticism
that IP rights and their accompanying philosophy, are somewhat
misplaced in Cyberspace, and therefore, peripheral to all of the
arguments contained within this paper is an assertion that challenges
the legitimacy of IP rights in Cyberspace. It is for this reason also
that the author finds the apparatus of access more appropriate
than
constructing "duties to deal" under s46. Section 46 is a prohibitive
section as to conduct, and, as such, it does not take issue
with the
existence and scope of the property right, but only in the manner in
which it is used. As Van Melle states, under s46: "The
property right
itself cannot be questioned but the manner in which it is used can."[134]
- Access
provisions, on the other hand, may take issue with the property rights
themselves even in the absence of anti-competitive practices.
Unlike
s46, access provisions seek to directly intervene in the market as to
inequities in resource endowment, whereas unless there
is conduct so as
to animate the section, s46 is passive as to the existence and
endowment of property rights. By way of aside, it
is for this reason
also that this paper does not make an exclusive recommendation for the
expansion of fair dealing doctrine as contained
within the Copyright
Act 1968. Fair dealing is an affirmative defence that is constructed
when an applicant makes out a prima facie case of infringement.[135]
Like s46, it is a device reactive to certain kinds of conduct and
operates on the assumption of a valid endowment of property rights on
the
applicant. Like s46 therefore, it is not a "best" solution to
compelling access to protected content because it is dependent on
conduct to become active.
- Access is not framed as a
provision reactive to conduct, but needs merely an application from
"any person" (s44F) to become active. As such, one may rightly suspect
that the policy that animating Part IIIA is one that is intended to
include within its terms much wider concepts than just merely concepts
of economic efficiency that concern
the rest of the TPA.[136] Confirming this view, the NCC has stated, in regards to Access policy, that,
Nonetheless,
while competition is generally consistent with economic efficiency
goals and the interests of the community as a whole,
there may be
situations where there is conflict with certain social objectives. For
example, governments may wish to confer benefits
on a particular group
for equity reasons.[137]
- In
fact, flexibility as to factors considered prior to a determination of
access has been remarked as an essential feature for access
regimes.
Pengilly states as follows,
An access regime
capable of application to several factors in the economy requires the
flexibility to respond to circumstances peculiar
to particular
industries and facilities, as well as changes in industry conditions
over time. No single principle or rule of specificity
is likely to meet
the policy concerns of every market.[138]
- This
policy flexibility of the current access regime is contained within
s44G(2) that enumerates the factors to be considered prior
to a NCC
determination as to declaring a service. Where relevant, the section
reads as follows,
(2) The Council cannot recommend that a service be declared unless it is satisfied in all of the following matters:
(f) that access (or increased access) to the service would not be contrary to the public interest.
- The
public interest is a deliberately broad term that has been construed
widely by the NCC consistent with the need for flexibility
in access
considerations. In Re Specialised Container Transport (1997) ATPR (NCC)
70-004, the NCC listed a number of factors that
it would take into
account in determining the public interest, the notable inclusions
being as follows:
- Social welfare and equity considerations; and
- The interests of consumers generally, or a class of consumers.[139]
- Social
equity, as one factor to be considered in the question of access, is an
inclusive term, one that is designed as a means for
regulators to take
into account factors particular to a particular set of facts.[140]
As such, Access provides a useful and flexible framework into which a
number of considerations may be imported through the commitment
of the
regime to consider a broad notion of the "public interest."
- However,
the usefulness of flexibility contained within an instrument can be
made redundant if there are no guiding principles or
considerations to
channel the flexibility. This paper therefore advocates for the
consideration of "fair dealing" doctrine and precedent
within a
regulatory factoring of whether access to intellectual property in
certain circumstances operates to the public interest
and benefit. The
doctrine of fair dealing bears a close analogue to both the issue per
se of compelled access to IP and also to considering
the question of
access within the context of a public interest consideration. As
Brudenall states: "Fair dealing allows users to
access and reproduce
portions of copyright material for purposes that many would acknowledge
to be in the public interest."[141]
- Furthermore,
fair dealing is a concept that has been developed at common law and
statutory levels as a creature of copyright, and,
as such, it is a
factor that considers the public interest in dissemination of works in
a comparative balancing process with the
economic and property interest
of the creator of the relevant work. As Phan states, Fair use involves
a balancing process in which
a number of variables determine whether
other interests outweigh the rights of creators. The court evaluates
and balances the social
benefit that the public derives from the
unauthorised use in light of the interest in protecting the copyright
owner's exclusive
control of the work. [142]
Thus, in this manner also, fair dealing doctrine finds a parity with
the concerns of access provisions. Furthermore, whilst factors
taken
into consideration have found some definition as evident from the list
provided by s40(2) of the Copyright Act 1968, fair dealing is also,
like access to services, a doctrine that is characterised by its
flexibility to different sets of circumstances.[143]
- As
such, an examination of the manner in which the doctrine of fair
dealing has been applied to services analogous to meta sites in
real
space would be a useful guide for regulators when considering questions
of access to IP within the framework of Part IIIA.
- Although
there has been no judgement handed down on the issue of meta sites per
se, it has been judicially noted at interlocutory
level that meta sites
may support a derivative works infringement claim.[144]
This section will therefore make some preliminary comments as to the
ability of a meta site to come within the ambit of fair dealing
under
the assumption that it is a derivative work.
- Whilst noting the interest and right of a creator to maintain exclusive control over derivative works,[145] fair dealing recognises the public's interest in the creation of such works,[146]
as evidenced by the fact that fair dealing permits the creation, for
example, of a book review that includes quotation from the reviewed
article. [147]
As book reviews, however, are largely academic and non-commercial in
nature, this precedent is of limited assistance to meta sites
which are
often run as commercial ventures.
- Fair dealing has generally not extended so far as to permit copying for commercial use.[148]
The reason why fair dealing is not permissive of commercial copying
lies in the concern of copyright to prevent free riders from
capturing
revenue due to the author.[149]
However, consisted with the flexible spirit of the doctrine, fair
dealing has not crystallised its distaste for commercial copying
into a
general rule,[150] with exceptions available to copying that is not solely directed as a wanton capture of the creators surplus.[151]
- Therefore,
meta sites may, even where they are run as a going commercial concern,
come within fair dealing provisions if they can
provide a sufficiently
benign view of their conduct. One such view in relation to derivative
works is to claim that that the derivative
work is "transformative" of
the original work and that therefore the derivative work has some
productive social value of its own.
Discussing the Texaco case,
Sinclair states as follows: "The Court of Appeals emphasised that one
of the factors that might point
to there being a fair use is if the use
is "transformative" or "productive" and not a mere replication of the
same material for the
same use."[152]
- This
principle seems to stress that in order to enjoy the protection of a
fair dealing defence, a derivative work must not replicate
the same
"meaning" or "information" as the original author.[153]
This position is supported by the words of Lord Denning in Hubbard v
Gosper [1972] 2 QB 84 at 94 where he stated that "...if they
[derivative works] are used to convey the same information as the
author...that may be unfair."
- This principle works in
favour of meta sites. Further to the relation of meta sites and the
creation of information contained within
an earlier Part of this paper,
it was also stated earlier that the essence of the post modern
sociology of Cyberspace was the blurring
distinction between author and
reader.[154]
Under this concept, meaning contained within text is not unitary, in
that the meaning that the author conveys in his text will inevitably
be
varied by the perspective and interpretation of any user of that text.[155] Information expressed by a single author is only "one possible means of constraining the proliferation of meaning."[156]
As Phan states: "The first author is only a participant in a continuing
process of communication and the production of knowledge.
Thus,
viewers/users can continually contribute to the production of meaning."[157]
- Applying
this rationale to meta sites, the compilation of content on such sites
is not only the creation of an informational work
in itself, but
represents a variation and contribution of a new meaning to each
portion of content included on the site through the
site master's
interpretive difference to the author. The organisation and placement
of the relevant content represents the expression
of that varying
interpretation. By post modern standards, a meta site does not and
indeed cannot replicate the meaning of the original
author by means of
their re-publication.
- In most cases where fair dealing
has been invoked by the creator of a derivative work, consideration of
whether fair dealing applies
has been measured in terms of whether the
conduct fell within one of the statutory purposes; i.e "research or
study" [158]
In De Garis v Neville Jeffress Pidler Pty Ltd (1990) 18 IPR 292 at 298,
Beaumont J defined research as a "diligent and systematic inquiry or
investigation into a subject in order to discover facts
or principles."
From this definition can be inferred the fact that "research" is an
active process involving the "discovery" of something
latent or dormant
existing in earlier research works.
- As such, the
statutory "research" fair dealing exemption appears merely to be a
paraphrase of the requirement that a new interpretive
or informational
value be imbued within a derivative work in order for it to enjoy
defence. This is affirmed in Castlerock Entertainment,
Inc v Carol
Publishing Group, Inc (1998) 42 IPR 371, where Walker J, in discussing
the "character and use" test for fair dealing [159] (of which research is a component), stated as follows,
The
more critical inquiry under the first factor (character and purpose)
and in fair use analysis generally is whether the allegedly
infringing
work "merely supersedes the original work" or instead adds something
new, with a further purpose or different character,
altering the first
with new...meaning or message in other words "whether and to what
extent the new work is transformative.[160]
- Case
law has shown, however, that this has proved a difficult standard for
the creators of derivative works, particularly those whose
work takes
the form of a straight compilation of copyrighted material without any
interspersed commentary or input other than the
organisation of the
content: Stillitoe v McGraw Hill Book Co (UK) Ltd [1983] FSR 545, De
Garis (supra); Longman Group Ltd v Carrington Technical Institute Board
of Governors (1990) 20 IPR 264. This author suggests that this
difficulty has resulted from a prevailing modernist view of textual
meaning, where the court has assumed
that by merely compiling material
without any ancillary commentary etc, the creator of the derivative
work is merely a passive conduit
for the meaning and message of the
author. As argued earlier, this notion is disturbed in post modern
Cyberspace, where even the
selection, arrangement and compilation of
content is not a passive act, but one of interpretive creation. As Phan
notes,
...the traditional method of publication
foster[s] a rather passive form of communication in that most of the
audience or the users
of the copyrighted works were only expected,
because of the limits of technology, to absorb or consume the work, not
truly interact
with it. Freed from the constraints of the traditional,
closed means of publication and forms of communication, the Internet
represents
a radical departure from the traditional passive media model.[161]
- The
application of fair dealing doctrine may therefore have to be altered
with reference to meta sites by reason of the interactive
medium within
which meta sites subsist. Whether this accommodation is made remains to
be seen, but given the inherent flexibility
of fair dealing doctrine in
addition to the fact that in application of the doctrine to new
technology the courts endeavour not to
"force the proverbial square peg
into the round hole", [162] a positive application of the doctrine to meta sites may indeed be forthcoming.
- In
summary, it is evident that even on a cursory examination of fair
dealing doctrine that this section has provided, that there are
existing streams of judicial thought through which the existence and
operation of commercial meta sites may be justified. Fair dealing,
through its structural analogue to the sentiments of Part IIIA access
can provide a useful instrument for regulators in their consideration
and application of Access provisions to IP.
- The digital Information Society is an economy of intangibles where electronic content is the unit of currency.[163]
Indeed, if information is seen as the lifeblood of the this new
"economy", then services such as meta sites that are concerned with
the
flow of information must be regarded as the arteries of Cyberspace.
- This
paper has maintained that the principal concern of the user in
Cyberspace is access to information. This notion of "access to
information" takes different forms according to the group invoking it.
For meta sites, "access to information" takes the obvious
form of an
ability to use and compile content otherwise protected by copyright.
For consumers, "access to information" requires more
than just freedom
to access intellectual resources per se. Consumers must also have the
ability to use such resources in a fashion
explained by Drahos as
follows: "accessibility to the intellectual commons depends on a
commoner having the relevant capability and
competence to take
advantage of the objective world of knowledge."[164]
- In
the data dense environment of Cyberspace, it is in assisting consumers
to take advantage of massive stocks of information where
the existence
of meta sites come into parity with consumer welfare, and where
consumer welfare finds itself with a derived interest
as to meta site
operators obtaining their "access to information" needs.
- It
is on the basis of this philosophy that this paper has attacked the
claims of IP to be concerned with consumer welfare. Noting
that these
claims are based on a combination of "consequentialist" and
"utilitarian" arguments [165] interspersed with appeals to rights at natural law as embraced within Lockean labour theory, [166]
this paper has mounted a conceptual challenge as to the applicability
of such arguments to the contextual terrain of Cyberspace.
- This
paper has also sought to provide a practical framework through which to
implement the conceptual recommendations of the paper.
Such a practical
structure was considered important in the light of the fact that any
goal of increased "access to information" could
not come from a
wholesale removal of IP rights given the strategy of law makers to
govern cyberspace by application of existing legal
instruments.
- In
short, the Internet is a medium that is often misconceived as merely an
evolutionary step in technological forms of communication.
Such a
misconception belies a common understanding that Cyberspace, a term
that itself implies spatial differences, could support
user culture and
requirements that make the application of anachronistic, "real space"
jurisprudence inappropriate.[167]
- As
such, IP may not assume a self-evident claim to legitimacy in
Cyberspace. As Barlow states, "Digital technology is detaching
information
from the physical plane, where property law of all sorts
has always found definition."[168]
Meta sites are a manifest example of an apparatus in Cyberspace that
caters to reconstituted notions of consumer welfare and information,
notions that lie in direct conflict with the exclusory foundations of
IP. In the inevitable resolution that will emerge from a legal
determination regarding meta sites, law makers should pay deference to
socio-legal differences between real space jurisprudence and
Cyber-jurisprudence, lest the social and economic promise of the
Internet becomes fatally diluted. Perhaps regulators would find
useful,
as a reminder of the need to discard aged jurisprudence in regard to
the new social space of the Net, the following quote
from the Book of
Matthew: "Neither to men put new wine into old bottles; else the
bottles break and the wine runneth out, and the
bottles perish; but
they put new wine into new bottles - and both are preserved."[169]
[1]
B Sterling, "Free as Air, Free as Water, Free as Knowledge" in Thinking
Robots, An Aware Internet, and Cyberpunk Librarians , The
1992 LITA
President's Program (R Miller & M Wolf (eds), LITA, Sept 1992).
[2] D Phan "Will Fair Use Function on the Internet" (1998) 98 Columbia Law Review 169 at 191.
[3]
D Fisher "The Postmodern Paradiso: Dante: Cyberpunk and the Technosophy
of Cyberspace." In D Parker, Internet Culture (Routledge,
NY, London,
1997).
[4]
W Anderson "Postmodernism, Pluralism, and the Crisis of Legitimacy" in
Explorations in Difference: Law, Culture and Politics (R Baumann
&
J Hart (eds) University of Toronto Press, Toronto, Buffalo, 1996).
[5]
R Coombe "Objects of Property and Subjects of Politics: Intellectual
Property Laws and Democratic Dialogue" (1991) 69 Texas Law Review 1853.
[6] See
Copyright Amendment (Digital Agenda) Bill 1999; and also B Keller
"Condemned to Repeat the Past: The Reemergence of Misappropriation and
other Common Law Theories of Protection
for Intellectual Property."
(1998) 11 Harvard Journal of Law and Technology 401.
[7]
For a brief discussion as to what a meta site is, see B Weiss "Meta
sites linked to IP violations." National Law Journal, July 21,
1997 at
B9.
[8]
I Nathenson "Internet Infoglut and Invisible Ink: Spamdexing Search
Engines With Meta Tags" (1998) 12(1) Harvard Journal of Law and
Technology 43.
[9]
The issue of copyright infringement by meta sites has not yet been
judicially determined, although it has been held at interlocutory
stage
that meta sites could potentially support a derivative works claim:
Futuredontics Inc v Applied Anagramics Inc (1998) US Dist
LEXIS 2265
(C.D Cal, Jan 30, 1998).
[10]
Bidders Edge compiles product descriptions and pricing from a number of
Internet auction sites and compiles them in comparative form
on its own
site for consumer inspection. See G Sandoval and T Wolverton "eBay files suit against auction site Bidders Edge" December 15, 1999 Cnet.news.com.
[11] T Wolverton "eBay, Bidders Edge face off in Court" April 14 2000, Cnet.news.com
[12] Ibid
[13] C McCarry, Citizen Nader (London, Jonathon Cape, 1972) at pp317, 320
[14]
J P Barlow "Selling Wine Without Bottles on the Global Net: The Economy
of Mind on the Global Net." In High Noon on the Electronic
Frontier :
Conceptual Issues in Cyberspace (P Ludlow (ed).MIT Press, MA, 1996)
[15]
S Wright "Property, Information and the Ethics of Communication" (1994)
9 IPJ 47 at 50; R Nimmer & P Krauthaus "Information as
Commodity:
New Imperatives of Commercial Law." (1992) 55(3) Law and Contemporary
Problems 103 at 106
[16] G Bateson cited in J P Barlow "Selling Wine Without Bottles: The Economy of the Mind on the Global Net" at http://www.eff.org/pub/Publications/John_Perry_Barlow/HTML/idea_economy_article.html at 19
[17] Ibid
[18] Supra Krauthaus at 107
[19]
T Mandeville "An Information Economics Perspective on Innovation."
(1998) International Journal of Social Economics pp357-64; also
D Bell
"The Social Framework for the Information Society" in M Dertouses and J
Moses The Computer Age: A Twenty Year View (MIT Press,
Cambridge MA,
1979) pp163-211
[20]
See Chapter 3, S Ricketson, M Richardson Intellectual Property: Cases,
Materials and Commentary 2nd ed (Butterworths, Sydney, 1998)
[21]
Hollinrake v Truswell (1894) 3 Ch D 420. Followed in Exxon Corporation
v Exxon Insurance Ltd [1982] 1 Ch 119 at 142-3; and Express Newspapers
plc v Liverpool Daily Post and Echo plc 1985] FSR 306.
[22] Baker v Selden [1879] USSC 9; (1880) 101 U.S 99
[23] supra Nimmer & Krauthaus at 106
[24] see generally ss22 and 29 of the Copyright Act 1968
[25]
J Ginsberg "Creation and Commercial Value: Copyright Protection and
Works of Information." (1990) 90 Columbia Law Review 1865 at 1867
[26] D Schmidt "Online White Noise and the Rise of Meta Content" unpublished April 1999.
[27] D Shenk Data Smog: Surviving the Information Glut (San Fran, California, Harpers Edge) 1997 1st ed
[28] Ibid
[29]
E Schlachter "The Intellectual Property Renaissance in Cyberspace: Why
Copyright Law Could be Unimportant on the Internet." (Spring
1997)
12(1) Berkeley Technology Law Journal at http://www.law.berkeley.edu/journals/btlj/articles/12_1/Schlachter/html/reader.html
; also N Moore "Rights and Responsibilities in an Information Society"
(1998) (1) The Journal of Information, Law and Technology
(JILT)
available at http://elj.warwick.ac.uk/jilt/infosoc/98_1moor/default.htm
[30] op cit Schmidt at 5, This process has also been labelled that of "disinformation": P Virilio Red Alert in Cyberspace (1995).
[31] P Gowder "The Transparent Society - Data Smog" (book review) (1999) 12(2) Harvard Journal of Law and Technology 513 at 518
[32] Ibid
[33] E Dyson "Intellectual Property on the Net" a http://www.eff.org/pub/Publications/Esther_Dyson/ip_on_the_net.article
; also E Katsch "The First Amendment and Technological Change: The New
Media Have a Message" (1989) 57 George Washington University
Law Review
1459 at 1478
[34] op cit Schmidt at 1
[35] Op cit Gowder at 520
[36]
S Ghosh "Gray Markets in Cyberspace" unpublished paper 1999 at 33; also
T Lipinski "The Developing Legal Infrastructure and the Globalisation
of Information: Constructing a Framework for Critical Choices in the
New Millennium Internet - Character, Content and Confusion."
(1999) 6
Richmond Journal of Law and Technology 19 at http://www.richmond.edu/jolt/v6i4/article2.html
[37] op cit Nathenson at 135.
[38] M Heim "The Erotic Ontology of Cyberspace" in Cyberspace: First Steps (M Benedikt (ed), Cambridge, Mass, MIT Press, 1991) p77
[39] op cit Sterling.
[40] Trade Practices Commission Application of the Trade Practices Act to Intellectual Property - Background Paper 1991.
[41]
P Drahos "Property, Opportunity, and Self Interest" in A Philosophy of
Intellectual Property 1996, Dartmouth, Sydney at p119. See
also F H
Easterbrook "Insider Trading, Secret Agents, Evidentiary Privileges and
the Production of Information." (1981) The Supreme Court Review 309 at
313.
[42]
"manufacturers cannot live without new products" G William Trivoli "Has
the Consumer Really Lost His Sovereignty" in Consumerism
- Viewpoint
from Business, Government, and the Public Interest R Gaedeke and W
Etcheson (eds) (Lanfield Press, San Fran, 1972).
[43] T Bourgoinie "Characteristics of Consumer Law" (1992) 14 Journal of Consumer Law pp293-315
[44] J K Galbraith The New Industrial State, (London: H Hamilton, 1967)
[45] see infra note 52
[46] J K Galbraith The Affluent Society, (London, H Hamilton, 1958)
[47] See also R Marris "Galbraith, Solow , and the Truth About Corporations" in The Public Interest 1968
[48] J K Galbraith Economics and The Public Purpose , (Harmondsworth, Pelican, 1975) pp241-250
[49] supra Schmidt at 6
[50]
M Hamilton "Appropriation Art and the Imminent Decline in Authorial
Control over Copyrighted Works" (1994) 42 Journal of the Copyright
Society 93; M Lemley "Romantic Authorship and the Rhetoric of Property"
(1997) 75 Texas Law Review 873 at 883
[51]
C Offe "Alternative Strategies in Consumer Policy" in Contradictions of
the Welfare State (J Keane (ed), Cambridge, Mass, MIT Press,
1984).
[52] Ibid
[53] P Drahos "Information Feudalism in the Information Society" (1995) 11 The Information Society at 212.
[54]
T Flew "The Goldsworthy Report: Credibility and Australian Information
Policy" Media International Australia Incorporating Culture
and Policy,
No 87,May 1998, pp15-22
[55] Id at 214-217.
[56] Id at 212
[57]
This essay notes that this statement is subject to all of the usual
literature regarding the capture of regulatory agency by corporate
interests etc as espoused within works such as R B Horwitz The Irony of
Regulatory Reform (New York: OUP, 1989); C Offe "The Theory
of the
Capitalist State and the Problem of Policy Formation" in I Lindberg
Stress and Contradiction in Modern Capitalism: Public
Policy and the
Theory of the State, (Lexington, Mass: Lexington Books 1975); C Arup
Innovation Policy and Law: Australia and the
International High
Technology" (Cambridge, New York and Melbourne: CUP, 1993) but because
of word constraints, this criticism is
abstracted from this essay.
[58] Supra Drahos at 218
[59] Id at 210
[60]
op cit Trade Practices Commission Background Paper at 5; J Ginsberg
"Creation and Commercial Value: Copyright and the Protection
of Works
of Information" (1990) 90 Columbia Law Review 1865 at 1909; R Cass
"Copyright, Licensing, and the First Screen" (1999) 5 Mich. Telecomm.
Tech Law Rev 35 available at http://www.mttlr.org/volfive/cass.html
[61]
S Breyer "The Uneasy Case of Copyright, A Study of Copyright in Books,
Photocopies and Computer Programs" (1970) 84(2) Harvard Law Review 281
[62]
The two distinguishing features of public goods are nonexcludibility
and nonrivalrous competition: P Menell "An Analysis of the Scope
of
Copyright Protection for Application Programs." (1989) 41 Stanford Law
Review 1045 at 1059
[63]
Office of Regulation Review An Economic Analysis of Copyright Reform,
submission to the Copyright Law Review Committee's review of
the
Copyright Act 1968, October 1995.
[64] R Cornes and T Sandler The Theory of Externalities, Public Goods and Club Goods (Cambridge Press, New York, 1986) pp29-30;
[65] H Demsetz "Toward a Theory of Property Rights" (1967) 57 American Economic Review 347
[66] P Drahos A Philosophy of Intellectual Property (Dartmouth, Aldershot, Sydney 1996) at p126.
[67] P Samuelson "The Pure Theory of Public Expenditure" (1954) 36 Review of Economics and Statistics 387
[68] op cit Demsetz. This was his example of animal extinction in the Indian tribes' (Montagnes) hunting grounds.
[69] Op cit Lemley at 902
[70] E Katsch Law in a Digital World (Oxford University Press, New York, 1995) at 4
[71]
A Dawson "The Intellectual Commons: A Rationale for Regulation" (1998)
16(3) Prometheus 275 at 281; also K E Boulding "The Economics
of
Knowledge and the Knowledge of Economics" (1966) 56(2) American
Economic Review 25
[72]
C Primo Braga & C Fink "The Economic Justification for the Grant of
Intellectual Property Rights: Patterns of Convergence and
Conflict."
(1996)
[72] Chicago-Kent Law Review 439 at 445.
[73] Op cit Schlacter at 4
[74]
This was a practice commenced by Borland in the 1980's. P Carroll "On
Your Honour; Software Firms Remove Copy Protection Devices"
Wall Street
Journal 25 September 1986
[75]
J P Barlow "The Economy of Ideas: A Framework for Rethinking Patents
and Copyrights in the Digital Age" (1994) Wired 84 at 129; E
Dyson
"Intellectual Value" (1995) Wired at 136
[76] B Frank "On An Art Without Copyright" (1996) 49 Kyklos pp3-15
[77]
IP claims to be consistent with goals of economic efficiency: W Landes
and R Posner "An Economic Analysis of Copyright Law" (1989)
18(2)
Journal of Legal Studies pp325-363; S Naresh "Incontestability and
Rights in Descriptive Trademarks" (1986) 53 University of Chicago Law
Review 953; Landes and R Posner "Trademark Law: An Economic
Perspective" (1987) 30 Journal of Law and Economics 265
[78]
J Brodley "The Economic Goals of Antitrust: Efficiency, Consumer
Welfare, and Technological Progress." (1987) New York University Law
Review 1021 at 1025.
[79]
R Bork The Antitrust Paradox (Basic Books, NY, 1978); R Posner
Antitrust Law: An Economic Perspective (University of Chicago Press,
Chicago, 1976); P Clarke and S Corones Competition Law and Policy:
Cases and Materials (OUP, Melbourne, 1999)
[80] R Coase "The Problem of Social Cost" (1960) 3 Journal of Law and Economics pp1-44
[81] Ibid; also A Schotter Microeconomics: A Modern Approach (Harper Collins, NY, 1994) at p525
[82]
One behavioural assumption of transaction cost theory is "strongly
maximising rationality" which is defined as "self interest seeking
with
guile" Thus the seller, behaving rationality, will not permit the
purchaser to view the information commodity prior to purchase:
O
Williamson The Economic Institutions Of Capitalism (New York: Free
Press; London: Collier MacMillan, 1985) Ch 1.
[83]
J Hirshleifer " The Private and Social Value of Information and the
Reward to Inventive Activity" (1971) 61 American Economic Review 561
[84]
K Arrow "Economic Welfare and the Allocation of Resources for
Invention", in the Rate and Direction of Inventive Activity (NBER,
Princeton University Press 1962) pp609-26. Note that some commentators
have claimed that this info paradox can be solved by bi-partisan
confidentiality agreements or the existence of misappropriation claims.
By such apparatus, the purchaser could view the info prior
to sale but
still be excluded from prematurely receiving its benefits. R Merges
"Intellectual Property and Digital Content: Notes
on a Scorecard."
(1996) June Cyberspace Law 15. The author suspect that this would raise
the negotiation costs of the bargain thus
adding little improvement to
the efficiency of the result in Coasian terms, but such criticism and
analysis, is, by necessity, oustide
of the parameters of this paper.
[85] Id at 616
[86]
IP is a restriction on consumption in favour of an increase in
production. M Lehman "The Theory of Property Rights and the Protection
of Intellectual and Industrial Property" (1985) 16 IIC 538 at 539
[87]
T Mandeville, "An Information Economics Perspective on Innovation."
(1998) International Journal of Social Economics 357-364; also
H
Rosenburg Perspectives on Technology (CUP, Cambridge MA 1976)
[88] J Boyle Shamans, Software and Spleens: Law and the Construction of the Information Society (HUP, MA, 1996) at p35
[89]
B V Hindley "The Economic Theory of Patents, Copyright, and Registered
Industrial Design" Background Study to the Report on Intellectual
and
Industrial Property, Economic Council of Canada.1971 at p1; J Cohen
"Lochner in Cyberspace: The Economic Orthodoxy of "Rights
Management"
(1998) 97 Michigan Law Review (forthcoming)
[90]
E Hettinger "Justifying Intellectual Property" (1989) 18 Philosophy and
Public Affairs 31 at 36; M Haynes "Commentary: Black Holes
of
Innovation in the Software Arts" (1998) 14 Berkeley Journal of Law and
Technology at http://www.law.berkeley.edu/journals/btlj/articles/14_2/Haynes/html/reader.html
[91] op cit Breyer, also S Shavell & T Van Ypersele "Rewards Versus Intellectual Property Rights" NBER Working Paper Series at http://www.nber.org/papers/w6956
[92]
Op cit Trade Practices Commission Background Paper "to reward labour
and skill that an inventor, author or designer has contributed
to
society by virtue of the invention." At p5
[93] B Martin "Against Intellectual Property" (1995) 21 Philosophy and Social Action 7 at 10.
[94] Chapter V Book II, J Locke Two Treatises of Government 1690; (H Morley (ed) London, Routledge & Sons, 1884).
[95]
P Drahos "Locke, Labour and the Intellectual Commons" Ch3 in A
Philosophy of Intellectual Property op cit; also N Kleinman "Copyright,
Property and Philosophy" in Social Interaction in an Electronic
Environment (Hampton Press, NJ, NY, 1996)
[96] op cit Locke at 27.
[97] See B Fried Robert Hale and Progressive Legal Economics (forthcoming, HUP) unpublished manuscript.
[98] In general, the term of copyright is life of author + 50 years. Op cit Ricketson at 187
[99]
A Reese "Reflections on the Intellectual Commons: Two Perspectives on
Copyright Duration and Reversion." 47 Stanford Law Review 707.
[100] Op cit Cohen at 39
[101] Op cit Hettinger at 44-5
[102] R Nozick Anarchy, State and Utopia (New York: Basic Books 1974) at p175.
[103] H Spector "An Outline of a Theory Justifying Intellectual and Industrial Property Rights." (1989) 8 EIPR 270 at 272
[104] op cit Hettinger at 38
[105]
M Pendleton "Opinion - Intellectual Property, Information Based Society
and a New International Economic Order - the Policy Options"
(1985) 2
EIPR 31
[106]
"The Internet has an anti-monopolistic bias" K Yong Chan "Copyright and
Internet: Social Claims and Government's Intervention." (1996)
(unpublished) at http://www.msu.edu/user/kimyong2/copy.htm
[107] op cit Arup at 49
[108]
Note that the use of an existing legal instrument is regarded by the
author as being separate from the use of existing jurisprudence.
Legal
structures such as Part IIIA are merely frameworks into within which
jurisprudence is considered and exercised. As legal instruments
are
value neutral tools, this author does not find a problem with the
recommendation of an existing legal tool, even where the jurisprudence
that normally animates that tool is being attacked.
[109] op cit Tucker at 30
[110] Ibid
[111]
Federal Trade Commission 1995 Antitrust Guidelines for the Licensing of
Intellectual Property: Harmonising the Commercial Use of
Legal
Monopolies with the Prohibitions of Antitrust law." (FTC, 1995) at 1
[112] see s2 of the Trade Practices Act 1974, stating the objects of the Act.
[113] Id at 2
[114] National Competition Council, The National Access Regime (NCC, August 1996)
[115] s44B of the TPA within the definition of "service"
[116]
for example, access has been granted to facilities such as football
stadiums and convention centres: Hart Productions Inc v Greater
Cincinnati Convention & Visitors Bureau [1990] 2 Trade Cases 69,
233; Hecht v Pro Football, Inc [1977] 2 Trade Cases 61,773
[117] MCI Communications Corp v American Telegraph and Telephone Co (1982-83) Trade Cases (CCH) 65,137
[118]
R Kewalram "The Essential Facilities Doctrine and Section 46 of the
Trade Practices Act: Fine Tuning the Hilmer Report on National
Competition Policy." (1994) 2 Trade Practices Law Journal 188; R
Patterson "Making Hilmer Clear: The Essential Facility Recommendation
and the New Zealand Experience." (1994) 2 Trade Practices Law Journal
130
[119] National Competition Policy Review Report (Hilmer Report) at p243.
[120] Id at 248
[121] K McMahon "Refusals to Supply By Corporations With Substantial Market Power" (1994) 22 Australian Business Law Review 7
[122]
A Van Melle "Refusals to License Intellectual Property Rights: The
Impact of RTE v EC Commission (Magill) on Australian and New Zealand
Competition Law" (1997) 25 Australian Business Law Review 4 at 24.
[123]
L Melville, Forms and Agreements in Intellectual Property and
International Licensing (Clark Boardman Company, NY; Sweet &
Maxwell
Ltd, London, 1979, 1991 ed) par 1.3
[124] US v Loew's Inc [1962] USSC 160; (1962) 371 US 38; Jefferson Parish Hospital District (No 2) v Hyde [1984] USSC 64; (1984) 466 US 2
[125] op cit Van Melle at 25
[126]
The presence of substitutes is a central consideration as to the issue
of market power: Dowling v Dalgety Australia Ltd [1992] FCA 35; (1992) 34 FCR 109;
also op cit TPA Background paper at 4.7
[127] Magill at par 47
[128]
P Brudenall "The Collective Administration of Copyright and Competition
Policy: Tension in the Digital Age" (1997) 8 AIPJ 121 at 130.
[129] Op cit Van Melle at 13
[130]
Taprobane Tours WA Pty Ltd v Singapore Airlines Ltd [1990] FCA 325; (1990) ATPR 41-054;
Tillmans Butcheries Pty Ltd v Australasian Meat Industry Employees
Union [1979] FCA 85; (1979) 42 FLR 331.
[131] APRA v Ceridale [1991] ATPR 41-074 at 510-511
[132] op cit Kewalram at 200
[133] Id at 1,187
[134] op cit Van Melle at 16
[135] op cit Phan at 181
[136] op cit Patterson at 148
[137]
National Competition Council, Considering the Public Interest under the
National Competition Policy paper released November 1996
at 3
[138] W Pengilly "Hilmer and "Essential Facilities"" [1994] UNSWLawJl 2; (1994) 17(1) UNSWLJ 1 at42
[139]
This list of factors reflects subclause 1(3) of the Competition
Principles Agreement signed at the Council of Australian Governments
(COAG) in April 1995.
[140] Op cit NCC paper at 17
[141] P Brudenall "Fair Dealing in Australian Copyright Law: Rights of Access Under the Microscope" [1997] UNSWLawJl 33; (1997) 20(2) UNSWLJ 443 at 444
[142] op cit Phan at 181
[143]
W Gordon "Fair Use as Market Failure: A Structural and Economic
Analysis of the Betamax case and its Predecessors" (1982) 82 Columbia
Law Review 1600 at 1603.
[144] Op cit Futuredontics
[145]
Derivative works are catered for by s31(1) of the Copyright Act 1968
when read with the interpretation of "adaptation" in s10(1).
[146] G Fulton "Fair Dealing in the Digital Age" (1996) 92 Australian Copyright Council Bulletin 8.
[147] Mowman v Tegg [1826] EngR 1136; (1826) 38 ER 380 at 386 per Eldon LJ
[148] Television New Zealand Ltd v NewsMonitor Services Ltd (1994) 27 IPR 441
[149] American Geophysical Union v Texaco, Inc (1994) 29 IPR 381
[150] op cit Television New Zealand at 463
[151] op cit Sinclair at 189
[152] M Sinclair "Fair is not always Fair: Media Monitors and Copyright." [1997] 4 EIPR 188 at 189
[153] K Crews "The MDS Decision and Fair Use for Coursepacks." (1996) 9 AIPLB 52
[154] supra Anderson at note 4
[155] S Greenz, A Primer on Postmodernism (B Eerdmans Publishing Co, NY, 1996)
[156]
P Janzsi "On the Author Effect: Contemporary Copyright and Collective
Creativity" in The Construction of Authorship: Textual Appropriation
in
Law and Literature 29 (M Woodmansee & P Jaszi (eds), Durham,
London: Duke University Press, 1994)
[157] op cit Phan at 207
[158] see generally s40 of the Copyright Act 1968
[159] see 17 USC 107
[160] Castle Rock Entertainment, Inc v Carol Publishing Group, Inc (1998) 42 IPR 371 at 381-2
[161] op cit Phan at 213
[162] Computer Associates International, Inc v Altai, Inc 982 F.2d 693, at 712 (2d Cir. 1992)
[163] T A Stewart, Intellectual Capital: The New Wealth of Organisations (Doubleday, New York, 1997, p6)
[164] op cit Drahos at 55
[165]
P Ludlow "Property Rights, Piracy, etc: Does Information "Want to be
Free?"" in High Noon on the Electronic Frontier: Conceptual
Issues in
Cyberspace (P Ludlow (ed), MIT Press, 1996) at 4
[166] Ibid
[167] W Mitchell City of Bits (Cambridge, MA, MIT Press, 1995)
[168] op cit Barlow at 10
[169] Matthew, Chapter IX, verses 16 and 17
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