Judicial Round Table on IPR Development and Adjudication

Organised by
National Judicial Academy, Bhopal

Dates : July 1-3, 2004

Theme : "Controvertial Copyright Issues

Document prepared by : Mr.Justice R. K. Abichandani, B.A.(Hons),LL.M (Br.I,),LL.M.

(Br.IV) Judge, High Court of Gujarat, Sola, Ahmedabad

Theme : Controversial Copyright Issues

1. Introduction

1.1 The traditional concept of copyright has given place to a more complex
meaning to cope up with the advancements in the nature of works and the mediums of
their expressions that merit protection under the Copyright Law. Innumerable issues
arise in the process of a virtual tug of war between the copyright holders and their
infringers. Stringent remedies are devised to safeguard the intellectual property rights
and amendments have been made in the legislation governing IPR in India and
Information Technology Act, 2000 has been enacted to be in tune with the international
concerns reflected in the WIPO Treaties and other International documents.

1.2 The Copyright Act, 1957 has been enacted by the Parliament in the
exercise of its legislative powers conferred by Entry 49 of the Seventh Schedule to the
Constitution of India with a view to amend and consolidate the law relating copyright.
As provided in Section 16, no person shall be entitled to copyright or, any similar right
in any work, whether published or unpublished, otherwise than under and in
accordance with the provisions of this Act or of any other law for the time being in
force. Copyright subsists, as per Section 13, in original literary, dramatic, musical and
artistic works; cinematograph films; and sound recording. Copyright means, the
exclusive right subject to the provisions of the Act, to do or authorise the doing of any
of the acts in respect of a work or any substantial part thereof, as enumerated in
Section 14 of the Act, which was substituted by an amendment made with effect from
10-5-1995. The amendments made in the Act reflect the anxiety of the Parliament to
cope up with the technological advances made in the mediums in which the works are
expressed in different fields. By virtue of the amended definition of the expression
literary work as contained in section 2(o), it includes computer programmes, tables
and compilations including computer databases. The word computeras defined in
section 2(ffb) includes any electronic or similar device having information processing
capabilities; and computer programme as defined in Section 2(ffc) means, a set of
instructions expressed in words, codes, schemes or in any other form, including a
machine readable medium, capable of causing a computer to perform a particular task
or achieve a particular result. Rights of broadcasting organization and of performers
are dealt with in Chapter VIII which provides in Section 37(1) that, every broadcasting
organization shall have a special right to be known as broadcast reproduction right in
respect of its broadcasts. The word broadcast means communication to the public by
any means of wireless diffusion, whether in any one or more of the forms of signs,
sounds or visual images or by wire and includes a re- broadcast, as defined by Section
2(dd) of the Act. The expression communication to the public is defined by Section
2(ff) to mean making any work available for being seen or heard or otherwise enjoyed
by the public directly or by any means of display or diffusion other than by issuing
copies of such work regardless of whether any member of the public actually sees,
hears or otherwise enjoys the work so made available. For this purpose,
communication through satellite or cable or any other means of simultaneous
communication to more than one household or place of residence including residential
rooms of any hotel or hostel shall be deemed to be communication to the public, as
per the explanation to this clause. The expression infringing copy as defined by
Section 2(m) means, in relation to a literary, dramatic, musical or artistic work, a
reproduction thereof otherwise than in the form of a cinematographic film, if made or
imported in contravention of the provisions of the Act. It will be noticed that the medium
in which such re- production may be made is broadly described as a re- production
otherwise than in the form of a cinematographic films, which would embrace all other
forms in which such work may conceivably be re- produced. In relation to
cinematographic film, infringing copy means a copy of the film made on any medium
by any means; and in relation to a sound recording, any other recording embodying
the same sound recording, made by any means, if such copy or sound recording is
made or imported in contravention of the provisions of the Act. Section 51 of the Act
deals with deemed infringement of copyright. In the explanation, however, it provides
that, for the purpose of this section, the reproduction of a literary, dramatic, musical or
artistic work in the form of a cinematograph film shall be deemed to be an infringing
copy. Section 52 enumerates certain acts which shall not constitute an infringement of
copyright and in sub-section 1(a), includes fair dealing with a literary, dramatic, musical
or artistic work not being a computer programme for the purpose of private use
including research, criticism or review, whether of that work or of any other work.
Making of copies or adaptation of a computer programme by the lawful possessor of a
copy of such computer programme from such copy in order to utilize the computer
programme for the purpose for which it was supplied, or to make back-up copies
purely as a temporary protection against loss, destruction or damage in order only to
utilize the computer programme for the purpose for which it was supplied, do not
constitute an infringement of copyright, as provided by section 52(1)(aa).

1.3 The Parliament enacted the Information Technology Act, 2000, (keeping
in view the resolution dated 30th January 1997 of the General Assembly of the United
Nations adopting the Model Law on Electronic Commerce), which, inter alia, provides
legal recognition to electronic record and digital signatures. The expression electronic
record as defined by Section 2(1)(t) of that Act means, data, record or data generated
image or sound stored, received or sent in an electronic form or micro film or computer
generated micro fiche. Tampering with computer source documents is made an
offence under Section 65 of the Act, which provides that, whoever knowingly or
intentionally conceals, destroys or alters or intentionally or knowingly causes another
to conceal, destroy or alter any computer source code used for a computer, computer
programme, computer system or computer network, when the computer source code
is required to be kept or maintained by law for the time being in force, shall be
punishable with imprisonment upto three years, or with fine which may extend upto
two lakh rupees, or with both. The expression computer source code means the
listing of programmes, computer commands, design and layout and programme
analysis of computer resource in any form. Whoever commits hacking shall be
punished with imprisonment upto three years, or with fine which may extend upto two
lakh rupees, or with both, as provided by Section 66(2). Hacking is committed by a
person who, with the intent to cause or knowing that he is likely to cause wrongful loss
or damage to the public or any person, destroys or deletes or alters any information
residing in a computer resource or diminishes its value or utility or affects it injuriously
by any means, as defined by Section 66(1) of that Act. The Information Technology
Act, 2000 provides in Section 79 that, no person providing any service as a network
service provider shall be liable under this Act, rules or regulations made thereunder for
any third party information or data made available by him if he proves that the offence
or contravention was committed without his knowledge or that he had exercised all
due diligence to prevent the commission of such offence or contravention.

2. WCT and WPPT

2.1 The WIPO Copyright Treaty [WCT] {1996} mentions two subject matters
to be protected by copyright (i) computer programmes, whatever may be the mode or
form of their expression, and (ii) compilations of data or other material (databases), in
any form, which by reason of the selection or arrangement of their contents would
constitute intellectual creations. Where a database does not constitute such a creation,
it is outside the scope of the said Treaty. As to the rights of authors, the Treaty deals
with, the right of distribution, the right of rental and the right of communication to the
public and each of them is an exclusive right, subject to certain limitations and
exceptions. The Treaty obliges the Contracting Parties to provide legal remedies
against the circumvention of technological measures (e.g. encryption) used by authors
in connection with the exercise of their rights and against the removal or altering of
information, such as certain data that identify works or their authors, necessary for the
management (e.g. licensing, collecting and distribution of royalties) of their rights
(rights management information).

2.2 The WIPO Performances and Phonograms Treaty (WPPT 1996) deals
with intellectual property rights of two kinds of beneficiaries : (i) performers (actors,
singers, musicians etc.) and (ii) producers of phonograms (the persons or legal entities
who or which take the initiative and have the responsibility for the fixation of the
sounds). They are dealt with in the same instrument because most of the rights
granted by the Treaty to performers are rights connected with their fixed, purely aural
performances (which are the subject matter of phonograms). As far as performers are
concerned, the Treaty grants performers four kinds of economic rights in their
performances fixed in phonograms (not in audiovisual fixations, such as motion
pictures) : (i) the right of reproduction, (ii) the right of distribution, (iii) the right of rental,
and (iv) the right of making available. The Treaty grants three kinds of economic rights
to performers in respect of their unfixed (live) performances : (i) the right of
broadcasting (except in the case of rebroadcasting), (ii) the right of communication to
the public (except where the performance is a broadcast performance), and (iii) the
right of fixation. As far as producers of phonograms are concerned, the Treaty grants
them four kinds of economic rights in their phonograms, subject to certain limitations
and exceptions; (i) the right of re-production, (ii) the right of distribution, (iii) the right of
rental, and (iv) the right of making available. The Treaty obliges the Contracting Parties
to provide legal remedies against the circumvention of technological measures (e.g.
encryption) used by performers or phonogram producers in connection with the
exercise of their rights and against the removal or altering of information, such as, the
indication of certain data that identify the performer, the performance, the producer of
the phonogram and the phonogram, necessary for the management of the said rights.

3. Fair Dealing

3.1 A fair dealing with a literary, dramatic, musical or artistic work [not being a
computer programme] for the purposes indicated in Section 52(1)(a), does not
constitute an infringement of copyright, as noticed above. Fair use defence allows the
public to use not only facts and ideas contained in the copyrighted work, but also
expression itself in certain circumstances.
 3.2 The doctrine of fair use has been called the most troublesome in the
whole law of copyright. There is no guidance provided for determining whether a
particular use is fair and no fixed criteria has emerged from the precedents. Certain
factors such as purpose and character of the use, the nature of the copyrighted work,
the amount and substantiality of the portion used and the effect of use upon the
potential market available or value of the copyrighted work, have been listed, but no
particular weight is assigned to any of these (See Title 17 U.S.C. Section 107, which
provides that in determining whether the use made of a work in any particular case is a
fair use, these factors should be included in consideration). The findings of fair use
would, therefore, depend on the facts of individual case and fair use doctrine must
strike a balance between the need in incentive to create and granting creators a
complete monopoly which will inhibit the creative ability of others.

3.3 The immediate effect of the copyright law is to secure a fair return for an
authors creative labour. However, the ultimate aim by this incentive is to stimulate an
artistic creativity for the general public good. The protection of copyright, however, is
not intended to accord a complete control to its owner over all possible uses of his
work. The provisions of the Act entitle the copyright holder to have exclusive rights to
use and to authorise the use of his work in qualifying ways including reproduction of
the copyright work in copies. However, all reproductions of the work are not within the
exclusive domain of copyright owner; some are in the public domain. Anyone who
makes a fair use of the work is not an infringer of the copyright with respect to such
use.

3.4 A question arose before the United States Supreme Court in Sony
Corporation v. Universal City Studio Inc., 464 U.S. 417 (1984) as to whether
noncommercial home use recording of material broadcast over the public airwaves on
video tape recorders (VTRs) was a fair use of copyrighted work and did not constitute
copyright infringement. In that case, the petitioner Sony Corporation manufactured and
sold home video tape recorders (VTRs) and marketed them to retail establishment.
The respondents owned the copyright on some of the television programmes that were
broadcast on the public airwaves. Some members of the general public used video
tape recorders sold by the petitioner to record some of those broadcasts, as well as a
large number of other products. The question presented was, whether the sale of
petitioners equipment to the general public violated any of the rights conferred upon
the respondents by the Copyright Act. The Supreme Court held that the protection
given to copyrights was wholly statutory and the Court must be circumspect in
construing the scope of rights created by a statute. It was held that any individual may
reproduce a copyright work for a fair use; the copyright owner does not possess the
exclusive right to such use. It was found that there was a significant likelihood that
substantial numbers of copyright holders who licensed their works for broadcast on
free television would not object to having their broadcast time-shifted by private
viewers (i.e. recorded at the time when the VTR owner cannot view the broadcast so
that it can be watched at a later time) , and that, there was no likelihood that, that
time-shifting would cause non- minimal harm to the potential market for, or the value
of, the copyrighted works. It was held that the VTRs are capable of substantial non-
infringing uses. Private, non-commercial time-shifting in the home satisfies this
standard of non-infringing uses both because the respondents had no right to prevent
other copyright holders from authorizing such time- shifting for their programmes and
because the District Courts findings revealed that even the unauthorized home time-
shifting of respondents programme was legitimate fair use (pp 442 - 456). In the
dissenting view, Justice Blackman however opined: there can be no question that,
under the U.S. Act, the making of even single unauthorized copy is prohibited. In his
view: The making of even a single video tape recording at home falls within this
definition; the VTR user produces the material object from which the copyright work
can be perceived. Unless Congress intended a special exemption for the making of a
single copy for personal use, I must conclude that VTR recording is contrary to the
exclusive rights granted by 106(1). Distinguishing a fair use by a researcher or a
scholar, the learned Judge observed that, there are situations in which strict
enforcement of this monopoly would inhibit the very progress of science and useful
arts that copyright is intended to promote and an obvious example is the researcher or
scholar whose own work depends on the ability to refer to and to quote the work of
prior scholars. But, there is a crucial difference between the scholar and ordinary user.
When the ordinary user decides that the owners price is too high, and forgoes use of
the work, only the individual is the loser. When the scholar forgoes the use of a prior
work, not only does his own work suffer, but the public is deprived of his contribution to
knowledge. The scholars work, in other words, produces external benefits from which
everyone profits. In such a case, the fair use doctrine acts as a form of subsidy -
albeit at the first authors expense-to permit the second author to make limited use of
the first authors work for the public good. The learned Judge held that the making of
a video tape recording for home viewing is an ordinary rather than a productive use of
the studios copyrighted works, and concluded that : ............ at least when the
proposed use is an unproductive one, copyright owner need prove only a potential for
harm to the market for or the value of the copyrighted work. The learned Judge,
commenting on the approach of the majority, observed that the Courts approach
dramatically altered the doctrines of fair use and contributory infringement as they had
been developed by Congress and the Courts. As it stands, however, the decision
today erodes much of the coherence that these doctrines have struggled to achieve.

3.5 Although dissemination of creative works is a goal of the Copyright Act,

the Act creates a balance between the artists right to control the work during the term
of the copyright protection and the publics need for access to creative works. The
copyright term is limited so that the public will not be permanently deprived of the fruits
of an artists labours. The limited monopoly conferred by the Act is intended to
motivate creative activity of authors and inventors by recognizing rights in their
creative endeavours and to allow the public access to the products of their creative
genius after the expiry of the period of their exclusive control. The U.S. Supreme Court
has held that, a copyright owner has the capacity arbitrarily to refuse to license to one
who seeks to exploit the work. [See Fox Film Corporation v. Doyal, 286 U.S. 123, 127
(1932) referred to in Stewart V. Abend, 495 U.S. 207 (1990). In the latter case, the
Supreme Court held that the unauthorised use of author Cornell Woolrichs story in the
petitioners motion picture was not a noninfringing fair use and reiterated that, every
unauthorized commercial use of copyrighted material is presumptively an unfair
exploitation of the monopoly privilege that belongs to the owner of the copyright.
Testing on the anvil of the four factors contained in Section 107 of Title 17 U.S.C., it
held that all four factors pointed to unfair use - This case presents a classic example
of an unfair use : a commercial use of a fictional story that adversely affects the story
owners adaptation rights.

3.6 The Sony case was distinguished by the District Court of Northern District
of Illinois in, In re AIMster copyright litigation, finding that in Sony, the VCRs principal
use was non- infringing; while by contrast, AIMsters primary use was infringement.
AIMster provided a file-sharing service over the instant messaging (IM) Network of
AOL, ICQ, and YAHOO!. The IM network allowed users to share files with select lists
of buddies, by providing connections to openly available files and by allowing users
to send specific files to one another. AIMster began offering an additional fee-based
service that provided lists of popular downloaded songs without any additional
requests by the user. The District Court found a likelihood of success on all copyright
infringement claims and granted a preliminary injunction against AIMster (later known
as Madster), restraining it from allowing any downloading of the recording of the
plaintiff recording companys work. [See Software and Internet Law - Updates, Aspen
Law and Business, 2nd Edition, 2003].

3.7 Fair use doctrine has an economic dimension. The basic idea is to allow
free copying through fair use wherever obstacles to market formation are serious
enough to frustrate access by licensing, selling, or other modes of consensual transfer.
(See Copyright - By Wendy J. Gordon Professor of Law, Boston University School of
Law and Robert G. Bone, Professor of Law, Boston University School of Law). The
learned Author argues that, if a market does not develop for a creative work or use
because high transaction costs impede bargaining, then prohibiting copying makes
little sense from an economic perspective. Such a prohibition would prevent socially
valuable uses, without providing any monetary return to creators. Recognizing a fair
use defence under these circumstances gives copyists and other users access to
whatever works happen to be created. Thus, in the presence of transactional barriers
to bargaining, the fair use doctrine serves the important function of facilitating diffusion
without significantly chilling creativity. It is argued that fair use has evolved as an
equitable response to market failure, as a way to ensure that socially desirable uses
will not be blocked. Considering an example of photocopying by individual scholars,
the learned authors reasoned that the transaction costs involved in contacting a
copyright owner for permission to photocopy might well outweigh the benefit the
scholar expects to reap. In such a case, enforcing the copyright would merely
eliminate the photocopying without generating any licence fees for the copyright
owner. On the other hand, granting fair use to the scholar would not impair the
copyright owners potential income stream and would allow a socially beneficial use to
go forward that transaction costs barrier would otherwise have blocked. According to
these authors, of the many intriguing and unsolved questions remaining to be
investigated, perhaps the most important unexamined area is the cost of exclusivity in
expression. It is usually assumed that, because copyright does not give exclusivity in
ideas, or over useful objects utilitarian aspects, its monopolies impose fairly low cost.
As a result, copyright is remarkably easy to obtain and subsists for a relatively long
time.

3.8 Copying for laudable purpose is not necessarily a fair use. Many users -
continue to be frustrated by lack of specific, quantitative guidelines to determine
whether a use is fair. But, fair use was designed to be flexible, so that it could evolve
with new circumstances and new types of uses. Uncertainty is the price we pay for that
flexibility. A Statute that provided greater certainty would inevitably be less responsive
to changes in technology and to the myriad ways in which the copyright owners and
users exploit their works. (See Copyright : What Makes A Use Fair?, June M. Besek,
EDUCAUSE Review, Volume 38, No.6 (November / December 2003) : 12 - 13 ).

3.9 In Luther R. Campbell Akaluke Skywalker, et al. v. Acuff-Rose Music, Inc.,

decided on March 7, 1994, 510 U.S. 569 (1994), the U.S. Supreme Court held that,
parody, like other comment and criticism, might claim fair use. The heart of any
parodists claim to quote from existing material is the use of some elements of a prior
authors composition to create a new one that, at least in part, comments on the
authors work. However, like other uses, parody has to work its way through the factors
relevant for deciding the fair use.

3.10 The fundamental issue to be determined where a defence of fair dealing

is raised should be the fairness of the dealing itself. In assessing whether or not there
has been a fair dealing with copyright material, it is necessary to form an impression
as to the fairness of a dealing, not an impression as to the purpose of the dealing. The
notion of fairness is not personal or idiosyncratic, but rather is to be assessed
objectively with sound reasons in its support. The formation of an impression as to the
fairness of a dealing with copyright material needs to be informed by factors, such as,
the amount of copyright material used in the comparison with the length of the
copyright material; the extent of use made of such material by the defendant; the
motives underlying the use of such material; whether the copyright material is
confidential or has not been disclosed to the public; whether parties are in commercial
competition with each other in respect of the use of the copyright material in question
and the way in which it has been used; whether the use of the material is reasonably
appropriate, rather than necessary, for the permitted purpose; and the relevance of,
and weight to be given to, any industry practises or agreements between commercial
rivals as to what constitutes a fair dealing. (See A Real Pea Souper : The Panel Case
and the Development of the Fair Dealing Defences to Copyright Infringement in
Australia, by Michael Handler (Research Fellow), and David Rolph (Part-time
Lecturer), published in Malbourne University Law Review - (2003) MULR 15).

4. Copyrightability of Computer Programme(Customised Programming

Language)

4.1 The definition of Computer Programme contemplates a set of

instructions which are capable of causing a computer to perform a particular task or
achieve a particular result. Computer programming is an art of extreme precision;
there is no (or extremely little) redundancy in the languages used, leaving no scope for
any defect in the source or object code. If a letter or a figure is omitted from the source
code, it will most probably not compile (giving an error in the process of attempted
compilation) or it may compile with results different from what is intended. Changing
any single bit in the object code may be sufficient to render the programme
unworkable. Every single element of the source code and object code is thus
essential, in that the programme will not perform its intended purpose without that
particular element. (See Sydney Law Review, 1998 SydLRev. 12, Article by Ben
Kremer : Copyright and Computer Programmes : Data Access v. Power Flex before
the High Court).

4.2 Data Access Corporation case came to be decided by the High Court of
Australia on 30th September 1999 (HCA 49 (30th September 1999). It dealt with the
question whether copyright subsisted in an individual command and whether an
individual command itself was a computer programme within the meaning of the
definition of that expression contained in Section 10(1) of the Copyright Act, 1968
(Cth), of Australia. It was also concerned with the question whether a collocation of
those commands constituted a substantial part of the application development system.
The Full Court of the Federal Court had held that the copyright as original literary
works did not subsist in commands in the Dataflex computer language contained in a
computer programme developed by Data Access in the United States. The Full Court
held that those commands were not computer programmes and were not entitled to
the protection of the Copyright Act, 1968 (Cth). An amendment, similar to the one
made in Section 2(o) of the Copyright Act, 1957 in India, by which literary works
included computer programmes, tables and compilations, including computer
database, was also made in Section 10(1) of the Australian Act, in which, as per item
(b), the words A computer programme or a compilation of computer programmes
were added in the definition of literary works. The High Court of Australia held that
the said amendment obviously marked a significant departure from what previously
had been the understanding of what was required for subsistence of copyright in an
original literary work. The Court observed that, in construing the expression set of
instructions in the definition of computer programme, there is no need to choose
between the technical meaning and the natural and ordinary meaning of the
expression. Words in a statutory definition are to be interpreted in their statutory
context. The Court cannot interpret the meaning of the definition of computer
programme without some understanding of the manner in which a computer executes
a computer programme. If interpreting a phrase set of instructions in the definition of
computer programme in light of the manner in which a computer operates is to be
regarded as ascribing a technical meaning to the phrase, then it must be given its
technical meaning. However, the natural and ordinary meaning and the technical or
art meaning of the phrase set of instructions is one and the same when it is
considered in its statutory context, (paragraph 34).

4.3 In this case, Data Access owned the copyright in a system of computer
programme which was known as Dataflex. The Dataflex system incorporated: a
programme development system which provided the means to write, edit, compile and
run programmes under development; a computer programming language known as
the Dataflex language which was an application development language in which the
source code for all Dataflex programmes was written or generated; a compiler
programme which translated the dataflex source code programmes written in the
Dataflex language by using the programmes development system, into an internal
format, which was then able to be run by the runtime programme; and a runtime
programme, which was executable programme required to run the compiled
application programmes, developed using the programming development system. It
was contended by Data Access Corporation that copyright subsisted in each of the
Reserved Words because each was a computer programme and that copyright also
subsisted in the collocation of Reserved Words comprising the Dataflex language
because this collocation was a computer programme. The Court found that each of
the Reserved Words was a single word; none a set of instructions in the Dataflex
language. Further, none of the Reserved Words intended to express, directly or
indirectly an algorithmic or logical relationship between the function desired to be
performed and the physical capabilities of the device having digital information
processing capabilities. It was held that the Reserve Words themselves are not a
computer programme in Dataflex language, and that each Reserved Word
comprises but a single instruction in that language. Each Reserved Word considered
alone, is not a set of instructions in that language. It was further held that although
Reserved Words together form an expression ... of a set of instructions, their simple
listing together, without more, does not cause a computer to perform any identifiable
function. There is no interrelationship of the instructions with one another which is an
expression of a logical or algorithmic relationship between an identifiable function and
the physical capabilities of the computer via the medium of the Dataflex language.
Dealing with the contention that the appellants copyright was infringed because
collocation of Reserved Words was a substantial part of the Dataflex system, the Court
held that, in determining whether something is a reproduction of a substantial part of a
computer programme, the essential or material features of the computer programme
should be ascertained by considering the originality of the part allegedly taken. The
Court held that even when the Reserved Words were considered as a collocation, they
did not possess sufficient originality as data to constitute a substantial part of the
computer programme of Dataflex system.

4.4 Whether a part copied is substantial or not must depend on its quality
rather than its quantity. The reproduction of a part which by itself has no originality will
not normally be a substantial part of the copyright and therefore will not be protected.
For that which would not attract copyright except by reason of its collocation will, when
robbed of that collocation, not be a substantial part of the copyright and therefore the
courts will not hold its reproduction to be an infringement. Thus, there will be no
copyright in some unoriginal part of a whole that is copyright. [See Ladbroke
(Football) Ltd. v. William Hill (Football) Ltd., [1964] All E.R. 465, 481].

4.5 A computer consists of two principal components: hardware and

software. The hardware comprises the physical machinery of the computer and is
usually made up of four components: an input device (such as a typewriter-like
keyboard); a control processing unit (CPU) which converts raw data into useful
information; a memory or data storage device, and output devices which include disks,
printers or video display terminals. While in operation, these components interact on
the instruction of a microprocessor which, in turn, receives its direction or command
from a computer programme. In general, a computer will only function if the
programme is loaded into the computers RAM (one of the data storage devices which
temporarily stores data that is currently being processed by the computer). The
information in the RAM is in the form of evanescent electrical impulses. It is stored in
the form of a charge on a capacitor. Information in RAM can be changed simply by
downloading new information. The information will be erased if the computer is turned
off. When the computer is turned off, the capacitor begins to discharge both as a result
of its own leakage resistance and the fact that it continues to conduct a tiny amount of
current. Each time a computer is turned on, a programme or a portion of the
programme, is loaded onto the computers RAM. Thus, for a computer to operate it
must take information from a programme (which will take the form of permanent
storage, such as a CD-ROM), translate that information and store it in the RAM from
where it will be transferred to the CPU which will perform the actions called for by the
programme and send the appropriate directions to other parts of the system. The
question that arises is, whether downloading a computer programme (or, more
accurately, the object code) into a consoles RAM amounts to a reproduction of the
object code and thus infringes the copyright contained in the computer programme.
This question directly arose in Kabushiki Kaisha Sony Computer Entertainment v.
Eddy Stevens before the Federal Court of Australia Full Court, decided on 30th July
2003, [(2003) FCAFC 157]. It was held by the majority that, according to ordinary
English usage, the electronic impulses in RAM do not constitute material form. The
Court approved the view that the transient holding and displacement of data in RAM
which necessarily occurs in the course of the running of a computer programme as not
constituting storage within the definition of material form. The Court was, however,
of the unanimous opinion that the broader construction of the definition of the
expression technological protection measure was to be preferred and the appeals
brought by Sony Company were allowed by holding that, by supplying and installing
the modified chips in Playstation consoles so that the unlawfully copied games could
be played on them without the non-re-producible access codes that are normally the
means by which a device in the console, known as a Boot ROM recognises lawful
copies, the respondent was liable under Section 116A of the Copyright Act, 1968(Cth)
to the three Sony Companies. Section 116A confers upon copyright owners a right of
action against the persons supplying devices to circumvent technological protection
measures which are designed to prevent or inhibit the infringement of copyright by the
use of access codes or copy control mechanisms.

4.6 Justice Lindgren was of the opinion that the notion of embodiment (under
Section 10(1) of the Australian Act copy in relation to a cinematograph film, means
any article or thing in which the visual images or sounds comprising the film are
embodied, (compare with Section 2(m)(ii) of the Indian Act which uses the expression
copy of the film made on any medium), was not satisfied by what occurred in the
Consoles RAM, referring to the reason stated by the Court below that the evidence
suggested that only a very small proportion of the images and sounds comprising the
cinematography film are embodied in the playstation consoles RAM at any given time.
According to him, such article or thing can be taken in ones hand and used from time
to time, with the use of some other device, to reproduce the visual images in question.
(See paragraphs 182 and 183 of the judgment). Justice Finkelstein , while agreeing
that the appeal should succeed on the first ground, differed on the remaining two
grounds including the question as to whether downloading a computer programme into
a Consoles RAM amounts to re-production of the object code and thus infringes the
copyright contained in the computer programme. The learned Judge observed that
Whatever Computer Experts may say, RAM was a method of storage as per the
Explanatory Memorandum. In his view, if there is no longer a requirement for an
allegedly infringing work to be continuously visible, there is no reason why storage in
RAM cannot be a relevant form of storage. The Legislation should also be construed in
a way that accommodates scientific changes. In particular, the meaning to be given to
form ......... of storage must keep abreast with the digital age. Furthermore, transitory
nature of the memory in RAM is more complex than it first appears. On the one hand,
the information that is stored can be wiped out in a second. On the other, it is possible
that it may remain stored in RAM for the life of the computer. To hold that RAM is not a
form of storage, would be to thwart the Legislatures intention, according to the learned
Judge. (See paragraph 208). The learned Judge was of the opinion that the phrase an
article or thing should be subject to an interpretation that is broad or as some might
say, open - textured. On this approach, RAM which is a device for storage may be
regarded as a thing. It is no less a thing than some other thing which exists as a
separate or distinct entity with its own individual qualities such as a piece of equipment
or as something which may in a sense be possessed or owned. It was not in dispute
that sounds and images which are stored in RAM were capable of being re-produced.
(See paragraph 215 of the dissenting judgement by Finkelstein J. in Kabushiki Kaisha
(supra).

4.7 Section 10(1) of the Australian Act defines technological protection

measure to mean a device or product or a component incorporated into a process,
that is designed, in the ordinary course of its operation, to prevent or inhibit the
infringement of copyright in a work or other subject matter by either or both of the
following means : (a) by ensuring that access to the work or other subject matter is
available solely by use of an access code or process (including decryption,
unscrambling or other transformation of the work or other subject matter) with the
authority of the owner or licensee of the copyright; (b) through a copy control
mechanism. A circumvention device is a device (including a computer programme)
having only a limited commercial significant purpose or use, or no such purpose or use
other than the circumvention or facilitating circumvention of an effective technological
protection measure.

4.8 It will be noticed that, under Article 11 of the WCT, it is provided that
contracting parties shall provide adequate legal protection and effective legal remedies
against the circumvention of effective technological measures that are used by authors
in connection with the exercise of their rights under the said Treaty or the Berne
Convention, and that restrict acts in respect of their works, which are not authorised by
the authors concerned or permitted by law. Article 18 of the WPPT provided similarly in
relation to performers and producers of sound recordings. The reforms on the above
lines for updating Indias copyright standards to meet the challenges of communication
technology in particular the huge expansion of the internet, are overdue in order to
maintain the delicate balance between the rights of copyright owners and the rights of
copyright users. The use of technological protection measures by copyright owners is
likely to increase in the near future as system for the on- line trading of copyright
material is adopted in India.

4.9 The technological measures to protect copyright materials are essentially

of two types : access control measures and copy control measures. Access control
measures allow the copyright owner to control who has access to the copyrighted
material. Examples of access control measures include password protection, file
permission and encryption. Copy control measures allow the copyright owner to
control the extent of a persons access to copyright material. Copy control measures
are based on the premise that a user already has some lawful access to the work and
the measures seek to control what the user can then do with the lawfully obtained
copyrighted material. An example of a copy control mechanism is a mechanism that
allows first generation copies but prevents second and subsequent generation copies.
There is a difference in scope between the two types of measures (access control
measures and copy control measures). Copy control measures are more closely allied
with copyright, and with the infringement of copyright, than access control measures.
Access control measures seek to prevent all access to copyright material, not only that
access which is unlawful. (See The House of Representative Standing Committee on
Legal and Constitutional Affairs (The HRSCLCA) Committee, Australia, in its Advisory
Report referred in paragraph 117 of the judgement of Lindgren J. in Kabushiki Kaisha
(supra).

4.10 The Copyright Act should not be given a meaning that is frozen in time,
but should be interpreted in a way that takes into account technological advances,
provided that the interpretation is consistent with its purpose. The unauthorized
circumvention of locking device should be specifically made actionable at the instance
of copyright owners and their exclusive licensees and the use of any device which
enables the unauthorized use of computer programme should be prohibited. The
Copyright Act, 1957 is, therefore, required to be amended to provide that copyright
owners and their exclusive licensees may have the right to prevent the commercial
manufacture, storage, distribution and possession, for commercial purposes, of
devices which are designed to facilitate the unauthorized circumvention of locks or
other devices applied to protect computer programmes from unauthorized copying.

5. Music on-Hold

5.1 The question as to whether a service centre had infringed the right to
broadcast the work (the broadcast right) when mobile callers were played music-on-
hold and whether it had infringed the right to cause the work to be transmitted to
subscribers to a diffusion service (diffusion right) when conventional callers were
played music on hold, arose before the High Court of Australia in Telstra Corporation
Ltd. v. Australasian Performing Right Association Ltd. (1997) 146 ALR 649. Telstra was
a test case brought by APRA against Telstra concerning Telstras copyright liability for
providing music on hold. All members of the court found that Telstra had infringed the
broadcast right when mobile callers received music on hold.

5.2 The evidence revealed that Telstra participated in the provision of music
on hold in three different ways. The first was where a person made a telephone call to
a Telstra Service Centre and heard music played by a machine at the centre when he
was placed on hold. The second situation involved a person who heard music onhold
after calling various business and governmental organizations to which Telstra
provided a transmission facility for that purpose. The third situation involved a person
hearing music on hold after making a telephone call to a subscriber to a service known
as CustomNet which was provided by Telstra. Where the telephone line of a subscriber
to CustomNet was busy, the electromagnetic current carrying the call was diverted to a
music-on- hold facility situated at Telstras nearest telephone exchange. In any of
these three situations, the music on hold could be prerecorded and played from a
compact disc or tape recording or from music broadcast from a radio station which
transmitted to the general public.

5.3 Each of the three situations outlined above could occur in one of two
ways. First, where the caller used conventional telephone; the second where the caller
used a mobile telephone. The Court held that, in each of the situations in which Telstra
participated in provision of music on hold to callers using the conventional telephones,
it was the operator of diffusion services and the works were transmitted to such
subscribers to a diffusion service. Mobile telephones have a radio transmitter and a
radio receiver by which communication is made to a nearby station. Through the base
station, radio transmission through and from the mobile telephone were connected to
the rest of the telephone net work. When a caller from a mobile telephone hears music
on hold, he has received a transmission, otherwise then over a path provided by a
material substance, of electromagnetic energy, that is to say, by wireless telegraphy.
The moot question was whether a transmission in question can be said to be to the
public.

5.4 Construing the meaning of the expression to the public in the definition
of broadcast, a view was expressed that the legislative history of the definition of
broadcast indicated that the words to the public was supposed to incorporate the
notion of copyright owners public. The copyright owners public refers to group which
the copyright owner would otherwise contemplate as its public for the purpose of its
work. Kirby J. identified three broad principles from the cases on performances in
public that were relevant to elucidating the meaning of the expression to the public.
The first principle was that a performance was in public if it was not in private. The
second principle arose from the need to make the distinction between public and
private and it involved asking, what is the nature of the audience? A significant
indicator of the nature of the audience was the commercial nature of the activity
occurring. The third and the most important, principle is that, the public is the copyright
owners public. (at pages 690-692). The majority found Telstra to be distributing the
music, even though it was received by individuals through their individual telephone
connections and might only be heard by one caller at any one time. This was because
there was a common source from which the music was conveyed over wires to the
various callers. McHugh J. disagreed with this conclusion by arguing that music on
hold was not broadcast or other matter. He concluded that the music sent over the
telephone wire was not broadcast because it had not first been transmitted to the
public by wireless telegraphy. (at page 665). The decision in Telstra has been
commented upon on the ground that it did not pay any attention to the meaning of
transmitting in the definition of broadcast. (See Article by Tanya Aplin IMAGO, Sr.
Research Fellow in Multimedia Law, Murdoch University, Electronic Journal of Law,
Volume 4, No.3 (September 1997).

6. Television Broadcasting

6.1 Interest sought to be protected by the conferral of the television

broadcast copyright was identified by Spicer Committee with reference to the
experience of the B.B.C. and the Independent Television Authority. The latter was
established by the Television Act 1954 (U.K.) and charged by section 3 to
broadcast ..... programmes of a certain standard. [Notice similar provisions in Prasar
Bharti Act, 1990). This interest was identified as that in the cost and skill in assembling
or preparing and transmitting programmes to the public. That activity of public
broadcasting occurred in exercise of statutory authority which required the
transmission of programmes of a certain standard or quality identified by their content.
The Spicer Committee decided against leaving it to the broadcasters to record or film
their broadcasts and so depend upon the protection given to sound recordings and
cinematography films. (See para 70 of the judgement in Network Ten Pty. Ltd. v. TCN
Channel Nine Pty. Ltd. (2004) HCA 14, decided on 11th March 2004).

6.2 In Network Ten Pty. Ltd. (supra), the litigation concerned alleged
infringement, by NetworkTen, of the Copyright of TCN channel Nine in certain
television products. The Ten Network broadcast a weekly television programme
entitled The Panel which included 20 extracts from the programmes previously
broadcast by the Nine Network. These were used in 15 different episodes of The
Panel broadcast in 1999 - 2000. Before that use, each extract was placed on an
individual video tape. The Panel Segments ranged in duration from 8 to 42 seconds
and were taken from programmes of the usual advertised, length of 30 minutes to one
hour. Injunctive relief sought by the Channel Nine was to restrain the re- broadcasting
on the television programme (The Panel) ..... of a substantial parts of any television
broadcast by Nine without its consent. Nine also claimed a declaration of infringement
of the broadcast copyright of Nine in each of the episodes of what were identified as
the television Programmes known as for example, The Today show, A Current Affair,
Australias Most Wanted. The Full Court of the Federal Court of Australia had granted
declaratory relief and remitted the matter to the Primary Judge, any question of further
reliefs consequential upon the declaratory relief. At trial, Conti J. held that Ten had not
taken the whole or substantial part of any of Nines broadcasts. Those findings were
reversed in the Full Court. Before the High Court, Nine sought to uphold the Full
Courts decision in its favour that each visual image capable of being observed as a
separate image on a television screen and accompanying sounds is a television
broadcast in which copyright subsists. The gist of Tens complaint was that the term a
television broadcast as it appeared in the Act, was misread by the Full Court, with the
result that the content of that expression was so reduced that questions of
substantiality would have no practical operation and the ambit of the copyright
monopoly was expanded beyond the interests the legislation sought to protect. The
High Court accepted the Tens submission and allowed the appeal. In the process, the
Court agreed with the opinion of Conti J. that television advertisements should be
treated as discreet television broadcasts, particularly since a television or cinema
commercial is typically the product of the creative and administrative work of many
separate individuals........ The Court held that the circumstance that a prime time news
broadcast included various segments, items or stories does not necessarily render
each of these a television broadcast in which copyright subsisted under the Act.

6.3 Callinan J. agreed with the view of the Federal Court that recording and
broadcasting, not by way of fair dealing, by one telecaster or excerpts from the
broadcasts of a commercial competing telecaster were infringements by the former of
the latters copyright, and opined in paragraph 143 of the judgement that the use by
the appellant of excerpts from the respondents broadcast was blatant, and that, this
was a case of blatant commercial exploitation, neither more nor less. The Judge
observed : The test cannot be simply whether the images and sounds captured and
fixated last a millisecond or half an hour. In aggregate they still constituted a
broadcast.

7. Protection of Folklore - Aa Emerging Issue

7.1 The technological advances have facilitated the commercial exploitation

of works of art, craft and knowledge of traditional society on a scale that is
unprecedented. There is evidence of indigenous music and dance being sampled by
record companies and performance groups, which are presented to the public as
original compositions or choreography. Babacar Ndoye, a Former Director of the
Copyright Office of Senegal, cites an example of an African Folklore Groups European
Performance by a composer who arranged and registered the recording as his original
work. The work was a phenomenal success, but all profits went to the composer
without any compensation to the community from which the folklore originated. There
is, therefore, necessity for stringent protection of expressions of folklore in light of
current technological capabilities. (See Article by Paul Kuruk, Professor of Law,
Cumberland School of Law, Samford University, Birmingham, Alabama - Protecting
Folklore under Modern Intellectual Property Regimes - A Reappraisal of the Tensions
Between Individual and Communal Rights in Africa and the United States). The author
suggested in his conclusion the creation of a regional agency with authority to institute
infringement actions abroad and to serve as the conduit for processing requests to use
folklore as well as distributing compensation collected for the use of folklore.

7.2 The need for intellectual property protection of expression of folklore has
been internationally recognized. Folklore is an important element of the cultural
heritage of every nation. It is, however, of particular importance for developing
countries, which recognize folklore as a means of self- expression and social identity.
Folklore is commercialized without due respect for the cultural and economic interests
of the communities in which it originates.

7.3 Folklore is traditional cultural heritage passed on from generation to

generation in contrast with the individual, personal nature of the creativity represented
by literary and artistic works proper. By its very nature, the expression of folklore is the
result of creative contributions of usually unknown members of a number of
subsequent generations and this is why its protection could not be reasonably limited
in time. In case of majority of laws providing for the protection of folklore creations, it
can be deduced from the context of their provisions that such protection is perpetual,
but the laws of some countries (Congo, Ghana and Sri Lanka) also state this explicitly.
(See WIPO Document on Intellectual Property Protection of Expressions of Folklore :
Attempts at the International Level: www.wipo.org/ academy/ en/publications/
coll_of_documents_on_lp/).

7.4 Traditional creations of a community, such as, folk tales, folk songs, folk
music, folk dances, folk designs or patterns, may often not fit into the notion of literary
and artistic works. Copyright is author-centric and, in the case of folklore, an author -
at least in the way in which the notion of author is conceived in the field of copyright -
is absent. The existing system of copyright protection being inadequate for the
protection of folklore, possibilities of a sui generis solution were explored.

7.5 The WIPO and UNESCO convened a working group in Geneva in 1980,
then a second one in Paris in 1981, to study the Draft Model Provisions intended for
national legislation prepared by WIPO, as well as possible international measures for
the protection of works of folklore, and, the outcome of those meetings was submitted
to a Committee of Governmental Experts convened by WIPO and UNESCO, at WIPO
Head Quarters in Geneva in 1982, which adopted Model Provisions for National Laws
on the Protection of Expressions of Folklore Against Illicit Exploitation and Other
Prejudicial Actions. (Model Provisions).

7.6 The expressions of folklore, as defined in Section 2 of the Model

Provisions, are understood as productions consisting of characteristic elements of the
traditional artistic heritage developed and maintained by a community in the country or
by individuals reflecting the traditional artistic expectations of such a community. Model
Provisions were adopted with the intention of paving the way for regional and
international protection, since many countries considered it of paramount importance
to protect expressions of folklore also beyond the frontiers of the countries in which
they originate. There are two main categories of acts against which, under the Model
Provisions, expressions of folklore are protected, namely, illicit exploitation and other
prejudicial actions. Illicit exploitation of an expression of folklore is understood in the
Model Provisions (section 3) as any utilization made both with gainful intent and
outside the traditional or customary context of folklore, without authorization by a
competent authority or the community concerned. Other prejudicial actions
detrimental to interests related to the use of expressions of folklore are identified by
the Model Provisions, as four cases of offenses subject to penal sanction (section 6).
The Model Provisions provided for the protection of the appellation of origin of
expressions of folklore and Section 5 requires that, in all printed publications, and in
connection with any communication to the public, of any identifiable expression of
folklore, its source be indicated in an appropriate manner by mentioning the
community and/or geographic place from where the expression utilized has been
derived. Any unauthorised utilization of an expression of folklore where authorization is
required, constitutes an offence. It is understood that such an offence may also be
committed by using expression of folklore beyond the limits, or contrary to the
conditions of an authorization obtained. Misleading the public by creating the
impressions that what is involved is an expression of folklore derived from a given
community when, in fact, such is not the case, is also punishable. This is essentially a
form of passing off. Finally, it is an offence if, in the case of public uses, expressions
of folklore are distorted in any direct or indirect manner prejudicial to the cultural
interests of the community concerned. The term distorting covers any act of
distortion or mutilation or other derogatory action in relation to the expression of
folklore. (See paragraphs 39 to 42 of the WIPO document ibid).

7.7 There are various categories of expressions of folklore that are possible
subjects of a copyright - type - but sui generis - protection. Some of them, such as, folk
arts in drawings, paintings, carvings, sculptures, pottery etc. obviously cannot enjoy
indirect protection by means of neighboring rights or related rights. However, in the
case of many other important categories of expressions of folklore, related rights may
be used as a fairly efficient means of indirection protection. Folk tales, folk poetry, folk
songs, instrumental folk music, folk dances, folk plays and similar expressions actually
live in the form of regular performances. If the protection of performers is extended to
the performance of such expressions of folklore, the performances of such
expressions of folklore also enjoy the statutory protection. The same can be said about
the protection of the rights of producers of phonograms and broadcasting
organizations in respect of their phonograms and broadcasts, respectively, embodying
such performances.

7.8 The United Nations Educational Scientific & Cultural Organization has
made Recommendations on the Safeguarding of Traditional Culture and Folklore,
adopted on 15th November 1989 by the General Conference, at its 25th Session held
in Paris. It recommends that folklore as a form of cultural expression, must be
safeguarded by and for the group (familial, occupational, national, regional, religious,
ethnic etc.) whose identity it expresses. The member States should encourage, for this
purpose, appropriate survey research on national, regional and international levels for
collecting the data as regards the institutions concerned with folklore and other
material.

7.9 In so far as folklore constitutes manifestations of intellectual creativity

whether it be individual or collective, the Recommendation states that, it deserves to
be protected in the manner inspired by the protection provided for intellectual
productions. Such protection of folklore has become indispensable as a means of
promoting further development, maintenance and dissemination of those expressions,
both within and outside the country, without prejudice to related legitimate interests. It
is emphasized that the need for separate action in a range of areas to safeguard
folklore is urgent, and recommended that the Member States should, regarding the
other rights involved: protect the informant as the transmitter of tradition (protection
of privacy and confidentiality); protect the interest of the collector by ensuring that the
materials gathered are conserved in archives in good condition and in a methodical
manner, adopt the necessary measures to safeguard the materials gathered against
misuse, whether intentional or otherwise, and recognize the responsibility of archives
to monitor the use made of the materials gathered.

7.9
 7.10 The existing IPR Regimes are inadequate to address all of the issues
involved in protection of traditional knowledge and folklore. The leading role played
WIPO and UNESCO in offering a set of Model Provisions for the purpose of protecting
the expressions of folklore, gives a useful guidance for framing the relevant national
laws or making suitable amendments therein to ensure protection of expressions of
folklore in the category of intellectual property rights.

8. Combating Piracy

8.1 The internet while changing the way our society communicates has also
changed the nature of many crimes including theft of intellectual property. Trafficking in
infringing copyrighted works through increasingly sophisticated electronic means,
including peer-to-peer file trading networks, Internet chat rooms and news groups, has
posed alarming problems. It is recorded in the U.S. that the most popular peer-to- peer
file trading software programmes have been downloaded by computer users over
200,000,000 times; that at any one time, there are over 3,000,000 users
simultaneously using just one of these services. Each month, on an average, over
2,300,000,000 digital media files are transferred among users of peer-to- peer
systems. Many computer users simply believe that they will not be caught or
prosecuted for their conduct. (See Section 2 Findings - Piracy Deterrence & Education
Act of 2004, (Bill Introduced in the House of Representatives - H.R. 4077). Under this
Act, the Director of Federal Bureau of Investigation, in consultation with the Register of
Copyrights shall develop a programme based on providing of information and notice to
deter members of the public from committing acts of copyright infringement through
the internet, and facilitate the sharing, among law enforcement agencies, Internet
service providers and copyright owners, of information concerning acts of copyright
infringement. Such programme shall include issuing appropriate warnings to
individuals engaged in acts of copyright infringement that may be subject to criminal
prosecution. (Section 3 of the Bill H.R. 4077 108th Congress Second Session - March
31, 2004).

8.2 The U.S. Attorney General is enjoined with a duty (section 4) for
designation and training of agents in computer hacking and intellectual property units.
The Attorney General has to ensure that any unit in the Department of Justice
responsible for investigating computer hacking or responsible for investigating
intellectual property crimes is assigned atleast one agent to support such unit for the
purpose of investigating crimes relating to the theft of intellectual property.

8.3 Section 5 of the proposed legislation provides for the establishment of

Internet Use Education Programme, with a view to educate the general public
concerning the value of copyrighted works and the effects of the theft of such works on
those who create them, and also educate the general public concerning the privacy,
security and other risks of using the Internet to obtain illegal copies of copyrighted
works. The Internet Use Educational Programme shall develop materials appropriate
to Internet users in different sectors of the general public where criminal copyright
infringement was a concern. Unauthorized recording of motion pictures in a motion
picture theater was to be an offence made punishable by imprisonment for not more
than three years and fine or both, and for the second or subsequent offence,
imprisonment upto six years could be imposed. (See section 8 - Prevention of
Surreptitious Recording in Motion Pictures Act). All these provisions of the Bill can
provide useful guidelines for introducing similar changes in the Indian Copyright law by
making suitable adaptation in its context.
9. Internet Service Providers

9.1 Section 79 of the Information Technology Act, 2000 declares, for the
removal of doubts, that no person providing any service as a network service provider
shall be liable under this Act, rules or regulations made thereunder for any third party
information or data made available by him if he proves that the offence or
contravention was committed without his knowledge or that he had exercised all due
diligence to prevent the commission of such offence or contravention. The expression
network service provider means an intermediary, for the purpose of this Act, and the
expression third party information means any information dealt with by a network
service provider in his capacity as an intermediary, as per the Explanation. This Act
has an overriding effect over other laws by virtue of Section 81.

9.2 The problem facing Internet Service Providers (ISPs) and other
interactive computer service providers was how they could protect themselves from
liability that might arise based on information that was posted by third parties without
any direct involvement by the service provider. The service providers voiced concern
that, given the millions of users and the enormous volume of communication passing
through their computer systems, it was impossible for them to responsibly control all
communications, or investigate and act on complaints.

9.3 In the United States, a new Section 512 was added to U.S. Copyright
Statute, by Digital Millennium Copyright Act (DMCA), which was intended to give
service providers greater certainty regarding copyright infringement risk by creating a
safe harbor from liability. A service provider must satisfy pre-conditions to take
advantage of the exemption provided by Section 512(c), which created an exemption
from copyright liability by reason of storage at the direction of the user of material that
resides on a system or network control or operated by or for the service provider .......
First, the provider must lack knowledge that it is hosting infringing material. The
provider must lack actual knowledge that the material is infringing, it must not be
aware of facts and circumstances from which infringing activity is apparent. Once
they became apparent, it must act expeditiously to remove or disable access to the
material. The service provider must satisfy that he cannot receive a financial benefit
directly attributable to the infringing activity where the provider has the right and
ability to control such activity. The service provider must respond expeditiously to
remove or disable access to the material (Section 512(c)(1)(C)), which is referred to as
a notice and take down procedure. (See Paper by Lee T. Gesmer :Using the CDA
and DMCA To Limit Liability For Publication Torts And Copyright Infringement, first
presented at Massachusetts Continuing Legal Educations 2001 Internet And E-
Commerce Conference, held in Boston, on December 6, 2001).

10. Sovereign Immunity

10.1 In three cases [Alden v. Maine (Labour case), College Savings Bank v.
Florida (Trademark case), and Florida v. College Savings Bank (Patent case)], all
decided by identical 5 to 4 majority, the U.S. Supreme Court on June 23, 1999, made
States immune from suits by state employees for violations of Federal labour law; by
patent owners for infringement of their patents by state universities and agencies; and
by people bringing unfair - competition suits over States activities in the marketplace.
When the Courts work was over, two federal laws had been declared
unconstitutional, one 35 year old precedent was explicitly overturned and one 15 year
precedent was effectively dead. [See a write up by Linda Green House in the New
York Times on the Web, June 24, 1999].
 10.2 In the early 90s, the Federal Courts had begun to dismiss patent and
trademark suits which were brought against the State agencies on the ground that
Congress had not met the Supreme Courts standards for explicitly abrogating the
States Eleventh Amendment immunity from suits of this type. In response, Congress
passed two laws in 1992, the Trademark Remedy Clarification Act and Patent Remedy
Clarification Act, explicitly permitting these kinds of suits against States in the Federal
Court.

10.3 After the Patent and Plant Variety Protection Remedy Clarification Act
amended the patent laws to expressly abrogate the States sovereign immunity, the
respondent College Savings Bank [Florida Pre-paid Post Secondary Education Board
v. College Savings Bank 527 U.S. 627 (1999)] filed a Patent Infringement Suit
against the petitioner Florida Pre-paid Photo Secondary Education Expenses Board, a
Florida State entity. The Florida Pre-paid claimed that the Act was an unconstitutional
attempt by Congress to use its Article I powers to abrogate state sovereign
immunity.College Savings countered that Congress had properly exercised its powers
pursuant to Article 5 of the Fourteenth Amendment in order to enforce due process
guarantees under Article 1 of the Amendment. The Untied States intervened to defend
the statutes constitutionality. The Supreme Court held that the Acts abrogation of
States sovereign immunity is invalid because it cannot be sustained as legislation
enacted to enforce the guarantees of the Fourteenth Amendments Due Process
Clause. The Patent Remedy Act was enacted to clarify that States, instrumentalities of
States and officers and employees of the States acting in their official capacity, are
subject to suit in Federal Court by any person for infringement of patents and plant
variety protections.

10.4 The Court, by its 5-4 majority opinion held that the provisions of the
Patent Remedy Act were so out of proportion to a supposed remedial or preventive
object that they cannot be understood as responsive to, or designed to prevent,
unconstitutional behavior........ An unlimited range of State conduct would expose a
State to claims of direct, induced, or contributory patent infringement. The minority
opinion put up a strong dissent expressing the view that the Act should be upheld even
if full respect is given to the Courts recent cases cloaking the States with increasing
protection from congressional legislation.

10.5 The doctrine of sovereign immunity is an ancient legal principle, dating

back to feudal Europe, when power flowed from the King down through nobility and
very little trickled down to the peasantry. It is rooted in the premise that to submit to the
jurisdiction of a court implies that one is subservient or inferior to the power of that
Court. Such a doctrine cannot have any place in the modern democratic era and to the
extent that the decision upheld the defence of State immunity, it has made it difficult to
comprehend the resultant denial of remedies in respect of infringements made by the
State entities.

10.6 The decision in Florida Prepaid has generated a firestorm of critism, and
some argue that this result is indefensible as a matter of constitutional text, original
meaning, and precedent; but as importantly, they say, it is practically unsound and
unjustifiable - the transparent folly of the result shows that the Court must have erred
in its reasoning. (See 145 Congress Record S 10359 (daily ed. August 5, 1999),
statement of Senator Specter, referred to in an Article by Eugene Volokh, Professor of
Law, UCLA Law School : Sovereign Immunity and Intellectual Property, originally
published at 73, Southern California Law Review 1161 (2000)). The learned author,
however, concluded that Florida Prepaid results are far from practically senseless or
morally repugnant. They do run against one intuitively appealing theory (state
infringers should be treated like individual infringers) but they are actually more
consistent than the Pre-Florida Pre-paid regime with two other theories (state
infringers should be treated like federal infringers and intellectual property should be
treated like tangible property). Barring such support, recognition of doctrine of
sovereign immunity can disturb the balance sought to be achieved by national
treatment clauses by which the copyrights are attempted to be universally protected,
for, there can be States which do not recognize any such doctrine in the context of
suits filed for infringement of copyrights against their State entities.

10.7 Justice Souter in Alden v. Maine, involving enforcement of Fair Labour

Standards Act of 1938, observed that, there was almost no evidence that the
generation of the Framers thought sovereign immunity was fundamental in the sense
of being unalterable. He noted that, in Great Britain, the King himself is sued and he
never fails to comply with the judgement of his Court.

10.8 It has been observed that the U.S. Supreme Court decision in the case
of Florida Pre- paid v. College Savings was likely to have a significant negative effect
on copyright owners ability to bring copyright infringement suits against States and
their instrumentalities. Without the right to sue a State or State instrumentality for
copyright (or Patent or Trademark) infringement in Federal Court, States and State
officials are free to engage in widespread uncontrolled copying and use of the valuable
intellectual property assets of others without fear of being held liable for infringement.
This is a significant problem for copyright owners who are likely to suffer tremendous
losses due to increased infringement by States as a result of this decision. (See
State Sovereign Immunity Exercise, By David G. Savage, Time Staff Writer, POSC
140).

10.9 The United States Senator Maria Cantwell in the statement before the
United States Senate Committee on the Judiciary which met on February 27, 2002,
voiced a broader concern that the Supreme Court decisions driving our need to
legislate in this area reflect an extremely disconcerting shift in the Supreme Courts
perspective on the respective roles of Congress and the Court ..... The Supreme
Courts decisions, at issue today, have produced a complex and daunting legal
landscape, one that forces us to move forward carefully and within the proper
constitutional framework.

10.10 In the statement by Dickinson, Under Secretary of Commerce for

Intellectual Property and Director of United States Patent & Trademark Office, made
before the Sub Committee on Courts and Intellectual Property, House of
Representatives, on 27th July 2000, it was expressed that, the post Florida Prepaid
situation is clearly inequitable and provides a potential windfall for States at the
expense of the Americas inventors, large and small. States benefit from an enormous
collection of federally granted intellectual property rights, each and everyone of which
is protected and enforced by Federal Courts.He further stated that, if unaddressed,
the Florida Prepaid decisions could make it more difficult for the United States to
advocate strong intellectual property protection internationally. When we criticize
another country for having insufficient enforcement protection against patent,
trademark and copyright infringers, that country may point out that we have no
financial penalties at all with the infringers of a State university, a hospital or a
government office. As a result, countries that have intellectual property laws that are
weak or inconsistent with the TRIPS Agreement could become increasingly resistent to
American pressure to improve their laws.

10.11 Mercifully, in the Indian context, the Supreme court has made it clear in
Common Cause v. Union of India, reported in (1999)6 SCC 667 that the maxim that,
King can do no wrong on the basis of which, Common Law rule that Crown was not
answerable for the torts committed by its servants was generated, has not been
applied here in this country. The government would also be liable for torts committed in
exercise of sovereign powers except when the act complained of amounted to an Act
of State. Traditional sovereign functions were, the making of laws, carrying on of war,
making of treaties of peace and other consequential functions.

11. Extending Life of Unexpired Copyright

11.1 It will be noticed from the history of copyright legislation that the term of
protection of copyright has been extended from time to time. Section 22 of the
Copyright Act, 1957 of India provides for the term of copyright in published literary,
dramatic, musical and artistic works, which has been raised to 60 years from the
beginning of the calender year next following the year in which the author dies, by
Amendment Act No.13 of 1992, with effect from 28-12- 1991, in place of 50 years,
which was earlier prescribed. Similar amendment was made in Section 23 dealing with
the term of copyright in anonymous and pseudonymous works, raising the period from
50 years to 60 years as also in the other provisions prescribing the terms of copyright
in photograph, cinematography film, sound recording etc. in Chapter V of the Act.

11.2 In the United States, the Congress enlarged the duration of copyright by
20 years, raising the period of 50 years to 70 years after the authors death by
enacting the Copyright Term Extension Act (CTEA) - Title 17 U.S.C. Section 302 (a)).
This amendment was challenged on the ground that it fails constitutional review under
both Copyright Clauses limited Times prescription and the First Amendments free
speech guarantee, in Eldred v. John D. Ashcroft, Attorney General (No.01-618 decided
on January 15, 2003). The petitioners, whose products or services build on
copyrighted works that had gone into the public domain, had raised this challenge
maintaining that the Congress went awry not with respect to newly created works, but
in enlarging the term for published works with existing copyrights. The Court by
majority held that, in placing existing and future copyright in parity in the Copyright
Term Extension Act, the Congress acted within its authority and did not transgress
constitutional limitations. It was held that: The CTEA,...does not oblige anyone to re-
produce anothers speech against the carriers will. Instead, it protects authors original
expression from unrestricted exploitation. Protection of that order does not raise the
free speech concerns present when the government compels or burdens the
communication of particular facts or ideas. The First Amendment securely protects the
freedom to make or decline to make ones own speech, it bears less heavily when
speakers assert the right to make other peoples speeches.

11.3 Justice Stevens, in his dissent, expressed the view that, Ex post facto
extensions of copyrights result in a gratuitous transfer of wealth from the public to
authors, publishers and their successors in interest. Such retroactive extensions do
not even arguably serve either of the purposes of the Copyright / Patent Clause. The
reasons why such extensions of the patent monopoly are unconstitutional apply to
copyrights as well. In his dissent, Justice Breyer found that the statute lacks the
constitutionally necessary rational support. (i) if the significant benefits that its bestows
are private, not public; (ii) if it threatens seriously to undermine expressive values that
the Copyright Clause embodies (i.e. US Constitutions Copyright Clause, Art. I Clause
8(8) which grants Congress the power to promote the progress of science... by
securing for limited times to authors ... the exclusive right to their respective writings).
According to him, it was well established that copyright statutes must serve public not
private, ends; that they must seek to promote the progress of knowledge and
learning, and that, they must do so both by creating incentives for authors to produce
and by removing the related restrictions on dissemination after expiration of a
copyrights limited Time - a time that (like a limited monarch) is restrained and
circumscribed, not left at large. He observed that the potential users of such works
include not only movie buffs and aging jazz fans, but also historians, scholars,
teachers, writers, artists, database operators and researchers of all kinds those who
want to make the past accessible for their own use or for that of others. The
permissions requirement can inhibit their ability to accomplish that task. Moreover the
older the work the less likely it retains commercial value, and the harder it will likely
prove to find the current copyright holder. The older the work, the more likely it will
prove useful to the historian, artist or teacher. The older the works the less likely it is
that a sense of authors rights can justify a copyright holders decision not to permit re-
production, for the more likely it is that the copyright holder making the decision is not
the works creator, but, say, a corporation or a great - grandchild whom the works
creator never knew. Justice Breyer was, therefore, of the view that this statute will
cause serious expression related harm. It was likely to restrict traditional dissemination
of copyright works, and inhibit new forms of dissemination through the use of new
technology and threatened to interfere with efforts to preserve the Nations historical
and cultural heritage and efforts to use that heritage.

11.4 In some quarters, it has been suggested that the copyright terms should
be shortened, thereby increasing the size of the public domain available for creative
manipulation. Copyright owners authority to control the preparation of derivative
works should be reduced for the same reason. (Neil Netanels essay on Copyright
and Democratic Civil Society, referred to by William Fisher in his Article : Theories of
Intellectual Property. The latter article considers various theoretical writings on
Intellectual Property and can be viewed on: www.law.harvard.edu/faculty/
tfisher/iptheory.html).

11.5 If the purpose of the copyright law is to provide incentive for creative
intellectual efforts that will benefit the society at large an unduly prolonged protection
of copyright would obviously block the benefits of the creative genius to the public. The
society greatly contributes to an individuals thinking at various levels of development
of his personality and a creative genius therefore owes a duty to the society to release
the fruits of his attainments for the general good.

12. Operation Fastlink

12.1 Intellectual property industries, from music to games, to summer

blockbuster movies and software that families can use to track their finances or to help
their children learn to read, play significant roles in the economy of a country. The
intellectual property industries contribute a huge amount of money to the gross
domestic product and provide jobs. However, such global economic growth is
threatened by online thieves, who can, with a single keystroke distribute illegally
millions of copies of stolen programmes and products. Well-organized criminal
enterprises are increasing the scale, scope and sophistication of international online
theft. (See Prepared Remarks of Attorney General John Ashcroft, released on April 22,
2004 by the U.S. Department of Justice).

12.2 The intellectual property enforcement is a priority for the Department of

Justice and the Attorney General in March 2004, established the Intellectual Property
Task Force with a view to strengthen and improve the efforts to combat theft of
intellectual property. Intellectual property theft is a global threat and requires a global
response that protects vigorously intellectual property rights and enforces consistently
copyright laws. The Attorney General John Ashcroft announced on 22nd April 2004,
the largest and most far-reaching and aggressive enforcement action ever undertaken
against the criminal core of digital theft, including theft of movies, music, games,
business and educational software on the Internet : Operation Fastlink. This was the
most far-reaching and aggressive enforcement action ever undertaken against
organizations involved in illegal intellectual property piracy over the Internet. Operation
Fastlink was the culmination of four separate undercover investigations simultaneously
being conducted by the FBI, coordinated by the FBI Cyber Division and the U.S.
Department of Justice, coordinated by the Computer Crimes and Intellectual Property
Section (CCIPS) of the Criminal Division. As a result of Fastlink over 120 total
searches were executed in the preceding 24 hours in 27 States and in 10 foreign
countries. Foreign searches were conducted in Belgium, Denmark, France, Germany,
Hungary, Israel, The Netherlands, Singapore, Sweden as well as Great Britain and
Northern Ireland. Operation Fastlink is described as the largest multinational law
enforcement effort ever directed at online piracy. Nearly 100 individuals worldwide
were identified by the investigation, many of whom are the leaders or high level
members of various international piracy organizations. (See Press Release No.04-263
dated April 22, 2004 by Department of Justice Operation Fastlink is the largest global
enforcement action ever undertaken against online piracy).

12.3 Operation Fastlink also resulted in the seizure of more than 200
computers including 30 computer servers that functioned as storage and distribution
hubs. These servers collectively contained hundreds of thousands of copies of pirated
works. One of the storage and distribution servers seized in the United States
reportedly contained 65,000 separated pirated tiles.

12.4 The magnitude of the Internet piracy can be judged from the outcome of
the enforcement action of Operation Fastlink and should be sufficient to alert the
concerned departments and authorities to prompt them to initiate action on similar
lines to detect and thwart criminal infringements of intellectual property rights.

13. Conclusion

13.1 In order to understand the complexities of the issues governing the ever
expanding field of copyright law, there should be given an intensive training to those
who participate in legislation and dispense justice so that the necessary legislative
changes are duly identified and made and the laws correctly interpreted and enforced.
The help of academicians who have specialized in the field can be sought in order to
assist the legislative process that is required to be undertaken to fine-tune the
copyright law to effectively cope up with computer software piracy, the alarming music
piracy and other aspects discussed above. The Chief Co-ordinating Officer of the
Indian Music Industry (IMI) - an association of music companies - recently lamented
that though the number of seizures, raids and arrests is higher, the conviction rate is
zero in one State. (News item in Times of India dated 5/6/04). The higher margin of
profit in producing duplicate C.Ds. and MP3s has lured many to the piracy business
and such piracy surely can be stopped by swift action, collection of the relevant
evidence by the investigating agencies specialized in the field and by entrusting the
trials to Judges well equipped with knowledge of relevant laws. A public awareness
programme should be developed to educate the general public on the risks of using
the Internet and other means to obtain infringing copies of the copyrighted works.

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