Casenote: Telstra Corp Ltd v Phone Directories Pty Ltd [2010] FCA 44

2010.02.24

Kylie Pappalardo has an excellent case note on Telstra Corp Ltd v Phone Directories Pty Ltd [2010] FCA 44 (Full decision). This case continues the process that began when the High Court tightened the requirements of originality and authorship in IceTV, applying that logic to contain the previous FCAFC authority of Telstra v Desktop Marketing to its facts. The result is very interesting for Australian copyright law: there is no longer any certainty that telephone directories will be protected by copyright, bringing Australia more into line with international authority on this point.

Big news: Fed Court of Australia rules no copyright in telephone directories

2010.02.11

Warwick Rothnie is reporting that the Federal Court has declined to follow Desktop Marketing (which held that telephone directories were protected by copyright in 2002) in light of the High Court’s decision in IceTV (which held that copyright was not infringed by taking time and title information from a timetable). Decision is here: Telstra v Phone Directories [2010] FCA 44.

This is very interesting. The argument that IceTV effectively overrules DMS was inevitable, given Telstra’s near monopoly on a relatively lucrative compilation of information. Telstra argued that IceTV’s discussion of DMS was obiter and that the Federal Court would still be bound by the older Full Federal Court decision. As Warwick highlights, Justin Gordon explains that that contention was incorrect: ([46], citations removed)

Before turning to the facts, mention must be made of the decision of the Full Court of the Federal Court in Desktop Marketing. In that decision, copyright was found to subsist in certain editions of WPDs and YPDs. The Applicants submitted that the resolution of the present case remains governed by the outcome in Desktop Marketing and that the High Court’s comments on copyright subsistence in IceTV should be regarded as obiter dicta. I reject that contention. Firstly, IceTV is binding authority on the proper interpretation of the Copyright Act. The reasoning of both plurality judgments establishes principles of law beyond copyright infringement. Secondly, the High Court directly warned of the need to treat Desktop Marketing with particular care: see IceTV at [52], [134], [157] and [188]. Thirdly, Desktop Marketing [...] did not deal directly with the issue of authorship. Rather, all issues in respect of copyright had been conceded other than that of originality. In fact, Finkelstein J (at first instance) questioned the assumptions the parties had made about authorship: Telstra Corporation Ltd v Desktop Marketing Systems Pty Ltd [2001] FCA 612 at [4]. Finally, the facts of this case are significantly different. The WPDs and YPDs in question are different. Moreover, the Genesis Computer System which stored the relational database and which was used in the production of some of the WPDs and YPDs in issue in these proceedings (after September 2001 in the case of YPDs and late 2003 in the case of WPDs) was not in use in Desktop Marketing[...].

Very interesting. It seems that the High Court’s decision in IceTV is already having flow-on effects, bringing Australian copyright law more into line with the higher standard of originality required in the US and other jurisdictions for copyright protection. It seems that Her Honour’s decision was predicated on the lack of identifiable authorship as well as the lack of originality of contributions. The rising importance of authorship is quite interesting; it is something that has been somewhat neglected in copyright law in the past. (See Tim Wu, ‘On Copyright’s Authorship Policy’ 2008 U. Chi. Legal F. 335 (2008) (pre-print at SSRN).)

Originality and Transit Sydney: Australia’s low standard of originality claims another victim

2009.03.05

Asher Moses is reporting today that RailCorp have threatened to sue the developer of Transit Sydney for infringing copyright in their public transport timetables. Transit Sydney is an iPhone app, sold through the store for $2.49 ('just to cover costs'). It provides a display like the one on the TV monitors in train stations that shows the next trains coming past the platform. It pulls timetable data from CityRail for display to people on the move. It's not clear whether the information is pulled dynamically or statically compiled.

RailCorp, for some reason, have threatened to sue the developer, claiming that it infringes on their copyright in their timetables. RailCorp claims that

RailCorp's primary concern is that our customers receive accurate, up-to-date timetable information.

[…]

This includes details of service interruptions, special event services, trackwork and other changes. Third-party RailCorp timetable applications may contain inaccuracies and have the potential to mislead our customers.


I've blogged before about the dangers of inaccurate public transit and geospatial data. Using copyright law to outright prevent the spread of such data, however, does not seem to be the best way to serve the public. Surely it would be more useful for RailCorp to make their (accurate) information more accessible, by providing open interfaces for developers, than to threaten innovative developers with copyright infringement suits. These developers are clearly responding to market demand in a way that the operators of the public transit networks simply have not been willing or able to. I assume that most users of these products would prefer to take the risk of some inaccuracies than to be without – indeed, those risk averse users could simply save themselves $2.50 and rely on the minimal official publications.

This is, unfortunately, an example of copyright law once again failing to achieve a balance between rewarding creators and promoting access to information. In Australia, following DMS v Telstra, the standard of originality for the subsistence of copyright is very low. In that case, a telephone directory was held to be an original literary compilation. This is exactly one of the points currently before the High Court in the Nine v IceTV appeal, where Nine are defending a finding that IceTV infringed on its copyright television schedules by providing an electronic programme guide. Lacking an Australian fair use defence, innovators are in a very difficult situation here.

This is the same argument, once again. Copyright ought to exist to stimulate innovation – it is a temporary monopoly granted to provide the incentives to create expression (at least in the sense of the economic rights). By making expression somewhat excludable, we allow for the private production of an otherwise public good.

But how does this relate to the creation of schedules? Presumably, RailCorp is already rewarded by determining what time their trains will run. They publish this information so that customers will buy train tickets. The goal is not the creation of schedules in and of themselves, but the operation of a rail network. Protecting this bare information serves no public policy goals. Allowing innovators to take this information and present it in a new way in order to respond to market domain does not hurt the operator of the network – if anything, it makes the network more useful and hence increases its value.

Copyright ought to attach to original expression. Unfortunately, Australia's low threshold for originality means that copyright increasingly protects mere facts. There's only a few ways that I can tell you that the Bondi train will be approaching in four minutes. To prevent me from repeating that information doesn't protect the integrity of the train network, it doesn't help consumers, and it certainly doesn't help innovation.

This is another example of the chilling effect of poorly thought out and implemented copyright law. Lets just hope that the High Court can fix the threshold of originality later this year in the IceTV case.

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IceTV: Day one of the High Court hearing

2008.10.17

Yesterday was the first day of the IceTV v Channel Nine appeal. Here's some links to follow:


A very interesting case. Stay tuned.

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IceTV: the idea / expression dichotomy in the Full Federal Court

2008.09.17

Copyright applies to expression. The ideas which underlie the expression are not protected by copyright.
In a literary work, the idea of the protagonist being awoken by a knock is not protectible, but the expression of that idea is: “While I nodded, nearly napping, suddenly there came a tapping, As of some one gently rapping, rapping at my chamber door.”1) Nobody can prevent subsequent authors from using the idea, but copying the way in which it is expressed is the exclusive right of the author for a limited time.

This becomes a little more difficult when we are dealing with facts. The Bureau of Meteorology may collate weather forecasts for a town, and present them to citizens:

>Thursday Fine Min 15 Max 24
>Friday Fine Min 16 Max 26
>Saturday Mostly fine, possible shower or storm Min 15 Max 29
>Sunday Mostly fine, possible shower or storm Min 18 Max 28
>Monday Mostly fine, afternoon shower or storm Min 17 Max 27
>Tuesday Mostly fine Min 17 Max 28

This table is a protectible copyright work. It is a compilation of information which originates from the BoM. The individual facts, on the other hand, are not copyright. It is not an infringement for me to tell you that on Saturday, it is likely to be fine, with a maximum of 29 degrees Celsius and a possibility of a shower or a storm. So what is left for the copyright to protect? It protects the way those facts are expressed. In this case, copyright protects the table and the layout. If the language were more expressive or flowery, it would protect the original expression in the forecasts. As it is not, there is little other way in which those facts could be expressed, and copyright will not grant a monopoly on the only reasonable way in which those facts can be expressed.

At least, this is the way I believe copyright ought to work. There are sensible reasons for protecting expression, and there are sensible reasons for refusing to protect mere information. But since Desktop Marketing Systems v Telstra, the Federal Court of Australia has eroded the distinction between ideas and expression and has instead protected the labour and skill that goes into generating the underlying ideas and facts. On this reasoning, because it requires significant effort to check the names, addresses, and phone numbers of many individuals and businesses, Telstra is granted a monopoly on the telephone directories it produces. In that case, Desktop Marketing was prevented from copying the information from the directories and presenting it in a different way.

In Channel Nine v IceTV, the same Full Federal Court determined that because it requires significant effort to determine which television shows will be broadcast in which timeslots, Channel Nine would be granted a monopoly on the television schedules it produces. Ice would accordingly be prevented from taking the facts within those schedules ('Days of Our Lives will be broadcast on Monday at 2pm') and displaying them in a different manner.

In our first example, this would mean that the Bureau of Meteorology ought to be granted a monopoly on the laborious predictions it makes, such that I would not be able to write here that Monday should be mostly fine with an afternoon shower or storm (or at least, I would not be able to enter that information into a weekly weather forecast).

I believe that there has been a fundamental misstep in the reasoning of the Full Federal Court in not differentiating between the labour which is exerted in generating information and the labour which is exerted in generating expression. It may well be the case that the BoM needs excludability or public funding in order to generate the forecasts it produces. It may well be the case that Telstra needs excludability or public funding in order to maintain an accurate list of names, addresses and phone numbers. It may well be the case that Channel Nine needs excludability or public funding to go through all the effort that is required in order to determine which programs it should broadcast in which timeslot. These are not, however, copyright interests. Copyright comes later, when each of these parties chooses to express the information is has gathered or created in a tangible form. It does not matter whether the information was created or gathered by the same person who is expressing it; there is still a fundamental difference between an idea and the expression of an idea.

The Full Federal Court in Desktop Marketing and IceTV has largely removed this distinction. The result is fairly gloomy for independent innovators. It is now very difficult in Australia to take information that has been publicly released and present it in another form. This is compounded by another lowering of the test for substantiality. Desktop Marketing involved wholesale copying, but IceTV only involved copying a small amount of information. The approach taken by the Full Federal Court in IceTV looks at the importance of the information to the whole work, and not the importance of the expression. A small taking of a few pieces of important information accordingly amounts to a substantial reproduction, even if the majority of information was collected through non-infringing means. The Full Federal Court in IceTV did not look at the way in which the information was presented, merely that it was taken. Because there are very few ways in which one can say that 'Days of Our Lives will be broadcast on Monday at 2pm', this effectively means that Nine gains control of all such expression.

This is an unfortunate state of affairs and really limits the ability of innovators to compete and even the ability of individuals to express themselves. Technically, this means that I can't post here to tell you when the next episode of Chuck is going to air, assuming that I gathered the information from a licensed source and the judges felt it was 'important' enough to form a substantial part of the weekly schedule. It also means that we can't use free software PVRs, because the licensed sources don't make the information available in the format that we need (presumably to cut off competition).

[ Edit: Ok, it's unlikely that me telling you what time Chuck will be airing will be substantial enough. But there are certainly still speech implications. Can I tell you the times for the four most important programs for each day? Can I tell you what time a particular program will be playing each week for a season? If I can, why can't IceTV? ]

The High Court has agreed to hear the appeal from IceTV. We can only hope that the High Court is willing to examine the effect that such a low standard for originality and substantiality has on the ability of everyday Australians to express themselves, to innovate, and to compete in the digital economy.

More information and commentary:
* House of Commons: http://www.cyberlawcentre.org/unlocking-ip/blog/2008/08/icetv-granted-special-leave-to-appeal.html
* Kim Weatherall: http://www.lawfont.com/2008/05/09/all-our-program-guides-are-belongs-to-us/ and http://www.lawfont.com/2008/05/12/more-on-the-icetv-judgment/
* Slides from David Linsday: http://www.copyright.asn.au/events/past_events/f08n03.htm
* Peter Black: http://www.freedomtodiffer.com/freedom_to_differ/2008/05/nine-network-au.html
* William Patry: http://williampatry.blogspot.com/2008/05/icetv-iced-kangaroos-hopping-mad.html
* Peter Vogel: http://vogelross.com.au/vrblog/?p=32
* Warwick Rothnie: http://ipwars.com/2008/09/02/icetv-transcript-is-up and http://iblog.ipwars.com/C688984015/E20080518104141/index.html and http://ipwars.com/2008/08/27/icetv-in-the-high-court/ (noting the adage 'what is worth copying is worth protecting')

1)
Edgar Allan Poe, The Raven, 1845.
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