(Complete Judgment at http://www.austlii.edu.au/au/cases/cth/FCA/2012/34.html)
This is an eye-opener for those looking to create the next ‘near live broadcasting’ or just about any type of digital recording. You will need to design a system where the USER is the principal actor to record and to view the ‘copyright’ material. In this case the copyright material is a FREE TV to air broadcast. You will also have to ensure that the user is using this for his own personal and private consumption. Apparently, Australia’s law provides Section 111 of the Copyright Act
“111 Recording broadcasts for replaying at more convenient time
(1) This section applies if a person makes a cinematograph film or sound recording of a broadcast solely for private and domestic use by watching or listening to the material broadcast at a time more convenient than the time when the broadcast is made.
Note: Subsection 10 (1) defines broadcast as a communication to the public delivered by a broadcasting service within the meaning of the Broadcasting Services Act 1992.
Making the film or recording does not infringe copyright
(2) The making of the film or recording does not infringe copyright in the broadcast or in any work or other subject-matter included in the broadcast.
Note: Even though the making of the film or recording does not infringe that copyright, that copyright may be infringed if a copy of the film or recording is made.
Dealing with embodiment of film or recording
(3) Subsection (2) is taken never to have applied if an article or thing embodying the film or recording is:
(a) sold; or
(b) let for hire; or
(c) by way of trade offered or exposed for sale or hire; or
(d) distributed for the purpose of trade or otherwise; or
(e) used for causing the film or recording to be seen or heard in public; or
(f) used for broadcasting the film or recording.
Note: If the article or thing embodying the film or recording is dealt with as described in subsection (3), then copyright may be infringed not only by the making of the article or thing but also by the dealing with the article or thing.
(4) To avoid doubt, paragraph (3)(d) does not apply to a loan of the article or thing by the lender to a member of the lender’s family or household for the member’s private and domestic use.” (bold emphasis added)
In Malaysia, the protection is much wider as long as it is for private and personal use and made by the person himself.
Section 13. Nature of copyright in literary, musical or artistic works, films and sound recordings.
(1) Copyright in a literary, musical or artistic work, a film, a sound recording or a derivative work shall be the exclusive right to control in Malaysia -
(a) the reproduction in any material form;
(aa) the communication to the public;
(b) the performance, showing or playing to the public;
(c) [Deleted by Act A994:s.4];
(d) [Deleted by Act A994:s.4];
(e) the distribution of copies to the public by sale or other transfer of ownership; and
(f) the commercial rental to the public,
of the whole work or a substantial part thereof, either in its original or derivative form provided that, without prejudice to paragraph (e) , the exclusive right to control the distribution of copies refer only to the act of putting into circulation copies not previously put into circulation in Malaysia and not to any subsequent distribution of those copies or any subsequent importation of those copies into Malaysia;
(2) Notwithstanding subsection (1), the right of control under that subsection does not include the right to control -
………………
(gg) the making of a sound recording of a broadcast, or a literary, dramatic or musical work, sound recording or a film included in the broadcast insofar as it consists of sounds if such sound recording of a broadcast is for the private and domestic use of the person by whom the sound recording is made;
(ggg) the making of a film of a broadcast, or a literary, artistic, dramatic or musical work or a film included in the broadcast insofar as it consists of visual images if such making of a film of the broadcast is for the private and domestic use of the person by whom the film is made;
………………….
( Also see section 41) -
(1) Any person who during the subsistence of copyright in a work or performers’ right -
(d) possesses, otherwise than for his private and domestic use, any infringing copy;
shall, unless he is able to prove that he had acted in good faith and had no reasonable grounds for supposing that copyright or performers’ right would or might thereby be infringed, be guilty of an offence and shall on conviction be liable –
(i) in the case of an offence under paragraphs (a) to (f), to a fine of not less than two thousand ringgit and not more than twenty thousand ringgit for each infringing copy, or to imprisonment for a term not exceeding five years or to both and for any subsequent offence, to a fine of not less than four thousand ringgit and not more than forty thousand ringgit for each infringing copy or to imprisonment for a term not exceeding ten years or to both;
(2) For the purposes of paragraphs (a) to (f) of subsection (1), any person who has in his possession, custody or control three or more infringing copies of a work or recording in the same form shall, unless the contrary is proved, be presumed to be in possession of or to import such copies otherwise than for private or domestic use.
Therefore what can a competitor do ? The bottom line is nothing unless the competitor has a patent to stop the recording or transmission means. There is actually a patent US 7,688,683 (System and method of creating digital recordings of live performances) by Griner, et al. Fortunately for Optus, there was no similar filing in Australia or Malaysia.
In my opinion, the competitor would be smart to provide the same (free or bundle it with another service) and while the clients (at Optus) do not mind 90 secs delay, the competitor should aggressively advertise on this point. Consider what happened to Netscape when M$ muscled into the its business and you can get my drift. An appeal would be a long and uncertain process given that the rest of the world is not at variance with Australia and the many case laws would be persuasive. Even if this decision is reversed, for example to get around this all Optus has to do is to put its recorders in a copyright friendly nation favoring private usage. Obviously as this case has set a high mark, there will be more services to come and allowing each individual user to record and play at their convenience.