Lexpert Magazine

September 2017

Lexpert magazine features articles and columns on developments in legal practice management, deals and lawsuits of interest in Canada, the law and business issues of interest to legal professionals and businesses that purchase legal services.

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40 LEXPERT MAGAZINE | SEPTEMBER 2017 $12.76 million for circumvention of tech- nological protection measures and copy- right infringement under the Copyright Act — it's that damage calculation that also has many in the IP community talking. ere's no clear wording in the Copyright Act explaining how statutory damages for the circumvention of TPMs should be cal- culated. eoretically, it could be a matter of taking the statutory amount, which is between $500 and $20,000 per violation, and multiplying it by the number of TPMs the guilty party circumvented, which in Justice Campbell wrote that in order to fairly acknowledge the "precise, clear, well supported, and effectively uncontested final argument prepared by Nintendo's counsel, with which I fully agree," Ninten- do was entitled to have its final argument used as his reasons for decision in the liti- gation. (Providing reasons in support of a decision where one side essentially sits out a trial can be challenging for a judge, who is expected to be the equivalent of a layman on the intricacies of the subject, as he or she hears arguments from just one side.) He ordered Go Cyber to pay Nintendo this case would have been the three: one for Nintendo's DS, one for its 3DS, and one for its Wii consoles. Or the court could choose to multiply the amount by the number of copyrighted works that could potentially be accessed as a re- sult of the circumvention — in this case 585 games. e court decided on the latter route of 585 games and assessed the maximum allow- able damages of $20,000 each. "What the court said is, you don't actually have to have used the infringing work, it's enough if you had access to it," says Miller of MBM. "at is huge because what they're say- ing is, if you have 1,000 games, we're going to give you dam- ages for 1,000 games, not just for the code. e implication of the decision might be greater than standard straight copy- right infringement because you don't have to prove there was infringement of the underly- ing work, only that there was access to the underlying work. at's massive." e court ordered Go Cyber to pay $11.7 million in statuto- ry damages for circumventing the TPMs, $60,000 for copy- right violations of the header data, and $1 million in puni- tive damages. Kevin Sartorio, an IP litiga- tor who heads the IP depart- ment at Gowling WLG (Can- ada) LLP in Toronto, says it is likely that Nintendo argued for the more punitive route for the precedential and deterrence value. He says the company clearly wanted to deliver a message to pirates, or prospec- tive pirates. "ey wanted to say that, if you're going to traffic in the technology that allows other people to access our port- folio of titles, then you're going to expose yourself to the risk the court is going to as- sess statutory damages based on what you provided them access to — not just what you're physically handing over at the time of the transfer." | MEDIA PIRACY | PHOTO: SHUTTERSTOCK

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