The Commission Publishes and Dispels "Myths" Around ACTA

 

The European Commission has published the final text of the Anti-Counterfeiting Trade Agreement (ACTA) which is an agreement aimed at strengthening the enforcement of intellectual property (IP) rights and combating counterfeiting and piracy. The European Union participated in the negotiation of this agreement and has also published “10 myths about ACTA” to dispel the allegations that ACTA is unlike the US SOPA legislation (see here for the “10 myths about ACTA”).

ACTA sets out the legal framework and enforcement practices for enforcement of IP rights as follows. Although some of the framework is fairly high level, leaving a lot to individual a Member State’s discretion, there are also some meatier terms. The main controversy around ACTA has been around the provisions addressing infringement in the digital environment The ACTA provides, at Section 5, paragraph 2 that:

"Each Party’s enforcement procedures shall apply to infringement of copyright or related rights over digital networks, which may include the unlawful use of means of widespread distribution for infringing purposes. These procedures shall be implemented in a manner that avoids the creation of barriers to legitimate activity, including electronic commerce, and, consistent with each Party’s law, preserves fundamental principles such as freedom of expression, fair process, and privacy."

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CONTROVERSIAL DRAFT COPYRIGHT LEGISLATION PUBLISHED - IT'S NO "SOPA"

The Minister for Jobs, Enterprise and Innovation has this afternoon published controversial draft Regulations to address the perceived lacuna in Irish Copyright law, originally flagged by Mr. Justice Charlton in the case of EMI v UPC (also see Davinia Brennan's blog below for another take on this!). The draft Regulations provide for that copyright owners may seek injunctions against intermediaries (which would include internet service providers). Subsection 5A(a) to be inserted at Section 40 of the Copyright and Related Rights Act 2000, would provide as follows:

        “The owner of the copyright in a work may, in respect of that work, apply to the High Court for an injunction against an intermediary to whom paragraph 3 of Article 8 of Directive 2001/29/EC of the European Parliament and of the Council of 22 May 2001[1] on the harmonisation of certain aspects of copyright and related rights in the information society applies” 

The draft legislation is unspecific as regards the precise nature or scope of injunction which a court might be entitled to grant as against an intermediary service provider. However, as I have previously blogged, the European Court of Justice has already stated that injunctions of the sort which oblige service providers to filter and block internet sites which are permitting unlawful downloads may not be permissible under European law.

 

The only guidance offered for a court in the draft Regulation is in subsection 5A(b) which states that:

             "In considering an application for an injunction under this subsection, the court shall have due regard to the rights of any person likely to be affected by virtue of the grant of any such injunction and the court shall give such directions (including, where appropriate, a direction requiring a person be notified of the application) as the court considers appropriate in all of the circumstances 

It would appear therefore that where an injunction is sought either the individual who will be affected or the website, company or business that may be affected by the application could be notified of the injunction application and the court would have to consider the rights of those persons more generally when making a determination.  

These new Regulations are a long way from being as wide reaching as SOPA legislation in the US. In effect the Regulations would hand back the job of defining the limits of Irish copyright law, in relation to online piracy, to the Courts. Therefore, realistically there will still be a lack of certainty surrounding the scope of this legislation, should it be passed into law, until a case comes along that will tests its limits.

The Top 11 of 2011

A rundown of our top eleven IP & Technology stories of 2011:

ICANN's Move to Allow For New Domain Names

On 20 June, the Internet Corporation for Assigned Numbers and Names (ICANN), the organisation that oversees Internet domain names, voted overwhelmingly in favour of one of the biggest changes in the web’s history, allowing a major expansion in the range of web suffixes available for registration.

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Clarification of ISP responsibility for Internet File Sharing

The ECJ has, in a judgment released today (Scarlet Extended SA (“Scarlet”) v Societe belge des auteurs, compositeurs et editeurs (“SABAM”), Case C-70/10), indicated that an order requiring a Belgian internet service provider to filter certain peer to peer files is not permissible under EU law.

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Ireland Implements New E-Privacy Laws on the Use of Web Cookies

Ireland has transposed the new E-Privacy Directive 2009/136/EC. The Directive amends the E-Privacy Directive 2002/58/EC and has attracted much attention due to the new rules it imposes in relation to the use of internet cookies.

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Challenges facing the Copyright Review Process

I have been mulling over the review of Irish copyright law recently announced by the Minister for Jobs, Enterprise and Innovation Richard Bruton. This is a commendable initiative and it is reassuring to see that that it has been staffed by a review committee (chaired by Dr. Eoin O’Dell, a lecturer at Trinity College Dublin and blogger) with expertise in the copyright field.

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Data Protection - The Article 29 Working Party issues Opinion on the definition of "consent"

The EU's Article 29 Working Party has issued an Opinion on the definition of "consent" in which it examines the individual elements and requirements for consent to be valid under the Data Protection Directive (95/46/EC) and the e-Privacy Directive (2002/58/EC). The Opinion also includes recommendations for improving the concept of consent in the context of the ongoing review of the Data Protection Directive.

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BRENNANS - CONFUSING BROWN BREAD!

For the later part of this year, I have been watching with great interest (partly due to a fondness for the subject matter) the passing off case involving bread makers McCambridge’s and Brennans. McCambridge’s sued Brennans claiming deliberate copying of its brown bread packaging which would cause confusion within the market.

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CJEU Rules that Unified Patent Litigation System is Incompatible with EU Treaties

You might recall that last April we wrote about the long awaited opinion from the Court of Justice of the European Union (CJEU) on the European Council’s draft agreement establishing a new European and Community Patent Court (Patent Court). That opinion was finally issued in March with the CJEC ruling that the draft international agreement put forward by the Council is incompatible with EU Treaties.

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Reform of the EU's Data Protection Directive expected in early 2012

The Vice President of the European Commission and EU Justice Commissioner, Viviane Reding, recently issued a statement regarding the proposed reform of the Data Protection Directive (95/46/EC), indicating the proposal will be published in early 2012.

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Copyright in Sound Recordings Extended to 70 Years

A new EU Directive extending the term of copyright protection in sound recordings from 50 years to 70 years has been recently passed. The ultimate aim of the new Directive is to help bridge the gap between the level of copyright protection given to authors and composers (70 years after their death) and that previously afforded to performers (50 years after the date of the initial performance). Colloquially it has been referred to as “Cliff Richard’s Law” because of this promise to ensure veteran rockers continue to earn royalties into their old age.

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Clarification from the ECJ on IP Infringement Control in E-Commerce

A recent ruling by the European Court of Justice (ECJ) on 12 July 2011 in the L'Oreal v. eBay case is an interesting one as it goes some way toward clarifying the law with regard to IP infringement control in the area of e-commerce.

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Report on Data Breach Notifications in the EU

The E-Privacy Directive (2009/136/EC), which formed part of the EU telecommunications regulation reform package passed in November 2009, makes it mandatory for public communications providers (i.e. ISPs and telcos) to inform national authorities of any data security breaches. Member States have until 25 May 2011 to transpose this Directive.

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Latest evolutions in the EU and US Patent Systems

After 30 years of negotiations, the Council of the European Union and the European Parliament agreed on vital elements of a European unitary system of patent protection this year.

The proposal, allowing for the creation of a unitary patent protection, will give rise to two regulations (one of which will deal with the controversial issue of translations) and one international agreement creating the European patent court. A statute for the unified patent court is also in draft form currently.

The proposal aims to reduce the costs and uncertainty of enforcing patents across national borders. The unified court will have exclusive jurisdiction over civil litigation related to infringement and validity for both the "classical" European patents and the European patents with unitary effect, with the main objectives of reducing costs relating to multiple litigations in several countries and preventing conflicting judgments. The court will also be able to request preliminary rulings on points of law from the EU courts in the same way that any Member State court can.

However one notable sticking-point remains.

The cities of Munich, London and Paris are all vying to be the seat of the new patent court. It is expected that the European Parliament will vote on the proposal in the beginning of next year.

After many years of debate, on 16 September 2011, the United States has adopted the Leahy-Smith America Invents Act (AIA), which moves the US patent system closer to the European one.

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Legislating for a Copyright "Loophole" in 2012

The Department of Jobs, Enterprise and Innovation has indicated that a new piece of legislation will be published early in the new year to address the perceived loophole in Irish Copyright Law which was said to exist in the wake of the EMI v UPC case (reported at : www.bailii.org/ie/cases/IEHC/2010/H377.html.

It is surprising that this move appears to come before the release of the much anticipated Copyright Law Review Group report, which was a Government born initiative.

You may recall that in the EMI v UPC case, Justice Charlton in the High Court held that Irish copyright law did not provide for any kind of injunctive relief which permitted the blocking or filtering of websites on the Internet.

 

Accordingly, internet service providers could not be obliged by the Courts to block sites like “The Pirate Bay” where users can use file sharing software to unlawfully download copyright materials.  

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"Counterfeit Goods" - Just Passing Through

Council Regulation 1383/2003 (the Regulation) permits customs authorities to take certain actions where goods entering the European Union (the EU) from non-member states are suspected of infringing intellectual property rights recognised in the EU. This includes suspending release of, or detaining the goods. Under the Regulation, such goods include, amongst others, counterfeit goods (goods infringing a trade mark right), pirated goods (goods infringing copyright or related right or design rights) and goods which infringe a patent under the law of the member state whose customs authorities are seeking to take action.

The Court of Justice of the European Union (the CJEU) has recently ruled that goods which are imitations of goods protected by a trade mark right, copies of goods protected by copyright or a design under EU or Member State law and which have originated from a non-member state cannot be classified as “counterfeit goods” or “pirated goods” under the Regulation merely on the basis that they have been temporarily imported into the EU while en route to another non-member state. Such goods will be classified as “counterfeit goods” or pirated goods” only where it is proven that they are intended to be put on sale in the EU.

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BRENNANS - CONFUSING BROWN BREAD!

For the later part of this year, I have been watching with great interest (partly due to a fondness for the subject matter) the passing off case involving bread makers McCambridge’s and Brennans. McCambridge’s sued Brennans claiming deliberate copying of its brown bread packaging which would cause confusion within the market. You might wonder what sparked such action. The matter seems to have arisen after Brennans changed the design and colour of its packaging in January 2011, adopting a transparent, resealable packaging with a dark green rectangle on the front of the packaging and McCambridges’ claimed that this re-branding would result in confusion amongst its own customers.  Would you be confused, see for yourself:

                             

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Intellectual Property Rights Protection, China

The modern Intellectual Property Rights (IPR) law system was born out of China’s need to develop its market economy in the early 1980s. Within the past three decades China has built up a relatively comprehensive and advanced Intellectual Property Laws and enforcement procedures.

General Legal Frame

To date, China has introduced and enacted legislation in the following areas:

1. Trade Marks: PRC Trademark Law (implemented as of 1 March 1983, last amendment in 2001);

2. Patents: PRC Patent Law (implemented as of 1 April 1985, last amendment in 2008);

3. Copyright: PRC copyright Law (implemented as of 1 June 1991, last amendment in 2010)

4. Software: Regulations on the Protection of Computer Software (implemented as of 1991);

5. Unfair Competition: Anti-unfair Competition Law (implemented as of 1993);

6. Customs: Intellectual Property Customs Protection Regulations (implemented as of 1995);

7. Integrated Circuits: Regulations on Protection of Integrated Circuit Layout Design (implemented as of 1995);

8. Plant Varieties: Regulations of Protection of New Plant Varieties (implemented as of 1997); and

9. IP Offences: Introducing Crimes of Infringing upon Intellectual Property Rights into PRC Criminal Law (implemented as of 1997).

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Social Media Contracts

A recent decision (Ardis Health LLC et al. v. Nankivell)of the U.S. District Court for the Southern District of New York dated 19 October 2011, provides a good insight into the best practices for parties contracting in the social media space.

 

“Social media” refers to any online medium that includes community features such as user-generated content, the ability to form groups and the ability to recommend, comment on, and share the content of others. Examples include Facebook and Twitter.

The plaintiffs in the proceedings were three companies that market online herbal and beauty products. The three plaintiffs are wholly owned and collaboratively operated by Jordan Finger. The defendant was hired by one of the plaintiffs, CYC, as a “Video and Social Media Producer”. The defendant signed a Work Product Agreement that provides that work created and developed by the defendant “shall be the sole and exclusive property of CYC, in whatever stage of development or completion”, and that it ”will be prepared as ‘work-for-hire’ within the meaning of the Copyright Act”. The agreement also provided that the defendant return all confidential information to the plaintiffs upon request, and that “actual or threatened breach of the agreement will cause irreparable injury and damage”.

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Clarification of ISP responsibility for Internet File Sharing

The ECJ has, in a judgment released today (Scarlet Extended SA (“Scarlet”) v Societe belge des auteurs, compositeurs et editeurs (“SABAM”), Case C-70/10), indicated that an order requiring a Belgian internet service provider to filter certain peer to peer files is not permissible under EU law.

The cour d’appel de Bruxelles referred questions to the ECJ following an appeal from a decision of the Tribunel de premiere instance in which Scarlet was ordered to implement filtering technology to prevent unlawful file sharing on its network. The question referred to the ECJ was, in particular, relevant to the interpretation of the Directive 2000/31/EC (the “E-Commerce Directive”), Directive 2001/29/EC (“the InfoSoc Directive) and Directive 2004/48/EC (“the Enforcement Directive”) and whether the provisions of these Directives permit Member States to authorise national courts to “issue injunctions against intermediaries whose services are used by a third party to infringe a copyright or related right”.

Both the InfoSoc Directive and the Enforcement Directive provide that intellectual property rights holders may apply for an injunction against intermediaries such as ISPs whose services are being used by a third party to infringe their rights. The ECJ held that it was a natural corollary of this that national courts could order ISPs to prevent future infringement. However, the Court held that any implementation of the InfoSoc Directive and Enforcement Directive should not affect the provisions of the E-Commerce Directive and more particularly the provisions of that Directive that relate to the “mere-conduit”, “caching” and “hosting” defences which can be relied on by Internet Service Providers and furthermore, the provisions of Article 15 which state that no general internet network monitoring obligations can be imposed on ISPs. 

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Music Body Asks BT to Block User Access to Pirate Bay Site

The British Phonographic Industry (BPI) has requested BT to use its own software to block users from accessing “Pirate Bay”, a website which provides access to illegal downloads of music, film and game files. While it does not store content, Pirate Bay facilitates access to sites which breach copyright via an index of links. 

BT has stated that, while it is considering its response, it will require a Court order to put measures in place to block access. As you may recall from a blog post earlier this year, the UK High Court previously ordered BT to block access to the site “Newzbin2”, which similarly provided access to illegal download sites via links collated on its site.

It remains to be seen whether BT can maintain its current approach which requires complainants to proceed with the costly process of obtaining a High Court Order, before it will block access.

Copyright in Sound Recordings Extended to 70 Years

A new EU Directive extending the term of copyright protection in sound recordings from 50 years to 70 years has been recently passed. The ultimate aim of the new Directive is to help bridge the gap between the level of copyright protection given to authors and composers (70 years after their death) and that previously afforded to performers (50 years after the date of the initial performance). Colloquially it has been referred to as “Cliff Richard’s Law” because of this promise to ensure veteran rockers continue to earn royalties into their old age.

 Although this means a further 20 years of copyright royalties for an artist’s record label, as owner of copyright in the sound recording, it will also be a welcome development for the individual artist, as essentially the new Directive provides the following benefits for artists:

·         A “session musicians’ fund” has been set up to ensure that such performers obtain an additional revenue stream for the duration of the extended copyright term (i.e. during the extra 20 years). This fund will consist of contributions made by the record companies, who will have to pay 20% of their revenues earned during the extended period into the fund. In this way, the extension of protection provided to sound recordings will benefit not only record labels, but all performers;

 

·         Also, a practical tool with which performers can make the most of the new protection is the new “use it or lose it” clause. This means that the record company which owns the copyright in the sound recording must give the copyright back to the performer if it fails to market the recording during the extended period despite requests from the performer. The performers themselves will then be able to market the recording however or wherever they chose. In addition, the new Directive has placed a prohibition on record producers from deducting any royalties due to be paid to a performer during the extended period.

This has been hailed as a major triumph for musicians all over Europe, as, prior to this amendment, the 50 year term of protection awarded to performers invariably expired during their lifetime. Member States must implement the Directive by 1 November 2013.

See attached link to the new Directive.  

Newzbin2: Mandatory Web Blocking for All ISPs?

The recent UK High Court decision given in the Twentieth Century Fox v BT case could have significant implications for Irish Internet Service Providers (ISPs). In this case, Mr Justice Arnold ordered BT to block access to the Newzbin2 website, a website that provides users with links to unlawful material. It is considered by many to be a landmark decision as it is the first time that an ISP has been subjected to this mandatory blocking.

What made this case particularly interesting is that BT had already implemented a blocking system, called Cleanfeed, to block access to child abuse images. In this case, Mr Justice Arnold ordered that BT use that same technology to block access to Newzbin2.

Mr Justice Arnold ruled that in his judgment “it follows that BT has actual knowledge of other persons using its services to infringe copyright: it follows that the users and operators of Newzbin2 infringe copyright on a large scale, and in particular infringe the copyrights of the Studios in large numbers of their films and television programmes.” This decision sets a clear precedent for copyright owners and ISPs alike with respect to the availability of “website blocking” injunctions.

In Ireland, the Irish Department of Enterprise, Trade and Employment recently announced its proposal to amend the Copyright and Related Rights Act 2000. The proposed amendment is sought in response to Mr Justice Charleton’s judgment in the EMI v UPC case. The draft European Communities (Copyright and Related Rights ) Regulations 2011 provide that owners of copyright may apply for an injunction against ISPs in order to prevent third parties from using its services to infringe copyright. If adopted, this new provision will potentially open the door to “website blocking” injunctions in Ireland.

Challenge to Controller's Decision to Adjust Royalty Payments

Commercial Court proceedings have been instituted challenging the recent decision of the Controller of Patents, Designs and Trademarks to introduce new tariff rates in respect of royalties to be paid for playing music in retail stores. The decision by the Controller, due to come into effect from 1 January 2012 next, purports to adjust the structure of the tariff applicable to retail premises.

Phonographic Performance (Ireland) Ltd (“PPI”), which acts as the centralised administrator of record company rights in Ireland, is claiming that the decision by the Controller would lead to a significant reduction in the amount of royalties being received from music played in retail stores across Ireland and that the Controller was acting outside its powers in making such a ruling.

National Anthem Copyright due to expire

As widely publicised, the copyright in the Irish national anthem is due to expire in December 2012. The National Anthem, titled "Amhrán na bhFiann", was composed in 1907 by Patrick Heeney who died nearly 70 years ago. Peadar Kearney wrote the English lyrics to the anthem and it is on the 70th anniversary of his death that the copyright will lapse in accordance with Irish copyright legislation. 

The Irish State purchased the copyright for the anthem for £1,000 in 1933. The Minister for Finance, Michael Noonan, has stated that the primary reason that the State holds the copyright in the national anthem is to ensure that the anthem is freely accessible and available to all and particularly to ensure that performance fees are not charged for its use. This will remain the case when the anthem falls into the public domain after the copyright has expired - the anthem will continue to be free to use.

 Mr Noonan went on to state that the other reason that the State had previously sought to ensure control of the copyright of the anthem was so that the piece was not used “in an inappropriate context and without due deference, such as to render it an object of scorn or derision”.  The absence of control over national anthems is a problem long experienced by other countries, most famously illustrated by Jimi Hendrix’s version of, ‘The Star Spangled Banner’ at Woodstock in 1969 and the Sex Pistols version of ‘God Save the Queen’.

It appears likely that the lapsing of the copyright in the national anthem in 2012 will provoke renewed debate regarding the continued relevance and appropriateness of the anthem in the 21st century. Already there has been debate in the Dail regarding possible wording changes when the copyright lapses.

CJEU Rules that Unified Patent Litigation System is Incompatible with EU Treaties

You might recall that last April we wrote about the long awaited opinion from the Court of Justice of the European Union (CJEU) on the European Council’s draft agreement establishing a new European and Community Patent Court (Patent Court). That opinion was finally issued in March with the CJEC ruling that the draft international agreement put forward by the Council is incompatible with EU Treaties.

The CJEU’s Opinion 1/09 of 8 March 2011 notes that the draft agreement would give exclusive jurisdiction to the proposed Patent Court to hear litigation related to the European patent and the future Community Patent. Such a measure would mean that the powers of Member State courts would be superseded and the proposed Patent Court would become the sole court to interpret and apply European Union law in this field.

Of particular concern to the CJEU was that the proposed Patent Court was outside the institutional and judicial framework of the EU; this international court would have an exclusive jurisdiction under a significant number of actions in relation to Community Patents and also the power to interpret and apply European Union law. This means that Member States would retain only those powers which were not subject to the exclusive jurisdiction of the Patent Court. Member State courts would therefore be deprived of their powers to interpret and apply European Union law and the CJEU would be deprived of its power to reply to questions referred by those courts by way of preliminary ruling. The CJEU concluded that such a proposal would change “the essential character of the powers which the Treaties confer on the institutions of the European Union and on Member States” which are “indispensible for the preservation of the very nature of European Union Law”.

The opinion raises the question whether it will be possible to establish a unified patent litigation system that will satisfy the various stakeholders’ interests and also comply with EU law. For now, it looks like its back to the drawing board for the Council.

UK Court of Appeal Dismisses Appeal to Allow Post-Trial Amendment of a European Patent

 The recent case of Nokia GmbH and Others .v. IPCom GmbH & Co. involved an appeal against a decision of Mr Justice Floyd who had held that IPCom’s two European Patents (relating to cellular mobile phone technology), were invalid for obviousness.

IPCom had made two applications to amend the patents, one of which was made shortly before the trial and the other one after the trial. Mr Justice Floyd refused both applications firstly on the basis that the application made just before the trial raised a whole new set of issues and secondly, on the basis that it would have necessitated a new trial on issues that should have been determined in the main proceedings.

The Court of Appeal upheld the judge’s refusal to amend the patents, ruling that IPCom had proposed amendments too late for them to be dealt with fairly at trial. Lord Justice Jacob held “they were not, as they could have been, formulated at a much earlier stage of the proceedings, a stage when they could fairly be considered at the trial.” Accordingly, the Court of Appeal held that the judge was correct in regarding the applications to amend the patents as procedurally unfair and that it was an abuse of process to subject the other party to further litigation.

Report on the Application of Directive 2004/48/EC

 

On 22 December 2010, the European Commission published a report on the impact and implementation of Directive 2004/48/EC on the enforcement of intellectual property rights, which came into force on 20 May 2004 and which was implemented by Ireland under European Communities (Enforcement of Intellectual Property Rights) Regulations 2006 (SI 360 of 2006).

The Commission notes that while noteworthy progress in enforcement has been made since the Directive was implemented, the sheer volume and financial value of intellectual property rights infringements is "alarming". It cites one reason for this as being the opportunities offered by the internet to facilitate infringement - a challenge the Directive was not designed to address.

It also notes that several issues deserve further attention, for example the need to clarify the meaning of various corrective measures e.g. the calculation of damages. 

The Commission welcomes feedback from all interested parties on this report by 31 March 2011.

Taoiseach Calls for Copyright Law Reform

During the week, Taoiseach Brian Cowen called for a review of EU copyright legislation saying that the balance between the rights holder and the consumer needs to be examined so as to ensure that innovative companies operating in the digital environment are not disadvantaged against competitors. The Taoiseach said that the new digital media world is a sector where the European Union should try to carve out a lead for itself and that issues such as intellectual property and particularly the use of copyright material need to be looked at again.

 The Minister for Enterprise, Trade and Innovation will also be reviewing Ireland’s domestic application of copyright legislation to identify any changes Ireland should make within the existing EU framework.                                                                           

Patent Royalty Tax Exemption Abolished

Yesterday's Budget saw the patent royalty tax exemption abolished as announced in the National Recovery Plan 2011 - 2014. Similarly, the tax exemption for distributions made by companies from (previously) exempt patent income was also abolished.

Abolition takes effect from 24 November 2010 - the date on which the Plan was launched.

UK Court of Appeal Confirms Test for Patent Contributory Infringement

The UK Court of Appeal has allowed some of the grounds of appeal from a High Court decision on the infringement and validity of two patents relating to wound-dressings. The Court disagreed with the construction the High Court had put on the claims of the first patent and held that the Appellant did not infringe. On the ground of claim construction the Court also held that one of the asserted claims of the second patent was invalid. 

 Interestingly the Court found that Arnold J had applied the wrong test for contributory infringement taking into account the recent Court of Appeal decision on the interpretation of contributory infringement (see article below by same author on 22 October).

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The Battle with Willy the Wizard Continues

 JK Rowling will be unhappy with a recent refusal of the English High Court to grant summary judgment on a copyright infringement claim made against her and her publishers.


The copyright claim is made by the trustee for the estate of Adrian Jacobs, the author of a book called Willy the Wizard (WTW). It is claimed that JK Rowling read WTW before writing any of the Harry Potter books and that aspects of the plot, sub-plots, themes and incidents in WTW were copied into the fourth book in the Harry Potter series, Harry Potter and the Goblet of Fire. In an attempt to get the infringement claim thrown out, JK Rowling and her publishers applied for summary judgment on the basis that the claim had no real prospect of success. It was argued that JK Rowling had never heard of WTW before writing the Harry Potter books and that any similarities between the books had arisen by chance. Kitchin J decided however that there was some prospect of the infringement claim succeeding at trial, and he dismissed the application.


Although JK Rowling and her publishers are now faced with the preparation of a full trial, they will no doubt be consoled by the opinion expressed by Kitchin J that it is improbable that the claim will succeed. It may also be a source of consolation that in his decision, Kitchin J closely followed the approach of the Court of Appeal in a previous, unsuccessful infringement claim against Dan Brown’s novel, The Da Vinci Code (see Baigent v Random House Group Ltd [2007] EWCA Civ 247).


For the full decision of Kitchin J click
here.

Language Issues Hamper Plans for EU Patent System

At a recent meeting of the Competitiveness Council, European Ministers acknowledged that an EU patent is essential for encouraging innovation and boosting competitiveness. There was however disagreement on the language regime set forth in an EU Commission Proposal aimed at establishing translation arrangements for a future EU patent system.

Under the proposed language regime, applicants would only be required to provide translations into one of the three official languages of the European Patent Office (i.e. English, French or German) and no further translations would be required to effect the enforcement of the patent throughout the EU.

Despite the Ministers’ disagreement, there may be some hope of salvaging plans for an EU patent system, as a “very large majority” reportedly supported a compromise put forward by the Belgian Presidency. The Belgian compromise highlighted the importance of making available high-quality machine translations into all EU languages as well as compensation for the costs of translation of a patent application drafted in an EU language other than one of the official European Patent Office languages.

There are plans to organise a Ministerial Conference in November in an attempt to reach an agreement. The current disagreement on language issues do not however bode well for future negotiations as similar language issues have hampered previous attempts to establish an EU patent system.

UK Court of Appeal interpretation of contributory infringement in patent case

The UK Court of Appeal reversed an aspect of the decision of Floyd J in a recent patent infringement case. The decision is of general interest for its discussion of the interpretation of contributory infringement under section 60(2) of the Patents Act 1977 and the Court's views on the following of decisions of other national courts.

The Appeal Court held that the intention to put an invention into effect required under section 60(2) of the Patents Act 1977 need not be of any specific person.

The knowledge and intention requirements of that section were satisfied if, at the time of supply or offer of supply, the supplier knew, or it was obvious in the circumstances, that ultimate users would intend to put the invention into effect.

The Court was astonished that neither party mentioned a decision of a Dutch Court in relation to the same matters and the very same machine in which the appellant appeared as claimant. The Court's view is that an important decision in one member state might well be of strong persuasive value in another member state, particularly where the judgement contained clear reasoning on a point of national patent law which in turn implemented a treaty provision.

The interpretation of the knowledge requirement in relation to contributory infringement in this case would likely be followed by an Irish court given the similarity between section 60(2) of the Patents Act 1977 and section 41(1) of the Patents Act 1992. The Judges' comments on the decisions of other national courts on the interpretation of statues putting international treaties into effect is an interesting one given the continuing delay in efforts to harmonise European patent law. Click on the link below to view the case - Grimme Landmaschinenfabrik GmbH & Co KG v Derek Scott (t/a Scotts Potato Machinery) [2010] EWCA Civ 1110, 15 October 2010.

Oireachtas Invited to Legislate to Protect the Constitutional Rights of Copyright Owners - UPC wins against the Irish Music Industry

On Monday Mr Justice Peter Charleton gave judgement in favour of UPC against the Irish record industry in a landmark copyright case. The Judge determined that the Plaintiff had not succeeded in its attempt to procure an injunction against the internet service provider. UPC had claimed that it had no liability under the Copyright and Related Rights Act 2000 and argued that it was a mere conduit for illegal downloading. The Judge held that copyright law made no proper provision for the blocking, diverting or interrupting of internet communications intent on breaching copyright.

In his judgement the Judge criticised UPC’s failure to take action against those involved in illegal downloading and stated he was “not satisfied that the attitude of UPC toward the illegal sharing of copyright material over the internet is either reasonable or fair”. He said that while an injunction directing UPC to act against privacy was merited on the facts of the case, the lack of any provision in the 2000 Act prevented the granting of the orders sought.

The Judge went on to say that internet piracy was devastating the recording companies’ business in Ireland and the retail sector in Ireland: “If there are no profits, and no royalties to artists, the legal sale of recorded music, through the preparation of albums, will stop”. He made reference to legislation and procedures in the US, the UK, Belgium and France and said that Ireland’s legislation with regards to copyright and piracy is clearly not in line with other States. He stated that “Legislative intervention is required, if the Oireachtas sees fit, to protect constitutional rights to copyright and foster the national resource of creativity”.

Interestingly, the Judge said that he had erred in his previous judgement in the Eircom case as there was no legislative basis in Irish law that enabled him to reach the conclusions he did and he invited the Parties involved in that case to reapply to the Courts.

The judgement is available to read here.

High Court Delivers Landmark Intellectual Property Judgement

The High Court today delivered a landmark judgement in favour of the Defendants in the case of Koger Inc. and Others v HWM and Others.

Commenting on the outcome of the judgement Shamus O'Donnell, Managing Director of HWM, said: "We are delighted to have won the court's backing in this crucial judgement which reinforces the freedom of employees in the IT sector to regard their own skills and know how as their own intellectual property and looks likely to be the leading intellectual property software authority in Ireland".

A&L Goodbody acted for the Defendants in this case.

ECJ Rules Lego Brick is Not Registrable as a Community Trade Mark

The ECJ has ruled that Lego’s 2 x 4 red brick logo is not registrable as a Community Trade Mark due to the fact that all the essential characteristics of the Lego brick perform a technical function.

OHIM, the European Trade Mark Office, originally cancelled the registration of Lego’s famous red brick back in 1999 after Lego competitor Mega Brands requested its cancellation. Mega Brands argued that European trade mark law precluded the registration of "any shape which performs a function from trade mark protection". Lego appealed the decision to the Court of First Instance and then further to the European Court of Justice.

It appears that the ECJ was influenced in its ruling by the public interest consideration in ensuring that companies cannot use trade mark law to secure a monopoly over technical solutions. The ECJ decision indicates that obtaining a Community Trade Mark for product shapes could potentially be problematic for businesses.

Signs of Growth in IP Filings and Innovation

Good news emerged from the World Intellectual Property Organisation (WIPO) this week in the form of a report detailing a recovery in the demand for IP rights and an increase in innovative activity. The report, entitled World Intellectual Property Indicators 2010, also documents how the economic slump resulted in a drop in demand for IP rights, and caused companies to adjust their innovation strategies.

The future however looks good and according to the report, patent applications filed under the Patent Cooperation Treaty (PCT) and international trademark registrations filed under the Madrid system have returned to growth.

Read the report here: www.wipo.int/ipstats/en/statistics/patents/

New EU-Australia Wine Trade Agreements on Trade Names

A new agreement governing the wine trade between Australia and the European Union entered into force recently (replacing an older version signed in 1994). The new agreement gives full protection to EU geographical indications which prevent the use of certain names on wines (and goods in general) unless the wines are produced in the region indicated by that name. 

 Australian wine producers will be obliged to phase out use of important EU names such as "Champagne", "Port", "Sherry" and other European geographical indications, along with other traditional expressions such as, "Claret" from 1 September 2011.

The protection of geographical indications as described above has been in force in the EU for some time. The agreement with Australia will come as a timely boost to European wine producers who have seen their world market share impacted in recent years by the growing sales of "new world" wines.

Scope of UK Advertising Code Extended

Recently the UK Advertising Standards Authority (ASA) announced that the scope of the CAP Code (a set of rules setting down standards for advertising) will be extended to a company’s own website and other non-paid-for online space which is controlled by a company.

The CAP Code currently covers sales promotions (wherever they appear), and other marketing communications are only covered if they appear in paid-for online space (such as banner and pop-up advertisements or keyword advertising on search engines).

The decision to extend the code was in response to a formal recommendation from a wide cross-section of UK industry. The limited scope of the Code was considered inappropriate due to the increased use by organisations of their own website and other non-paid-for space online, such as social networking sites. There have also been increased complaints about such websites and it was felt there was a need to protect children and other vulnerable individuals in the digital environment. UK companies have six months to ensure that their websites and other online space under their control comply with the code.

The Advertising Standards Authority for Ireland (ASAI) currently monitors the contents of companies’ websites. However it remains to be seen if the scope of the ASAI Code (the Irish equivalent to the UK CAP Code) will be extended to social networking sites.

EU Patent Litigation System - Advocate General gives it the thumbs down!

The eagerly awaited Advocates General of the ECJ’s opinion on the proposed single European patent system and European Patents Court (EEUPC) has recently been published.
In June 2009, the Legal Service of the Council of the European Union had requested the opinion of the ECJ on the compatibility of the proposed unified patent system with the EU Treaties. The Opinion now, in a surprise to many, firmly rejects the legality of the proposed system:
“as it stands at present, the envisaged agreement creating a unified patent litigation system is incompatible with the treaties”.

The Advocates General highlighted four areas as being particularly incompatible with the EU treaties:
1. the insufficient guarantees of the pre-eminence of EU law;
2. the insufficient remedies for infringement of EU law under the EEUPC system;
3. the linguistic system adversely affecting defendants; and
4. the draft agreement establishing the unified patent litigation system not ensuring effective judicial control nor a means of correct and uniform application of EU law.
 

                     The ECJ is due to give its formal decision before the end of the year.

The Advocates General’s opinion is non-binding and therefore it remains to be seen whether the ECJ will concur with the opinion or reach a different conclusion with regards to a unified patent system in Europe. If rejected by the ECJ, it may be a case of back to the drawing board for this very difficult patent law policy initiative.

Landmark Software Copyright Decision from the UK High Court

The recent UK High Court case of SAS Institute Inc. –v- World Programming Limited marks a significant legal development for software developers in relation to the scope of copyright protection for computer software and source codes in the European Software Directive. The UK High Court has ruled that copyright protects the source code of the software program as a literary work but that the replication of software functionality without access to source codes, at whatever level of detail, is not an infringement of copyright. The judgment has been referred to the European Court of Justice (ECJ) for confirmation of this interpretation of the Software Directive.

SAS Institute Inc. (SAS), one of the world’s largest developers of analytical software, lost it’s case in the UK High Court against World Programming Limited (WPL) for the misuse of the SAS Learning Edition, breach of licence terms, copyright infringement and other IP infringements in respect of it’s SAS System.

WPL developed it’s own language interpreter software product called World Programming System (WPS) to execute application programs written in the SAS Language and which emulated the functionality of the SAS Components in direct competition with SAS’s own products. The WPS software was created without access to SAS’s source codes.

Arnold J held that EU law protected WPL from breach of SAS's licence terms where WPL used the SAS Learning Edition to observe, study and test its programming functions when it developed it's WPS software product.

While the precise wording of the reference to be made to the ECJ is yet to be formulated, it will seek confirmation as to whether programming languages, interfaces and functional aspects of software are excluded from protection under Article 1(2) of the Software Directive and the extent of the exclusion from infringement for acts of observation, studying and testing of a program under Article 5(3).

Another Episode in the Budweiser Saga

The ECJ has ruled that Anhueser-Busch InBev should be restricted from registering the word ‘BUDWEISER’ as a Community trade mark.  This decision puts this particular aspect of the long running legal battle between the two parties to an end.  The drama began on 1 April 1996 when Anheuser-Busch filed an application with OHIM for registration as a Community Trade Mark of the word sign ‘BUDWEISER’.

Anheuser Busch still holds the trade mark rights for the words ‘BUD’ and ‘BUDWEISER’ in 23 EU countries, and the decision to refuse registration of a Community trade mark has no bearing on the standing of these EU national rights.

It remains to be seen what the next chapter of this interesting legal battle will bring.
 

Viacom and Google's $1 billion Lawsuit

A decision in the US district court has declared that Google-owned website YouTube is not guilty of copyright infringement when users post videos to the site without permission. The Court ruled that liability for copyright infringement only arises once a copyright owner makes YouTube aware of any illegal videos on its site and it fails to act to remove them from its site.

Viacom issued proceedings in 2007; it claimed that YouTube's business was based on copyright infringement and that it profited from the unauthorised use of its copyrighted material.

The Digital Millennium Copyright Act (DMCA) in the US allows online service providers to avoid liability for hosting their users' illegal actions and absolves them of any duty to monitor their service for breaches of the law. Once companies are told of a breach in the law they must act quickly, to the extent they can, to remove the content or become accountable, according to the safe harbour provisions of the DMCA.

Viacom argued that safe harbour protection did not apply to Google because it knew that infringement was taking place on a massive scale. The Court held that it would be improper to hold Google and YouTube liable under federal copyright law merely for having a "general awareness" that videos might be posted illegally: "Mere knowledge of prevalence of such activity in general is not enough. That is consistent with an area of the law devoted to protection of distinctive individual works, not of libraries…The present case shows that the DMCA notification regime works efficiently…When Viacom over a period of months accumulated some 100,000 videos and then sent en masse takedown notice on February 2, 2007, by the next business day YouTube had removed virtually all of them".

The Court noted that previous cases had made it clear that the onus is on the owners of the copyright to find and identify infringing material, not the online service provider.

The Court rejected allegations by Viacom that YouTube was akin to file sharing entities such as Grokster or Lime Wire and that the same legal rules should apply in this case as did in earlier successful actions against those companies.

Viacom said it would appeal the ruling.

Patent Holding Company taking action against Smartphone Companies

NTP, the patent-holding company best known for securing $612.5 million from the manufacturer of the Blackberry after accusing it of infringing patents, has now filed suit against six other smartphone companies- Apple, Google, Microsoft, HTC, Motorola and LG Electronics.
 

The suits, which were filed last week, allege that the mobile phone email systems of these companies incorporate NTP’s technology.

The patents in issue are identical to those that were at issue in the litigation taken against Blackberry maker Research In Motion (RIM), a case that settled in 2006. The settlement included a perpetual licence for RIM to NTP’s technology. Nokia and Good Technology have also licensed NTP’s mobile email patents. The NTP patents expire in 2012.

Patent holding companies often launch patent battles against established industry players even though they have no intention to market their own patented product - hence they have attracted the name "patent trolls".

New Legislation to Allow Generic Substitution

The Irish Minister for Health, Mary Harney, has announced plans to bring forward legislation that would introduce reference pricing and permit generic substitution by pharmacists in Ireland.

Currently, when a specific brand of medicine is prescribed for a patient, a pharmacist can only supply that particular brand. The new measures would oblige pharmacists to advise patients if an alternative generic drug is available. In a country where less than one in five prescribed drugs are generic (compared to four in five in the UK), it is estimated that the new legislation would result in savings for the Irish taxpayer of at least €78m.

It is expected that 100 branded products will be covered in the legislation, which is expected to be introduced later this year.

We will update readers on the progress of this legislation. 

World Cup ambush marketing

An alleged publicity stunt by the Dutch brewer Bavaria resulted in the arrest in South Africa recently of two Dutch women on charges of organising "unlawful commercial activities".

The two women along with 34 others appeared in a prominent pitch side position at the recent Netherlands v Denmark World Cup game in Soccer City Stadium in Johannesburg wearing orange mini-dresses apparently associated with Bavaria.

As soon as the stadium television cameras captured pictures of the group, they were ejected from the stadium with two being arrested. They were subsequently released.

FIFA, the owner of the rights to the 2010 World Cup in South Africa, has stated that it is looking into "all available legal remedies" against Bavaria. The right to associate ones brand with the World Cup is licensed by FIFA to official sponsors wishing to promote their brands in conjunction with the event. Companies not willing to pay the substantial fees (often millions of dollars) involved to secure rights of association but which are still determined to promote their products at these world wide events tend to adopt the type of ambush marketing stunt alleged here. It appears that Bavaria sold the mini-dresses in question in the Netherlands prior to the World Cup as part of a gift pack with the only distinguishing feature of the garments being a tiny outer label carrying the brand's name. In an effort to raise the Dutch public's awareness of their promotion Bavaria arranged for one of the mini-dresses to be modelled by the high profile wife of a Dutch player prior to the tournament.

Because FIFA depends on sponsorship fees to run events like the World Cup its sponsors in turn enjoy exclusivity of the exploitation of the brands associated with the World Cup. This exclusivity is enforced in conjunction with the host nation by imposing fines for infringements and in this instance the possibility of criminal sanctions which are not often associated with the infringement of such rights. As with all successful ambush marketing stunts the publicity gained is substantial and highly beneficial to the company.

 

Compagnie Gervais Danone v Glanbia Foods Society Limited

On 19 May 2010, the Supreme Court set aside a judgment and Order of the High Court and substituted an Order refusing Glanbia’s application for revocation of Irish Registered Trademark No. 211092 ESSENSIS in Class 29.

 Danone had filed proceedings against Glanbia in early 2006, claiming that Glanbia, through its use of the mark or sign ESSENCE in relation to a yoghurt product, had infringed Danone’s registered trademark ESSENSIS in the State. Glanbia by way of counterclaim, claimed that Danone did not have any legitimate entitlement to maintain the trademark registration because it had not put the registered trade mark to genuine use in the State in relation to the goods for which it was registered within the statutory period of five years from the date of publication of the registration. Glanbia further claimed that the application for registration of the trademark had been made in bad faith and for that reason should be declared invalid.

The High Court found that Danone had failed to establish any genuine use in the State of the ESSENSIS trademark in relation to yoghurt, and that any use of the trademark had been solely in relation to a culture within Danone’s “Activia” yogurt – for which no registration in Class 1 existed. Accordingly, it held that Glanbia was entitled to an Order for its revocation under s.51(1)(a) of the Trade Marks Act, 1996 (TMA 1996), but it did not succeed on its claim that the trademark had been registered in bad faith.

In a judgment delivered by Ms. Justice Fidelma Macken, the Supreme Court concluded that the learned High Court judge “applied an unduly restrictive interpretation” of the principles set out in ECJ case no.C-40/01 Ansul B.V. v Ajax Brandbeveilinging B.V. [2003].

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"Your Country, Your Call" - Your IP?

It has been widely publicised that the Your Country Your Call competition, which closed on 30 April 2010, yielded in or around 9,000 entries.  The competition is designed, in the words of its promoter An Smaoineamh Mor Limited, to find two major proposals that when implemented will transform the Irish economy by creating jobs and opportunity.

Proposals were accepted in relation to nine categories: communications & technology; design, engineering & manufacturing; education & the arts; energy & the environment; food & agriculture; health, sport & nutrition; professional services; tourism & hospitality; and other.

Recently the intellectual property provisions contained in the competition terms and conditions have also attracted attention.  Section 7.2 provides that, at the option of An Smaoineamh Mor, the winning participants, in consideration of entry into the competition, shall irrevocably transfer to An Smaoineamh Mor all right, title and interest in and to the winning proposals and all IP rights therein.  The winning participants further agree to waive all moral rights to which they might be entitled, which would include the right at all times to be identified as the author of the work.

All participants should therefore be aware that in the event that they win the competition they may be precluded from exploiting their proposal at a later date.  However as the relevant section only applies to the winning entries, those that are not successful should still retain any basic IP rights they have in their work.  Two winners are due to be announced on 17 September 2010, and will each receive €100,000.  A further €500,000 is being put aside for the implementation of each of the winning proposals. 

A step closer to the Holy Grail of the European Patent

At its meeting in Brussels on 4 December 2009, the European Council took a significant step towards the creation of a European patent having unitary effect in the EU (PDF). Currently it is not possible to obtain a single patent to protect inventions in the European Union with innovators forced to file patent applications in every Member State individually.  In addition patent owners must litigate infringement separately in each jurisdiction.  This leads to increased patent prosecution costs, increased legal fees and lack of legal certainty due to conflicting judgments from national courts. 


…the creation of a European Union patent and the establishment of the EU Patent Court as a unified jurisdiction for patent related disputes.

At its meeting, the Council concluded that the enhancement of the European Patent system should have two pillars, i.e. the creation of a European Union patent and the establishment of the European and EU Patents Court (EEUPC) as a unified jurisdiction for patent related disputes.  In approving the steps that should be taken, the Council has noted that enhancing the patent system in Europe is necessary for boosting growth and innovation and is a vital element of the internal market.

The EU Parliament will now have the opportunity to debate the new EU Patent Regulation, while the Council will wait for an opinion on the new patent court from the European Court of Justice, which is expected at the earliest by Summer 2010.

High Court Refers Hotel TV Questions to the European Court of Justice

On 23 March, Ms Justice Finlay Geoghegan referred a number of questions to the European Court of Justice arising from an action taken by the music collecting society, Phonographic Performance (Ireland) Ltd (PPI), against the State.

PPI argued that hotels in Ireland are obliged as a matter of Community law to pay copyright fees for music played in hotel bedrooms.

At present hotels are not obliged to pay copyright fees for music played in hotel bedrooms because section 97(1) of the Copyright and Related Rights Acts 2000-2007 provides that there is no infringement of copyright where a sound recording is heard or viewed ‘in part of the premises where sleeping accommodation is provided for the residents’.

PPI argued that this provision is in breach of Article 10 of the Treaty establishing the European Community (now Article 4 of the Treaty on European Union) and is seeking damages. According to the Irish Times, PPI is seeking to charge €1 per hotel room per week and estimates it is losing in the region of €2.6 million a year.

In an interim decision, Ms Justice Finlay Geoghegan asked the Court of Justice for clarification on a number of issues:-

  • Does a hotel which has TVs and radios in its bedrooms fall into the category of users which have to pay equitable remuneration under Article 8(2) of the Codified Directive 2006/115/EC? If it does, the Court of Justice will then have to decide whether Article 8(2) obliges hotel operators to pay copyright fees in addition to the fees paid by the broadcaster.
  • Does Article 10 of the Directive 2006/115/EC permit Member States to exempt hotel operators for paying the copyright fees on the grounds of “private use”?

Three Strikes and You're Out! - A Change of Heart?

You may recall that in January of last year Eircom agreed to implement a “three strikes and you’re out” policy as part of an out of court settlement with IRMA.  Eircom agreed to work with the “Big Four” music labels in Ireland – Universal, Warner, Sony and EMI – to help them pursue illegal downloaders and uploaders.  Under the system Eircom customers downloading music from peer-to-peer services were to receive two warnings after which they would be disconnected if they continued to engage in the activity.  The settlement agreement set a precedent and it was expected that all other ISPs in the Irish market would be compelled to follow suit.

However, recent developments at home and in Europe now call into question the effectiveness of the agreement.

Eircom and IRMA have requested the High Court to rule on whether implementing the “three strikes” rule contravenes data protection law.  A negative ruling by the High Court is likely to make the enforcement of the agreement very difficult.  

Further afield, in May 2009, the French Parliament passed legislation that introduced measures to combat music piracy, including a “three strikes” regime for persistent copyright infringers that would result in the perpetrator losing their internet connection. However, the French Constitutional Court subsequently held the provision to be unconstitutional. The court held that the legislation went directly against a decision in the European Parliament, whereby disconnecting alleged copyright infringers would violate the fundamental rights and freedoms of internet users.

More recently, the EU has adopted a telecoms directive that guarantees citizen access to the Internet and which requires due process and effective judicial protection for persons whose access to the Internet is denied.  Commissioner Viviane Reading has stated that “Three-strikes-laws, which could cut off internet access without a prior fair and impartial procedure or without effective and timely judicial review, will certainly not become part of European law”.

These developments pose seriousness challenges to the three strikes regime agreed between IRMA and Eircom.