Judgments

Decision Information

Decision Content

T-2093-88
Federal Liberal Agency of Canada and Red Leaf Communications Limited (Plaintiffs)
v.
CTV Television Network Ltd., Canadian Broad casting Corporation, Global Communications Limited (Defendants)
INDEXED AS: FEDERAL LIBERAL AGENCY OF CANADA V. CTV TELEVISION NETWORK LTD.
Trial Division, Martin J.—Ottawa, November 7, 8 and 10, 1988.
Injunctions — Networks refusing to broadcast political advertisements consisting of extracts from telecast leaders' debate — Plaintiffs establishing prima facie statutory obliga tion to broadcast advertisements pursuant to Canada Elections Act, ss. 99.13 and 99.21 — Defendants establishing arguable defence of copyright infringement — Balance of convenience favouring plaintiffs as refusal of interlocutory injunction depriving plaintiffs of right to which prima facie entitled — Grant of interlocutory injunction not giving rise to equivalent harm to defendants — Whether CTV considers advertisements contrary to public interest irrelevant to balance of convenience — Provision of penalty or disciplinary action for refusing to broadcast material not precluding enforcement of statutory obligation by Court order.
Elections — Canada Elections Act, ss. 99.13 and 99.21 prima facie imposing obligation on networks to broadcast political advertisements — Advertisements consisting of extracts of videotaped leaders' debate within meaning of - pro- duced by or on behalf of party.
Broadcasting — Political advertisements — Canada Elec tions Act, ss. 99.13 and 99.21 imposing on networks prima facie statutory obligation to broadcast political advertisements — Although arguable defence of copyright infringement in using extracts from videotaped leaders' debate, balance of convenience favouring plaintiffs.
Constitutional law — Charter of Rights — Fundamental freedoms — Alleged right to refuse to broadcast political advertisements under constitutional guarantee of freedom of press dismissed.
This was an application for an interlocutory injunction pro hibiting the networks from refusing to broadcast political advertisements, being extracts from a videotaped debate, the participants in which were the leaders of the three major political parties. Sections 99.13 and 99.21 of the Canada Elections Act requires the defendants to set aside free time and paid time for political programming immediately prior to a
general election. The networks argued that they had copyright in the videotapes, and that this was infringed by the advertise ments. The CBC further submitted that under the constitution al guarantee of freedom of the press, the networks are free to refuse to broadcast any political advertisement if, for any reason, they do not wish to do so. The Corporation also submitted that as the advertisements were extracts from the videotapes of the debates, they were not "produced by or on behalf or' the plaintiffs within the meaning of sections 99.13 or 99.21. Furthermore, it was argued that the existence of other penalties in the Act for breach of an obligation precluded the use of an interlocutory injunction to enforce such obligation. Finally, it alluded to an agreement between the parties whereby the plaintiffs agreed not to use material from the debates in their advertisements.
Held, the application should be allowed.
The plaintiffs had made out an arguable case, and the defendants established that they have an arguable defence. The plaintiffs established the existence of a prima facie statutory obligation on the part of the defendants to broadcast their political advertisements and the defendants established that, assuming these advertisements amount to copyright infringe ment, they were justified in refusing to broadcast them. As the scales were approximately evenly balanced in this respect, it was necessary to consider the balance of convenience. The plaintiffs would suffer greater harm if the interlocutory injunc tion were refused, than the defendants would suffer if it were granted. A refusal would deprive the plaintiffs absolutely of the right to which they are prima facie entitled. The defendants' objections to broadcasting the plaintiff's advertisements were more concerned with matters of principle which will continue to exist after the election. If this decision is reversed, the prece dent of allowing anyone to use its news material would no longer exist. CTV's credibility as a news gathering operation should not be damaged by this order as it acted swiftly in opposing it, and would likely act just as quickly to have it reversed at trial. The defendants' objections based on the public interest are irrelevant to the question of balance of convenience.
As to the secondary objections: (1) there is no issue of freedom of the press; (2) although the advertisements were copied from the original videotapes, they were produced by or on behalf of the plaintiffs; (3) the provision of a penalty for refusing to broadcast the material or the possibility of discipli nary action against the networks did not prevent the plaintiffs from seeking a Court order to enforce the defendants' obliga tion to perform a statutory duty; (4) there was no evidence supporting the suggestion that there had been an agreement not to use the material from the debates in preparing election advertisements.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Broadcasting Act, R.S.C. 1970, c. B-11.
Canada Elections Act, R.S.C. 1970 (1st Supp.), c. 14, s. 99.13 (as enacted by S.C. 1980-81-82-83, c. 164, s. 17), 99.21 (as enacted idem).
Copyright Act, R.S.C. 1970, c. C-30, s. 4(3) (as am. by R.S.C. 1970 (2nd Supp.), c. 4, s. 1),(4) (as am. idem).
CASES JUDICIALLY CONSIDERED
APPLIED:
American Cyanamid Co y Ethicon Ltd, [1975] 1 All ER 504 (H.L.); NWL Ltd y Woods, [1979] 3 All E.R. 614. (H.L.).
CONSIDERED:
Can. Admiral Corporation, Ltd. v. Rediffusion, Inc. (1954), 20 C.P.R. 75 (Ex. Ct.).
COUNSEL:
William T. Green, Q.C. and Claude Brunet for plaintiffs.
Edward A. Ayers, Q.C. and Gary A. Maavara for defendant CTV Television Network Ltd.
Gordon Henderson, Q.C. and Rose-Marie Perry, Q.C. for defendant Canadian Broad casting Corporation.
William T. Houston for defendant Global Communications Limited.
SOLICITORS:
Beament, Green, York, Manton, Ottawa, for plaintiffs.
Borden & Elliot, Toronto, for defendant CTV Television Network Ltd.
Gowling & Henderson, Ottawa, for defendant Canadian Broadcasting Corporation.
Fraser & Beatty, Ottawa, for defendant Global Communications Limited.
The following are the reasons for order ren dered in English by
MARTIN J.: The plaintiffs apply for interlocuto ry injunctive relief prohibiting the defendants from refusing to broadcast two political advertisements and ordering them to broadcast them.
The advertisements consist of 120-second and 30-second extracts from the videotaped leaders'
debate which took place on October 25, 1988. The plaintiffs have requested and the defendants have refused to broadcast the first advertisement as a free-time political advertisement pursuant to sec tion 99.21 of the Canada Elections Act [R.S.C. 1970 (1st Supp.), c. 14 (as enacted by S.C. 1980- 81-82-83, c. 164, s. 17)]. They have also refused to broadcast the second advertisement as a paid political advertisement pursuant to section 99.13 [as enacted idem] of the Act.
It is not disputed that the defendants have made available to the plaintiffs various times for the broadcasting of the plaintiffs' free-time and paid political advertisements and that, if the defendants do not broadcast the advertisements which are the subject of this application, they will have time available and will broadcast other paid and free- time partisan political programming produced by or on behalf of the plaintiffs.
The defendants have refused to broadcast the advertisements which are the subject of this application for the principal reason that they claim to have a copyright in the videotapes of the lead ers' debates and that by taking unauthorized extracts from the debates for their political adver tisements the plaintiffs are infringing the defen dants' copyright. I say that the defendants' "prin- cipal reason" for refusing to broadcast the plain tiffs' advertisements is on account of the alleged infringement of the defendants' copyright because the defendants have also advanced other reasons for refusing to broadcast them.
Counsel for the Canadian Broadcasting Corpo ration (CBC) submits that under the constitution al guarantee of freedom of the press the networks are at liberty to refuse to broadcast any political advertisement if, for any reason, they do not wish to do so. He argues that the networks have abso lute control over the content of anything which is presented to them for broadcast over their networks.
He also submits that because the advertisements are extracts from the videotapes of the debates they were not produced by or on behalf of the plaintiffs within the meaning of section 99.13 or 99.21 of the Canada Elections Act and that there is therefore no obligation within the meaning of
those subsections on the part of the defendants to broadcast them.
Furthermore, says counsel for the CBC, even if there is an obligation on the part of the networks to broadcast the plaintiffs' advertisements the plaintiffs cannot enforce that obligation by injunc- tive proceedings because there already exist penal ties in the Act for the breach of that obligation, should it exist, and the defendants are liable, as well, to have their licences cancelled or otherwise restricted by the Canadian Radio-television and Telecommunications Commission (CRTC) in such an event.
Finally he says that more evidence is required in order to ascertain the scope of an alleged agree ment between the plaintiffs and the defendants in order to determine whether there exists some agreement on the part of the plaintiffs that they would not use the material from the leaders' debates for the purpose of their political advertise ments.
To these objections I have the following observations:
1. I do not see any issue of freedom of the press in this application except to the possible extent that the plaintiffs might advance an argument that the principle entitles them to the use of the press for the purpose of expressing their partisan political programming in the manner provided for in the Canada Elections Act.
2. In my view counsel has assigned too narrow a meaning to the phrase "produced by or on behalf of' contained in section 99 of the Canada Elections Act. The debates and the tapes of the debates may well have been produced by the networks but in my view the 2-minute and 30-second videotaped advertisements tendered to the networks for broadcasting were prepared or produced by the plaintiffs. Granted that they were copied from the original videotapes of the debates, but the advertisements themselves were nevertheless produced by or on behalf of the plaintiffs.
3. Sections 99.13 and 99.21 of the Canada Elections Act create legal obligations on the part of the defendants to provide free and paid
broadcasting time for the broadcast of partisan political programming. I know of no reason why that obligation cannot be enforced by order of this Court if the defendants wrongfully refuse to broadcast the material presented to them by the plaintiffs. Assuming that such an obligation exists I do not see the provision of a penalty for refusing to broadcast the material or the fact that the networks might be subject to discipli nary action by the CRTC in such an event as operating to prevent the plaintiffs from enforc ing the defendants' obligation to perform a statutory duty by way of the relief sought in this action.
4. While there were suggestions that there might exist other evidence which would tend to establish that the plaintiffs had agreed not to use the material from the debates in preparing their advertisements, these were only vague suggestions of what might or might not exist and did not amount to even a probability that the evidence itself might exist. The issuance of an interlocutory injunction, if otherwise warranted, should not be refused on the basis of such vague suggestions.
In addition to associating his client with the submissions of counsel for the defendant CBC, and the copyright objection, counsel for CTV Televi sion Network Ltd. (CTV) submitted that it was not bound by the provisions of sections 99.13 and 99.21 because it was a network operator and not a broadcaster.
I believe counsel intended this submission to apply only to section 99.13 which is directed to broadcasters and not to section 99.21 which is specifically directed to network operators. He also appears to have overlooked subsection 99.13(2) which directs network operators to make available at the times set out in subsection 99.13(1) where there is an affiliation between broadcasters and a network operator such as exists in the case of the defendant CTV.
It is also my view that counsel for CTV is precluded from arguing, as he did, that his client was not a "broadcaster" within the meaning of the Canada Elections Act or the Broadcasting Act
[R.S.C. 1970, c. B-11] because in the affidavit evidence of Mr. Tim Kotcheff, a vice-president of CTV, that defendant is identified "as a licensed broadcaster".
Having dealt with what I consider to be the secondary objections to the plaintiffs' application I come now to the principal objection based on an alleged copyright. The rules governing the issuance of interlocutory injunctions are well known, and generally set out in the judgment of Lord Diplock in American Cyanamid Co y Ethicon Ltd, [1975] 1 All ER 504 (H.L.). This was the basis upon which all counsel argued both for and against the application.
Sections 99.13 and 99.21 of the Canada Elec tions Act provide that the defendants shall make broadcasting time available for the broadcast of partisan political programming during a fixed period immediately preceding a general election. In accordance with these sections the defendants have set aside time, both free time and paid time, during which they must broadcast political pro gramming presented to them by the several politi cal parties to which the times have been allocated. The plaintiffs have prepared such programming in the form of two political advertisements which they have requested that the defendants broadcast. The defendants have refused to broadcast the advertisements on the grounds that they have a copyright in the videotapes of the leaders' debates and that in copying the videotapes of the debates for the purpose of making their advertisements, the plaintiffs have infringed the defendants' copyright.
The plaintiffs deny that the defendants have any copyright in the debates. They submit that because the debate cannot be characterized as an original literary, dramatic, musical or artistic work the defendants can have no copyright in it. On the basis of Can. Admiral Corporation, Ltd. v. Redif- fusion, Inc. (1954), 20 C.P.R. 75 (Ex. Ct.), coun sel for the plaintiffs argues that there can be no copyright in the telecast of the debate because there had been no fixation of the images as required in cinematography or any process analo gous to cinematography.
Furthermore he submitted that even if the defendants have a copyright interest in the video tapes of the debates the plaintiffs do not infringe that right because they were not copying a sub stantial portion of it. He submits that to use one and a half minutes from a three-hour debate could not be considered a reproduction of a substantial portion of the debate.
In reply the defendants argue that, unlike the Admiral case in which the Court found that the cable station could tape and rediffuse to its sub scribers the live telecasting of a football game, the telecasting of the debate was not a live telecast. In his affidavit Kotcheff describes the process where by what is actually seen on the network is a videotape of the debate which has been close-cap tioned for the hard of hearing. Counsel for CTV demonstrated, and it was not contested by the plaintiffs, that the tape which forms a part of their advertisements is a copy of the close-captioned time delayed videotape of the debate and not a videotape of a live telecast of the debate. The close-captioning is not the transposition of each word spoken in the debate but the sense of what is said. This, argues counsel for the defendants, con stitutes original literary work in respect of which the defendants can and do have a copyright.
Counsel for the defendants also submits that under the provisions of subsections (3) and (4) of section 4 of the Copyright Act [R.S.C. 1970, c. C-30 (as am. by R.S.C. 1970 (2nd Supp.), c. 4, s. 1)] they have a copyright in the contrivance, the videotape of the debate, because the sound of the telecast can be mechanically reproduced from it.
As to the plaintiffs' claim that the one-and-a- half minute extract from the videotapes of the debate does not constitute a substantial portion of the debate, counsel claims it is a matter of fact to be determined in all the circumstances of the case and not just by a quantitative analysis of what has been extracted as compared to the whole.
I am satisfied on these facts that the plaintiffs have made out an arguable case or that there is a
serious question to be tried. I am also satisfied that the defendants have established that they have an arguable defence. The plaintiffs have shown that there exists a prima facie statutory obligation on the part of the defendants to broadcast their politi cal advertisements while, on the other hand, the defendants have shown that, assuming the adver tisements amount to an infringement of their claimed copyright, they were acting properly in refusing to broadcast the infringing material.
It is not for the motions judge at this stage of the proceedings to decide upon the respective merits of these contentions. That is a matter for the trial judge. Under these circumstances, where the scales are more or less equally balanced, as they appear to be in this matter I must go on to consider the so-called balance of convenience or, put another way, the respective degrees of irrepa rable harm or non-compensable damages which would be sustained to the parties by granting or refusing the order requested.
In this respect, the present matter appears to require somewhat different considerations than the normal or more usual application for an interlocu tory injunction. Convenience, or rather inconve nience, which can frequently be measured in terms of money damages cannot be measured by that method for either side in this case. The plaintiffs see themselves suffering "considerable serious and irreparable prejudice" by reason of the defendants' refusal to broadcast the advertisements. On the other hand the defendant CTV claims the ads take portions of the debate out of context and would thus damage its credibility as a news gathering operation, would create a precedent which would allow anyone to use its news material and would jeopardize the potential for debates in the future.
When weighing the balance of convenience I am entitled to take into account the reality, if such be the case, that the grant or refusal to grant an interlocutory injunction would be tantamount to giving final judgment against one of the parties. As Lord Diplock said in NWL Ltd y Woods, [1979] 3 All E.R. 614 (H.L.), at pages 625-626:
The nature and degree of harm and inconvenience that are likely to be sustained in these two events by the defendant and the plaintiff respectively in consequence of the grant or the refusal of the injunction are generally sufficiently dispropor tionate to bring down, by themselves, the balance on one side or the other; and this is what I understand to be the thrust of the decision of this House in American Cyanamid Co y Ethicon Ltd ([19751 1 All ER 504, [1975] AC 396).
After considering the position of both parties I find that the degree of harm and inconvenience that are likely to be sustained by the plaintiffs in consequence of my refusal to grant the relief requested exceed considerably the same conse quences to the defendants by reason of my grant ing the relief and, accordingly, I find that the balance of convenience lies in favour of the plaintiffs.
If I refuse to grant the relief requested the defendants will have succeeded in this action because there is not sufficient time between my order and the election to have my refusal set aside following a trial or, I suspect, practically speaking, on appeal. My refusal would deprive the plaintiffs absolutely of the right to which they have shown they are prima facie entitled. The inability to have broadcasted what they consider to be essential political advertisements, should it subsequently be determined they have the right to do so, could not be compensated for in damages, nor could that inability be in any way rectified by a subsequent successful judgment after trial.
On the other hand to grant the order requested, while repugnant to the views of the defendants, does not give rise to the equivalent mischief or harm. I understand the defendants' objections to broadcasting the plaintiffs' advertisements to be more concerned with matters of principle which will continue to exist after the election. The prece dent which they fear will be created by granting the order requested will last only as long as this decision has not been reversed either on trial or appeal.
I see no reason why CTV's credibility as a news gathering operation should be damaged by my order. In the first place it has acted swiftly and vigorously in opposing it and, no doubt, if it con tinues to see it in that light it will act just as assiduously to have it reversed at trial or on appeal. If it is successful in accomplishing this, any
credibility which it had lost would, in my view, be more than restored.
The defendants' objection to broadcasting the plaintiffs' advertisements on the grounds that they take Mr. Turner's statements out of context to create a particular partisan impression of the debate or that it would not be in the public interest to broadcast the advertisements is a judgment made by CTV to effect a form of censorship on the advertisements. Whatever may be the merits of these jugdments on the part of the defendant CTV I do not see them as being relevant to a consider ation of the balance of convenience between the parties in this action.
Accordingly I will order that the defendants CBC and CTV begin forthwith to broadcast the plaintiffs' advertisements which form the subject of this application in accordance with the schedule agreed to between the parties. In this respect I appreciate that even with the best of goodwill on the part of the defendants to comply with the terms of my order it may take two or three days before the first advertisement can be broadcasted. The term "forthwith" in the order accompanying these reasons is used with that limitation in mind.
At the request of counsel for the defendant Global Communications Limited and with counsel for the plaintiffs consenting, the defendant Global Communications Limited is not included in the terms of this order.
Costs will be costs in the cause.
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