Attachment A THE COPYRIGHT ADVISORY GROUP - SCHOOLS OF THE STANDING COUNCIL ON SCHOOL EDUCATION AND EARLY CHILDHOOD Submission to the Australian Law Reform Commission PREPARED BY THE NATIONAL COPYRIGHT UNIT Issues Paper 42: Copyright and the Digital Economy November 2012 TABLE OF CONTENTS page 2 TABLE OF CONTENTS TABLE OF CONTENTS .................................................................................................................... 2 EXECUTIVE SUMMARY ................................................................................................................. 4 QUICK REFERENCE GUIDE ............................................................................................................. 8 PART ONE – OVERVIEW .............................................................................................................. 10 1.1. Introduction: Copyright Advisory Group ....................................................................................... 10 1.2. The broader contribution of schools to copyright in Australia ...................................................... 11 1.3. Setting out the legal framework for educational copyright use .................................................... 12 1.3.1. Exceptions ........................................................................................................................... 12 1.3.2. Statutory licences ................................................................................................................ 13 1.4. The importance of the education sector to the digital economy .................................................. 13 1.4.1. Digital literacy ...................................................................................................................... 15 1.4.2. Access to knowledge online ................................................................................................ 16 1.5. Teaching and learning in the digital economy ............................................................................... 16 1.6. Copyright laws are impeding these goals ...................................................................................... 18 1.7. Importance of the public interest in copyright policy.................................................................... 19 1.8. Defining the public interest in the digital environment................................................................. 21 1.9. The ALRC review is in good company internationally .................................................................... 22 1.10. Overview of the Schools’ submission ......................................................................................... 23 Attachment 1A ...................................................................................................................................... 24 PART TWO - EDUCATIONAL INSTITUTIONS AND THE COPYRIGHT ACT .......................................... 29 2.1. Assessing the educational exceptions ........................................................................................... 29 2.1.1. Technological specificity ...................................................................................................... 29 2.1.2. Section 28 ............................................................................................................................ 30 2.1.3. Section 200AB...................................................................................................................... 35 2.1.4. Use of inconsistent terminology ......................................................................................... 41 2.2. Assessing the educational statutory licences ................................................................................ 44 2.2.1. The statutory licences are inherently unsuitable to the digital environment .................... 46 2.2.2. The administrative burden of statutory licensing is bad for schools, copyright owners and licensees ......................................................................................................................................... 56 2.2.3. Australia’s educational statutory licences are out of step with international best practice .. ............................................................................................................................................. 66 2.2.4. Statutory licensing is economically inefficient .................................................................... 71 The Schools - November 2012 Submission to ALRC: IP 42 - Copyright and the Digital Economy TABLE OF CONTENTS page 3 2.3. Conclusion of Part 2 ....................................................................................................................... 82 Attachment 2A ...................................................................................................................................... 84 Attachment 2B ...................................................................................................................................... 87 Attachment 2C ...................................................................................................................................... 88 Attachment 2D ...................................................................................................................................... 92 Attachment 2E ...................................................................................................................................... 96 Attachment 2F ...................................................................................................................................... 98 Attachment 2G ...................................................................................................................................... 99 Attachment 2H .................................................................................................................................... 101 PART THREE - OPTIONS FOR REFORM ....................................................................................... 102 3.1. Introducing new exceptions to enable certain non-remunerable uses of copyright materials .. 103 3.1.1. Scenarios 3 and 4 – introducing an exception based on ‘fairness’ ................................... 104 3.1.2. Undefined fairness factors ................................................................................................ 110 3.1.3. Fair dealing provisions and deeming ................................................................................. 113 3.1.4. Assessing scenarios 3 and 4 – an open-ended provision or fair dealing for education? .. 113 3.1.5. Moving to an open-ended exception - compliance with the three-step test ................... 115 3.1.6. Moving to an open-ended exception – balancing flexibility and certainty ....................... 116 3.2. Voluntary licensing ....................................................................................................................... 118 3.3. Conclusion of Part 3 ..................................................................................................................... 119 Attachment 3A .................................................................................................................................... 122 Attachment 3B .................................................................................................................................... 124 Attachment 3C .................................................................................................................................... 126 PART FOUR - OTHER ISSUES OF CONCERN TO AUSTRALIAN SCHOOLS ........................................ 129 4.1. Copyright, Contract and Technological Protection Measures ..................................................... 129 4.1.1. Copyright and Contract ..................................................................................................... 130 4.1.2. ‘Copyright and contract’ in practice .................................................................................. 131 4.1.3. Copyright and Technological Protection Measures (TPMs) .............................................. 133 4.2. Copyright and the convergence review ....................................................................................... 135 4.3. Orphan Works .............................................................................................................................. 137 4.4. Cloud computing and education .................................................................................................. 138 4.5. Transformative use ...................................................................................................................... 142 4.6. Incidental and temporary communications in an internet age ................................................... 145 4.7. Australia’s approach to international agreements about copyright ........................................... 146 The Schools - November 2012 Submission to ALRC: IP 42 - Copyright and the Digital Economy EXECUTIVE SUMMARY page 4 EXECUTIVE SUMMARY The education sector is of critical importance to the success of the digital economy. A strong digital economy requires people to have the best digital education. The internet has fundamentally changed the nature of teaching and learning in a digital age. Australian teachers have access to a range of digital tools and resources, from online resources to e- learning apps. The new Australian