Former Head Of Australian Music Industry's Anti-Piracy Efforts Calls For An Infringement Small Claims Court

from the ask-yourself-who-benefits-most...-and-who's-pushing-for-it dept

An interesting but mostly bad idea has reared its head again: a small claims court for copyright infringement. This time, it's an anti-piracy investigator (and former policeman) pushing the idea, springboarding off the ridiculous 33-month sentence meted out to Phillip Danks. (h/t to Techdirt reader jtomic)

Michael Speck, an independent Australian anti-piracy investigator and former policeman, said the sentence was fair but added the case showed that Australia needed a separate, specialised court that would make it less costly to prosecute those who downloaded or distributed copyright infringing material.

"It's high time that a specialist small claims tribunal be established to deal with low-level criminal and civil [copyright] infringements [in Australia]," Mr Speck, who was once the head of ARIA's music industry piracy investigations unit, said.

"The vast majority of victims of copyright infringement can't afford to go before a court in this country. It's incredibly expensive to prosecute a case and it's very easy to stifle a civil or criminal prosecution," he added.
It's always suspect when someone who makes their money fighting infringement calls for a small claims court to handle infringement. (You know, rather than the artists themselves...) While some creators would welcome the idea and find the lower barrier to entry (so to speak) better than the current system, the real reason for Speck to be pushing this is the increased number of infringement cases that could be processed. Win-win for those in the anti-piracy business, but of little real use to anyone else.

For one thing, the notion of a small claims court undermines the argument that statutory damages are necessary to deter infringement. By definition, a small claims court wouldn't (or shouldn't) take on cases where these damages are being pursued. If faster, smaller cases can take a bite out infringement, then it's clear statutory damages vastly overvalue the copyrighted creations.

Second, proving infringement isn't nearly as simple as pursuing debt or making your neighbor pay for damage done to your vehicle when the tree he tried to cut down fell in your driveway. (Actually, the latter case is probably extremely complicated.) What it would encourage, however, is the filing of multiple suits in hopes of obtaining easy default judgements. There's also the question of how small, independent rights holders are going to determine guilty parties, something even well-heeled studios and labels have trouble doing.

This idea is seductive because it appears to offer quick, cheap resolutions in copyright owners' favor. But the reality will be far different. Because of what's required to unmask infringers, this system will end up being just another tool for major players to sue minor infringers. The artists at the bottom -- those who might see this as a panacea -- will still face an uphill battle when attempting to target infringers.

Speck points out that it's very easy to "stifle a civil or criminal prosecution." What makes him think that this will be less likely in small claims court? The only reason he would see this as a solution is if he feels it will be easier to push dubious cases past judges in these courts. If so, then small claims court will become a copyright troll haven, something that does very little to deter infringement and contributes greatly to the public's disenchantment with IP enforcement. If Speck is looking to see more grandmothers and 14-year-olds paying out for alleged infringement, small claims court is the way to go.

There are positives to this approach, but they hinge on the limitation (or removal) of statutory damages and built-in safeguards for the accused. Otherwise, this system will simply steamroll the unsuspecting along with the truly guilty.

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Filed Under: anti-piracy, australia, copyright, michael speck, small claims


Reader Comments

The First Word

Wow... Where to start.

added the case showed that Australia needed a separate, specialised court that would make it less costly to prosecute those who downloaded or distributed copyright infringing material

The case in question he is referring to firstly was NOT an Australian case and was PURELY British based on British and NOT Australian legislation. In fact Copyright Legislation in criminality matters bares little resemblance to British law and has for quite some time.


"It's high time that a specialist small claims tribunal be established to deal with low-level criminal and civil [copyright] infringements [in Australia],"

As a former LEO Speck absolutely knows that there are no such things as 'low-level' (commonly called misdemeanors) anymore under Australian Criminal laws (neither Federally or State based). All criminal offenses are dealt with EXCLUSIVELY by criminal courts NO EXCEPTIONS. A small claims court which is based on a tribunal model and does away with certain aspects of evidential rules (ie: Hearsay) and also works on "Balance of probabilities" can no more be a trier of a criminal prosecution than a criminal court can of a civil tort. ie: NEVER the twain shall meet

Mr Speck, who was once the head of ARIA's music industry piracy investigations unit, said.
Draw your own conclusions of bias - I know myself and 25million other Australians have

"The vast majority of victims of copyright infringement can't afford to go before a court in this country. It's incredibly expensive to prosecute a case and it's very easy to stifle a civil or criminal prosecution," he added.

LOLOLOLOLOLOLOLOLOLOLOLOLOL BULLSHIT!

There are two problems with the above conflating statement of Beck's. Firstly that an alleged victim has to pay for prosecutorial costs in a criminal case - They don't. The State pays instead and this is the actual point of criminal law and why such things as discretion for de minimus acts are allowed to both Prosecutors, LEO's and Courts!

Secondly, if a person has been damaged by an alleged breach of their copyright they can bring the matter to CIVIL claims courts already, prove upon balance that it occurred and then if appropriate DAMAGES and costs will be awarded by the court TO THE LOSING SIDE!

Speck seems to think, and from dealings with him in the past this is very prevalent, that Australia is living in some parts of America where Statutory Damages for copyright exist - THEY DON'T IN AUSTRALIA, Where there are exorbitant costs for litigation - THERE ISN'T Due to our tort reform systems, where procedural fairness and natural justice are not the foundation stones of the legal system, and where downloading of copyright material unless in commercial quantities and for commercial purposes is illegal - it's only unlawful (ie: civil ONLY NOT Criminal)

As for a small claims court, no judges are involved and normally its at most a Magistrate (solicitor who has been chosen by legal peers to be a trier of 'facts') though normally a Register (has no law degree and is head of the clerks). Oh and it's a 'non adversarial' system where solicitors/attorneys are not normally used on EITHER side in fact are frowned upon.


As for the ease at which Speck assumes its "easy to stifle a civil or criminal prosecution" - this makes me pause and wonder how much he has been watching Underbelly, LA Law and other fantasies or has had, or allowed, corrupt input/influence into his own criminal cases as an LEO.
—G Thompson

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  • icon
    That One Guy (profile), 11 Sep 2014 @ 3:43pm

    How about a trade?

    They get their 'infringement small claims court', but in exchange the possible penalties are dropped to match, and they are stuck with the verdict that the court hands out.

    So gone would be the thousand dollar settlements for a single song, instead they'd be looking at a hundred or so at most. I don't think you can sue multiple people in small claims court either, so it would be one case for one accused, no more lumping a couple hundred defendants in a single filing to save costs.

    And finally, if the court finds the defendant innocent, those who filed the accusation are forced to pay the legal fees/lost wages of the accused.

    link to this | view in chronology ]

    • identicon
      Anonymous Coward, 11 Sep 2014 @ 4:35pm

      Re: How about a trade?

      It actually seems a reasonable approach. Where I live, the maximum dispute is capped at $5000. The rules are informal and most folks don't need/bring lawyers. The judge focuses on the facts and doesn't entertain novel interpretations of the statute.

      link to this | view in chronology ]

    • identicon
      Garth, 11 Sep 2014 @ 7:00pm

      Re: How about a trade?

      Not if Australia is even close to the US in Lawyers pre Capita (1:265).

      That likely means that there are a whole lot of marginally employed/incompetent/diploma_mill lawyers looking for quick easy money!

      I think your scheme would be an answer to their prayers - a way to screw cash out of a whole lot of little people in increments that will add up when they petition for (and receive) "more efficient process" improvements.

      I.E. If obviously guilty - 5 minutes per case, standard $300 minimum judgement.

      Remember, the people making the rules are often marginally competent lawyers.

      The sheer mass of people in the US with a law degree almost guarantees that the average lawyer will be below the competence median for Lawyers, and likely well below the median for competence in the general public.

      link to this | view in chronology ]

      • identicon
        Anonymous Coward, 11 Sep 2014 @ 7:06pm

        Re: Re: How about a trade?

        link to this | view in chronology ]

      • icon
        G Thompson (profile), 11 Sep 2014 @ 9:04pm

        Re: Re: How about a trade?

        approx 60,000 lawyers (practicing and non-practicing) in Australia. This includes solicitors, Barristers and Judges - basically anyone who holds an LLB

        This is around 1:400 though it's actually more since that is looking at the full 60K as practicing when in fact solicitors/barristers who are actually registered to practice law in each state is way way less. A lot of CEO's hold law degrees, even some Digital Forensic consultants (*waves*) and are too cynical to practice and would be found in contempt too much :)

        link to this | view in chronology ]

      • icon
        Richard (profile), 12 Sep 2014 @ 1:40am

        Re: Re: How about a trade?

        The sheer mass of people in the US with a law degree almost guarantees that the average lawyer will be below the competence median for Lawyers,

        By definition the average lawyer will be exactly on the competance median.

        However the point that the majority of lawyers working in such a court would be below average is probably correct.

        Having said that, in the UK small claims courts lawyers fees are not recoverable by either side and hence most people will do without them, given that the maximum settlement is lower than what most lawyers would charge.

        link to this | view in chronology ]

    • identicon
      Anonymous Coward, 12 Sep 2014 @ 5:07am

      Re: How about a trade?

      Even better, in small claims courts, you aren't allowed to have a lawyer, so the owner of the copy right must show up.

      link to this | view in chronology ]

  • identicon
    Anonymous Coward, 11 Sep 2014 @ 3:55pm

    Lets cut to the chase he wants a firing squad , with an industry appointed tribunal , what other reason would their be it's a matter of we have the most money so we the lobbyists support who's going to be put in charge of those courts .

    I offer a better solution , an Arena, Copyright holder vs Possible Infringer , Winner takes all.

    link to this | view in chronology ]

    • identicon
      Anonymous Coward, 11 Sep 2014 @ 4:10pm

      Re:

      Welcome to the Thunder Dome. Two enter but only one can leave. Choose any weapon of your liking to use whether it be Chainsaw, Machine gun. Go for it.

      link to this | view in chronology ]

  • icon
    dpaus (profile), 11 Sep 2014 @ 4:14pm

    Fair is fair...

    In said court, anyone would also be able to seek compensation for any damages resulting from invalid takedown orders.

    Anyone. Any damages.

    link to this | view in chronology ]

    • icon
      G Thompson (profile), 11 Sep 2014 @ 8:49pm

      Re: Fair is fair...

      In Australia this is already the case since the losing side pays costs.

      This is why the RIAA/MPAA/ARIA's of the world cannot stand democratic justice systems

      link to this | view in chronology ]

  • identicon
    Anonymous Coward, 11 Sep 2014 @ 4:29pm

    "The vast majority of victims of copyright infringement can't afford to go before a court in this country. It's incredibly expensive to prosecute a case"

    Should be written,
    "The vast majority of people accused of copyright infringement can't afford to go before a court in this country. It's incredibly expensive to defend yourself against these claims."

    link to this | view in chronology ]

  • identicon
    Zonker, 11 Sep 2014 @ 4:47pm

    Actually, I would prefer that all copyright infringement cases in the US be handled by small claims courts in their current form. No criminal charges can be levied in small claims. You only receive the actual damages proven in your case. Finally, there is a maximum amount of damages you can file for in small claims (varies by State).

    No more $150,000 per copy claims. No more prison sentences. If your infringement claim was for 100 copies of a $0.99 song, the maximum damages awarded would be $99.00, not $14,580,000. No more grouping multiple defendants into one big lawsuit to make filing more efficient for prosecution and more expensive to defend.

    link to this | view in chronology ]

    • identicon
      Zonker, 11 Sep 2014 @ 4:55pm

      Re:

      Oops, math fail. $150,000 x 100 would be $15,000,000 not $14,580,000. Somehow mentally substituted 99 for 100 there.

      link to this | view in chronology ]

    • icon
      That One Guy (profile), 11 Sep 2014 @ 5:25pm

      Re:

      That might make sense to you, but you can be sure that's not what they would be pushing for. More likely they would just want to decrease the filing costs on their end, while leaving everything else exactly the same.

      link to this | view in chronology ]

    • identicon
      Anonymous Coward, 12 Sep 2014 @ 2:06am

      Re:

      "If your infringement claim was for 100 copies of a $0.99 song, the maximum damages awarded would be $99.00"

      hahahaha

      "you caught me stealing, so I only owe you the sticker price, right?" Gotta love pirate math

      link to this | view in chronology ]

      • icon
        techflaws (profile), 12 Sep 2014 @ 3:44am

        Re: Re:

        Please give an example of superior troll math.

        link to this | view in chronology ]

      • icon
        Niall (profile), 12 Sep 2014 @ 3:48am

        Re: Re:

        Ah, but this is infringement, not stealing. Why not use murder, arson or grand theft auto penalties - they are about the same level of closeness!

        link to this | view in chronology ]

      • icon
        That One Guy (profile), 12 Sep 2014 @ 6:35am

        Re: Re:

        Funnily enough, your side would scream your collective heads off if infringement was treated like theft, despite the fact that you always call it such.

        "You've been found guilty of downloading a CD's worth of music($15), and are therefor ordered to pay twice it's cost($30) as a penalty."

        That's how actual theft is treated in the courts, sound like something you lot would accept, or would you be hollering up a storm about how 'pathetically low' the fine amounts are?

        link to this | view in chronology ]

      • identicon
        Zonker, 12 Sep 2014 @ 11:19am

        Re: Re:

        That would be the actual damages, which is all that a small claims court could award. The concept is that the court will remedy the harm done, not reward you for it. Kind of like your insurance company will only replace your car after an accident, not buy you a brand new Bugatti Veyron.

        The way I see it this would be giving Michael Speck from the article exactly what he asked for, even if it's not what he wanted.

        link to this | view in chronology ]

  • identicon
    Anonymous Coward, 11 Sep 2014 @ 6:08pm

    So he wants to be Rightscorp? Haven't they been losing money left and right?

    link to this | view in chronology ]

  • icon
    G Thompson (profile), 11 Sep 2014 @ 8:46pm

    Wow... Where to start.

    added the case showed that Australia needed a separate, specialised court that would make it less costly to prosecute those who downloaded or distributed copyright infringing material

    The case in question he is referring to firstly was NOT an Australian case and was PURELY British based on British and NOT Australian legislation. In fact Copyright Legislation in criminality matters bares little resemblance to British law and has for quite some time.


    "It's high time that a specialist small claims tribunal be established to deal with low-level criminal and civil [copyright] infringements [in Australia],"

    As a former LEO Speck absolutely knows that there are no such things as 'low-level' (commonly called misdemeanors) anymore under Australian Criminal laws (neither Federally or State based). All criminal offenses are dealt with EXCLUSIVELY by criminal courts NO EXCEPTIONS. A small claims court which is based on a tribunal model and does away with certain aspects of evidential rules (ie: Hearsay) and also works on "Balance of probabilities" can no more be a trier of a criminal prosecution than a criminal court can of a civil tort. ie: NEVER the twain shall meet

    Mr Speck, who was once the head of ARIA's music industry piracy investigations unit, said.
    Draw your own conclusions of bias - I know myself and 25million other Australians have

    "The vast majority of victims of copyright infringement can't afford to go before a court in this country. It's incredibly expensive to prosecute a case and it's very easy to stifle a civil or criminal prosecution," he added.

    LOLOLOLOLOLOLOLOLOLOLOLOLOL BULLSHIT!

    There are two problems with the above conflating statement of Beck's. Firstly that an alleged victim has to pay for prosecutorial costs in a criminal case - They don't. The State pays instead and this is the actual point of criminal law and why such things as discretion for de minimus acts are allowed to both Prosecutors, LEO's and Courts!

    Secondly, if a person has been damaged by an alleged breach of their copyright they can bring the matter to CIVIL claims courts already, prove upon balance that it occurred and then if appropriate DAMAGES and costs will be awarded by the court TO THE LOSING SIDE!

    Speck seems to think, and from dealings with him in the past this is very prevalent, that Australia is living in some parts of America where Statutory Damages for copyright exist - THEY DON'T IN AUSTRALIA, Where there are exorbitant costs for litigation - THERE ISN'T Due to our tort reform systems, where procedural fairness and natural justice are not the foundation stones of the legal system, and where downloading of copyright material unless in commercial quantities and for commercial purposes is illegal - it's only unlawful (ie: civil ONLY NOT Criminal)

    As for a small claims court, no judges are involved and normally its at most a Magistrate (solicitor who has been chosen by legal peers to be a trier of 'facts') though normally a Register (has no law degree and is head of the clerks). Oh and it's a 'non adversarial' system where solicitors/attorneys are not normally used on EITHER side in fact are frowned upon.


    As for the ease at which Speck assumes its "easy to stifle a civil or criminal prosecution" - this makes me pause and wonder how much he has been watching Underbelly, LA Law and other fantasies or has had, or allowed, corrupt input/influence into his own criminal cases as an LEO.

    link to this | view in chronology ]

  • identicon
    Anonymous Coward, 11 Sep 2014 @ 10:21pm

    Apparently SOMEONE wants to keep Aussies deeply Down Under.
    I Wonder if any lets say American entertaiment industries are behind it?

    link to this | view in chronology ]

  • This comment has been flagged by the community. Click here to show it
    identicon
    Anonymous Coward, 12 Sep 2014 @ 1:55am

    Penalties in the thousands: obviously too egregious for Techdirt readers.

    Ok,

    Small claims court: still too egregious for Techdirt readers.

    Keep the lulz comin, pirate dbags.

    link to this | view in chronology ]

  • identicon
    Anonymous Coward, 12 Sep 2014 @ 5:16am

    Almost all of these great ideas attempting to solve the perceived problem of compensation for copyright infringement do not address what constitutes compelling evidence. The "victims" of said copyright infringement think they will hit pay dirt on mere accusation alone, no evidence necessary. And then they wonder why most sane folk point and laugh at them.

    link to this | view in chronology ]

  • identicon
    Nick Munn, 12 Sep 2014 @ 8:23am

    Who benefits from a small claims court?

    The UK introduced a small claims court for (most) IP cases a couple of years ago. (To be specific it created a small claims track in what is now the Intellectual Property Enterprise Court, a specialist court for IP cases.)

    I'm not aware of it having been inundated with poorly-found cases of a trollish persuasion. Parties bear their own costs, so it makes it cheaper to defend against baseless accusations - or for smaller firms to get damages (up to £10k) against genuine infringers. UK doesn't have statutory damages so awards are based on actual harm; one can in principle get additional damages if there is blatant and knowing infringement.

    The court hears only civil cases, I should add. If there are complex legal arguments the case won't be allowed on the small claims track.

    link to this | view in chronology ]


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