The Economics Fair Use/Dealing: Copyright Protection in a Fair and Efficient Way
44 Pages Posted: 6 Jul 2012
Date Written: July 5, 2012
The Canadian Copyright Act (R.S.C., 1985, c. C-42) includes several exceptions to the exclusive right of copyright holders. Among the most important are the provisions concerning “fair dealing”, which state that the use of a copyright protected literary or artistic work for the purposes of private study, research, criticism or review, or news reporting does not constitute a violation of copyright. Our objective in this paper is to characterize the role and nature of this exception from the standpoint of contemporary economic theory and analysis and in the light of the recent Supreme Court of Canada decision on this subject (CCH Canadian Ltd. v. Law Society of Upper Canada,  1 S.C.R. 339, 2004 SCC 13). We propose in the conclusion a market based approach to maximize the dissemination of works while avoiding unnecessary recourse to the fair dealing exception.
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