Gilles M. Daigle

The appeal concerned whether online music previews streamed before purchase are fair dealing for the purpose of research under the Copyright Act.

The Court held that research must be interpreted broadly and assessed from the user perspective, not only from the service provider perspective.

Applying the CCH framework, the Court found the previews fair in purpose, character, amount, alternatives, nature of the work, and market effect.

Because the previews were short, lower quality, temporary, and supported consumer selection without substituting for purchases, no additional royalties were payable for them.

On a motion in related leave applications, the moving parties sought an order requiring multiple opposing parties to post $3,250,000 as security for amounts payable if appeals were unsuccessful.

The Court held that security under s. 60(1)(b) of the Supreme Court Act has traditionally been symbolic and that the substantial security requested is ordinarily addressed in stay proceedings under ss. 65 or 65.1 or equivalent provincial provisions.

The Court found that existing stay conditions imposed by the court below continued to govern and that the motion effectively attempted to review that decision.

The Court also emphasized access-to-court considerations in the leave framework.

The motion was dismissed without costs.