The appellants and respondent formed a partnership to create children's books featuring the character Caillou.
A dispute arose over the interpretation of a licence contract, and the matter was referred to arbitration.
The arbitrator ruled that the parties were co-authors and that the appellants held the reproduction rights.
The Superior Court dismissed a motion to annul the award, but the Court of Appeal reversed, holding that copyright ownership was a matter of public order and could not be arbitrated under the Copyright Act.
The Supreme Court of Canada allowed the appeal, restoring the arbitration award.
The Court held that section 37 of the Copyright Act does not preclude arbitration, and that copyright ownership is not a matter of public order that falls outside arbitral jurisdiction.
