Summary
Section 2(2)(b) of the European Communities Act 1972 is a sui generis power. It permits secondary legislation closely and naturally related to implementing a directive, even where the measure is not strictly necessary and involves an original policy choice. Its scope depends on the statutory language and context, not an abstract formula.
A commercial internet service which intercepts broadcasts and retransmits them to attract an audience and advertising is, provisionally, a communication to the public. The reception-area defence in section 73 of the Copyright, Designs and Patents Act 1988 applies to qualifying services, but not to mobile-phone reception or out-of-area regional services.
Factual background
The claimants, commercial broadcasters and programme rights owners, alleged that TV Catchup Limited infringed copyright by retransmitting live television streams over the internet and by creating transient copies in servers and users’ devices.
The defendant challenged the vires of the amendment introducing section 20(1)(c) of the Copyright, Designs and Patents Act 1988, disputed that its service communicated works to the public or reproduced substantial parts, relied on the temporary-copy exception in section 28A, and invoked the reception-area defence in section 73.
Floyd J held that the amendment was within the power conferred by section 2(2)(b) of the European Communities Act 1972. He made provisional findings on communication and reproduction, referred questions to the CJEU, deferred final judgment on issues affected by Football Association Premier League v QC Leisure, and determined the scope of the section 73 defence.
Held
Vires. The amendment introducing section 20(1)(c) of the Copyright, Designs and Patents Act 1988 was validly made under section 2(2)(b) of the European Communities Act 1972. The subsection is not to be construed restrictively as a Henry VIII clause. It permits measures which are consistent with, and closely and naturally related to, the implementation of a directive, although not strictly required by it. A tenuous or merely general relationship is insufficient. The question must be determined by applying the statutory language to the circumstances.
Communication to the public. The court’s provisional view was that TV Catchup communicated the claimants’ films and broadcasts to the public. The service was an independent commercial exploitation, operated by an organisation other than the original broadcaster, competing for the broadcaster’s audience and advertising. The fact that users could receive the broadcasts directly, or that transmissions were initiated by users, did not prevent the communications being public. The court referred questions to the CJEU because the existing guidance did not conclusively resolve the issue.
Reproduction and temporary copies. The provisional view was that the buffers and screens contained substantial parts of the films, but not substantial parts of the broadcasts. Final judgment on the relevant issues was deferred pending the CJEU’s decision in Football Association Premier League v QC Leisure. If necessary, section 28A would be construed compatibly with Article 5(1) of the InfoSoc Directive so as to include broadcast copyright.
Section 73. The reception-area defence applied to qualifying services. “Cable” could include the cabling system inherent in the internet, but the whole transmission had to reach its destination by cable. The defence therefore did not apply to retransmissions intended for mobile-phone reception. It also did not apply where a regional service was retransmitted for reception outside its regional area.
The court directed that the form of order and the questions for reference should be settled after further submissions.
The court’s approach to earlier authorities
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Appeal route
- This judgment [2011] EWHC 1874 (Pat) High Court (Patents Court)
- Appealed to[2015] EWCA Civ 204Outcometvc appeal dismissed; broadcasters’ appeal stayed pending a preliminary reference to the court of justice
Key cases cited
22 authorities cited.
- Her Majesty’s Treasury v Mohammed Jabar Ahmed and others [2010] UKSC 5
- Ghaidan (Appellant) v. Godin-Mendoza (FC) (Respondent) [2004] UKHL 30
- Pepper v Hart [1993] AC 593
- Litster v Forth Dry Dock & Engineering Co Ltd [1990] 1 AC 546
- HMRC v IDT Card Services Ireland Ltd [2006] STC 1252
- Oakley Inc v Animal Ltd & Ors [2005] EWCA Civ 1191
- Twentieth Century Fox Film Corporation & Anor v Newzbin Ltd [2010] EWHC 608 (Ch)
- Cukurova Finance International Ltd & Anor, R (on the application of) v HM Treasury & Anor [2008] EWHC 2567 (Admin)
- Football Association Premier League Ltd & Ors v QC Leisure & Ors [2008] EWHC 1411 (Ch)
- Crane v Sky In-Home Service Ltd & Anor [2007] EWHC 66 (Ch)
- Sony Music v EasyInternetcafe [2003] EWHC 62
- Thoburn v Sunderland City Council (Collins v Sutton London Borough Council, Harman v Cornwall County Council, Hunt v Hackney London Borough Council) [2002] EWHC 195 (Admin)
- Pothecary Witham Weld v Bullimore (Equality and Human Rights Commission intervening) [2010] ICR 1008
- Infopaq International A/S v Danske Dagblades Forening Case C-5/08
- RecordTV Pte Ltd v MediaCorp TV Singapore Pte Ltd [2010] SGCA 43
- Sociedad General de Autores y Editores de España (SGAE) v Rafael Hoteles SL Case C-306/05
- Perth and Kinross Council v Donaldson [2004] ICR 667
- Entidad de Gestión de Derechos de Los Productores Audiovisuales (Egeda) v Hosteleraia Asturiana SA (Hoasa) Case C-293/98
- Addison v Denholm Ship Management (UK) Ltd [1997] ICR 770
- Shetland Times Ltd v Wills [1997] EMLR 277
- R v Secretary of State for Trade and Industry, Ex parte Unison (GMB, Ex parte, National Association of Schoolmasters and Union of Women Teachers, Ex parte, R v Secretary of State for Trade and Industry, Ex parte GMB, R v Secretary of State for Trade and Industry, Ex parte National Association of Schoolmasters and Union of Women Teachers, Unison, Ex parte) [1996] ICR 1003
- Marleasing SA v Comercial Internacional de Alimentación SA
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Cases citing this case
3 later cases · 1 positive · 2 caution
Most senior citing decisions:
- Bayer Plc & Anor v NHS Darlington CCG & Ors [2020] EWCA Civ 449 distinguished
- The United States of America v Nolan [2014] EWCA Civ 71 approved
- Football Association Premier League Ltd & Ors v QC Leisure & Ors [2012] EWHC 108 (Ch) explained
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