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I'm still not sure I heard this right, but a Federal Court judge appears to have ruled that it's perfectly legal for people and organizations to share passwords with individuals and co-workers, putting in jeopardy the future of subscription-based content on the Internet.
It was part of a lawsuit many years in the making by a site called Blacklock's Reporter, a small subscription based online publication that discovered a federal government department bought one subscription and was sharing articles and its password on the pay site among co-workers. Blacklock's sued, saying giving away their content for free would potentially drive them out of business, since it would kill its working model.
But in a stunning decision, the judge disagreed and said it was perfectly legitimate for an entity to share passwords so everyone could see the work, a ruling that could mean password sharing may now be considered legal for everything from the Toronto Star newspaper paywall to Netflix.
The reaction has been swift and the implications of this are enormous.
"Michael Geist, Canada Research Chair at the University of Ottawa, called the ruling a “huge win” for people who do not want to pay for content. “The decision could have enormous implications,” Geist wrote in a blog post, adding that media creators “cannot merely rely on passwords protecting their works.”
And while it may sound like a big win for those who hate paying for journalism, it potentially puts the very future of that journalism at risk. If they can't make money, they can't employ the reporters. And if they can't employ the reporters, they can't continue to exist.
It's a bizarre yet fascinating ruling about the future of online media and I suspect we haven't heard the last of this. Blacklock's considers it so vital to its future, they've put the story on their front page, outside of a paywall so you can see what you think it means.
Password Sharing OK: Judge
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Password sharing was always legal - in that it was never specifically made illegal. They've declined to make it illegal.
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So does that mean you can give me your Netflix password? Or the Toronto Star's entry words? Or any other online publication that relies on subscriptions to stay in business?
As a guy who spent many, many years writing for a living, this makes me profoundly uncomfortable, with no way to protect my work. That can't be right (or in this case, write.)
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RadioActive wrote:
So does that mean you can give me your Netflix password? Or the Toronto Star's entry words? Or any other online publication that relies on subscriptions to stay in business?
Yes, and I always could. Much like I could lend you a DVD or a book. Publishers are still free to use technology to clamp down on password sharing.
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This is a bad precedent that may well lead to some publishers potentially going out of business if it holds.
And while we're on the subject, what did you say your Netflix password was? Just asking for a friend.
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RadioActive wrote:
This is a bad precedent that may well lead to some publishers potentially going out of business if it holds.
It doesn't change anything; it confirms the current practices.
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So how are you supposed to protect your proprietary content without going out of business?
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RadioActive wrote:
So how are you supposed to protect your proprietary content without going out of business?
Passwords can still be very effective.
Netflix has been very successful with making users register a primary address. Sirus/XM boots you out if someone else logs in with the same credentials. Sharing a password can still be against terms of service and get you booted.
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Here's the full text of Michael Geist's analysis of the decision, which confirms RadioAaron's view of the situation. BTW RA, does not your frequent use of archive.ph to circumvent paywalls also make you part of the problem?
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BowmanvilleBob wrote:
Here's the full text of Michael Geist's analysis of the decision, which confirms RadioAaron's view of the situation. BTW RA, does not your frequent use of archive.ph to circumvent paywalls also make you part of the problem?
Yes, and I was just thinking about that. I admit that's a fair point but it's still a disturbing ruling with some potentially far reaching implications.
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Like what?
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Like allowing people to cheat on subscriptions to things like online newspapers, which desperately need the money. If it's OK to endlessly share passwords, then one person could pass them on to five people, who pass it on to five more and on and on. By the time you're done, potentially thousands could be looking at it for free, with no remuneration to the publishers. That could spell the end for many of these small entrepreneurs.
Tom Korski of Blacklock's, which brought the suit, was on Alex Pierson's show on Monday to explain the effect it could have on a small company like his. It's an interesting listen if you have 10 minutes.
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There are already ways to clamp down on password sharing, such as limiting IPs per login or two-factor authentication (like getting a code in text message each time you log in.) Publishers generally avoid these tactics because it's not great for the user experience for paid customers -- additionally, they reduce ad views. So there's a balance.
Netflix took a risk and made password sharing much more difficult. It led to a good increase in subscribers.
Blacklock is trying to have it both ways: having a weak password system and then using the law to punish those who they deem to be take advantage of it. Now *there's* a precedent you don't want to set.
Again (and again and again and again) this changes nothing as the law relates to sharing passwords.
Personally, I'd rather have giving my elderly parents my Netflix password remain a moral or practical issue rather than a legal one.
Last edited by RadioAaron (June 3, 2024 5:02 pm)
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Well, we will always differ on that, but you do what your conscience allows.
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It certainly has far-reaching implications for Korski and Doan, who've lost this case and all their other copyright infringement cases they've brought thus far and, back in 2016, were ordered to pay the federal government $65,000 in court costs for attempting to bring suit against the Department of Finance in similar circumstances. They are, of course, free to take the matter to the Supreme Court if they wish.
As Michael Giest noted back in 2018, despite all Blacklock's arguments about the "slippery slope" of password sharing, the facts of the case involved members of a government department sharing information about a specific article with the intent of determining whether Blacklock's reporting was up to snuff:
"Affirming well established Supreme Court jurisprudence on fair dealing, the court emphasized that fair dealing is a user’s right that must not be interpreted restrictively. In this case, the court had little trouble finding that the department’s use of the articles qualified as fair dealing given that it was done for a proper research purpose, involved a limited distribution, the originals were obtained legally by a paying subscriber, and officials had a legitimate interest in reading the articles in order to hold Blacklock’s to account for questionable reporting.
The court’s fair dealing assessment is notable for its emphasis on the link between fair dealing and the right to read, expressing concern about the chilling effect if news sources were restricted from reading the results of their interviews with the press:
The articles contained information obtained from the Department in response to Mr. Korski’s queries. As a source, the Department had a direct and immediate interest in their content. Indeed, a finding of copyright infringement against a news source for the simple act of reading the resulting copy is likely to have a chilling effect on the ability of the press to gather information. Such a result cannot be in the public interest.
Indeed, the court characterized the use as simply an act of reading and warned against copyright being used to stop holding the press accountable for potential errors or omissions:
What occurred here was no more than the simple act of reading by persons with an immediate interest in the material. The act of reading, by itself, is an exercise that will almost always constitute fair dealing even when it is carried out solely for personal enlightenment or entertainment. While the public interest is served by the vigilance of the press, copyright should not be a device that serves to protect the press from accountability for its errors and omissions. The Department had a legitimate interest in reading the articles with a view to holding Blacklock’s to account for its questionable reporting."
Last edited by BowmanvilleBob (June 3, 2024 5:20 pm)
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RadioActive wrote:
Well, we will always differ on that, but you do what your conscience allows.
I will, just as it allowed me to record music onto a blank cassette in the 80s.
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RadioAaron wrote:
RadioActive wrote:
Well, we will always differ on that, but you do what your conscience allows.
I will, just as it allowed me to record music onto a blank cassette in the 80s.
Bingo! And many times that led me to buying my own copy of music on an LP down the road. So "stealing" the music also resulted in more sales. On the other hand, as I kept purchasing vinyl during the 90s and 2000s (when it became practically extinct), prices for LPs were SO SO high. I've purchased more than a dozen albums that were priced over 80 bucks. Given that, I can sleep very well at night, downloading the odd music, movies or whatever on torrents or from YouTube (as in actually saving the videos).