In this edition #30…

July 29, 2011

A hugely influential English magazine published between 1865 and 1954, our namesake the original Fortnightly Review was a progressive, sometimes partisan, but highly distinguished organ, whose contributors included nigh every renowned English author or critic of the time. Famous as much for its schismatic renunciation of authorial anonymity as its highbrow and panoramic content, the Fortnightly fortified the careers of numerous lettered figures including some giants of 19th and 20th century literature. Our earnest hope was that our humble derivative, the Fortnightly Review of IP and Media Law, would follow the same traditions of superlative contributions with incalculable benefit to the careers of its authors. For that and other reasons, in our introduction we explicitly referenced our august progenitor.

And like our progenitor, who published fortnightly for one year then found monthly editions a more suitable configuration, we too have extended the period of anticipation between issues to four weeks. We hope you’ll forgive our seemingly retrograde strategy in a time where technological speed is obsession, in exchange for greater contemplation of issues with more than mere fortnightly currency. With that, we present edition #30…

- The Editors

In this edition #30…

Megan Richardson addresses the recent political discussion on introducing a statutory privacy cause of action with reference to the recent Murdoch empire ‘phone-hacking’ scandal.

For full article click here.

And David Brennan brings a new angle on the international intellectual property debate surrounding Australia’s tobacco plain packaging proposal to our attention, a possible non-violation complaint under the Australia-US Free Trade Agreement.

For full article click here.


Phone hacking and privacy torts

July 29, 2011

By Megan Richardson

Who before last week would have predicted there would be serious talk of a statutory privacy tort in Australia with politicians coming out openly in support of it?  But then who would have predicted a phone hacking scandal engulfing the Murdoch press?

The Australian’s senior legal writer Chris Merritt last weekend dismissed the connection saying we have criminal law to deal with phone hacking plus defamation and other laws to protect individuals, and questioning the need for a privacy tort – especially one as draconian in its treatment of the Australian media as that recommended by the Australian Law Reform Commission. What this discussion sidesteps, as much of the discussion I have read to date in the press, is that we already have common law protection of privacy fashioned through case law, which does or should constrain the media.

A problem, I think, is that our main source of common law protection goes by the antiquated name of ‘breach of confidence’. This gives the false impression of a confider and confidant. In reality the compass is far broader – and the doctrine is really one of misuse of confidential information, including information of a private character. In the defence papers case Commonwealth v John Fairfax Mason J referred to breach of confidence as a doctrine restraining ‘the publication of confidential information improperly or surreptitiously obtained’, citing Swinfen Eady LJ in Lord Ashburton v Pape (1913) 2 Ch 469. More recently, in the possum abattoir case Australian Broadcasting Corporation v Lenah Game Meats, Gleeson CJ quoted Laws J in Hellewell v Chief Constable of Derbyshire [1995] 1 WLR 804 at 807 as saying:

If someone with a telephoto lens were to take from a distance and with no authority a picture of another engaged in some private act, his subsequent disclosure of the photograph would, in my judgment, as surely amount to a breach of confidence as if he had found or stolen a letter or diary in which the act was recounted and proceeded to publish it. In such a case, the law would protect what might reasonably be called a right of privacy, although the name accorded to the cause of action would be breach of confidence. It is, of course, elementary that, in all such cases, a defence based on the public interest would be available.

Gleeson CJ agreed with that proposition, adding that to adapt it to the Australian context account should also be taken of the freedom of political communication which the High Court has held implicit in the democratic principles of the Australian Constitution. This suggests that the defence is particularly stringent where that implied freedom applies.

Lenah itself was a surreptitious filming case. Animal rights activists secretly entered the game meat abattoir’s property to film its possum slaughter processes then handed the film (through an intermediary) to the ABC who proposed to show on its 7.30 Report. Lenah sought an interlocutory injunction to stop this but did not claim breach of confidence, conceding rather that the information as to its animal slaughter methods was not confidential. Instead it argued the High Court should recognise a new tort of privacy to cover their case. Gleeson CJ said that breach of confidence would have been adequate to cover the case if ‘the activities filmed were private’. Even if so, the Chief Justice’s references to the public interest defence and constitutional freedom of communication suggests the ABC might have had a good defence. As Kirby J pointed out in his judgment, this was a government licensed abattoir and the public is entitled to know that the government is concerned to ensure that animals at the abattoir are being treated humanely (so far as an abattoir designed to kill animals can do so). The Australian government’s recent action over live meats exports shows it accepts this responsibility, and the ABC’s role in uncovering the problems there is worth noting and preserving.

We only need to imagine a slightly different fact situation to see Lenah as a strong authority on breach of confidence’s protection of privacy. Although some judges in the High Court questioned whether a corporation concerned about its public reputation was the best privacy claimant (Gummow and Hayne JJ especially), it was clear that the situation would have been different if the claimant had been an individual filmed or photographed while engaged in a private activity. For instance, Gleeson CJ said, ‘a film of a man in his underpants in his bedroom would ordinarily have the necessary quality of privacy to warrant the application of the law of breach of confidence’ – as would ‘information relating to health, personal relationships, or finances’. If the information was surreptitiously or otherwise improperly obtained, there is a good argument that its publication could be restrained or a remedy granted after the fact on the basis of breach of confidence, unless a public interest could be shown to justify the publication.

These are not just hypothetical scenarios that could never arise in Australia. In fact, the prospect of an improperly obtained video recording of a man in his underpants being aired on Australian television was very real in Donnelly v Amalgamated Television Services, where an interlocutory injunction was obtained (although, as often occurs in cases where other grounds are available, breach of confidence as such was not relied on). Lara Bingle’s objection to publication of the infamous shower picture in Woman’s Day is one example and in my view she had a potential claim that might have succeeded if she had chosen to pursue her action. Certainly, there are English cases where confidentiality claims against the media have succeeded involving weaker arguments of privacy and stronger arguments of free speech than were apparent in the Bingle scenario.

That many of those English cases have arisen in the wake of the Human Rights Act 1998 makes their authority in the Australian context more debatable. The Act brings into English law the European Convention on Human Rights, including the right to privacy in Article 8 along with the right to free speech in Article 10, and gives English courts the responsibility to develop its law in accordance with those rights. Perhaps it may be argued that the absence of an equivalent Bill of Rights at the Australian level means that privacy is not, or need not be, so highly valued here. But can this be said of private phone hacking? I would think many Australians would consider this a breach of their privacy.

And it would likely be a breach of confidence as well. Well before the Human Rights Act, the English case of Francome v Mirror Group Newspapers Ltd (1984) 2 ALL ER 408 concerned an illegal ‘bug’ placed on the jockey John Francome’s private telephone line. The tapes had been offered for sale to the Daily Mirror whose reporters approached Francome to confirm their authenticity. Francome and his wife promptly brought an action in breach of confidence seeking an interlocutory injunction to stop its publication of the transcripts, or extracts. The defendants denied liability and argued, alternatively, that publication was justified in the public interest as exposing Francome’s breaches of racing rules. Thus, they said, the balance of convenience lay in their favour, so the injunction should not be granted. However, the Court of Appeal held that the unlawful telephone tap was improper obtaining, the newspaper which had notice of the wrongdoing would also be liable as a third party for breach of confidence if it went ahead with its publication, and the public interest did not justify this since the tapes could have been given to the police or jockey club to deal with through official channels. Surely this case shows that in Australia as well as the United Kingdom unlawful telephone tapping by the media would be a prima facie breach of confidence, and that given the unlawfulness of the conduct the burden on the media to show the public interest supports its action is very high – although a court might allow an argument that there is good ground to suspect misconduct and the police could not be left to handle the investigation.

But to revert to my earlier point, the significance of breach of confidence in cases such as Francome is not widely known. In answer, then, to the question of whether there would be any advantage in a new statutory tort of privacy, I suggest transparency is one. If even The Australian’s senior legal reporter does not refer to breach of confidence what is the rest of Australia’s population to make of their legal rights in the (hopefully unlikely) scenario they find their telephones tapped for media reporting on some current story?

That said, there may be better ways to acknowledge the importance of freedom of speech and the media than in the Australian Law Reform Commission’s proposed statutory tort (where it is a matter to be ‘taken into account’ in a court’s determination of invasion of privacy). I was part of an expert group of the New South Wales Law Reform Commission whose proposed statutory cause of action for invasion of privacy tries to give more explicit account to freedom of speech and the media. The Victorian Law Reform Commission in its recent proposal for a cause of action for misuse of private information has gone further still, providing a full public interest defence. To me that seems the best approach to date. As Michael Kirby was quoted in an article in last weekend’s Australian, privacy may be a human right but so equally is freedom of speech and the media. Rather than giving either automatic precedence both should be acknowledged in any privacy cause of action and if need be they should be ‘reconciled’ in cases.

So, in the end, the judge’s central role in deciding privacy cases seems inescapable. In other words, we rely on the media to report freely but in cases where media seems too intrusive of individual privacy we should trust judges to exercise appropriate oversight.

Megan Richardson is a professor at the Melbourne Law School

An edited version of this piece has featured at theconversation.edu.au

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Could plain tobacco packaging laws ground a non-violation complaint under the Australia-US FTA?

July 29, 2011

By David Brennan

In the debate surrounding the Commonwealth’s proposed plain tobacco packaging laws an aspect of Australia’s international intellectual property obligations, aside from those set out in World Trade Organization (WTO) rules, has not been addressed. That aspect is the possibility of a non‐violation complaint by the US against Australia under the Australia-US Free Trade Agreement (FTA).

A non‐violation complaint occurs when, because of the application of a measure which in itself does not violate a minimum standard set by a trade agreement, the measure nevertheless causes the nullification or impairment of a benefit that a party reasonably expects should arise from the agreement.

In this instance a minimum standard article found in Chapter Seventeen of the FTA – Intellectual Property Rights – requires that parties confer upon trade mark owners certain exclusive rights in relation to their marks. The article reads in part that ‘[e]ach Party shall provide that the owner of a registered mark shall have the exclusive right to prevent all third parties not having the owner’s consent from using in the course of trade identical or similar signs.’

This minimum standard is not violated by plain packaging laws if one accepts the logic that the standard merely requires the creation of a negative right (a right to exclude), and that plain packaging laws are not inconsistent with that requirement. This is because, under that logic, the laws simply deny affected trade mark owners a positive entitlement to themselves use certain of their registered trade marks in typical ways, but does not remove their right to prevent third parties from using those trade marks. This is a key point made by Mark Davison, a plain packaging enthusiast, in arguing that such laws do not violate WTO rules.

However a dispute settlement article in Chapter 21 of the FTA raises the minimum standard in an important way, by creating the possibility of a non-violation complaint. It states that ‘except as otherwise provided in this Agreement or as the Parties otherwise agree’ the dispute settlement regime of the FTA applies when a Party considers that ‘a benefit the Party could reasonably have expected to accrue to it under … [Chapter Seventeen – Intellectual Property Rights] is being nullified or impaired as a result of a measure that is not inconsistent with this Agreement.’

This creates the possibility of a non‐violation complaint by the US against Australia on the basis that plain packaging laws deny a reasonably expected benefit to US trade mark owners. In this respect the US might also argue the plain packaging measure should be considered in conjunction with another measure: State and Territory law banning of the display of tobacco products at point of retail sale. Together, the measures might be argued to cause heightened impairment or nullification of a reasonably expected benefit to US tobacco trade mark owners.

How would the US identify a reasonably expected benefit, arising from the FTA minimum standard of requiring a right in owners to prevent others from using their marks in trade? It might be identified as the benefit described by Frank Schechter in his 1927 Harvard Law Review article, “The Rational Basis of Trademark Protection”. Schechter there explained: ‘The fact that through his trademark the manufacturer or importer may reach over the shoulder of the retailer and across the latter’s counter straight to the consumer cannot be over-emphasized, for therein lies the key to any effective scheme of trademark protection. To describe a trademark merely as a symbol of good will, without recognizing in it an agency for the actual creation and perpetuation of good will, ignores the most potent aspect of the nature of a trademark and that phase most in need of protection.’

Importantly, a non-violation complaint assumes that the measure in issue is not inconsistent with the FTA. That is to say such a complaint could be made even with the US accepting the argument that a measure denying an owner use of its mark does not violate a FTA minimum standard guaranteeing the trade mark owner a right to exclude others from using its mark.

In relation to ‘except as otherwise provided in this Agreement’ in the FTA dispute settlement article, it should be pointed out that exceptions for measures such as those ‘necessary to protect human, animal or plant life or health’ are not expressly incorporated to apply to Chapter Seventeen – Intellectual Property Rights. However, the FTA dispute settlement article recognizes that the parties may ‘otherwise agree’ in relation to a measure such as the plain packaging mandate. Unlike the position under bilateral investment treaties, private parties cannot bring a complaint under the FTA, only the countries party to the agreement are competent to take action. Would the US bring a non-violation FTA complaint against Australia about the plain packaging laws? Of course I do not know. Recently the US Food and Drug Administration (FDA) has prescribed (commencing in September 2012) the types of graphic health warnings on tobacco packaging that Australia adopted long ago. These must appear on the top 50 percent of both the front and rear panels of each cigarette package distributed in the US, however the FDA regulations do not mandate plain labelling for the remaining branded portion of the package. At the same time seven US peak commerce bodies – including the US Chamber of Commerce – have expressed joint opposition to Australia’s proposed plain packaging laws, while at the same time recognizing Australia’s right to regulate more fundamental control over the supply of tobacco products.

I conclude with a couple of riders.

Non‐violation complaints are regarded by many (albeit not the US) as being ill‐suited to intellectual property minimum trade standards; this controversy has been responsible for the moratorium on such complaints under WTO rules.

While I am an intellectual property enthusiast, I am personally opposed to the tobacco trade.  I favour the suggestion made last year to ban the supply of tobacco to individuals born in or after the year 2000.

David Brennan in an Associate Professor at the Melbourne Law School

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