Under Canada's New Media Exemption Order, individuals or companies re-transmitting the signals of over-the-air television or radio programmes on the internet were not subject to the restrictions provided by the country's Broadcasting Act.
Also, an amendment to Canadian copyright law, which will soon come into effect, explicitly excludes internet re-transmitters from the licensing regime imposed on other broadcasters.
This regulatory framework was viewed by certain companies as an opportunity to create new net TV businesses. In 1999, a company called iCraveTV became the first to broadcast live streams of US and Canadian TV programmes and sports events on the web.
ICraveTV.com notified internet users that only Canadian viewers were authorised; however it allowed users all over the world to access the programmes. The company was soon sued by sports leagues and broadcasters, and stopped its activities.
Another company, called JumpTV asked permission to broadcast TV signals on the internet, however the request was rejected by broadcasters. Then the company asked the Canadian Radio-Television and Telecommunications Commission to clarify the country's legal position on the issue.
Following the request, the Commission launched a public consultation and, last week, it ruled that unauthorised broadcasting of TV signals on the web is illegal. According to the regulators, the distribution of TV content without geographical restrictions could undermine producers and traditional broadcasters, and "reduce the opportunities" of copyright owners.
The Commission reasoned that the ban is necessary, since, at present, there is "no completely workable method of ensuring that internet re-transmissions are geographically contained".
More information on the issue and the Commission's decision can be found at:
www.crtc.gc.ca/archive/ENG/Notices/2003/pb2003-2.htm