Court File Nos.: T-2090-14;
T-269-153 T-477-153 T-1234-153 T-1862-153
T-2042-16;
T-117-17; T-132-17; T-133-173 T-134317
FEDERAL COURT
BETWEEN:
1395804 ONTARIO LTD., OPERATING AS BLACKLOCK’S REPORTER
Plaintiff
And
CANADA (ATTORNEY GENERAL)
Defendant
MOTION RECORD
ATTORNEY GENERAL OF CANADA
Attorney General of Canada
Department of Justice Canada
Civil Litigation Section
50 O'Connor Street, Suite 500
Ottawa, Ontario
K1A oH8
Fax: (613) 954-1920
Per: Alexandre Kaufman
Sarah Sherhols
Tel: (613) 670-6294
(613) 670-6287
Counsel for the DefendantTO:
AND TO:
Hameed & Farrokzhad
ers & Solicitors
43 Florence Street
Ottawa, Ontario
K2P 0W6
Yavar Hameed
Tel: (613) 232-2688 ext 228
Fax: (613) 232-2680
Counsel for the plaintiff
Federal Court
Thomas D'Arcy McGee Building
90 Sparks Street, Sth Floor
Ottawa, Ontario
KIA 0H9
Tel: (613) 996-4238
Fax: (613) 952-3653TAB
TABLE OF CON’
Notice of Motion dated April 4, 2017
Affidavit of Patricia Suys, affirmed April 4, 2017
A
B
G
H
Agreed Statement of Facts, T-1391-14, September 12, 2016
Chart filed during trial, T-1391-14
Chart, exhibit ‘A’ of February 1, 2016 affidavit sworn by Jennifer Jans
Letter from Mr. Hameed dated October 15, 2015, T-2090-14
Statement of Defence, T-477-15
Letter from Mr, Hameed dated March 15, 2017, T-477-15
Mareh 23, 2017 email chain between Mr. Hameed and Mr. Kaufman
Statement of Defence, T-117-17
Affidavit of Nick Fillmore, affirmed April 3, 2017
Affidavit o'
suzane Aboueid, affirmed April 3, 2017
Written Representations of the Defendant, dated April 4, 2017Court File Nos.:
169-153 T-477-153 T-1234-1
T-2042-16;
117-173 T-132-173 T-133-175 T-134317
FEDERAL COURT
BETWEEN:
1395804 ONTARIO LTD., OPERATING AS BLACKLOCK’S REPORTER
Plaintiff
And
CANADA (ATTORNEY GENERAL)
Defendant
NOTICE OF MOTION
TAKE NOTICE THAT the Attorney General of Canada will make a motion to the Court on May 2,
2017 at 9:30 am or a soon thereafter as this Court may permit
THE MOTION IS FOR AN ORDER:
1. Directing that the action against the Canadian Food Inspection Agency (T-477-15) be allowed
to proceed to a motion for summary judgment before any additional steps are taken in these
proceedings.
2. Directing the trial of certain issues in common to all proceedings pursuant to Rule 107.
Specifically:
a. whether 1395804 Ontario Ltd has standing to bring these actions; and, alternatively,
b. the quantum of its damages assuming, without admitting, liability3. The costs of this motion.
4. Such other grounds as counsel may advise and the Court permit
‘THE GROUNDS FOR THE MOTION ARE.
1. The Attomey General of Canada's proposal that the next steps in these actions be (1) the
determination of CFIA’s motion for summary judgment, and (2) the determination of issues
common to all proceedings pursuant to Rule 107, achieves the interest of justice and the just,
most expeditious, and least expensive determination of the issues.
T-477-15 should proceed to a motion for summary judgment before further steps are taken in
these proceedings.
2. Allowing the CFIA action (T-477-15) to proceed to a motion for summary judgment is
consistent with the intent of the original stay and would bring about the most just, expeditious,
and least expensive determination of this action.
3. On March 3, 2016, this Court stayed nine out of ten Blacklock’s actions (including the CFIA
action) pending the determination of the Finance action (T-1391-14). The stay was sought on
the basis that the Court's findings in the Finance action would be applied to the remai
actions.
4, This Court dismissed the plaintiff's claim in the Finance action in its entirety. The decision
conclusively determined that the government was not liable for copyright infringement in
circumstances where it receives an article unsolicited and that article is then distributed to a
‘small group of persons who have an interest in it
5. The CFIA action is indistinguishable, in any material way, from the Finance action. Like the
Finance action, the CFIA action concerns the receipt of an unsolicited article from a third party
that was forwarded to a small group of CFIA employees and consultants who had a direct
interest in the article,6. There is no reason for staying the CFIA action in these circumstances.
The Court should order the separate determination of issues under Rule 107 in respect of issues
common to all actions.
7. Rule 107 provides that the Court may, at any time, order the trial of an issue or that issues in
a proceeding be determined separately
8. Here, bifurcating the issues of standing and damages is the most just, expeditious and least
expensive way of proceeding.
Deciding the issue of standing could resolve all of the actions,
9. The issue of standing is a legal one that requires a narrow factual record. If resolved in the
defendant's favo
it would resolve all of the actions expeditiously and inexpensively.
10. All of the articles at issue in the actions are authored by either Mr. Korski or freelancers. The
Attorney General of Canada's position is that assignments of copyright cannot be made to
apply retroactively, and that the plaintiff has no standing to bring these actions.
11. Even if the issue of standing is not resolved in the defendant's favor, the same amount of the
parties’ and the Court's time would be required to determine this issue in the context of the
trial of an action or in the context of a separate issue.
Quantifying Blacklock's damages could facilitate resolution of the actions.
12. Quantifying damages assuming, but not admitting, liability, would: ()) finally determine the
value of these actions; (i) allow the parties to make informed choices about the costs that can
be justified in pursuing or defending these actions; and, (ii) help facilitate settlement. This
approach achieves the just, most expeditious, and least expensive determination of this issue
in common,13.In the Finance action decision, this Court already found that Blacklock’s claims
disproportionate damages. Damages were not quantified because the action was dismissed.
14, A trial on the damages issue would only require minimal discovery and an estimated two days
of hearing to determine the quantum of damages for all of the actions currently before the
Court,
15, The parties would have to prepare for and argue the issue of damages for any trial in any
event. Having the Court determine the quantum of damages for every case in one trial of this
issue would only require marginally more time than would be required for only one case.
16. Federal Courts Rules, SOR/98-106, rules 3, 107 and 385.
THE FOLLOWING DOCUMENTARY EVIDENCE will be used at the hearing of the motion:
1, The affidavit of Patricia Suys affirmed April 4, 2017,
2. The affidavit of Nick Fillmore affirmed April 3, 2017.
3. The affidavit of Suzane Aboueid affirmed April 3, 2017.
4. Such further material as counsel may advise and this Honourable Court may permit.
ATTORNEY GENERAL OF CANADA
Department of Justice Canada
Civil Litigation Section
50 O'Connor Street, Suite 500
Ottawa, ON K1A OH8
Per: Alexandre Kaufman
Sarah Sherhols
Tel: (613) 670-6294
(613) 670-6287
Fax: (613) 954-1920
Counsel for the Attorney General of CanadaTO:
TO:
Hameed Law
Barristers & Solicitors
43 Florence Street
Ottawa, Ontario
K2P OW6
Yavar Hameed
Tel: (613) 232-2688 ext 228
Fax: (613) 232-2680
Counsel for the plaintiff
Federal Court
‘Thomas D’Arcy McGee Building
90 Sparks Street, Sth Floor
Ottawa, ON K1A 0H9
Tel: 613- 992-4238
Fax: 613- 952-3653Court File Nos.
2090-14;
‘T-269-15; T-477-153
-1234-153 T-1862-15;
T-2042-1
‘T-117-173 T-132-173 T-133-175 T-134517
FEDERAL COURT
BETW
1395804 ONTARIO LTD., OPERATING AS BLACKLOCK’S REPORTER
Plaintiff
And
CANADA (ATTORNEY GENERAL)
Defendant
— ————
AFFIDAVIT OF PATRICIA SUYS.
1, PATRICIA SUYS, from the City of Ottawa, in the Province of Ontario,
SOLEMNLY AFFIRM that:
1. Tama legal assistant employed by the Department of Justice and I work with
Mr. Alexandre Kaufman, counsel who has carriage of these actions. Since I
am responsible for organizing all of Mr. Kaufman's files, I have personal
knowledge of the matters herein,The Finance action (T-1391-1.
2.
‘The trial of Blacklock’s action against the Department of Finance lasted for
five days during the week of September 19, 2016.
Before the trial, the parties filed an Agreed Statement of Facts. Attached as
exhibit “A” is a copy of the Agreed Statement of Facts.
During the trial, a chart was filed on consent. This chart listed the various
government institutions’ Blacklock’s subscription dates, email addresses
associated with these subscriptions, and the period of time between the
subscription date and the Access to Information request. Attached as exhibit
“B” is a copy of this chart.
. The Attorney General had planned to call seven witnesses. The government
later chose not to call two of the witnesses (from the Canadian Broadcasting
Corporation and the University of Ottawa) it had subpoenaed in order to
finish the trial within the five days.
1 am advised by Sarah Sherhols, co-counsel on this file, and verily believe,
that the government spent approximately $165,000 in professional services
to defend the Finance action. The government only recovered $65,000.
While the finance action proceeded to trial, nine other actions brought by
Blacklock’s against the Attorney General were stayed. The total claimed in all
ten of these actions was $295,717.81.8. Blacklock’s opposed the Attorney General’s original stay motion that resulted
in the Finance matter proceeding to trial while the other nine actions were
stayed.
9. In opposing this motion, Blacklock’s filed a chart that contained the names of
the authors of the Blacklock’s articles involved in the ten actions. Attached as
exhibit “C” is a copy of this chart that was filed as exhibit ‘A’ of a February 1,
2016 affidavit sworn by Jennifer Jans.
Request for evidence that authors had assigned their copyright to Blacklock’s
10.0n August 25, 2015 and September 30, 2015, Mr. Kaufman contacted
Blacklock’s counsel, Mr. Hameed, requesting evidence that the authors of the
articles allegedly infringed had assigned their copyright to Blacklock’s.
11. Mr. Hameed responded by letter on October 15, 2015. This letter and its
enclosures are attached as exhibit “D”.
The Canadian Food Inspection Agency action (T-477-15)
12, Blacklock’s also brought an action against the CFIA. Attached as exhibit “E”
is a copy of the Statement of Defence filed in that action.
13. On March 15, 2017, Mr. Hameed wrote to the Court regarding the Attorney
General's proposed motion for summary judgment in the CFIA action.
Attached as exhibit “F” is a copy of this letter.Federal Court actions T-117-17; T-132-17; T-134-17; T-133-17
14. Blacklock’s recently brought four more actions against the Attorney General
in Federal Court:
117-17; T-132-17; T-134-17; T-133-17.
15. Blacklocks had previously filed these four actions in the Ontario Superior
Court.
16. On March 23, 2017, Mr. Kaufman inquired as to whether Blacklocks would
discontinue the Superior Court actions as promised. This email chain is
attached as exhibit “G”.
17. One of these actions was Blacklock’s action against Health Canada, T-117-17.
The Attorney General filed its statement of defence in this Court on March 9,
2017. The statement of defence is attached as exhibit “H”.
SOLEMNLY AFFIRMED
Before me in the City of
Ottawa, in the )
Province of Ontario D)
This 4'* day of April, 2017 ) COT.
. ) PATRICIA SUYS
issioner for taking affidavits ete
ud Else Bééard, a Commissioner, et,
Province of Ontario, forthe Goverment,
Canada, Deparment of Juste,
Eire December 7, 2017,THIS IS EXHIBIT “A”
Referred to in the affidavit of
PATRICIA SUYS
Affirmed on the 4th day of April, 2017
issioner for Taking Affidavits, etc.
Judit Elise Bédard, a Commissioner, et,
Province of Ontario, for the Government
of Canada, Department of Justice.
Expires December 7, 2017.Court File No. T-1391-14
FEDERAL COURT
BETWEEN:
1395804 ONTARIO LTD, operating as BLACKLOCK’S REPORTER,
PlaintifE
~and.
CANADA (ATTORNEY GENERAL)
Defendaint
AGREED S IMENT OF FACTS
‘The Plaintiff and the Defendant, by their respective counsel, agree that the following facts
are, for the purpose of this action only, not in dispute:
Blackdock’s Reporter
1, Blacklock’s Reporter (“Blacklock’s”), the Pla a news agency operating out of
a private residence in Ottawa. Blacklock’s reports almost exclusively on federally
regulated industries and the Federal Government. Its content is available exclusively
online.
2. On October 26, 2012, Blacklock's managing editor told the Ottawa Business Journal
the company's break-even point was estimated to be 500 subscriptions at $148 per year
or the equivalent ($74,000).In its first year of operations, Blacklock’s revenues were approximately $45,000. The
numbered company (1395804 Ontario Ltd.) financed Blacklock’s during that year.
Blacklock’s is one business line operated under this numbered company. The numbered
company was incorporated in 2001 and is owned and operated by Tom Korski and
Holly Doan,
Korski and Doan are also the only employees and members of Blacklock's
management.
Korski is the managing and only editor, whereas Doan is Blacklock’s publisher.
Korski’s duties include the coordination of assignments of reporters, continuity of copy
and routine administration. Doan is responsible for community outreach and
negotiating licenging agreements.
Blacklocks’ revenues have gradually increased since its inception in 2012 until today.
Tn 2015, Blacklock’s generated approximately $98,000 of revenue per year.
Approximately five percent (5%) of Blacklock’s revenue comes from online
advertising. The remainder of the revenue comes from either subscriptions/licences
paid in advance or from invoices/settlements based on what Blacklock's describes as
user's acknowledgement of violations of Blacklock’s terms of use.
In 2015, Blacklock’s incurred costs of approximately $53,000 per year. This amount is
almost exclusively related to labour costs, as Blacklock’s does not incur costs for rent
or publishing print editions.
In 2015, Blacklock’s bad approximately seven contractors who contributed stories.
Two reporters’ were on retainer and received $1,700 to $2,200 per month as
remuneration fron Blacklock’s. One former contractor was accredited to the Press
Gallery in exchange for a single story. Another of the reporters has been remunerated
through a profit sharing arrangement,
12a
B, The Department of Finance
10. The Department of Finance, the Defendant, (“Finance”) assists the Government of
Canada in developing and implementing economic, fiscal, tax and financial sector
policies and programs. Finance’s responsibilities include the development of tariff
policy and legislation
U1. Blacklock’s has contacted and received information from Finance's Media
Relations Sector in response to its media requests for its articles.
12, However, Finance at no time had either a subscription or licence to Blacklock’.
13."On April 10, 2013, Stephanie Rubec, manager, Media Relations, Finance, wrote
Korski an email stating: "What are the chances you would send me your piece once
published?" Korski replied, "We did publish that this morning, The finance department
‘ought to subscribe; numerous other departments and Crown agencies do; $148 a year."
Rubee replied, "I've asked -- the machine isn't always the fastest in processing
requests." Korski replied, "Our office can always set you up right away if the
department wants paper billing by invoice. Just forward the request with invoice data
to Holly Doan", and cited Doan’s email address.
Blacklock’s Subscriptions and Licences
14, Blacklock’s in 2015 had approximately 260 licensees and paid subscribers. The
difference between the two is that licences cover multiple users while Blacklock’s
Level subscriptions provide access to a single user.
15. Blacklock’s single-reader subscribers in 2015 generated between $4,083 and $6,123 of
Blacklock’s revenue, At the relevant time, a Blacklock’s Level subscription cost $148
and granted access to the subscriber for all Blacklock’s content for one year. Between
10 and 15 percent of the 260 Blacklock's clients in 2015, i.e. approximately 26 and 39,
were single-use subscribers.16. Blacklock’s Level subscriptions have been purchased electronically by owners of
nonitoring2@cra-arc.ge.ca, an account
purchased by Canada Revenue Agency staff Sophie Desjardins using the account
libraty-bibliotheque@fintrac-canafe.ge.ca; Sharron Drummond using the account
he_media_sc@he-segc.ca; and Annie Trepanier using the account
government email accounts such as medi
services, medin@tpsec-pwese.ge.ca.”
17. On February 3, 2014, Korski requested a comment from Minister Jason Kenney’s
office regarding the re-appointment of Brian Johnsion to the Canada Mortgage and
Housing Corporation’s (CMHC) board.
18, On February 4, 2014, Charles Sauriol, Senior Media Relations Officer with CMHC
responded to Mr. Korski.
19, On February 5, 2014, Blacklock’s published a story entitled “Builder tied to GST
scheme wins gov't reappointment”. Blacklock’s sent a marketing email consisting of
the headline and the two sentences of the article was sent to Peter De Barros, Vice
President of Public Affairs with CMHC,
20. On February 5, 2014 at 10:21 a.m., Charles Sauriol emailed Korski and asked “would
it be possible for you to send me a copy of your article”, Korski replied at 10:27 a.m.:
“yes, by all means, I’m copying our publisher Holly Doan who manages all copy
distribution”,
21. At 12:34 a.m., Holly Doan wrote fo Charles Sauriol and wrote:
“Hi Chatles,
‘Thank you for your interest in Blacklock’s Reporter. Apologies, but we area paywalled
news service and do not distribute free copy because it would not be fair (o “MPs,
departments, government agencies, industry associations and universities who
subscribe.
14Backlock’s covers federal affairs not found in mainstream media publications you may
not already have”,
22, A “Blacklock’s Reporter” level subscription was purchased online on February 5, 2014
riol@cmhe.ca
at acost of $177.41 under account CMHC2014, using email address os:
and billing address 700 Montreal Road, Ottawa.
23. Blacklock’s terms and conditions of subscription are posted on its website and accessed
through a link at the bottom of the website. Attached as exhibit “A” to this Agreed
Statement of Facts is a copy of the Terms and Conditions as they were posted on
Blacklocks’ website on April 19, 2013. Attached as exhibit “B” to this Agreed
Statement of Facts is a copy of the Terms and Conditions as they were posted on
Blacklocks’ website on June 23, 2013.
2d, Blacklock’s licences are customizable. Organizations have either paid the cost of the
licence up front, or procured licences retroactively in circumstances where Blacklock’s
believed that organizations had breached their terms and conditions.
25, The most Blacklock's has charged for a licence in circumstances where there was no
alleged violation of terms of use is $3,925 to the Senate Liberal Caucus. This agreement
is for Februaty 22, 2016 to February 22, 2017. The licence granted access to 27 Liberal
Senators and permitted proxy readership by each Senator's staff. The caucus could
increase or decrease without a change in the fixed fee.
26, With respect to the other categories of licensees, where payments were made in
advance (and there were no issues of compliance with terms or conditions), the price
of the licences was:
a, For unions, approximately $1,500 to $1,900 in annual licence fees.
b. For libraries, approximately $500 to $2650 in annual licence fees.
c. For law firms, approximately $500 to $900 in annual licence fees.4. For lobbyists, public advocacy groups and research organizations, between
$500 and $2900 in annual licence fees.
27. Blacklock’s has also sold licences for $500 per year. Blacklock’s sold a licence to the
Canada Broadcasting Corporation (CBC) reference library which granted access to
every CBC employee for $157 in September 2014, but this amount was inereased 10
$500 in October 2014, and CBC paid the difference between these two amounts.
28, Blacklock’s has sold multiple user licences at an introductory rate of $500. The
University of Waterloo, the University of Ottawa and York University purchased
licences with Blacklock’s for the introductory rate of $500.
29. Waterloo’s licensing agreement provides access to Blacklock’s content forall students,
faculty, employees and researchers associated with the University of Waterloo Library.
‘The agreement deems individuals who are at the library to be authorized users (ie.
walk-in users”).
30. York did not renew its licence beyond the first year. The University of Ottawa renewed
its licence and now pays Blacklock's $2650 in annual licence fees. This licensing
agreement with the University of Ottawa provides online access to Blacklock’s content
to faculty, staff, students and affiliated researchers.
31. Blacklock’s has never sold a licence for $11,470, or more, to an organization in
circumstances where Blacklock's had not raised concerns about potential violations of
Blacklock’s terms of use.
D.
Jacklock’s Settlements and Invoices
32. Korski has made Access to Information requests in relation to every subscriber who
had a government email address,
33, In just over two years, Blacklock’s has received responses to 24 such Access to
Information requests (ATIP).
1634, Following responses to these ATIP requests, Korski has occasionally sent invoices in
cases where it believes that there has been a violation of Blacklock’s Terms and
Conditions.
35. Blacklock’s alleged that the Privy Council Office, Agriculture Canada, Canada
Mortgage Housing Corporation, the Canadian Museum of History, Friends of Canadian
Broadcasting, Sietra Club, and the Department of Justice breached its copyright in its
articles,
36, Claiming violations of its Terms and Conditions, Blacklock’s sent invoices to the Privy
Council Office, Agriculture Canada, Canada Mortgage Housing Corporation, the
Canadian Museum of History, Friends of Canadian Broadcasting, Sierra Club, and
Department of Justice,
37. The Privy Council Office, Agriculture Canada, Canada Mortgage and. Housing
Corporation, the Canadian Muscum of History, and the Department of Justice paid
Blacklock's invoices, sent following an alleged violation of the Terms and Conditions.
38, Friends of Canadian Broadcasting and Sierra Club did not pay the invoices, but instead
entered into settlement agreements with Blacklock’s after it commenced actions in the
Federal Court,
39, Excluding the Friends of Canadian Broadcasting, these entities paid a total $54,663.68,
in the petiod 2013, 2014 and 2015 to the Plainti
40. Blacklock's has also sent invoices to Finance, Health Canada, the Canadian Food
Inspection Agency, Public Works & Government Services Canada, the Bank of
Canada, the Canada Revenue Agency, the Competition Bureau, the agency formerly
known as the Canadian Intemational Development Agency, the Canadian
‘Transportation Agency and One Big Campaign for alleged breach of its copyright.
‘These invoices totalled at least $318,696.78.
A41. After issuing invoices and not receiving payment of those invoices, Blacklock’s
proceeded to litigation against some organizations, including the Canadian Food
Inspection Agency, the Privy Council Office, Public Works & Government Services
Canada; the Canada Revenue Agency, the Competition Bureau, the Canadian Transport
Agency, One Big Campaign, Friends of Canadian Broadcasting, Sierra Club
Foundation, and the Canadian Vintners Association.
42. In less than two years, Blacklock’s has initiated at least 18 actions alleging copyright
‘The total
infringement. Fourteen of those are against federal departments and agenci
the 18 actions currently or previously before the Federal
amount of damages elaime
Court, the Ontario Superior Court or the Ontario Small Claims Court is approximately
$601,892.11.
Biacklock’s Articles
43. Blacklock’s articles are almost exclusively paywalled — which means that they are only
accessible to paying customers.
44,
For a one-year period commencing with the start of the publication in October 2012,
Blacklock's made available on its website a ‘digest’ of weeks-old, previously-paywalled
article and made them available for free. If Blacklock's makes an article accessible to
the public (Le. itis ‘unlocked’, it does not take any copyright enforcement measures if
that article is copied or distributed from the date it was unlocked,
45, Blacklock’s posts between 25 and 30 articles per week on its website blacklocks.ca,
Korski and Doan produce approximately 40 percent of Blacklock’s content,
46, Blacklock's and its reporters routinely contact and interview federal government
employees for comment on stories.
47. Blacklock's rarely provides a free copy of any article to any person who has contributed
fo one of its articles whether by providing information or granting an interview,
including government employees.
1819
48, Blacklock’s distributes emails comprised of the headline and two sentences that either
appear in the article or paraphrase the article. They are routinely sent to an employee
of an organization when the article concems the organization or an issue affecting it
FF, Blackdocl’s and the Department of Finance
49. On August 20, 2013, Mr. Korski made an Access to Information Request to Finance.
for the follow
All correspondence and documentation since Oct.23, 2012 on the use and/or
distribution of articles from the publication known as Blacklock’s Reporter or its,
derivatives Blacklock’s and blacklocks.ca
50. He received a response on September 19, 2013.
51. On September 11, 2013, Holly Doan inquired as to whether Rubec was still interested
in a subscription to Blacklock's,
52, That same day, Rubec replied by email as follows: “...unless a subscription to
Blacklock’s allows for the circulation of an article within the Department, we cannot
subscribe. If you have such a subscription, please let me know.”
53.-Doan replied to Rubee as follows: “Yes, we do have bulk rates as mentioned on the
website, Rate is calculated based on how many readers. Let me know how many
pairs of eyes, approx, and I will provide an estimate. It’s a sliding scale, the more
you buy, the cheaper it gets.
‘54, Rubec futher inquired as follows — “can you provide me with a rate for 500 then for
800?”
55. On September 12, 2013, Doan replied to Rubec’s request by providing a rate card
outlining a discount bulk rate of $11,470 for the first 100 subscriptions and a quote of
$13,870 for 500 subscriptions total and $15,670 for 800 subscriptions total.10
56. In October 2013, Korski made media enquiries of Finance’s Media Relations for
information for the two articles that ate the subject of this action both of which were
authored by Korski and for which Blacklock’s owns copyright.
57. Finance issued statements in response to these media requests with a final statement
delayed till 7:25 pm on October 9, 2013.
58. On October 10, 2013 a Finance media relations official, Stephanie Rubec, wrote Korski
about the article entitled "$30,000,000 Sugar Tax Is Averted": "I trust you received this
yesterday at 7:25. The response was delayed since the proper context wasn't provided
until well into our email exctianges, Will you be updating the story and removing the
no comment?"
‘Sugar Institute, gave an
59. On October 9, 2013, Sandra Marsden, President, Canadit
interview (o Blacklock’s for the “$30,000,000 Sugar Tax is Averted”.
60. Sandra Marsden was quoted in both articles. She received an email from Blacklock’s
at 9:12am on October 10, 2013 with the headline of the article and the following text:
"$30,000,000 Sugar Tax Is Averted
‘A Department of Finance error that meant a $30 million sugat tax is being
remedied following appeals from industry. A trade group said a mistaken tariff
hike on Brazilian imports would have forced the closure of at least one Canadian
‘sugar refinery: "We would have been a casualty."
Read more,
61. Marsden would not have been able to “read more” without subscribing, She purchased
a“Blacklock’s Reporter Level” subscription within minutes of receiving the marketing
email
62, Sandra Marsden sent Patrick Halley, Senior Chief, Tariff and Trade Policy of the
International Trade Policy Division, Finance, the two articles that are the subject of this
action,ut
63. In the October 10, 2013 email forwarding the “$30,000,000 Sugar Tax is Averted””
aiticle to Patrick Halley, Marsden told Halley that she had been interviewed but that
“Most of the facts are accurate although I'm not all happy with the spin- obviously I
wouldn’thave characterized this as a “sugar tax” nor a Department of Finance “error
64, The article entitled "It Didn't Make Sense" originally published October 11, 2013 and
forwarded by Patrick Halley that day, was made available to the public for free in a
"digest" available on the blacklocks.ca website on November 25, 2013.
65. On October 18, 2013, Mr. Korski made another Access to Information Request to
Finance for the following:
All emails, communications, reports, electronic Tinks, citations and/or documents
of any kind containing the words “sugar” and “tariff” from October 8 to October
16, 2013 and any emails communications, reports, electronic links, citations and/or
documents regarding news coverage of the sugar tariff in the same Oct.8-16,2013,
period,
66. He received a response on February 5, 2014.
67. Blacklock’s on February 8, 2014 contacted Finance seeking an explanation of the
concluet that is the subject of this action, and received no reply. On February 14, 2014
Blacklock’s again contacted Finance and received a notice that Mr. Halley would be
out of the office until February 27, 2014. On February 19, 2014, Blacklock’s sent
Finance a $17,816.71 invoice for the alleged breach ofits copyright in the two articles
that are the subject of this action, On March 18, 2014, in response to Blacklock’s
invoice, Finance offered to pay Blacklock’s $471.00, the equivalent of three
Blacklock’s Reporter Level subscriptions, on March 18, 2014,
2122
12
G. Authenticity of Documents Admitted
68, The parties admit for the purposes of this proceeding only, the authenticity of the
following documents:
1. All documents in the Plaintif’s Affidavit of Documents and Amended Affidavit of
Documents and Supplementary Affidavit of Documents.
2. All documents in the Defendant’s Affidavit of Documents, Amended Affidavits of
Documents and Supplemental Affidavit of Documents.
69. For greater clarity, the parties agree that the documents contained in the Joint Book of
‘Documents filed in these proceedings on September 12, 2016, are authentic and, in the
case of emails, are evidence that the email was either sent or received by the persons
named in the email. The parties agree to argue the weight, significance, the relevance
and admissibility to be given to the documents during argument.
Séptemberl2, 2016
William F. Pentney, Q.C.
Deputy Attomey General of Canada
Pér: Alexandre Kaufman
Orlagh O’Kelly
Department of Justice Canada
Civil Litigation Section
St Floor, 50 O°Connor Street
Ottawa, ON
KIA 0H8
Tel: (613) 670-6294
Fax: (613) 954-1920
Solicitors for the Defendant23
September 12, 2016.
facklock"€ Reporter, per
Yavar Hameed
Hameed law
Barristers and Solicitors
43 Florence Street
Ottawa, ON.
K2P 0W6
Tel: (613) 232-2688 ext 228
Pax: (613) 232-2680
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