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Internet service providers don't act as broadcasters, the Federal Court of Appeal has decided, but industry changes may force a re-evaluation of its ruling.
"In providing access to 'broadcasting', ISPs do not transmit programs," the Federal Appeal Court said in a statement, and so they are not subject to regulations contained in the Broadcast Act.
The decision also indicates that a levy or surcharge on wireline and wireless Internet providers cannot be applied under the Broadcast Act to be used to help fund and finance Canadian new media content.
The court said its decision was "based on the content-neutral role of ISPs and would have to be reassessed if this role should change."
Recent industry developments have shown that larger ISPs are not only transmitting content, but are in fact commissioning and creating their own content for distribution.
A coalition of cultural groups may still appeal the decision to the Supreme Court, claiming that ISPs are broadcasters because they do transmit content.
It was the Canadian Radio-television and Telecommunications Commission (CRTC) that asked the Court to determine the ISP's status, as it was updating its Internet policy and looking at overlaps between the Broadcast and the Telecommunications Act.
The court's ruling does include an order for providers to report details about broadcasting activities, including content aggregation, content development and related revenues and expenditures, although ISPs that only provide access may be exempt.
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