[RRE]Hague Conference: effects on free speech, consumers

From: Phil Agre (pagreat_private)
Date: Thu Jun 21 2001 - 08:05:50 PDT

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    Date: Wed, 20 Jun 2001 14:06:27 -0400 (EDT)
    From: Cyber Rights <cyber-rightsat_private>
    Subject: Hague Conference: effects on free speech, consumers
    
            As the Hague Conference Diplomatic Conference ends
            the Internet and the Public Domain are at risk
    
            James Love
            June 20, 2001
    
    INTRODUCTION
    
            Today the Hague Conference on Private International Law will
    end its first diplomatic conference on a new treaty to set the rules
    for jurisdiction for nearly all commercial and civil litigation.
    In a world where everyone is struggling to understand how to address
    jurisdiction issues raised by the Internet, this new proposed treaty
    imposes a bold set of rules that will profoundly change the Internet,
    and not only that.  As drafted, it will extend the reach of every
    country's intellectual property laws, including those that have
    nothing to do with the Internet.
    
            What exactly does this new treaty seek to do?  In a
    nutshell, it will strangle the Internet with a suffocating blanket
    of overlapping jurisdictional claims, expose every web page publisher
    to liabilities for libel, defamation and other speech offenses from
    virtually any country, effectively strip Internet Service Providers of
    protections from litigation over the content they carry, give business
    who sell or distribute goods and services the right to dictate via
    contracts the countries where disputes will be resolved and rights
    defended, and narrow the grounds under which countries can protect
    individual consumer rights.  It provides a mechanism to greatly
    undermine national policies on the "first sale" doctrine, potentially
    ending royalty free video rentals for corporate entities with overseas
    assets, and it opens the door for cross border enforcement of a wide
    range of intellectual property claims, including new and novel rights
    that do not have broad international acceptance.  It will lead to a
    great reduction in freedom, shrink the public domain, and diminish
    national sovereignty.  And practically no one knows anything about the
    treaty.
    
            This proposed Hague treaty stands the tradition globalization
    approach on its head.  It does not impose global rules on substantive
    laws -- countries are free to enact very different national laws
    on commercial matters.  The only treaty obligation is that member
    countries follows rules on jurisdiction and agree to enforce foreign
    judgments.  Rather than a WTO or WIPO type approach of harmonization
    of substantive policies, every country can march to its own drummer.
    The treaty is about enforcing everyone's laws, regardless of their
    content, and enforcing private contracts on which national courts
    will resolve disputes.  It is a treaty framework that made some sense
    in a world of trade in pre-internet goods and services that lend
    themselves to easy interpretation of jurisdiction based upon physical
    activity.  It is a treaty that makes little sense when applied
    to information published on the Internet, and more generally for
    intellectual property claims, where one should not leap into cross
    border enforcement without thinking.
    
    THE HAGUE CONFERENCE ON PRIVATE INTERNATIONAL LAW
    
            The Hague Conference on Private International Law is a little
    known organization that held its first meetings in 1893, but did
    not have a permanent status until 1951, and since then has adopted
    34 international conventions, mostly on very narrow and often
    obscure topics, such as the taking of evidence abroad, the form
    of testamentary depositions, wills, traffic accidents, and several
    dealing with children.
    
            In 1965, the Hague Conference adopted a Convention on the
    choice of court for civil litigation, but it only was endorsed by
    one country -- Israel.  The current effort is a renewed effort to
    deal with that issue, and also the enforcement of judgments and
    other items, and the scope is extremely wide -- nearly all civil and
    commercial litigation.  It is, without a doubt, the most ambitious
    project undertaken by Convention, and the Secretariat and the member
    country delegates are anxious to establish the Conference as a
    major league actor in the rapidly changing global political economy.
    Despite its grand ambition, the Hague Conference secretariat is tiny,
    about a dozen according to a FAQ on its web page.  The small size and
    low profile of the Hague Conference has allowed this treaty, which has
    enormous significance, to go virtually undetected, even though it is
    has been in discussions since
    1992.
    
    POLITICS OF THE CONVENTION
    
            The official version of this particular convention on
    jurisdiction and enforcement of foreign judgments is that in 1992
    the US began seeking ways to obtain more equitable treatment of the
    enforcement of judgments from commercial and civil litigation, and
    was willing to cut back on some aspects of US "long arm" jurisdiction
    to do so.  In the beginning, none of the negotiators were thinking
    about the Internet, and the treaty seemed to have limited interest
    to most persons.  By 1996 it was obvious to some that the Internet
    in general and e-commerce in particular would pose special problems
    for the Convention.  By 1999 there was considerable attention given by
    business interests on how the Convention could be drafted to resolve
    a number of jurisdiction problems they faced, and in particular, the
    Hague Secretariat began suggesting the Convention could be used to
    replace overlapping national laws on consumer protection and privacy
    with industry lead alternative dispute resolution systems -- a top
    priority for the biggest e-commerce firms.
    
            Meanwhile, Europe was developing its own rules for
    jurisdiction that made some sense in an environment where you had
    entities like the European Parliament and the European Commission
    to force harmonization of substantive law.  Europe was also alarmed
    and jealous of the US leadership in the development of the Internet.
    European negotiators pushed hard to impose a treaty based upon the
    EU's Brussels Convention, not only to preserve the European approach,
    but to lead, for once, in an important area for the Internet.
    
            The European negotiators were also unhappy with the generally
    free and unruly nature of the Internet, and saw the convention as
    a mechanism to reign in hate speech, libel and defamatory speech,
    "piracy" of intellectual property, the publishing of government
    secrets and documents on the Internet (the David Shayler case), and
    other unsettling aspects of the Internet.
    
            The business community, meanwhile, was unhappy with the EU
    approach to providing consumer protection, including privacy rights,
    and fearful that the Convention could expose them to lawsuits from
    several different countries for violating consumer protection and
    privacy laws.
    
            Meanwhile, Napster had mobilized the music and movie
    businesses, and they increasing saw the need for stronger cross border
    enforcement of copyrights, including the need for injunctive relief
    aimed at ISPs, and the strong long and order (you can run but you
    can't hide) nature of the Hague convention was very appealing to an
    industry afraid of losing control over its own business models.
    
            A few IPS (Verizon and AT&T) and portals (Yahoo, following
    its education over the French civil suit over Nazi artifacts) saw this
    as a repeat of the fights over the digital copyright laws, and lobbied
    to retain some form of common carrier status, which was greatly
    undermined by the architecture of the Hague Convention, which was to
    make everyone's judgments enforceable everywhere, even in countries
    that had no connection to the tort or delict (greatly undermining the
    usefulness of national "public policy" exceptions).
    
            Within the various member country delegations, you have some
    that have strong experience in contracts and business to business
    arbitration, and who see the 1958 New York Convention on the
    Recognition and Enforcement of Foreign Arbitral Awards as a successful
    model to emulate.  You have other members who are primarily interested
    in torts, which come at the issues from a different perspective, and
    who don't see the convention entirely as strengthening the enforcement
    of contracts.
    
            In 2000 some elements of civil society became aware of the
    convention, and in particular, BEUC (the European consumer groups),
    the Trans Atlantic Consumer Dialogue (TACD), including both US and EU
    members, the American Library Association, the Free Software movement,
    and some US free speech groups, such as the ACLU, began to follow
    the Convention.  In 2000 the Consumer Project on Technology made the
    Hague Convention its top e-commerce priority, and by September 2000
    the US government added Manon Ress from Essential Information on
    the US delegation (which already had several private sector members
    representing business interests).
    
            For the past two years, in a series of meeting leading up
    to the June Diplomatic Conference (which ends today), there were
    efforts to sort of the impact of the convention on e-commerce and
    on intellectual property.  The US in particular was quite open in
    consulting with civil society and the public in general, and Australia
    asked for public consultations too, but it would appear that no other
    countries did.  However, while civil society concerns were presented
    at virtually every negotiating meeting over the past year, this
    month's diplomatic conference was a powerful illustration of the power
    of the business lobbies.
    
            The EU seemed to undertaking a strategy of pushing for a
    "disconnect" for regional agreements, and in particular, for its own
    EU directive on Jurisdiction take precedence in EU to EU transactions,
    leaving intact the stronger EU consumer protection measures for EU
    to EU transactions, while bowing to US government pressure to gut
    consumer protection provisions from the 1999 draft of the convention.
    This was a major victory for the big e-commerce firms.
    
            One element of this was to essentially expand the definition
    of "business to business" transactions, and to greatly strengthen
    the role of contracts in the convention, making for example, choice
    of court clauses mandatory in almost everything that does not involve
    personal or household use (and sometimes even then), even when these
    are "non-negotiated" contracts, such as shrink wrap or click-on
    contracts.  Despite repeated efforts by civil society to fix this, and
    to limit the enforcement of such clauses where the contracts had been
    
            "obtained by an abuse of economic power or other unfair
            means."
    
    the delegates refused, at least in this draft.
    
            So too there was a complete unwilling to address the
    importance of speech related torts, despite the fact that the
    membership in the Hague Conference now includes China, Egypt and
    many other countries that engage in harassment of dissent, and which
    can easily create repressive civil actions to stop dissent.  The EU
    delegates would not even consider adding favorable speech language
    from the European convention on human rights.
    
            A major objective of CPT, TACD, the Library community and the
    free software movement was to take intellectual property out of the
    convention, a move initially supported by the trademark and patent
    societies, due to the ham-handed way that patents and trademarks had
    been addressed in the 1999 secretariat draft of the convention, and
    also the subject of a WIPO sponsored meeting in Geneva in January
    2001.  In February 2001, in Ottawa, the US government actually
    circulated a paper to the delegates that said the US would not sign
    the convention if intellectual property was included.  AOL/Time
    Warner, Disney, the MPAA, RIAA, publisher groups and other content
    owners went ballistic, and by the June meeting the US position had
    changed, and yesterday, intellectual property was included in the
    convention, in a form stronger than ever.  Also noteworthy was the
    new bracketed language:
    
            [In this Article, other registered industrial property
            rights (but not copyright or neighbouring rights, even when
            registration or deposit is possible) shall be treated in the
            same way as patents and marks.]
    
    "Other registered industrial property rights" will cover a lot of
    ground.
    
            There are many more details of the negotiations from the URLs
    given below.
    
            It's time for me to end this for now.  For more information,
    and in particular to understand better how the convention works, see:
    
    http://www.cptech.org/ecom/jurisdiction/hague.html
    http://www.cptech.org/ecom/jurisdiction/whatyoushouldknow.html
    http://lists.essential.org/pipermail/hague-jur-commercial-law/2001-June/000048.html
    http://www.gnu.org/philosophy/hague.html
    http://www.tacd.org/cgi-bin/db.cgi?page=view&config=admin/docs.cfg&id=94
    http://lists.essential.org/pipermail/hague-jur-commercial-law/
    
    To see which countries and agencies are engaged in the Hague
    Negotiations, see:
    
    http://www.hcch.net/e/members/members.html
    
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