Internet continues to spawn interesting legal dilemmas

Susan Vogt practises marketing law at the Toronto offices of Gowling, Strathy & Henderson.

The year 2000 is an interesting time to be practising law. More than ever before, clients are asking questions to which there are no answers. On the so-called information highway, there are vehicles that defy description as well as traffic signs – laws and regulations – that are being twisted, subverted and just plain ignored.

I won’t presume to cover all the emerging legal issues in one column. These are just a few of the things that have caught my attention lately.

Cybersquatters in jeopardy: The practice of registering famous brand names as domain names for sale to the highest bidder – or rightful owner – is much less attractive now that the U.S. Anti-Cybersquatting Act has become law. Cybersquatters who register third-party trademarks as domain names face penalties of up to US$100,000 per name if the trademarks are protected under U.S. law. This will definitely deter would-be pirates in the United States. However, Canadian trademark owners may still need Network Solutions and other registrars to resolve disputes over pirated domain names.

The ‘.ca’ Register: Every Canadian company that has filed for a .ca domain name knows that changes to the process are desperately needed. These changes have been promised for months and are still pending. In the very near future, we are told, it will be possible to register more than one .ca name, to register as an individual rather than a corporation and to avoid the cumbersome sub-domains (for example, ‘halifax.ns.ca’). The .ca register has been underutilized. There are only 70,000 .ca registrations (compared to over seven million dot-coms). Hopefully this will change.

Cross-border Information Shopping: The recent proliferation of company and product Web sites raises some interesting dilemmas. Many products – like foods, drugs and cosmetics – are heavily regulated in most countries. National laws define what products can be sold, what claims can be made and whether an intermediary – like a doctor or pharmacist – is required. But what happens when Canadians have easy and immediate Internet access to products and information that are prohibited in Canada?

Two situations are becoming commonplace. There are at least hundreds of online pharmacies through which Canadians can order prescription drugs without a prescription as well as drugs that are not approved for sale in Canada. Health Canada and many pharmaceutical companies are less than pleased with this situation but barring inspection of every shipment at the border, the ‘illegal’ drugs keep coming in. In fact, Health Canada has a policy that permits importation ‘for personal use only’ of a three-month supply of many non-approved drugs. Needless to say, the policy does not apply to narcotics.

The information dilemma is more nuanced. Take milk and osteoporosis for example. In the United States, you are permitted to claim that adequate calcium consumption helps prevent bone loss and the risk of osteoporosis. In Canada, this claim is strictly off-limits.

But say a U.S. Web site discusses the link between milk consumption and osteoporosis risk reduction along with other information that is perfectly legal in Canada. Could Canadian milk producers advertise the U.S. Web site address? This would, in effect, direct Canadians to a mixture of ‘legal’ and ‘illegal’ information and allow Canadian milk producers to indirectly advertise a non-approved claim.

On the other hand, the Web site is there for Canadian consumers to discover. The best view is that a simple mention of the URL does not contravene Canadian law. Time will tell. But regulators cannot ignore that the cat is out of the bag in terms of Internet content.

Sexy Technology: The next new medium will be interactive television with data transmitted over the Internet through set-top boxes.

Patent-pending technology will enable advertisers to deliver viewer-targeted advertising and information within ITV environments. Commercials can be targeted to ITV subscribers based on a combination of fine-tuned demographics, profiles, viewing activities and subscriber-registered interests. The customization can be as simple as a message scrolling across the screen or as complex as a complete video substitution. This means that the commercials shown on my TV during Law & Order reruns could be completely different from those shown at the same time on the same channel to my next-door neighbour.

This is the future and it is very strange. The new millennium indeed.

Susan Vogt can be reached by phone at (416) 862-5439 or by e-mail at vogte@gowlings.com

Cannes Lions 2025: Canadians nab more medals on final festival day

Strategy is on the ground in Cannes, bringing you the latest news, wins and conference highlights all week long. Catch all the coverage here.

Friday’s batch of Silver and Bronze winners included the oldest category at the Cannes festival, Film, as well as Sustainable Development Goals, Dan Wieden Titanium, Glass: The Lion for Change and Grand Prix for Good. Canadians were recognized with four Lions today: two Silver and a Bronze in Film, as well as a Bronze in Sustainable Development Goals.

FCB Toronto was given yet another nod for its work, “The Count,” for SickKids, bringing the medal count for that campaign to four, including a Gold for Health & Wellness. Another Canadian agency recognized on the final day of the festival was Klick Health Toronto, which earned a Silver in Film for its work “Love Captured” for Human Trafficking Awareness and a Bronze for “18 Months” for Second Nurture. And over in Sustainable Development Goals, the Bronze went to Publicis Canada and its “Wildfire Watchtowers” work for Rogers.

Another massive win for Canada included not one, but two Young Lions (pictured above) taking home medals in the annual competition. In Design, the Gold Young Lion was awarded to Rethink’s senior motion designer Jesse Shaw and ACD Zoë Boudreau. The second, a Bronze in Media, went to Cossette Media’s business intelligence analyst Samuel David-Durocher and product development supervisor Tristan Bonnot-Parent.

Film (2 Silver, 1 Bronze)

1 SILVER: “The  Count” by FCB Toronto for SickKids Foundation

“The Count,” a striking campaign from FCB Toronto for SickKids Foundation, has earned 1 Gold, 2 Bronze and now 1 Silver for Film at Cannes. If you watch it, it’s easy to see why. The collaboration between brand and agency honoured the hospital’s “VS” platform, while steering it in a new direction from its initial development by previous AOR Cossette. The creative celebrates childhood cancer patients who have to fight for every birthday, while honouring the hospital’s own milestone – 150 years and counting.

 

1 Silver: “Love Captured” by Klick Health Toronto for The Exodus Road

Klick Health Toronto added to its medal tally with a Silver in Film for it’s work “Love Captured” for The Exodus Road. The creative features a romantic getaway that isn’t what it seems in an experiential short film for the global anti-trafficking organization. The experience takes viewers through a tragic and twisting experience of exploitation.

 

1 BRONZE: “18 Months” by Klick Health Toronto for Second Nurture

Klick Health Toronto also won a Bronze in the Film category for its work, “18 Months,” done for the charity organization Second Nurture. The animated film is based on a real-life story in which a same-sex couple adopts a baby found in a subway station, and the 18-month journey into a story of hope.

Sustainable Development Goals (1 Bronze)

1 BRONZE: “Wildfire Watchtowers” by Publicis Canada for Rogers

Publicis Canada landed on the winners board for its work, “Wildfire Watchtowers,” for Rogers. The Canadian-developed wildfire-detection tech – which has been billed as “a fire alarm in the forest” – uses AI-powered sensors installed on 5G towers to monitor vast remote areas in real time. By scanning, identifying and reporting early signs of wildfires (up to 16 minutes faster than other systems), the technology helped prevent 54 fires in 2024 alone.

Catch the Gold winners later today when they’re revealed at the gala in Cannes.