Voltage Pictures is asking the Federal Court to authorize a reverse class-action lawsuit targeting Canadians whom the studio says illegally downloaded five of its films. If successful, the firm will seek damages of up to $5,000 for each time one of the films was downloaded. That would net the company up to $275 million, and potentially much more if people have downloaded more than one movie. (Globe and Mail)
Talking point: Reverse class actions are rare. But, if it is permitted to go forward, this case would make it easy for movie studios to sue Canadians en masse. Currently, studios that sue Canadians for alleged illegal downloading must get subscribers’ names from internet service providers (ISPs) on a case-by-case basis. The ISPs can refuse to disclose that information, and can also charge fees to do so. That could make this kind of mass-enforcement action prohibitively expensive. Rogers and Voltage have a court case, which will be heard in June, determining the fair cost for Rogers to hand over subscribers’ names; Rogers said it’s $100 an hour.