Copyright of standards and codes referenced in US Laws and Regulations will be contested in 2008

October 1, 2008

George T. Willingmyre, P. E.

President

 

 

Good regulatory practice entails  "full daylight"   public access to laws and regulations (footnote one)  and (foot note two) However  the question of what is "full daylight" in the context of public access   becomes  complicated when such laws and regulations  embody the   text or "adopt by reference" the text of standards and codes  which may  themselves be copyrighted and sold by  private sector standards organizations which supported their development.  Specifically does  "full daylight" mean that such copyrighted standards and code  text must be available for free or for  nominal price or on line?

Recently Carl Malamud  President and CEO of   the organization Public.Resource.Org  (see http://public.resource.org/ ) purchased the official codes and regulations from a number of US cities and states  ( see image )   ,  scanned them to create .pdf files and loaded the scanned files to the web site  http://bulk.resource.org/codes.gov/  The web site contains links to many .pdf files of the  standards and codes embodied in or referenced by the formal  laws and regulations. 

Many private sector standards organizations depend on the sale of standards to support their infrastructure. 

There is no clear path forward except [in the opinion of the author] inevitable  litigation revisiting the public policy implications and  legal questions involved. The stakes are considerable.

The financial implications of potential loss of sales are non trivial for the standards developers whose codes are adopted or referenced in law or regulation at the federal level and local level as well as for the local level cities and states currently selling copies of their laws and regulations.   

US government policy calls on agencies to use voluntary standards.  The OMB Circular A119 Federal Participation in the Development and Use of Voluntary Consensus Standards and in Conformity Assessment Activities interprets the language of the "National Technology Transfer and Advancement Act of 1995"  which in section 12(d) requires federal agencies and departments to use standards that are developed or adopted by voluntary consensus standards bodies except where that would be inconsistent with applicable law or otherwise impractical.   One of the questions and answers in the Circular directly addresses copyright:

 j. How should my agency reference voluntary consensus standards?

Your agency should reference voluntary consensus standards, along with sources of availability, in appropriate publications, regulatory orders, and related internal documents. In regulations, the reference must include the date of issuance. For all other uses, your agency must determine the most appropriate form of reference, which may exclude the date of issuance as long as users are elsewhere directed to the latest issue. If a voluntary standard is used and published in an agency document, your agency must observe and protect the rights of the copyright holder and any other similar obligations.

Many private sector codes and standards are referenced in US law and regulation.   The National Institute of Standards and Technology  maintains a database containing (October 2008) 9146 instances of standards incorporated by reference in the US Code of Federal Regulations.  Most of these instances are examples of  "incorporation by reference" of  a standard of another organizations where the text is not directly copied.   Public Law Pub. L. 90-23 gave the discretion to the Director of the Federal Register when to allow incorporation by reference of matter "which is reasonably available, as published in the Federal Register when such matter is incorporated by reference in the Federal Register with the approval of its Director.  (footnote three)

There is no database similar to that above to inventory and account for state and local level adoption or reference of  private sector codes and standards.  However there are many instances identified in the  Public.Resource.Org  site    http://bulk.resource.org/codes.gov/  .

According to a September 3, 2008 story by  NATHAN HALVERSON of THE PRESS DEMOCRAT  

On Labor Day, [2008] he [Malamud] posted the entire 38-volume California Code of Regulations, which includes all of the state's regulations from health care and insurance to motor vehicles and investment. To purchase a digital copy of the California code costs $1,556, or $2,315 for a printed version. The state generates about $880,000 annually by selling its laws, according to the California Office of Administrative Law

The California Codes may be found on the  Public.Resource.Org web site  http://bulk.resource.org/codes.gov/ccr/   and the codes of several California cities may be found on the Public.Resource.Org  web site at http://bulk.resource.org/codes.gov/ca.local/ 

The Public.Resource.Org  web site  contains a link to a slide set at flickr   and  Picasa web albums   which explain in a graphical image fashion [in the words of the Public.Resource.Org]  the Public.Resource.Org  motivation  to provide for the public's right to access the laws and regulations with which the public is expected to comply. 

In a paper  "Questioning Copyright in Standards" (June 22, 2006). Berkeley Center for Law and Technology. Law and Technology Scholarship"  Pam Samuelson, School of Law, Boalt Hall, UC Berkeley supports the goal above and concludes that: 

The long-term credibility of SSOs depends not only on their being able to produce sound standards, but also on producing standards in which the SSOs do not have such a strong financial interest that they succumb to the temptation to abuse the standards process by making its standards into a cash cow that must be purchased by anyone affected by the standard.  

The Public.Resource.Org  initiative is not the first  occasion in recent times that a private person  has published on the web the text of a city regulation that  incorporated by reference  a code copyrighted by a code developing organization.   In the Veeck case concluding in 2003,  the courts decided that the copyright owner retained copyright but that:

"[w]hen those codes are enacted into law ... they become to that extent 'the law' of the governmental entities and may be reproduced or distributed as 'the law' of those jurisdictions."

The Veeck case culminated in a  June 2003 decision by Supreme Court of the United States Southern Building Code Congress International, Inc, Petitioner Peter Veeck, D/B/A Regional Web No. 02-355  NOT to hear and rather to let stand a previous  June 10, 2002 decision  of  United States Court of Appeals for the Fifth Circuit (293 F.3d 791 (5th Cir. 2002)).  

The Fifth Circuit  in the  2002 decision (see also footnote four) observed that laws are not subject to federal copyright law, and "public ownership of the law means that 'the law' is in the 'public domain' for whatever use the citizens choose to make of it."  

The web site  http://regionalweb.texoma.net  previously containing the standards code subject of the Supreme Court 2003 decision is no longer active. 

The Supreme court in making its 2003 decision not to hear the case essentially accepted  advice from the US Solicitor General  not to rehear the June 10, 2002 decision of the court of appeals from the Fifth Circuit. The May 30, 2003 amicus brief by the Solicitor General of the United States prepared for the Supreme Court provides some helpful context.  It   describes the question to be answered: 

"This case concerns model codes written and copyrighted by a private organization. The codes apply to the construction, alteration, use, occupancy, and maintenance of buildings and the electrical, plumbing, mechanical and gas systems in them and provided criminal misdemeanor penalties for failure to comply. The private organization offers the codes to government entities for enactment into law. Two municipalities enacted ordinances that adopted the model codes by reference.  The question presented is: Whether copyright law gives the private organization the right to restrict individuals from making copies of the material incorporated by reference in the municipal codes of the two municipalities."

The Solicitor General  amicus  essentially concluded that copyright law does not give a  private organization the right to restrict individuals from making copies of the material incorporated by reference in the municipal codes of the two municipalities.  The Solicitor General    stated, "This case involves a comprehensive code specifically created for enactment into law and designed broadly to regulate the primary conduce of private parties, The court of appeals' holding that such a code may be copied by interested members of the public is correct, it is consistent with the views of the only other court of appeals to address the same issue and it does not conflict with any decision of any other court of appeals. There is a broad range of differing governmental uses of a wide variety of different types of privately copyrighted materials, In a few cases, the courts of appeals have addressed the issues arising from such uses; they have divide between those involving the incorporation of copyrighted codes into laws that directly regulate primary conduct and those involving laws that reference copyrighted materials. In future cases, the courts of appeals can be expected to develop the relevant differences between those two categories and thereby clarify the law in this area. To the extent a true conflict develops in the circuits, the court could then review the issue with the benefit of further refinement of the relevant questions by the courts of appeals. Accordingly, further review is unwarranted."

In forming the opinion, The Solicitor General consulted with  government agencies who employ standards in regulatory or procurement matters.   Regrettably for the public record,  this consultation itself will not apparently see the light of day.  GTW Associates requested details of the information request from the Solicitor General to  the US Department of Commerce and the US Department of Commerce reply under the Freedom of Information Act.  GTW Associates believed the exchange could provide insight in to the significant policy issues at stake in the legal proceeding.  The GTW FOI request was denied on the basis that:  the responsive documents that were located are being withheld pursuant to 5 USC 552 which protects inter-agency or intra-agency memoranda or letters which would not be available by law to a party other than an agency in litigation with the agency. The privileges which apply are the deliberative process privilege, the attorney client privilege and the attorney work product privilege. There was apparently  disparity in the advice from federal agencies collected by the solicitor general.  

The May 30, 2003 amicus brief by the Solicitor General of the United States acknowledges the significant federal use of private sector standards but gives short shrift to the economic repercussions of the decision on the US standards infrastructure.  

"Petitioner argues that the decision in this case will substantially undermine the financial capacity of standards setting organizations to provide their services because those organizations will no longer be able to rely on sales of copyrighted works. The continued ability of private standards organizations to develop and update their materials at a high level of quality and integrity is of substantial importance to the federal government; by our own count the Code of Federal Regulations contains more than 7000 references to privately developed codes and standards, upon which federal agencies rely in a very wide variety of settings, Nonetheless, predictions do not provide an in independent basis to grant certiorari in this case. If, as petitioner argues, the Fifth Circuit decision were understood as broadly applicable to all government adoption of and reference to privately developed standards and codes, the effect of this decision would still be highly speculative. The extent to which standards setting organizations depend on the sale of copyrighted works no doubt varies widely, and such organizations have survived and prospered despite the threat to their copyright income that has existed at least since the First Circuit's decision in BOCA in 1980. Moreover professional in the fields affected by particular standards and cods may have ample incentive to continue to buy the "official" sets of standards notwithstanding the potential availability of other unofficial editions, Even if profits from sales of copyrighted materials were reduced, professionals in the field and others may have many reasons to ensure that broadly applicable standards and codes of high quality and integrity remain available

The financial and operational  implications (see also  footnote five) of  the June 10, 2002 decision  of  United States Court of Appeals for the Fifth Circuit (293 F.3d 791 (5th Cir. 2002)).  on standards developers whose codes might become laws and regulations or be referenced in laws   was identified in the  Dissenting opinion to the Fifth court decision  by WIENER, Circuit Judge, joined by KING, Chief Judge, and HIGGINBOTHAM, DAVIS, STEWART, and DENNIS, Circuit Judges, dissenting:

Technical codes and standards have become necessary, pervasive, and indispensable ingredients of Twenty-First Century life in this country; regrettably, today's majority opinion has a real potential of drastically changing the societal landscape through that opinion's predictably deleterious effects on these codes and standards, their authors, and the public and private entities that daily use and depend on them. Despite efforts to clothe its ruling in classic copyright lingo ---- "public domain," "fact/expression," "merger" ---- in holding for Veeck under the discrete facts of this case, the majority had to (and did) adopt a per se rule that a single municipality's enactment of a copyrighted model code into law by reference strips the work of all copyright protection, ipso facto. Firmly believing that for this court to be the first federal appellate court to go that far is imprudent, I respectfully dissent  In the absence of an expressed pronouncement from either the Supreme Court or Congress, our creation of an automatic rule rendering the copyright of a model code nugatory per se when and if it is enacted into  law is unwise, imprudent, and far in excess of our authority.  Before such  a work is enacted into law, the Copyright Act unquestionably affords copyright protection to its author; and Congress has given no indication that, on enactment, this protected status evanesces ipso facto as to the whole universe of potential copiers. 

Foot note one

Indeed there are such transparency obligations on central governments  such as US federal agencies  within the WTO Agreement on Technical Barriers to Trade.  

Article 2: Preparation, Adoption and Application of Technical Regulations by Central Government

 
"2.11            Members shall ensure that all technical regulations which have been adopted are published promptly or otherwise made available in such a manner as to enable interested parties in other Members to become acquainted with them."
 
 
One way that central  governments could meet the transparency process obligations detailed in the  WTO Agreement on Technical Barriers to Trade.    for  "technical regulations" with which compliance is mandatory, could be by  posting them to the web.  Central  governments could also charge reasonable fees for paper copies of such "technical regulations" when requested.

Footnote two   There are also  obligations within the  WTO Agreement on Technical Barriers to Trade.    on central governments   with respect to regulation setting by local and non governmental bodies

Article 3: Preparation, Adoption and Application of Technical Regulations by Local Government Bodies and Non-Governmental Bodies

 With respect to their local government and non-governmental bodies within their territories:

3.1        Members shall take such reasonable measures as may be available to them to ensure compliance by such bodies with the provisions of Article 2 ...

One way that local  governments could meet the transparency process obligations detailed in Article 3   WTO Agreement on Technical Barriers to Trade.    for  "technical regulations" with which compliance is mandatory, could be by  posting them to the web.  Local   governments could also charge reasonable fees for paper copies of such "technical regulations" when requested.

Foot note three 

Incorporation by reference allows Federal agencies to comply with the requirement to publish rules in the Federal Register by referring to materials already published elsewhere. The legal effect of incorporation by reference is that the material is treated as if it were published in the Federal Register. This material, like any other properly issued rule, has the force and effect of law.   According to Section 552 of Title V applying to the publication of material in the federal Register For the purpose of this paragraph, matter reasonably available to the class of persons affected thereby is deemed published in the Federal Register when incorporated by reference therein with the approval of the Director of the Federal Register   According to Chapter 6: What is Incorporation by Reference, and How do I do it? of the Federal Register Document Drafting Handbook October 1998 Revision The Director may approve an incorporation by reference if the material: * Is published data, criteria, standards, specifications, techniques, illustrations, or similar material;* Is reasonably available to and usable by the class of persons affected by the publication;* Does not reduce the usefulness of the Federal Register publication system;* Benefits the Federal Government and members of affected classes; and* Substantially reduces the volume of material published in the Federal Register.

Footnote four

The June 10 2002  decision had  overturned a  a previous decision of the Fifth Circuit February 2, 2001 that had preserved the copyright of the code in question:

copyright protection of privately authored model codes does not simply evanesce ipso facto when the codes are adopted by local governments; rather, they remain enforceable, even as to noncommercial copying, as long as the citizenry has reasonable access to such publications cum law. For these reasons, the judgment of the district court is, in all respects, AFFIRMED.

Foot note five

Many standards developers whose standards become mandatory by law or regulation  strive to minimize the risk their standards will become  public domain by seeking that laws and regulations do not copy the standard's text but refer to the standard by reference.  See  Regulatory Adoption by Reference of  standards Copyright Considerations  Even so the Veeck decision applied to codes adopted by reference using the following language:

... NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF ANNA that the following Codes are hereby adopted by reference as though they were copied herein fully...

 

 


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