The legal battle began as part of a broader dispute over tariffs between Access Copyright and a group of universities represented by the Association of Universities and Colleges Canada. In 2010, Access Copyright asked the Copyright Board of Canada to impose on universities a tariff of $45 per full-time student annually, rather than a lower tariff combined with a per-page royalty for copying protected works. At the time, York — whose licence with the collective was set to end that year — was paying an annual rate of $3.38 per full-time equivalent student plus a 10 cents per page royalty, according to the federal court, which
noted the per-page fee was typically passed on to students. While the debate over the proposed tariff continued, the board agreed to an interim tariff for schools and universities that didn’t have a deal with the collective but used works the agency handled the rights for. Eight months later, York declared it was opting out of the interim tariff. The following year, Access Copyright and the Association of Universities and Colleges Canada reached a deal requiring institutions to pay the collective $26 per full-time equivalent student annually, but York did not sign on. A federal court found York University didn’t have the right to opt out of Access Copyright's tariff and that its guidelines — which permitted copying up to 10 per cent of a protected work for course materials — were anything but fair. One of Canada’s largest universities will have to pay for copyrighted materials distributed to students after a federal court ruling that some intellectual property experts say will affect schools throughout the country. The Federal Court of Canada has ruled against Toronto’s York University in its legal dispute with Access Copyright, a collective that has provided institutions access to a pool of protected intellectual work for more than two decades while distributing royalties to the writers, artists and publishers it represents. The university cut ties with Access Copyright in 2011 over rising tariffs, saying it was opting out and would navigate the world of intellectual property rights on its own. The school also implemented guidelines meant to ensure materials copied for course packs and online class supports included a portion of any protected work small enough to be considered “fair dealing” and thus exempt from copyright fees. The clash led Access Copyright to sue the school, alleging it had been improperly reproducing and authorizing the copying of protected works. York then filed a countersuit, seeking to have its actions declared fair dealing.