Internet firms don't need Canada content rules, court says

OTTAWA (Reuters) - Internet service providers are not broadcasters, and don't need to adhere to strict rules designed to boost Canadian content on domestic television and radio stations, the Supreme Court of Canada ruled on Thursday.

The decision is a victory for telecommunications and Internet companies including Bell Canada (BCE.TO), Telus (T.TO), Rogers (RCIb.TO), Cogeco Cable (CCA.TO) and Bell Alliant (BA.TO), and a loss for Canadian performers and producers.

The telecoms and broadcast regulator, the Canadian Radio-television and Telecommunications Commission (CRTC), had asked the courts to clarify whether companies which provide access through the Internet should be considered as broadcasters.

That would make them subject of the Broadcasting Act, legislation that requires Canadian broadcasters to include some Canadian programs, in an attempt to avoid complete domination by U.S. shows. Broadcasters must also pay into funds that support the creation of local content.

"ISPs (Internet service providers) provide Internet access to end-users. When providing access to the Internet,...they take no part in the selection, origination, or packaging of content," the court said in its unanimous decision.

Cultural and artist groups had argued that internet service providers should pay fees to the local content funds, and the Broadcasting Act should capture Internet providers, given that more and more people are now watching shows online.

The name of the case is Alliance of Canadian Cinema, Television and Radio Artists et al. v. Bell Aliant Regional Communications, LP et al. (F.C.)(33884)

(Reporting by Randall Palmer; Editing by Janet Guttsman)