[97] Moneyweb 7 is headlined "Chris Walker breaks the silence"; the subheadline is "Defencex mastermind: SARB
thinks I'm the biggest criminal in SA." Although Mr Walker was identified by reference to his Defencex links, the
substance of the article covered several issues, namely, network marketing, another project known as Kipi,
Defencex and "the future".
[98] Fin24 copied the first three paragraphs of Moneyweb 7, four extracts from the discussion on Defencex and
part of the subheadline. In the first two paragraphs of Moneyweb 7, Mr Rees highlighted two of the
statements in the interview linked to Defencex. In my view, these paragraphs did not summarise the
interview as a whole, nor the part on Defencex. They simply gave a taste of what was to come. The third
paragraph reported that Moneyweb had managed to conduct a wideranging interview with Mr Walker, the
details of which were set out below. The subheadline is not dealt with in the body of Moneyweb 7.
[99] The four extracts copied by Fin24 come from different parts of the discussion on Defencex. They do not form a
continuous block of text. They certainly cannot be said to represent the heart of Moneyweb 7. More of the
discussion on this issue is left out than is taken. In my view, Fin24 has not reproduced a substantial part of
Moneyweb 7.
Section 12(1)(c)(i) of the Copyright Act
[100] Having found that Fin24 has reproduced a substantial part of Moneyweb 5, it now falls to the respondents to
prove that their publication of Fin24 5 constitutes "fair dealing" within the meaning of section 12(1)(c)(i) of the
Act.
[101] Section 12(1) provides (underlining added):
"Copyright shall not be infringed by any fair dealing with a literary or musical work
(a)
for the purposes of research or private study by, or the personal or private use of, the person using the work;
(b)
for the purposes of criticism or review of that work or of another work; or
(c)
for the purpose of reporting current events
(i)
in a newspaper, magazine or similar periodical; or
(ii)
by means of broadcasting or in a cinematograph film;
Provided that, in the case of paragraphs (b) and c(i), the source shall be mentioned, as well as the name of the
author if it appears on the work."
[102] The key provisions of section 12(1)(c)(i), for purposes of this case, are that the dealing must be "fair"; the
purpose must be to report "current events"; and the source, including the name of the author, must be
"mentioned".
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Fair dealing
[103] As before, there does not appear to be any South African decision on point. Both sides referred me to
decisions and writings from several foreign jurisdictions on the meaning of the phrase "fair dealing". I
understand that foreign authorities are referred to for guidance only. I also accept that I must be cautious in
considering foreign law because each jurisdiction has its own particular history and, in many cases, is bound
or influenced by domestic statutory precepts. I therefore intend, for historical reasons, to focus on English
authority.39
[104] In Ashdown v Telegraph Group Ltd,40 the English Court of Appeal was concerned with whether the Human
Rights Act, 1998 impacted on the protection afforded to owners of copyright by the Copyright, Designs and
Patents Act, 1988.41 On the defence of "fair dealing", Lord Phillips MR held:
"Where part of a work is copied in the course of a report on current events, the 'fair dealing' defence under s 30 will
normally afford the court all the scope that it needs properly to reflect the public interest in freedom of expression
and, in particular, the freedom of the press. There will then be no need to give separate consideration to the
availability of a public interest defence under s 171."42
[105] Lord Phillips approved "the test of fair dealing in the general context of s 30" as summarised in The Modern
Law of Copyright and Designs:43
"It is impossible to lay down any hardandfast definition of what is fair dealing, for it is a matter of fact, degree and
impression. However, by far the most important factor is whether the alleged fair dealing is in fact commercially
competing with the proprietor's exploitation of the copyright work, a substitute for the probable purchase of
authorised copies, and the like. If it is, the fair dealing defence will almost certainly fail. If it is not and there is a
moderate taking and there are no special adverse factors, the defence is likely to succeed, especially if the
defendant's additional purpose is to right a wrong, to ventilate an honest grievance, to engage in political controversy,
and so on. The second most important factor is whether the work has already been published or otherwise exposed to
the public. If it has not, and especially if the material has been obtained by a breach of confidence or other mean or
underhand dealing, the courts will be reluctant to say this is fair. However this is by no means conclusive, for
sometimes it is necessary for the purposes of legitimate public controversy to make use of 'leaked' information. The
third most important factor is the amount and importance of the work that has been taken. For, although it is
permissible to take a substantial part of the work (if not, there could be no question of infringement in the first place),
in some circumstances the taking of an excessive amount, or the taking of even a small amount if on a regular basis,
would negative fair dealing."
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