Claims and counterclaims about a controversial new trade agreement have been swirling across cyberspace. Bertrand Borg works through the muddle.

What is Acta?

Acta stands for Anti-Counterfeit Trade Agreement. It is an agreement between multiple countries which seeks to reinforce copyright, trademark and patent protection.

So it’s not just about the internet?

No. Although most debate has centred on its implications online, Acta covers all forms of trademarks and patents, from medicines to clothes to electronics.

Surely copyright infringement isn’t that big a deal?

Measuring copyright infringement is contentious but the EU estimates it costs it up to €8 billion every year.

Acta defenders say copyright infringement requires more stringent penalties and argue that Acta will help protect innovation-driven jobs.

Detractors say harsher penalties are not going to stop internet file-sharing, and that Acta will simply reward companies which buy patents en masse purely to litigate against alleged infringements.

Which countries have signed up?

Eight countries, including the US, signed Acta last year. Twenty-two EU states, including Malta, signed it last month. Developing countries – the source of the vast majority of counterfeit goods worldwide – have played no part in drafting the agreement.

So is Malta bound by the agreement?

Not yet – signing an agreement is simply a declaration of intent. The EU’s signature must first be agreed upon by the European Parliament, with a vote expected in June. National parliaments must also ratify the agreement.

Does Acta mean all my internet activity will be monitored?

No, at least not directly. Acta does not require ISPs to monitor individual data packets – that proposal was removed from the final version of the text.

How does Acta define copyright infringement?

Acts “carried out as commercial activities for direct or indirect economic or commercial advantage” are liable. It does not, however, define “indirect” or “commercial”, although the EU has insisted that only “large scale” copyright violators will be targeted.

So what happens to those found guilty under Acta?

When determining damages, Acta says courts may take into account lost profits, the value of the items as well as the original items’ suggested retail price.

Sceptics have taken exception to using retail price as a measure of value, arguing it is wrong to assume that a person caught with 1,000 pirated movies would have bought them all had they not had access to pirated versions.

To give an example: a one terabyte hard disk can hold up to 350,000 songs. Using retail price as a gauge and assuming a price of €1 per song would mean fining the infringer €350,000.

I download music from the internet. Will Acta lock me up?

Acta is not directly aimed at the occasional infringer – though you are still breaking the law and liable for prosecution if caught. The agreement is aimed at those who derive “direct or indirect” commercial benefit, though it does not define those terms.

I use video clips or songs during my classes. Will Acta leave me liable?

Unlike existing copyright protection legislation, Acta makes no explicit exemptions for use of copyright in teaching, criticism or news reporting.

Does Acta mean the end of freedom of speech or the right to privacy?

No. Several apocalyptic reports concerning Acta’s human rights repercussions have been doing the rounds online. Many of these are based on earlier drafts of the agreement.

Will Acta affect trade in medicines?

Maybe. The Commission has made it clear that it has no intention of applying Acta to generic drugs. But Acta does not differentiate between counterfeit and generic drugs, meaning that shipments which pass through EU states while in transit – could be subject to customs seizures injunctions.