Almost exactly a year ago I wrote a blog post on Canada Post’s War on the 21st Century, Innovation & Productivity. In it I highlighted how Canada Post launched a lawsuit against a company – Geocoder.ca – that recreates the postal code database via crowdsourcing. Canada Posts case was never strong, but then, that was not their goal. As a large, tax payer backed company the point wasn’t to be right, it was to use the law as a way to financial bankrupt a small innovator.

This case matters – especially to small start ups and non-profits. Open North – a non-profit on which I sit on the board of directors – recently explored what it would cost to use Canada Posts postal code data base on represent.opennorth.ca, a website that helps identify elected officials who serve a given address. The cost? $9,000 a year, nothing near what it could afford.

But that’s not it. There are several non-profits that use Represent to help inform donors and other users of their website about which elected officials represent geographies where they advocate for change. The licensing cost if you include all of these non-profits and academic groups? $50,000 a year.

This is not a trivial sum, and it is very significant for non-profits and academics. It is also a window into why Canada Post is trying to sue Geocoder.ca – which offers a version of its database for… free. That a private company can offers a similar service at a fraction of the cost (or for nothing) is, of couse, a threat.

Sadly, I wish I could report good news on the one year anniversary of the case. Indeed, I should be!

This is because what should have been the most important development was how the Federal Court of Appeal made it even more clear that data cannot be copyrighted. This probably made it Canada Post’s lawyers that they were not going to win and made it even more obvious to us in the public that the lawsuit against geocoder.ca – which has not been dropped-  was completely frivolous.

Sadly, Canada Post reaction to this erosion of its position was not to back off, but to double down. Recognizing that they likely won’t win a copyright case over postal code data, they have decided:

a) to assert that they hold trademark on the words ‘postal code’

b) to name Ervin Ruci – the opertator of Geocoder.ca – as a defendent in the case, as opposed to just his company.

The second part shows just how vindictive Canada Post’s lawyers are, and reveals the true nature of this lawsuit. This is not about protecting trademark. This is about sending a message about legal costs and fees. This is a predatory lawsuit, funded by you, the tax payer.

But part a is also sad. Having seen the writing on the wall around its capacity to win the case around data, Canada Post is suddenly decided – 88 years after it first started using “Postal Zones” and 43 years after it started using “Postal Codes” to assert a trade mark on the term? (You can read more on the history of postal codes in canada here).

Moreover the legal implications if Canada Post actually won the case would be fascinating. It is unclear that anyone would be allowed to solicit anybody’s postal code – at least if they mentioned the term “postal code” – on any form or website without Canada Posts express permission. It leads one to ask. Does the federal government have Canada Post’s express permission to solicit postal code information on tax forms? On Passport renewal forms? On any form they have ever published? Because if not, they are, I understand Canada Posts claim correctly, in violation of Canada Post trademark.

Given the current government’s goal to increase the use of government data and spur innovation, will they finally intervene in what is an absurd case that Canada Post cannot win, that is using tax payer dollars to snuff out innovators, increases the costs of academics to do geospatial oriented social research and that creates a great deal of uncertainty about how anyone online be they non-profits, companies, academics, or governments, can use postal codes.

I know of no other country in the world that has to deal with this kind of behaviour from their postal service. The United Kingdom compelled its postal service to make postal code information public years ago.In Canada, we handle the same situation by letting a tax payer subsidized monopoly hire expensive lawyers to launch frivolous lawsuits against innovators who are not breaking the law.

That is pretty telling.

You can read more about this this, and see the legal documents on Ervin Ruci’s blog. William Wolfe-Wylie has also done a good job covering this story at canada.com.