A seismic service company fights for protecting its data from releasing by government

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A Calgary-based company that owns the only Canadian ship GSI ADMIRAL to perform seismic data collecting offshore, keeps fighting to protect its data from being confiscated by government without compensation for the last 10 years.

Established 1930, Geophysical Service Inc. could earn millions of dollars by selling exclusive seismic data to oil or energy companies. The 2D and 3D marine seismic data, gravity and magnetic data off the coasts can help locate oil and other energy. However, once this data was opened to the public, no buyer is willing to pay for this seismic information. Geophysical Service Inc. believe that this is because government required their seismic data be submitted for regulatory purpose.

Geophysical Service Inc. used to employ 250 people and operated two ships for prospecting and mapping offshore seismic data on the East Coast, which was used by energy companies for exploration. Now, they only have one small office and a few employees, as they battle to get recognition for their research.

Paul Einarsson, Chief Operating Officer and Chairman of Geophysical Service Inc., says in an open video, “This policy, is really destructive, it is the wrong way to do things, it is wrong direction to this country and it will get the economy worse.”

“In many of the cases Geophysical Service Inc. is attempting to enforce copyright on data they collected,” says Cameron Grant, a lawyer who specializes in Maritime Law, from an emailed interview.

In 2009, Antrim Energy Inc. wanted to buy some data from Geophysical Service Inc. But in light of the cost, either $150,000 or applying a licence with certain terms and conditions, it did not proceed. Then, Antrim Energy Inc. copied some data that was kept by an offshore regulatory board, an independent joint agency of the Governments of Canada and Nova Scotia responsible for the regulation of petroleum activities in the Nova Scotia Offshore Area, including some from Geophysical Service Inc. Though the copies were blurry and as Antrim says, “useless”, Geophysical Service Inc. sued Antrim for infringement of copyright.

“Everyone who pirates a movie or music had likely previously determined he or she would not pay for it,” says J.B. Hanebury, Master of Chambers, in the court decision in 2009.

In 2016, Geophysical Service Inc. alleged that an Italian-flagged seismic ship, OGS EXPLORA, was paid more than $7 million to perform seismic surveys off the shore of Labrador by the Department of Public Works and Government Services Canada. Under section 3 (1) of the Coasting Trade Act, no foreign ship is allowed to serve offshore in Canada without a license. But Geophysical Service Inc.’s claim was dismissed as “unsustainable” by the Supreme Court in Nova Scotia.

According to the rules of the regulatory board, the information supplied by Geophysical Service Inc. is no longer confidential.

An Italian ship was at Halifax waterfront. Photo: Sixian Zuo

“Usually a company like Geophysical Service Inc. who has proprietary data, to which copyright seems not to apply, will seek to vigorously protect the data,” says Grant from an emailed interview.

“They will sell licenses to access the data but will prevent copies from being distributed, ” Grant explains, “they protect their product through contract law and restricting access rather than copyright.”

Geophysical Service Inc. owns approximately 4,800 square kilometers of 3D data in Canadian waters. In Nova Scotia, it owns 33,897.4 KMS of acquired data.

In July 26, Geophysical Service Inc. ’s latest claim for $4 million in damages from Suncor for licence fees is dismissed.

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