Bill C-32 (Historical)

Copyright Modernization Act

An Act to amend the Copyright Act

This enactment amends the Copyright Act to
(a) update the rights and protections of copyright owners to better address the challenges and opportunities of the Internet, so as to be in line with international standards;
(b) clarify Internet service providers’ liability and make the enabling of online copyright infringement itself an infringement of copyright;
(c) permit businesses, educators and libraries to make greater use of copyright material in digital form;
(d) allow educators and students to make greater use of copyright material;
(e) permit certain uses of copyright material by consumers;
(f) give photographers the same rights as other creators;
(g) ensure that it remains technologically neutral; and
(h) mandate its review by Parliament every five years.

[Frédérique Couette, Executive Director, Copibec]

Hello. Thank you for inviting me here today.

My name is Frédérique Couette. I am the executive director of Copibec, the Société québécoise de gestion collective des droits de reproduction.

Established in 1997, Copibec is the management collective of the community of Quebec authors and publishers. It is a non-profit organization. We collect royalties and pay them to authors, freelance journalists, creators, and publishers after covering our management fees.

About six years ago, we appeared before the committee with regard to Bill C-32. At that time, we warned MPs about the risks and potential abuse associated with introducing the word “education” into the fair dealing exception. The education sector officials offered reassurance. They said they would never end the licences with collective societies. They said it was merely a clarification with no tangible negative consequences for copyright holders.

As of January 2013, however, those same officials started terminating their agreements with Access Copyright. The situation has gone downhill steadily ever since. They claimed the right to establish copying policies that allowed them to reproduce a chapter or 10% of a work, according to the broadest possible interpretation, so they would no longer have to pay royalties to copyright holders through their collective society. The ministries of education outside Quebec have gone so far recently as to sue copyright holders through Access Copyright, while at the same time refusing to pay the minimal royalties established by the Copyright Board of Canada in 2017.

The situation is worrisome in Quebec as well. In June 2014, Université Laval adopted a copying policy based on the one used by educational institutions in the rest of Canada. The other universities in Quebec, the CEGEPs, and the ministry of education are still working with Copibec, but each time an agreement is renegotiated, the royalties are further reduced. The annual royalty per university student has accordingly fallen by close to 50%, from $25.50 in 2012 to $13.50 in 2017, while the CEGEP rate has fallen by 15%.

Unfortunately, we have to recognize that our fears have for the most part been realized. The licence revenues of copyright holders are vanishing under pressure from the education sector, lawsuits are multiplying and dragging on, while intellectual property is being steadily devalued with each licence negotiation. Although Copibec has maintained its 15% management fees, the royalties paid to authors, creators, and publishers have fallen by 23% for each page copied by universities.

The universities told you about the millions of dollars allocated in their acquisition budgets to access the content of major foreign publishers of scientific journals. Yet about 80% of the reproduction declarations that we receive, regardless of the level of education, pertain to the reproduction of books and not international journals. It is not the large international publishing groups that have suffered from declining royalties, but our small and medium-sized publishers, our own publishers, for whom royalties account for 18% of net profits on average. For certain book publishers, royalties can account for as much as 30% of net profits. These revenues also make a significant contribution to the long-term survival of specialized Canadian and Quebec journals and can be the deciding factor in a publication's survival or demise. For our authors who are already in a difficult position, any drop in revenue in the copyright chain affects their financial ability to create.

Quebec's experience is nonetheless an example of collective management that allows for the negotiation of agreements between users and copyright holders. I am not saying that everything is great, because that is not the case. In fact, if nothing is done to correct the disastrous effects of the changes made in 2012, the situation in Quebec will only worsen and we will see a steady drop in royalties, if not their complete disappearance.

Quebec university students currently pay $13.50 per year for the Copibec licence. That amounts to less than half a per cent of a student's annual tuition fees in Quebec. Further, there is nothing in the agreements signed with the universities—they are signed with the universities and not the students—that requires them to pass those costs on to the students. For Concordia and the University of Montreal, for instance, this represents 0.08% and 0.07% of their annual operating budget for 2017-18 respectively.

Tuition fees are not higher in Quebec than in the rest of Canada. Paying royalties for the reproduction of excerpts of works has never jeopardized the Canadian education system or led to excessive student debt.

The fair dealing exception for education has been presented to you as the best way to access works. We are extremely puzzled by those statements, which are not backed up by any relevant evidence. At the same time, we know that collective management has always included this aspect of access to works, including digital works, owing to the agreements signed with foreign management organizations that belong to the International Federation of Reproduction Rights Organisations, or IFRRO.

Collective management is an undeniable benefit of a balanced act, as it balances access to works and ease of management on the one hand, with the compensation of rights holders through the payment of reasonable royalties on the other. It not only promotes direct access to knowledge, but also preserves creativity and cultural diversity for the future. It is for good reason that UNESCO considers collective management “an essential element in the construction of a modern national system of protection of copyright which would effectively promote a dynamic cultural development.”

Fundamental rights protect the compensation of authors and publishers. The Universal Declaration of Human Rights provides that all work should be paid and protects intellectual property. Copyright and all its elements is also intrinsically linked to authors' freedom of expression as it allows them to earn independent income that supports independence of thought.

Mr. Chair, vice-chairs, and members of the committee, thank you for your attention today. I would point out that our demands reflect a modern and forward-looking approach for a society that invests in its culture in the digital age. Collective management is not a model of the past, but rather a contemporary model that guarantees access and cultural diversity. The decisions you will make at the end of the current review will profoundly affect the future of the book publishing sector and cultural development in Canada.

I will conclude my presentation by quoting from the Creative Canada Policy Framework, published in 2017, regarding the review of the Copyright Act:

[...] Our copyright framework remains a vital part of our creative economy, and will continue to do so in the future. A well-functioning copyright regime should empower creators to leverage the value of their creative work, while users continue to enjoy access to a wide range of diverse cultural content.

Collective management is consistent with these and the other objectives of Canada's cultural policy.

Thank you.

[Luc Fortin, President, Guilde des musiciens et musiciennes du Québec]

Good morning.

I want to thank the committee for having me here today. I also want to say hello to my colleagues from the Canadian Federation of Musicians and the SPACQ.

I am the President of the Guilde des musiciens et musiciennes du Québec—Quebec musicians guild—which partners with the Canadian Federation of Musicians. We also have the exclusive accreditation to represent musicians in Quebec under the provincial legislation on the status of the artist. Our association has 3,300 regular members and close to 500 members by permission.

I will basically talk about the modernization or reform of copyright in the digital era, and about funding allocation procedures to better support our musicians.

The digital boom has revolutionized the music industry. Music is accessible from anywhere on a broad variety of portable devices connected to wireless networks, most often at no charge to users. On YouTube, for instance, people can listen to anything for free, and musicians or right holders don't receive any compensation.

Unfortunately, music industry frameworks in Canada are not adapted to the rapid evolution of the digital era. The first victims are musicians, artists and creators.

If producers are complaining about a drop in their revenue following this digital revolution, you can easily imagine the devastating impact of that drop on artists themselves, who often receive only a tiny fraction of phonogram and album sales.

We at the Quebec musicians guild are regularly faced with our members' unfortunate socio-economic situation. We estimate that one-fifth of our 3,300 members can truly live from their music consistently. We are including education as a source of revenue.

One of the reasons behind the decline in revenue was Bill C-32. Unfortunately, that legislation prematurely put an end to the private copying levy. Today, private copying is done by more Canadians than ever before. Musical works are being copied to USB keys, the SIM cards of smart phones, iPads, iPods, and so on, without any money going to collectives. This is a gross injustice, and the Canadian government must set things right. A royalty paid to artists is not a tax, and Canadians are fully aware of that.

In addition, Internet service providers must absolutely contribute because they have a substantial revenue stream from Internet subscriptions and bandwidth sales, which are in part attributed to Canadians' amazing appetite for downloading and streaming musical works. However, the works broadcast on the Internet bring almost nothing to creators.

It's not normal for songs heard thousands of times, especially on YouTube, to make no money. That platform enables people to listen to pretty much any musical work for free. Internet users often post songs online without consulting the authors or associating the video with them. People make their own montage using images. The Copyright Act should absolutely be modernized, so that everyone can receive their fair share.

Let's now talk about funding allocation. Producers receive assistance for operations and projects related to their business activities. Musicians do not receive that type of assistance, except in the case of specific short-term creation projects or the setting-up of certain short-term shows. Most of the funding goes to private production companies. Consequently, we have to work several jobs and live very precariously. That often forces musical artists to give up on their career fairly early. We depend on production companies and are often at the end of the compensation chain.

Many assistance programs are available for production companies, but that unfortunately does not enable our artists live from their art. Musicians are always paid at the end.

Subsidized companies do have enough money to hire employees, accountants, press agents, communications officers, and so on.

We think that the government must absolutely take into consideration the fact that artists also have to make enough money to focus on their art. Grant allocation policies should take that into account. I invite you to watch the excellent documentary series called Arrière-scène. The series was produced by Franco-Ontarian television station TFO and directed by Nicolas Boucher, a former guild member turned film producer. The documentary looks at the daily lives of Canadian musicians who tell the camera about the difficulties they have faced in their jobs and their frustration with the inequitable sharing of industry revenue.

For example, after revenue sharing, an album sold for $10 on iTunes may bring 75¢ to the group of artists and creators involved in its making. You will understands that, with sales splitting, hardly at any revenue can be made through that type of sharing without additional fees being applied to Internet broadcasting.

As for the funding of company projects, all album projects should ensure regular earnings over the length of the undertaking. The policy whereby an artist starts receiving royalties only once production costs have been covered is unacceptable. Royalties should be paid as soon as the first album has been sold, and the subsidies provided should take that into account. I also don't think that waiting until all production costs have been covered is a good way to pay providers. Therefore, musicians should not be subject to that policy.

Artists' associations have also established minimum standards of pay, and the collective agreements that are negotiated guarantee a social safety net for artists and protection in case of litigation. Those contracts should absolutely be submitted in company usage reports to the organizations that subsidize them.

How can it be ensured that artists and musicians have been paid properly if there is no oversight in that area? The best form of oversight is the submission of contracts approved by artists' associations. This is a key point that should absolutely be dealt with.

Thank you for your attention.

Copyright Modernization Act

[Rodger Cuzner, Liberal, Cape Breton—Canso, NS]

Madam Speaker, I am pleased that my colleague and friend from Halifax West asked me to stand and speak. He serves as the industry critic and is certainly much more involved in this topic and piece of legislation than I am. But I have been able to form an opinion after following the debate, after having an opportunity to speak with a number of persons whose lives and livelihoods are impacted by the passing of this legislation, and after having read some of the testimony given in committee hearings. I am very comfortable with my party's position on this particular piece of legislation.

This is not the first time we have seen this type of legislation. For the most part, Bill C-11 is a carbon copy of what we saw in the previous Parliament, which was Bill C-32. The Canadian economy is in the midst of a transition to a digital economy. We know that cultural institutions are going to be impacted through this transition. The music, cinema and education sectors are going to be profoundly impacted by this piece of legislation.

From what I have been able to read through the development of the legislation and the testimony in committee, there is some support for the legislation. There are some solid principles in the legislation and the direction of the legislation was embraced by the vast majority, but there are a number of specific aspects of this bill that are very contentious and are going to pose harm to a great number of Canadians. Amendments that were brought forward that seemed to be logical and reasonable were totally dismissed, and I am going to talk about that a little later on.

We know that things have changed. Let me take the music sector, as an example, and talk about how that has changed over the last number of years. My caucus colleagues and I would have grown up in an era in which our first experience with music probably would have on vinyl. I do not think it would have gone back to the time of 78s, but certainly 45s and long-playing albums.

[Peter Braid, Conservative, Kitchener—Waterloo, ON]

—I don't recall hearing the concerns about the Copyright Act that you expressed today, as part of either Bill C-11 or Bill C-32. Did you take the opportunity to either appear or to provide a submission?

[Joyce Bateman, Conservative, Winnipeg South Centre, MB]

Madam Speaker, I am grateful to have the opportunity to take part in today's debate on Bill C-11, the copyright modernization act.

In the 2011 Speech from the Throne, the Government of Canada committed to reintroduce and seek swift passage of legislation to modernize Canada's copyright law in a way that balances the needs of creators and users. This bill fulfills that promise.

This is the third time that we have tried to introduce this copyright legislation. Thanks to this government, we are finally going to update our act so it is consistent with international standards.

It is the culmination of one of the most extensive consultations that any bill has undergone, with more than 9,000 Canadian citizens and organizations having provided their thoughts regarding what a balanced copyright bill should look like.

It is from that listening exercise that our government arrived at the balance that we have today. It is a balance that not everyone is 100% content with, but everyone can agree that they have had some specific measure that was called for.

Canadians can also agree that what we have in this bill, especially with the amendments arrived at during committee stage, is in the right ballpark of what a balanced copyright act should look like.

This legislation will strengthen our competitiveness within the global digital economy and will protect and create jobs, promote innovation and draw new investments to Canada.

It is a hard-won balance, the result of principled compromise and one that the government is proud of.

Opposition parties have talked about this balance in several separate ways, almost disjointedly. On one hand they pit artists against consumers, and then they turn around and favour consumers over artists, all the while ignoring the need to ensure compromise.

Instead of advocating new costs for consumers, like an iPod tax, the opposition should finally side with us and support the modernization of Canada's Copyright Act.

Over here we realize that this compromise is necessary, because consumers and artists are in fact two sides of the very same coin. They are the same equation. If artists do not trust the rules that protect their rights and govern Canada's digital economy, they will be reluctant to produce their content here.

The government and members of Parliament have heard that time and time again in the consultations we have held. We have also heard that if consumers are unable to enjoy and use the content in legal ways that make sense to them, there will not be a market for the artists' work. That is why we have created a bill that strikes the right balance between the needs of consumers and users, while at the same time making strong exemptions for educational purposes or fair dealing.

The bill is an important stepping stone to the establishment of a strong framework in which Canada's digital economy can thrive. We know that the economy is changing significantly. What we do now with smart phones, tablets and computers has taken our economy in a new direction, where artists and rights holders are using the digital economy not only to bring new art to market but also to create hundreds of thousands of jobs for Canadians.

Those benefits are reflected in the raft of groups that are supportive of this legislation. To name only a few, they include the Canadian Chamber of Commerce, the Entertainment Software Association of Canada, the Business Coalition for Balanced Copyright, the Canadian Anti-Counterfeiting Network, the Canadian Intellectual Property Council and the Canadian Institute for the Blind.

I could go on, but I think the point is clear: the bill has wide-ranging support from those who see it as a key platform in the growth of the digital economy and the creation of knowledge economy employment.

I have listened with interest to today's debate, which is eerily reminiscent of the budget debate. In the budget, for example, we on the government side are putting forward a plan for how to sustain Canada's economic health in a time of global economic uncertainty.

Yes, unfortunately, the global economy is still fragile.

Here we have the opposition dreaming up new ways to stop our economic growth right in its tracks. We are providing for new, reasonable and economically viable ways to help grow our economy, whether it is an investment in our knowledge economy, sensible changes to the Investment Canada Act, or opening up our telecom sector to increased foreign investment, yet the opposition says “no” to those investments and “no” to changes that will create jobs and investment right here at home.

The new copyright regime will encourage new ideas and will protect the rights of Canadians whose research and development work and artistic creativity make our economy vibrant.

In the budget implementation act we have proposed practical changes to create a reasonable timeline for environmental reviews, while creating stronger environmental laws. We know that in the next 10 years more than 500 new projects representing over $500 billion in new investments will be proposed for Canada. The potential for job growth is enormous.

Since 2006 our government has been looking to streamline the review process for major opportunities such as this. More needs to be done and more can be done, yet the opposition says “no” to jobs and “no” to economic strength. Federal and provincial revenues that would flow from that measure will not accrue to Canadians because of these decisions.

I understand that part of that is the role of an opposition. I appreciate that, but the opposition's parliamentary games are not reasonable. For example, the member for Burnaby—New Westminster took up over 13 hours of debate and 70 speaking spots simply reading from Twitter posts in the House of Commons. I guess none of his colleagues had anything substantive to add to that debate. When I look at those kinds of tactics, I am not surprised about the opposition's stance on this legislation.

The same kinds of games were played during second reading of Bill C-11. The opposition spoke for more than 19 hours, often repeating the very same words, and all the while, for every day it delayed, another day went by without a modern, flexible copyright regime to help spur on our digital economy.

The bill is the outcome of one of the broadest consultations of its kind in Canadian history. In addition, the government acknowledges the many testimonies and briefs from stakeholders and parliamentarians about the bill tabled in the last session of Parliament and thanks everyone who contributed. This process made it possible to send a very clear message: Canada urgently needs to modernize the Copyright Act.

When it comes down to it, that is what this legislation is about: how rights holders and consumers interact with the digital economy, the economy of the 21st century.

What we need is a bill for the 21st century.

We know, after listening to witnesses at the committee stage of both Bill C-11 and Bill C-32, that this bill would create jobs and support the growth of Canadian business in the digital and online environment. It would promote creativity and innovation.

Report Stage

[Mike Lake, Conservative, Edmonton—Mill Woods—Beaumont, AB]

Mr. Speaker, there have been more consultations on this bill than almost any bill I have ever seen in my six years in the House. In fact, as I mentioned in my speech, I believe that between Bill C-32, which was introduced in the previous Parliament, and Bill C-11, which is the bill we are discussing now, committees heard from more than 180 different individuals. There were hours and hours of debate in the House of Commons, dozens and dozens of hours of discussion in committees and the opportunity to hear from and question witnesses. One thing that has to be said is that there has been no shortage of consultation on this bill.

[Mike Lake, Conservative, Parliamentary Secretary to the Minister of Industry]

Mr. Speaker, I am pleased to rise in my place today to speak to Bill C-11, the copyright modernization act.

The bill is returned to the House after extensive review by a legislative committee and the adoption of some technical amendments that will improve it but not alter the important policy balance that has been achieved. However, for those technical amendments, Bill C-11 is essentially the same as Bill C-32, which was being studied during the last Parliament.

Members of the House might remember that Bill C-32 went through 6 hours and 50 minutes of debate in the House, with a total of 17 speeches. In committee, 78 organizations and 122 different individuals appeared over the course of some 20 meetings, which lasted a total of 39 hours. That was a very comprehensive and wide-ranging debate on many of the same issues that have been reintroduced during the discussion around Bill C-11.

The debate on the bill before us now has been even longer and we have heard from even more speakers, with 86 speeches in total as well as numerous interventions. Clearly the House has many views on copyright reform.

The legislative committee also heard from a broad spectrum of interests that had a stake in the modernization of copyright. In February and March, the committee met on 11 occasions and heard from 62 individuals representing various creators, collectives, intermediaries, associations and businesses. They expressed varied and sometimes opposing views on a number of provisions in the bill.

To emphasize the range of views that were represented, we heard from librarians and archivists, broadcasters, directors and film producers, musicians, publishers and authors, educators, lawyers and persons with perceptual disabilities. We also heard from large and small businesses.

I would like to take this opportunity to respond to some of the concerns that we heard concerning copyright reform.

The first relates to concerns we heard about compensation for creators. Some have argued for the expansion of the private copying regime and oppose the new exceptions for consumers. Expanding the private copying regime would increase the cost of new technologies. The government cannot have a strategy of greater access to the Internet and promotion of our digital economy and at the same time support a policy that would increase cost and taxes on new technologies that drive innovation.

The digital economy provides creators with new ways to market their works and find new revenue streams. The bill would provide them with new rights, protections and specific measures to combat the enablers of copyright infringement.

Another concern expressed by some stakeholders is that the fair dealing exception for education may have a detrimental impact on the revenue streams of creators. They propose that fair dealing be constrained rather than rely on the six factors that have been established by the courts to determine what is fair.

I point out that fair dealing is not a blank cheque. It is a long-standing feature of our copyright law that permits individuals and businesses to make certain uses of copyrighted material in ways that do not unduly threaten the interests of copyright owners and which could have significant social benefits, but only if they are fair.

Finally, in summarizing what we heard during the second reading debate and at committee, I point out that the education provisions of the bill received considerable attention and some criticized some of the safeguards that had been put in place to ensure a balance of interest.

The bill introduces new measures aimed at enriching the educational experience. It greatly expands the ability of teachers and students to make use of new digital technologies and of copyrighted materials in the educational context.

For instance, teachers and students will be allowed to use copyrighted material in lessons conducted over the Internet and use legitimately posted material that they find on the Internet for educational purposes. The bill would also adjusts existing educational provisions to make them more technology neutral. The limitations and safeguards in place in relation to these new measures are an essential part of the balance between supporting learning and respecting the legitimate interests of copyright owners.

These matters were discussed extensively at second reading and by the legislative committee, in which we enjoyed a very wide-ranging and thought provoking discussion. In addition to robust debate regarding the private copying regime, fair dealing and the specific education provisions, we heard about the need for technological neutrality and the benefits to consumers.

We are proud this bill would amend the Copyright Act to provide a technology neutral framework that would stand the test of time. We live in an ever-evolving media and technology landscape that requires such a framework moving forward, so we are getting rid of outdated references to flip charts and other technologies to ensure the legislation remains relevant.

Finally, as followers of the copyright debate know, the bill proposes key changes that would benefit consumers. Consumers would have more flexibility to enjoy and manage their legitimately acquired content. Consumers would be allowed to time-shift their programming recorded on television, radio and Internet broadcasts. Consumers would also be allowed to format-shift and make backup copies.

Furthermore, we would be adding parody and satire to fair dealing and the ability for Canadians to create user-generated content. These are important amendments that would increase innovation and consumer choice.

In committee, witnesses agreed with the central premise that has been made time and again in this House. Modernization of Canada's copyright laws is long overdue. Some argued that the balance we have established on the bill before us should be tilted one way; others argued we should go further in the other direction. That is the nature of a bill as complex as this one. Not everyone will get everything they were looking for in the modernized copyright regime. However, moving ahead with the bill will be much better than perpetuating laws that have not been updated in more than a decade.

The bill would deliver a common-sense balance between the rights of consumers and the creative community. Importantly, it would also bring our laws in line with the WIPO Internet treaties.

Bill C-11 would provide for a parliamentary review of the Copyright Act every five years. At that time, Parliament would have the opportunity to review the changes made by the bill, as well as study how well the Copyright Act, as a whole, is serving to balance the needs of creators and users.

However, let us move quickly on passing the bill now, so that consumers and creators can soon benefit from these provisions. I urge hon. members of all parties to join me in voting for third reading so the bill can proceed to the Senate.

[Niki Ashton, NDP, Churchill, MB]

Mr. Speaker, for us, what is important is that we do the job right. What we have said consistently, and as indicated through the efforts of my colleague from Timmins—James Bay and others, is that we would like to do a thorough job. Absolutely, we would like to be time effective, but let us ensure that at the end of the day the legislation that comes out is to the benefit of all Canadians.

I would like to read the words of the Society for Reproduction Rights of Authors, Composers and Publishers in Canada that noted on the identical bill to C-11, Bill C-32:

If adopted without amendments, the bill tabled in the House of Commons will significantly affect creators' revenues. Moreover, the desired balance between the interests of creators and those of consumers and users is, in our opinion, completely absent.

This is not a balanced bill, and that is what we ask for.

[Laurie Hawn, Conservative, Edmonton Centre, AB]

Mr. Speaker, my colleague talked about being concerned about creators. All of us are concerned about creators.

This is a quote from a group of creators, the International Alliance of Theatrical Stage Employees. It says:

We congratulate the Government for protect[ing] the creative industries and men and women working in film and television production across Canada....The bill does not provide for the extension of the controversial private copying levy to devices such as ipods, which would have been extremely unpopular with consumers...

Given the fact that we have spent two and a half years debating this legislation, whether it was Bill C-32 or Bill C-11, given the fact that we have received thousands of input, given the fact there was a special legislative committee and given the fact that the bill attempts to balance the rights of consumers and creators, would the hon. member like to comment on the fact that no matter what provisions are in a bill there will always be somebody who will find the bill unsatisfactory? Would my colleague acknowledge that Bill C-11 is a good attempt at balancing that? I expect I know the answer. It is always a balancing act. Regardless, I wish we could just get on with it instead of playing politics with consumers and creators.

[Pierre Lemieux, Conservative, Parliamentary Secretary to the Minister of Agriculture]

Mr. Speaker, I appreciate being allowed to rise for debate on Bill C-11, the copyright modernization act.

Since 2006, one of our government's goals has been to protect those who seek innovation by creating or evolving new ideas. We have answered the call sent by Canadians for responsible copyright legislation that would protect and help creators, performers and copyright owners or consumers. Our government recognizes how new technologies are changing the lives of many Canadians, and our creative industries deserve a modern understanding of the critical role copyright laws play in protecting and creating jobs in Canada's digital economy. In our fast-moving technological world, it is important that our legislation remain current and provide a better, more efficient way for copyright owners to create and protect their content.

After an attempt to modernize our copyright legislation in 2011, which we could not complete because of the demand from the opposition for an unnecessary election, I am proud to say that we continue to pursue this goal. We are glad that Canadians gave our government a strong majority so that the opposition can no longer disrupt our goal of providing creators with a modern copyright act that is in line with today's digital world.

By reintroducing this bill without change in the fall, our government reiterated its support for a balanced approach to copyright reform, and after hearing more than 70 witnesses at the Bill C-32 committee and almost as many at the Bill C-11 committee, we think that this bill will finally provide a new, modern and up-to-date vision for copyright that has always been shared by our government. Not only would this legislation bring our country on par with international standards; it would also make our country a world leader in terms of copyright reform. For example, I would cite the notice and notice provisions of this bill as truly innovative.

I am also glad to say that multiple witnesses have provided strong support for this bill, acknowledging that our government's main goal is protecting and creating jobs while stimulating our economy and attracting new investment to Canada. As an example, the Canadian Publishers Council said that our government “...demonstrates a clear understanding of the need to amend the current Copyright Act to bring it more in line with our times”.

In this regard, let me say a few words about the proposed amendments to Bill C-11, amendments that speak to the concerns that have been raised and that will bring some clarity and precision to the bill.

For example, in response to the concerns from the CNIB, which provides support to blind and partially-sighted Canadians, we have introduced an amendment for non-profit organizations that limits the legal actions that can be taken against non-profits that mistakenly export abroad an alternate format that is meant for people with visual impairments.

Some non-profit organizations had raised concerns with regard to the fact that they could be discouraged from making use of the exception regarding formats for people with a perceptual disability, because of the related legal liabilities. This clarification will enable these organizations to use the exception without fear of negative consequences.

At this point, I would like to take this opportunity to thank all those who contributed their briefs and suggestions to Bill C-11.

The intent of the bill is not to punish legitimate organizations that make an honest mistake in good faith, but to protect intellectual property as well as the rights of consumers. It should be noted that copyright holders can always ask for an injunction to bring an end to any violations. This amendment shows our good faith as well as our openness to proposed technical amendments. I would like to repeat that our intent is not to punish those who respect the law.

With this in mind, I would like to mention another amendment that would help to better target those persons who do not obey the law and who abuse the opportunities offered by the Internet. This amendment concerns safe harbour provisions. The amendment would clarify the scope of the legislation and eliminate safe harbours for persons who allow or enable copyright infringement.

Currently, service providers have four areas of exemption regarding enabling offences: caching services, hosting services, telecommunications services and information location tools, such as Google or Yahoo.

The amendment to the bill would eliminate safe harbours for caching and hosting in cases where copyright infringement would be enabled. Safe harbours are not created for criminals who seek to escape the law and abuse the legislation for their own profit. The amendment would clarify this issue.

The amendment would have a positive effect and give copyright holders other means of recourse to protect their works. They have the right to benefit from the results of their efforts.

We have also made an amendment concerning the scope of injunctions in order to clarify the legal issues surrounding search engines. This amendment would address concerns with search engines and possible catch-all injunctions that would be too broad to enforce, such as a court order requiring that a song be completely removed from the Internet.

It is a matter of demonstrating common sense and having realistic expectations of what can be done to fight Internet piracy. Under the provisions of our bill, search engines would not be liable as a result of performing their role as neutral conduits.

Once again, our goal is not to penalize legitimate intermediaries, such as search engines, that provide a valuable service to the users. That is highlighted by this amendment.

This amendment goes hand-in-hand with our desire to recognize the neutral role played by these intermediaries in online activities. This bill is intended to establish a balance between the parties, and this amendment will help establish a reasonable balance for everyone.

For the consumers, we have made another clarification with the amendment concerning access to copies in terms of alternative formats and later viewing. This amendment confirms that personal use refers to the entire household, not just a single individual. We feel this is a matter of common sense. We hope that the bill reflects this common sense, both in its implementation and in its spirit. We must ensure that consumers can take advantage of the content they have purchased at the time and in the format of their choice, while respecting the balance between creators' rights and consumers' rights.

In addition, the wording of the former provisions could suggest that they granted a right to mass-distribute copies, provided they were intended for the recipient's exclusive personal use. This amendment reinforces the language of the act without changing its spirit.

This amendment will also enhance intellectual property protection, while enabling consumers to enjoy their purchases in the comfort of their homes.

Earlier I mentioned that this bill would make Canada a world leader in copyright reform. It is also important to note that we will finally be meeting the standards of the international treaties to which Canada is a signatory.

We have also added an amendment respecting international treaties to clarify the remedies available to copyright holders and to make it clear that they may base a remedy on the treaty of their choice, but not two at the same time.

The purpose of our bill is to provide Canada with a modern intellectual property regime adapted to new technologies. Treaties overlap when copyright is asserted or belongs to countries that are signatories to both treaties. This clarification protects consumers and means they will not have to pay twice for the same service as a result of overlapping international laws.

Once again, we have to do things properly and ensure that the rights of consumers and creators are respected and that our intellectual property regime creates wealth for the future.

It is time to acknowledge that Canadians have spoken in favour of this legislation. It is time to pass the bill.

[Mike Lake, Conservative, Parliamentary Secretary to the Minister of Industry]

Mr. Speaker, in terms of the opposition's comments about the amount of consultation and debate on this particular issue, I would just note that Bill C-32 in the last Parliament and Bill C-11 in this one have had very many hours of debate. We have seen about 180 individual witnesses come before committee and, between the two bills, dozens of hours of committee hearings. I wonder if the hon. member might comment on whether, in his experience in the House, he has seen this level of debate in any other bill.

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

Madam Speaker, thank you for the opportunity to speak to Bill C-11.

To start, I would like to note my support for the bill. I encourage others to support it as well.

The bill is a result of consulting, listening, and listening until we got it right. In fact, this legislation has come to this point through one of the largest consultations in Canadian history. By now, there should be no mistaking the message that we have received. Canada needs to pass legislation to update its Copyright Act and we should do so quickly.

As we have heard during various speeches delivered during the course of the proceedings on Bill C-11 and former Bill C-32, this legislation purposely balances both the rights of creators and the interests of consumers. It does so in a way that allows artists and creators to position themselves as they wish, but principally protects and enhances their ability to succeed as entrepreneurs.

By strengthening the protection of their intellectual property rights, we know that if we give our artists and creators, digital or otherwise, the proper legal and economic framework in which to produce work, a large number of them will succeed, prosper and grow.

Canada is home to a great number of global success stories in the visual and performing arts, as well as artists and creators who use new media to tell their stories and create their work.

Every year, new artistic innovators emerge and build upon the successes of those before them. It is important that the laws which oversee the protection of their work are up to date and flexible, so that as art forms evolve and change, the law still applies in a way that makes sense, common sense.

On the other hand, without solid intellectual property protection, the kind of artistic activity that we celebrate every year at events like the Junos is discouraged, and success is more difficult to achieve.

For instance, we should look at Canada's very successful video game sector. We all know that Canada is home to world leaders like EA Sports, a great company that makes games like Madden football and NHL, but there are a host of other companies that thrive here in Canada as well.

For example, when the Minister of Canadian Heritage and the Minister of Industry visited BitHeads here in Ottawa, the owner of that company told the Toronto Star afterwards that he loses 90% of his company's revenues to piracy activities. That is why he supports this new legislation. We need to ensure that this kind of piracy stops.

I can also speak about the positive effect the bill would have on photography in Canada. The bill ensures that photographers are the first owners of copyright on their photographs, and that copyright will be protected for 50 years after the photographer's death. Taken together, what the bill aims to do is protect the incentive to create.

Provisions in the bill strengthen the ability of copyright owners to control the uses of their online work, therefore preventing piracy and infringement and promoting new and legitimate online business models.

For example, there are provisions creating a new category of civil liability which directly targets the enablers of online piracy. In the same light, the bill ensures the protection of technological protection measures, such as digital locks, to prevent unauthorized access to copyrighted material.

Artists and rights holders will not only benefit from these protections against circumvention, but they will also benefit from the creation of rules that prevent the manufacture, importation and sale of devices that can break digital locks.

The opposition has been critical of digital locks. The important point here is that digital locks are a tool in the box for creators who wish to protect their hard work. Rights holders are free to market their work with or without a digital lock. Fundamentally, they will respond to the market in which they are active in the way that best suits their interests and values. That is how it should be in a free market.

It is because of the measures I have just mentioned and more that I am happy to see the bill move forward, beyond the delay tactics we saw at second reading and through a productive committee session in the winter, to this stage today. In many respects this debate has given parliamentarians a strong appreciation for the economic contribution of artists and creators to the Canadian economy as people who innovate, create jobs and strengthen their communities as well as the economy.

We are also more aware of the opportunities that exist for Canadian artists in our new digital economy. Because of this appreciation and the promise created by these opportunities, what we are saying to artists across the country is that we understand this piece of legislation is important for their ability to profit fully from their work.

We will bring the full force of the law against organized commercial piracy to protect the efforts of Canada's creative community. The commitment met with stakeholders' support again and again.

The Entertainment Software Association of Canada said that the government is delivering on a promise to modernize outdated law and support new and innovative business models. It considers that this legislation would provide a framework to allow creators and companies to distribute their works in the manner that best suits them. This is the association that supports video games and other entertainment software creators. It is saying clearly that this law should be passed now.

The Canadian Anti-Counterfeiting Network is just as clear. It said that it strongly supports the principles behind this legislation, and that piracy is a massive problem in Canada, which has an economic impact on government retailers and consumers. It said, “We are pleased the government is committed to getting tough on IP crimes.”

The Canadian Publisher's Council said that “...we all benefit from strong and precise copyright legislation that provides incentives to protect rights holders” in this highly competitive economy.

It is clear that we have support to move ahead and that we are delivering with this legislation. With the kind of protection those stakeholders are seeking, it is clear that artists do not need things like an iPod tax, which the opposition supports again and again, and does so regardless of the market consequences and what it would mean for the ability of our creators to market their products in new and innovative ways.

The opposition should take a more positive and confident view of artists and creators. In essence, it should see them as the innovative entrepreneurs that they are and support copyright modernization in Canada as a way of enhancing their ability to succeed.

This is our third attempt at introducing copyright legislation. Thanks to the efforts of our government, as well as those who took part in the Bill C-11 committee, we will finally bring Canada's copyright laws in line with international standards. This legislation would strengthen our ability to compete in the global, digital economy. It would protect and create jobs, promote innovation and attract new investment to Canada. Moreover, this legislation would encourage new ideas and protect the rights of Canadians whose research, development and artistic creativity strengthen our economy each and every day.

For these reasons I am pleased to support the bill. I encourage all members of this great place to vote in favour of it.

[Marie-Claude Morin, NDP, Saint-Hyacinthe—Bagot, QC]

Madam Speaker, as I said at the beginning of my speech, this bill is more or less a carbon copy of Bill C-32, which was rejected by many artists' groups and by the opposition.

Now that the Conservatives have a majority, they are marching in, imposing this unacceptable bill on us once again. As the hon. member said, there is a lack of innovation. In addition, there is no openness on the part of the government, which does not listen to artists, writers, musicians and all those whose work reflects our Canadian culture and identity. The government's lack of vision in modernizing copyright is a real problem.

Bill C-11—Time Allocation Motion

[James Moore, Conservative, Port Moody—Westwood—Port Coquitlam, BC]

Mr. Speaker, the government House leader does negotiate and has negotiated on these matters. He does it all the time, through two minority Parliaments and now this majority Parliament.

On the substance of what we are talking about right now, copyright, we have considered opposition voices. We did not invoke time allocation. We had stand-alone legislative committees. We brought in individual Canadians to consult on this legislation before we even drafted the bill, because we realized that in our first Parliament, in 2006-08, copyright was approached in the wrong way. We took a new approach with Bill C-32, now Bill C-11, the bill before us.

We asked Canadians at the front end what ought to constitute effective copyright reform. Those consultations came in. Tens of thousands of Canadians participated. It was an open, incredibly democratic process where Canadians could freely discuss this legislation, and we arrived at Bill C-32.

We negotiated with the opposition House leaders. The government House leader reached out to the opposition House leaders. We created a stand-alone legislative committee to debate the bill for the past two years. Call the question.

[Christian Paradis, Conservative, Mégantic—L'Érable, QC]

Mr. Speaker, once again, taking Bill C-11 and Bill C-32 together, at second reading alone, we had 29 hours of debate and 31 meetings lasting a total of over 65 hours, and we heard from over 110 witnesses.

Yes, Bill C-11 is the same as the former Bill C-32, with 11 amendments made following consultation. What people do not want is an iPod tax. That is clear. Yet that is what my colleague is recommending and he is starting to sound like a broken record.

We need to move on. What we want to eliminate is piracy. When people try to cheat and pirate material in the digital era, it will be prohibited. This legislation will comply with the international standards of the World Intellectual Property Organization. People expect that. The legislation needs to be updated. After so many hours of debate, it is time to move on.