Copyright Modernization Act

An Act to amend the Copyright Act

This bill was last introduced in the 41st Parliament, 1st Session, which ended in September 2013.

Sponsor

Christian Paradis  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

June 18, 2012 Passed That the Bill be now read a third time and do pass.
May 15, 2012 Passed That Bill C-11, An Act to amend the Copyright Act, as amended, be concurred in at report stage with further amendments.
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by adding after line 15 on page 54 the following: “(3) The Board may, on application, make an order ( a) excluding from the application of section 41.1 a technological protection measure that protects a work, a performer’s performance fixed in a sound recording or a sound recording, or classes of them, or any class of such technological protection measures, having regard to the factors set out in paragraph (2)(a); or ( b) requiring the owner of the copyright in a work, a performer’s performance fixed in a sound recording or a sound recording that is protected by a technological protection measure to provide access to the work, performer’s performance fixed in a sound recording or sound recording to persons who are entitled to the benefit of any limitation on the application of paragraph 41.1(1)(a). (4) Any order made under subsection (3) shall remain in effect for a period of five years unless ( a) the Governor in Council makes regulations varying the term of the order; or ( b) the Board, on application, orders the renewal of the order for an additional five years.”
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by replacing line 11 on page 52 with the following: “(2) Paragraph 41.1(1)( b) does not”
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by replacing line 25 on page 51 with the following: “(2) Paragraph 41.1(1)( b) does not”
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by deleting lines 1 to 7 on page 51.
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by deleting lines 24 to 33 on page 50.
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by deleting line 37 on page 49 to line 3 on page 50.
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by deleting lines 17 to 29 on page 48.
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by deleting lines 38 to 44 on page 47.
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by adding after line 26 on page 47 the following: “(5) Paragraph (1)( a) does not apply to a qualified person who circumvents a technological protection measure on behalf of another person who is lawfully entitled to circumvent that technological protection measure. (6) Paragraphs (1)( b) and (c) do not apply to a person who provides a service to a qualified person or who manufactures, imports or provides a technology, device or component, for the purposes of enabling a qualified person to circumvent a technological protection measure in accordance with this Act. (7) A qualified person may only circumvent a technological protection measure under subsection (5) if ( a) the work or other subject-matter to which the technological protection measure is applied is not an infringing copy; and ( b) the qualified person informs the person on whose behalf the technological protection measure is circumvented that the work or other subject-matter is to be used solely for non-infringing purposes. (8) The Governor in Council may, for the purposes of this section, make regulations ( a) defining “qualified person”; ( b) prescribing the information to be recorded about any action taken under subsection (5) or (6) and the manner and form in which the information is to be kept; and ( c) prescribing the manner and form in which the conditions set out in subsection (7) are to be met.”
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by adding after line 26 on page 47 the following: “41.101 (1) No one shall apply, or cause to be applied, a technological protection measure to a work or other subject-matter that is intended to be offered for use by members of the public by sale, rental or otherwise unless the work or other subject-matter is accompanied by a clearly visible notice indicating ( a) that a technological protection measure has been applied to the work; and ( b) the capabilities, compatibilities and limitations imposed by the technological protection measure, including, where applicable, but without limitation (i) any requirement that particular software must be installed, either automatically or with the user's consent, in order to access or use the work or other subject-matter, (ii) any requirement for authentication or authorization via a network service in order to access or use the work or other subject-matter, (iii) any known incompatibility with ordinary consumer devices that would reasonably be expected to operate with the work or other subject-matter, and (iv) any limits imposed by the technological protection measure on the ability to make use of the rights granted under section 29, 29.1, 29.2, 29.21, 29.22, 29.23 or 29.24; and ( c) contact information for technical support or consumer inquiries in relation to the technological protection measure. (2) The Governor in Council may make regulations prescribing the form and content of the notice referred to in subsection (1).”
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by adding after line 26 on page 47 the following: “41.101 (1) Paragraph 41.1(1)( a) does not apply to a person who has lawful authority to care for or supervise a minor and who circumvents a technological protection measure for the purpose of protecting the minor if ( a) the copy of the work or other subject-matter with regard to which the technological protection measure is applied is not an infringing copy; and ( b) the person has lawfully obtained the work, the performer’s performance fixed in a sound recording or the sound recording that is protected by the technological protection measure. (2) Paragraphs 41.1(1)( b) and (c) do not apply to a person who provides a service to a person referred to in subsection (1) or who manufactures, imports or provides a technology, device or component, for the purposes of enabling anyone to circumvent a technological protection measure in accordance with subsection (1). (3) A person acting in the circumstances referred to in subsection (1) is not entitled to benefit from the exception under that subsection if the person does an act that constitutes an infringement of copyright or contravenes any Act of Parliament or of the legislature of a province.”
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by deleting lines 21 to 40 on page 46.
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by replacing line 25 on page 45 with the following: “measure for the purpose of an act that is an infringement of the copyright in the protected work.”
May 15, 2012 Failed That Bill C-11, in Clause 22, be amended by deleting lines 30 to 34 on page 20.
May 15, 2012 Failed That Bill C-11, in Clause 22, be amended by deleting lines 33 to 37 on page 19.
May 15, 2012 Failed That Bill C-11 be amended by deleting Clause 62.
May 15, 2012 Failed That Bill C-11 be amended by deleting Clause 49.
May 15, 2012 Failed That Bill C-11, in Clause 27, be amended by deleting line 42 on page 23 to line 3 on page 24.
May 15, 2012 Failed That Bill C-11, in Clause 27, be amended by replacing lines 23 to 29 on page 23 with the following: “paragraph (3)( a) to reproduce the lesson for non-infringing purposes.”
May 15, 2012 Failed That Bill C-11, in Clause 21, be amended by adding after line 13 on page 17 the following: “(2) The Governor in Council may make regulations defining “education” for the purposes of subsection (1).”
May 15, 2012 Failed That Bill C-11 be amended by deleting Clause 2.
May 15, 2012 Failed That Bill C-11 be amended by deleting Clause 1.
May 15, 2012 Passed That, in relation to Bill C-11, An Act to amend the Copyright Act, not more than one further sitting day shall be allotted to the consideration at report stage of the Bill and one sitting day shall be allotted to the consideration at third reading stage of the said Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at report stage and on the day allotted to the consideration at third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the Bill then under consideration shall be put forthwith and successively without further debate or amendment.
Feb. 13, 2012 Passed That the Bill be now read a second time and referred to a legislative committee.
Feb. 13, 2012 Passed That this question be now put.
Feb. 8, 2012 Passed That, in relation to Bill C-11, An Act to amend the Copyright Act, not more than two further sitting days shall be allotted to the consideration at second reading stage of the Bill; and that, 15 minutes before the expiry of the time provided for Government Orders on the second day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.
Nov. 28, 2011 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “the House decline to give second reading to Bill C-11, An Act to amend the Copyright Act, because it fails to: ( a) uphold the rights of consumers to choose how to enjoy the content that they purchase through overly-restrictive digital lock provisions; (b) include a clear and strict test for “fair dealing” for education purposes; and (c) provide any transitional funding to help artists adapt to the loss of revenue streams that the Bill would cause”.

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 6:20 p.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Madam Speaker, the riding of Burnaby—New Westminster is one of the ridings where we are concerned about the bill that the government has brought forward, Bill C-11, which was supposed to be a modernization of copyright.

We on this side of the House, as a number of our very eloquent speakers have said, are fully in support of modernization in copyright law. We have said that. Our member for Timmins—James Bay, who was the critic in the former Parliament on digital issues and continues to be the critic in this Parliament, brought forward a whole variety of very positive amendments and suggestions to the government. As we know within the NDP caucus, one of the reasons we are 102 strong is that we did extensive consultations, which the government has consistently refused to do on this bill. We got from the artistic community, from those involved in digital issues, those involved in copyright issues, a series of amendments to fix this bad bill.

As has been the trend of the government since it was elected on May 2, since it took off the sweater vest and stopped talking about moderation and approaching government in a responsible way, the government has refused to acknowledge any of the concerns raised in the artistic community, any of the concerns raised in the educational community, any of the concerns raised across this country by members in this House and by many members of the public. It has not addressed any of those issues. That is why we are faced with, instead of a bill that would modernize copyright, a bill that would in many respects take us backward in time.

I have only a few minutes left, but I will be delighted to continue the discussion at a later date. This is a fundamentally important piece of legislation that has huge flaws, huge holes, and has been approached by the government in what is a wholly irresponsible way.

Let us talk about three of the elements that would take us back in time.

We have had a number of great speakers today talking about the impact on the artistic community and that, in a real sense, this so-called modernization of copyright for artists would take them back to the dirty thirties. That was a time when the artistic community did not receive the kind of supports for the works that it put forward to benefit our country, a time when artists basically were starving artists.

Subsequent to that, over the years, we have put in a variety of mechanisms so that artists could actually profit from their work. It is not a surprise that we are the foremost advocates for our artists in this House of Commons and we have a number of artists who have gone on to become members of Parliament.

However, the government is turning back the clock, ripping away those supports which the artistic community has and benefits from. As my colleague, the member for Scarborough Southwest, said just a few moments ago, the median earnings of an artist in Canada are under $13,000 a year. For the government, in a mean-spirited way, to rip away the supports that artists have through its provisions in Bill C-11, shows to what extent the government is willing to turn back the clock.

Now, let us look at some of the other provisions that would turn back the clock.

Madam Speaker, because you come from a riding where there is a good sense of history, Victoria, British Columbia, you are aware of the 19th century and the paupers' prisons. Those paupers' prisons were established because there were draconian laws that penalized the poor, that penalized the middle class. When those people could not afford to pay their fines, they were thrown into paupers' prisons.

What we have here when we look at the bill, and I am going to reference it for the Conservative members who have obviously not yet read the bill, at page 57, it talks about the penalties that this legislation would bring forward. I will refer to clause 48, which is proposed subsection 42(3.1)(a), where it says that on conviction on indictment--that is when an individual is guilty of an offence through this bill that is brought forward--an individual is liable to a fine not exceeding $1 million or to imprisonment for a term not exceeding five years, or to both.

Paupers' prisons and middle-age book-burning. That is how far back the government has turned the issue on copyright. Modernization of copyright--

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 6:20 p.m.
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NDP

Pierre Jacob NDP Brome—Missisquoi, QC

Madam Speaker, I have a question for my colleague.

SOCAN, the Society of Composers, Authors and Music Publishers of Canada, said it believes that Bill C-11 should be amended in order to facilitate access to creative content via new media and to ensure that creators are fairly compensated for the use of their creative content via new media.

How will artists be affected if this delicate balance is disturbed?

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 5:55 p.m.
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NDP

Matthew Kellway NDP Beaches—East York, ON

Madam Speaker, I am pleased to speak to Bill C-11, the copyright modernization act.

Without question, copyright is a very complex issue, and on that I think we can all agree. It is required as a balancing of competing demands of multiple interests.

At the root of this issue is the fact of unrelenting technological advancements. Therefore, I rise today to speak to this issue with some trepidation. I am not a very technologically sophisticated kind of guy. In the race to keep up with technology, my 15-year-old blew past me some years ago and has disappeared over the horizon. My 12-year-old has lapped me several times and now I simply marvel at my 7-year-old's facility with all technological matters. It seems like it is intuitive and, to extend or abuse the metaphor, I hear his footsteps right behind me.

My challenges with technology notwithstanding, I do realize and recognize that there are great possibilities and new horizons that open up to us on our current trajectory of technological development. These possibilities emerge from our ability to explore vistas that were not available or accessible to us before. Much of the broadening of horizons comes from our greater exposure to and easier access to the arts of all kinds, but performing arts in particular.

From this we all benefit. It gives us as Canadians a better sense of each other across this vast land with such tremendous historical, cultural and linguistic diversity. Collectively, it gives us a greater sense of our national identity and our place in this world. It gives us, as Canadians, an existential foothold. The reverse is also true. It gives others around the world a better sense of who we are as Canadians. For all of this, we should be thankful and understand ourselves to be in the debt of our Canadian artists. One asks where our creative Canadians are represented in the bill. Where in the bill do we acknowledge their role in our lives and acknowledge our debt to them?

In the answers to these questions, we discover the fatal flaw of the bill because artists are locked behind the digital locks that prevent the sharing of product and the opportunity to support themselves economically. What our artists need and what we all need is to take advantage of our technology to enhance access to creative products hand-in-glove with enhancing compensatory opportunities for our artists. The value of proceeding in this fashion is not just cultural but economic.

A 2008 Conference Board of Canada report found that the cultural sector generated approximately $25 billion in taxes for all levels of government in 2007. This amount is more than three times higher than the $7.9 billion that was spent by these governments on culture in that year.

The Alliance of Canadian Cinema, Television and Radio Artists, better known as ACTRA to many, estimates that Canada's arts and culture industries contribute $85 billion per year to our country's economy. This works out to roughly 7.4% of Canada's gross national income and 1.1 million jobs, equivalent to about 6% of Canada's labour force.

In stark contrast, the average earnings of a Canadian artist in 2009-10 was just $12,900, well below the poverty line. Far too many people in Canada's arts and culture community have no choice but to subsist, depending on the generosity of friends and family to get by. They are relegated to a state of quasi-survival that does not reflect the tremendous economic and cultural benefits that we all reap from their talents.

What we should be doing in the House is protecting the creator by providing him or her with a way to make a living and at the same time protecting the ability of Canadians, often called consumers in the language of this debate, to enjoy the creative product of Canadian artists. Instead, the bill seems to privilege or enhance the economic and legal position of content owners, not creators and certainly not consumers, because the bill does nothing to deal with the most troublesome issue confronting us under the present copyright regime, which is the digital lock.

Behind that lock is the artist's work with limited ability to get out. On the other side is the consumer who is limited by his or her ability to access the creative product. We should be facilitating cultural and economic exchange between creators and consumers, not placing barriers between them that will benefit almost exclusively large foreign content owners. It is backward and it needs to be reworked.

On the same theme that I began with, the democratic possibilities of new technology, I would like to talk about the implications of this bill for education. Our new technologies carry with them this tremendous opportunity for providing greater access to education by making knowledge and information available to a much larger audience. This technology is an equalizer of educational opportunity, not by limiting opportunity for some but by raising it for all.

However, this bill, again primarily through the mechanism of the digital lock, places in front of students obstacles to their education. This is most obvious in the case of distance education. It should be noted that distance education or learning is an important issue, not just because of the sheer vastness of Canada but also because of the intensity with which so many of us live our lives and the convenience that distance education offers. It is also a huge issue because of the need for so many Canadians to pursue continuous education to keep up with new technologies and shifting labour market demands.

This bill would require that digital copies of educational materials for the purpose of study be made to self-destruct within five days. This would pose obvious problems for those pursuing long distance education, among others. In the case of long distance education, people in a remote isolated community would have to destroy their course materials within 30 days after the conclusion of the course of study. This is hardly an appropriate use of copyright law as these people would be effectively prohibited from having future access for reference or other purposes to content they have already paid for.

Further, with this bill, as presented, digital locks supersede other rights guaranteed in the Canadian Charter of Rights and Freedoms, such as changing format in the case of a perceptual disability. Again I would argue that this is hardly an appropriate use of copyright law.

Under the terms of this bill, any removal of digital lock information would come with punitive fines of up to $1 million and five years in jail. This measure is based directly on the United States' controversial digital millennium copyright act model.

In conclusion, I will point to some principles that should not change over time and should inform copyright legislation. One is that we need to value, treasure and protect the creative people among us. Their gifts are gifts for all of us and this needs to be recognized socially but, and very important, materially with appropriate remuneration for those in the arts and cultural community.

A second such principle is that education is critically important to us individually and collectively and, in all that we do, we should enhance access to education not limit it.

A third and very serious principle is the inviolable rights afforded to all Canadians by our Charter of Rights and Freedoms.

On all three of those principles, this bill fails and requires, as a result, significant amendment.

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 5:55 p.m.
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Conservative

Paul Calandra Conservative Oak Ridges—Markham, ON

You are quite correct, Madam Speaker. It was not a point of order because the opposition is wrong on most facets of Bill C-11.

Could the hon. member cite one instance out of those 80 countries, where TPMs are available, where they have seen less creative work? Could she cite for me specifically where--

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 5:50 p.m.
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NDP

Manon Perreault NDP Montcalm, QC

Madam Speaker, I think I will quote Michael Geist, who said that the foundational principle of the new bill remains that any time a digital lock is used—whether on books, movies, music or electronic devices—the lock trumps virtually all other rights.

This means that fair dealing rights and the new rights set out in Bill C-11 are no longer in effect once the copyright holder places a digital lock on the content or the device.

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 5:40 p.m.
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NDP

Manon Perreault NDP Montcalm, QC

Mr. Speaker, it is difficult to try and understand an ill-conceived bill that does not really fix the problems in the current law. The Canadian government wants to reintroduce former Bill C-32 in the hopes of modernizing the Copyright Act. After listening to many expert witnesses speak on this topic in 2009 and after consultations, this government chose to table a catch-all bill.

It is true that Canada needs new copyright legislation, but this one is confusing. It contains too many major problems and, in certain cases, creates problems where there were none before. The government has managed to alienate intellectual property expert Michael Geist, the cultural industries, the Writers Guild of Canada and SOCAN, the Society of Composers, Authors and Music Publishers of Canada, to name just a few.

Reforming copyright law in Canada is not simple. It is quite complex. I greatly fear that the government's proposal is not the right solution. On one hand, the government is allowing for fair use for educational purposes, but on the other hand, it is imposing strict rules with regard to digital locks, allowing them to supersede all other rights guaranteed under the Canadian Charter of Rights and Freedoms. The Writers Guild of Canada has been very clear about digital locks: adding a digital lock effectively blocks the creators' current source of income and denies consumers the same rights they are guaranteed in other clauses of the bill.

The United States adopted similar legislation 10 years ago, and we have already seen the major shortcomings of such legislation in recent years. Their bill has reduced fair access to electronic resources, limited individual freedom of expression, legislated contradictory terms, resulted in unending and expensive legal battles against the public and has hindered innovation. Why is this government proposing a bill based on that same model? Canada should be a leader in copyright law instead of repeating the mistakes of its neighbours. Canada has to move forward and show leadership in this area, especially given the astonishing number of artists here who are brimming with talent.

The Minister of Industry and Minister of State for Agriculture announced that Canadians would soon have modern copyright laws that protect and help create jobs, promote innovation and attract new investment. However, quite the opposite seems to be true. Over 80 arts and culture organizations believe that Bill C-11 will be bad for Canada's digital economy. Howard Knopf, a lawyer who specializes in copyright, raises an important question. He says that this bill does not encourage innovation and that, in fact, it inhibits it. He wonders how making it illegal to bypass a regional code in order to watch a legally imported Bollywood DVD that is not available in Canada is going to encourage innovation.

The bill could seriously affect artists' incomes, even though they are already underpaid. A Conference Board of Canada report found that the cultural sector generated approximately $25 billion in tax revenue in 2007. That is more than three times higher than the $7.9 billion that was invested in culture by all levels of government in 2007. We must also consider that the average salary of an artist in Canada is $12,900 a year, which is a pittance. This bill will deprive artists of million of dollars in revenue and jeopardize their market share.

Canada can be proud of its artists and creators. Why does this government want to penalize them? Does the government think that, with this bill, it can download additional costs onto artists, who are already underpaid? How does the government expect to create new jobs like this? It would definitely be more effective to examine the issue of job creation separately rather than trying to pass this incoherent bill off as a job creation strategy.

The Canadian Association of University Teachers was clear: this bill needs to be amended. The NDP is proposing that we delete the clauses that criminalize the removal of digital locks for personal, non-commercial purposes. This would easily allow people who have a print disability to change the format of electronic resources so they can access them.

What worries me is the impact that this bill would have on people with a print disability, which includes those with learning disabilities and those who are visually impaired. The accessibility of resources is clearly not a priority for this government. It is important to remember that, last year, the Federal Court ordered the government to make its websites accessible to people with visual impairments. The court gave them 15 months to fix the problem and we note that the government has only three months left. This is an example of the lack of consideration that this government has shown with respect to the accessibility of resources. The hon. members will understand my concern about the plans for digital locks.

What also concerns me is that the government held consultations on the accessibility of library resources. For three years, the government consulted experts on the issue and listened to people with print disabilities describe their experience in trying to access resources.

I have the clear impression that the government did not listen to anything they said. This bill may actually create obstacles for people with a print disability in accessing resources. We have to protect artists' and authors' creations but we also have to be careful not to create problems for people with visual impairments. We must strike a balance; such a thing is possible. Unfortunately, the government did not do the research it should have when drafting this bill. It would be preferable to consider any amendments that could improve the legislation and make it better reflect what is at stake for Canadians.

Right now, Bill C-11 could have a number of unintended consequences, which is why it is important to consider amendments to improve the Copyright Act. One possible effect of the bill would be to increase the current levies on cassettes, DVDs and CDs, for example.

The bill could also create grey areas that would be difficult to manage and would require an endless, complex and inefficient list of exceptions. For example, the bill allows users to record television shows to watch them later but does not allow them to create a library of recorded content. What is the difference? How do we know whether two or three recorded episodes of a television show constitute a library or not?

Furthermore, is it illegal to transfer the music that we listen to on a CD player to a computer in order to listen to it on an MP3 player? According to this bill, the answer seems to be yes. However, according to the Conservatives, we do not have to worry because it is highly unlikely that the artist will sue us.

This bill creates all manner of difficult situations where judges will have a very hard time giving a ruling. This bill does not tackle the real problems faced by today's artists and consumers. In fact, it runs the risk of making things even more complicated.

I am asking this government to take our objections to this bill very seriously. I am asking the government to work with copyright experts who have identified serious problems with the law and to improve their proposals for modernizing the Copyright Act by taking into consideration users, artists and persons with a print disability.

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 5:40 p.m.
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NDP

Laurin Liu NDP Rivière-des-Mille-Îles, QC

Mr. Speaker, I do not think we have reached a balance within Bill C-11 between compensating creators for the work they have done and giving consumers rights to access the content that they have paid for and that they have the right to use.

I would also add that we have a lot of support for our position, notably from Michael Geist who is a renowned technology commentator. He stated:

The foundational principle of the new bill remains that anytime a digital lock is used--whether on books, movies, music, or electronic devices--the lock trumps virtually all other rights.

This means that both the existing fair dealing rights and Bill C-11's new rights all cease to function effectively so long as the rights holder places a digital lock on the—

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 5:25 p.m.
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NDP

Laurin Liu NDP Rivière-des-Mille-Îles, QC

Mr. Speaker, copyright modernization has been needed for a long time, especially to introduce the principles contained in the World Intellectual Property Organization treaties, which the Canadian government signed on December 22, 1997.

Since the comprehensive revision of the Copyright Act in 1997, the act has not been substantially amended because of the inability of previous governments, both Liberal and Conservative, to introduce a bill that would balance the interests of creators, the industry and consumers. Bill C-11, and its predecessor in the last Parliament, Bill C-32, are along the same lines. The government is continuing to stress access to creative content without providing adequate compensation for the authors.

The Conservatives took a stand from the beginning. They are firmly on the side of large content owners in the United States: the movie studios, record labels and video game developers. Unfortunately, consumers and creators will pay the price. Allow me to speak for a while about creators.

The Copyright Act is the legal foundation that ensures that creations can be reproduced, presented and communicated to the public while guaranteeing proper compensation for their creators. To weaken copyright by increasing the exceptions that allow people to use creations without authorization or any financial compensation is tantamount to preventing creators from earning a living from their trade. It also does away with collectives. To weaken copyright jeopardizes cultural industries by cutting off their supply of creations and by preventing them from developing markets that meet the needs of consumers while protecting their investments.

Bill C-11 introduces dozens of exceptions to copyright, including an exception for broadcasting and one for private copying. These exceptions give individuals and companies the right to use creations without compensating the creators. According to the Canadian Conference of the Arts, the ream of new exceptions introduced by Bill C-11 will deprive creators of over $126 million a year. The Union des artistes du Québec estimates that the cumulative effect of the exceptions will decrease creators' income by 70%.

We know that the arts and culture sector is an important economic sector. According to the Canadian Conference of the Arts, it generates spinoffs of over $46 billion and provides work for over 600,000 people in Canada. However, without creators, the arts and culture sector would not exist. Nevertheless, the government insists on strangling creators by increasing the exceptions and failing to propose any measures that would compensate them for the resulting loss of revenue. This will have a huge impact on creators' ability to survive.

It is appalling to see that artists and creators receive only a small portion of the $46 billion generated by their work. Artists in Quebec are the best paid in Canada. Yet, with an average income of $24,600, they make 25% less than the average income of the total labour force. Their income dropped by 11% in the past 15 years, and now the Conservative government wants to impose its unfair copyright reform on them, which would deprive them of tens of millions if not hundreds of millions of dollars a year.

Meanwhile, despite the recession, commercial radio stations reported a pre-tax profit of 21% in 2009. They spent only $21 million on acquiring reproduction rights, which is less than 1.4% of their $1.5 billion in revenues.

Businesses have a right to earn a profit. However, creators also have a right to make a living from their work, and we must create a more balanced copyright regime.

If exceptions to the copyright principle are introduced, we must find another way to compensate creators. For example, some groups in the cultural sector have proposed extending the private copying exception to include digital audio recorders.

Instead of considering this proposal, the Conservatives preferred to stick to demagoguery. For example, they talked about a so-called iPod tax, when there is already a similar levy on traditional recording media. Furthermore, they were the ones who propose to increase the existing levies on cassettes, CDs and DVDs.

The problem with Bill C-11 is that it shows, once again, the Conservative government's contempt for artists and creators. This bill joins a long list of initiatives that weaken the arts and culture sector.

For example, I remind members of the cancellation in 2008 of the Trade Routes and PromArt cultural promotion programs; the Conservatives' refusal to double funding for the Canada Council for the Arts; their attack on the CBC, an important catalyst for our culture and our identity; cuts to the museum assistance program; and Bill C-10, which would allow them to censor films deemed contrary to public safety.

Next to creators, consumers are probably the biggest losers in this bill. By giving unprecedented powers to major multinational rights owners, Bill C-11 will result in a situation where digital locks will practically trump all other rights, including fair dealing for students.

Bill C-11 could mean that consumers, for example, would no longer have access to content they have paid for. In one example provided to us, distance-learning students would have to destroy their class notes within 30 days of the course's end in order to comply with provisions in Bill C-11. That is completely absurd, especially given that these provisions are subject to fines of more than $1 million and five-year prison terms. The NDP believes that Bill C-11 needs to be recalibrated to take consumers' rights into consideration.

To conclude, I should point out that this bill does contain some positive elements. Artists, creators and cultural workers in general are pleased with the amendments to distribution rights, performers' moral and reproduction rights, the longer duration of protection for musical works and the recognition of photographers' rights.

Nevertheless, Bill C-11 is unbalanced because it clearly favours the corporate sector. It needs significant amendments to meet the needs of consumers and creators as well. We hope that the government will listen to the artistic community, which is opposed to Bill C-11.

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 5:25 p.m.
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NDP

Dan Harris NDP Scarborough Southwest, ON

Mr. Speaker, we heard the Minister of Canadian Heritage and Official Languages a few minutes ago say that anyone who does not agree with him does not understand technology. I, of course, would like to comment on that.

First, people who are pirating movies are burning them onto DVDs and people who are downloading songs are putting them onto iPods. What is it that the minister does not understand?

My hon. colleague talked about a $13,000 average income and making a decent living. What kind of missed opportunities does my colleague think there would be with Bill C-11?

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 5:20 p.m.
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Oak Ridges—Markham Ontario

Conservative

Paul Calandra ConservativeParliamentary Secretary to the Minister of Canadian Heritage

Mr. Speaker, as members may have heard, through the summer I had many meetings with a lot of different groups with respect to the bill. What I heard consistently is how important the sector is to the Canadian economy. It is a $40 billion industry. Hundreds of thousands of jobs are created or supported through this industry.

The hon. member talked earlier in his discussion about debate, when he knows that this is something that has been before the House for many years. There have been thousands of hours of testimony from hundreds of witnesses, and hon. members of Parliament have been hearing the exact same thing.

He talked about the technical protection measures. In our neck of the woods, it is extremely important for those who create video games that there be technical protection measures that would support and protect that industry. Does he not support that?

Has he looked at other jurisdictions where similar things to what we have put in place in Bill C-11 have actually not limited the public's access to quality digital content but have actually improved it? Is the only solution the NDP has to continue to tax Canadians? Does he actually think the only way to support Canadian artists is to punish the artists and to punish Canadians and that a $40 billion industry is somehow going to collapse under the threat, as he would project it, of a $20 million levy that he suggests would no longer exist?

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 5:10 p.m.
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NDP

Andrew Cash NDP Davenport, ON

Mr. Speaker, it is an honour to rise this evening to speak to Bill C-11.

There is no question that Canada's Copyright Act is in dire need of an overhaul to reflect and to serve the needs and realities of artists, creators, rights holders and consumers in the 21st century. However, on too many counts Bill C-11 fails to meet the task at hand and for every problem that it attempts to fix, new problems are created.

We in the NDP and Canadians across the country have serious concerns about the bill in its present state, and we look forward to working constructively with the government to amend elements of the bill to address concerns that Canadian stakeholders have.

As we know, the bill was introduced in the last Parliament exactly in the state it appears before us today. This is not the first time the government has done this in the 41st Parliament. Indeed, since the election in May, it has introduced several bills that have been virtually word for word the same as the bills it put forward in previous Parliaments.

It is a bit early in the mandate of a government to show inertia, but from the recycling of bills, the omnibus crime bill, the ending of the long gun registry and the recycling of Bill C-11, this is a government that has begun to run out of ideas already. By limiting debate and railroading committees, the Conservatives have shown that they do not have any ideas themselves, and they sure are not interested in the ideas of Canadians who want to speak to the bill.

Notwithstanding the fact that the legislative committee looking at Bill C-32, as it was called in the 40th Parliament, met with over 100 witnesses who all spoke about the many serious problems that existed in the legislation, the legislation has not changed. What is more, we hear that the government is not interested in any more input from Canadians on the substance of the bill, and that is too bad. The government is missing an important and historic opportunity to craft a made in Canada copyright act that would stimulate innovation in digital industries and that would truly protect artists, other content creators and rights holders and at the same time balance the needs of consumers.

While the government does not seem interested any longer in what Canadians have to say about copyright, it certainly cares about the big boys in Hollywood and New York who want Canada to toe the line, and a deeply flawed line it is, that creative industries and consumers toe south of the border. The government's anti-circumvention position as it pertains to technological prevention measures, TPMs or digital locks, is a case in point.

I understand that if someone makes available thousands upon thousands of songs, movies, or pieces of software and is profiting from that activity, that person is clearly infringing on copyright for commercial purposes. Pirated DVDs sold on street markets or making semi-conductors specifically to allow gamers to hack their gaming platform to play pirated software are other examples. Someone is making money off of the blood, sweat, tears and creativity of artists and entrepreneurs, but the creators are not getting paid, and that goes beyond the regular practices of consumers to share and enjoy content.

However, much of the scare-mongering from major record labels and film studios unfortunately has tried to conflate the practices I have just described as the common practices of music and movie fans. This has led to the bizarre circumstances that we all know of, such as grandmothers being sued for downloading some tunes on the Internet.

The Conservatives could have crafted a Canadian-made solution to this very complex set of circumstances. Instead they caved to their U.S. buddies again. On the one hand, Bill C-11 finally recognizes common consumer practices which should be for the benefit of consumers and creators, such as time shifting, recording TV for later viewing, format shifting, as well as parody, satire and education as fair-dealing exceptions. On the other hand, all of this is moot if there is a digital lock on the content since that measure in the anti-circumvention measure that is attached to it supersedes all else.

What Canadian consumers win with one hand, they lose with the other. If there is a digital lock on a CD, they will not be able to make a back-up copy. If there is a digital lock on an e-book, they cannot change its format for use on a different type of e-reader. If there is a digital lock on a DVD, journalists will not be able to use part of it under the fair-dealing rights. It does not make sense that digital locks could supersede other rights that are guaranteed in the very same piece of legislation.

What is worse, not only do digital locks prevent Canadians from fully enjoying materials that they have legally purchased, they are also backed by incredibly unreasonable punitive damages with fines of up to $1 million and five years in jail for doing something that, if it were not for the presence of the digital lock, would be entirely acceptable. It is beyond logic.

While we in the NDP have an issue with the practice of suing fans and suing consumers, I would like to point out that it is only the very large multinational media outlets that could avail themselves of this kind of protection anyway. For example, members of the Canadian Independent Music Association as a block represent 24% of all music sales in Canada, which is larger than EMI and Warner music sales combined and greater than Sony music sales. This organization is made up of Canadian-owned companies, mostly small- and medium-size businesses which include record producers, labels, publishers, recording studios, managers, agents, and so on. In other words, they are the heart, soul and bones of the English language Canadian music business.

Few, if any, of the member organizations could pursue those who under C-11 infringe copyright through the courts. It would be cost prohibitive for them. While executives at the big multinationals slap themselves on the back at how compliant the government has been with C-11, the bill really does not help the independent music industry. It does not help the small businesses. It does not help the small entrepreneurs.

There is no question the music industry has gone through a very difficult time over the last 15 years. Therefore, it is all the more pressing that we craft copyright legislation that addresses the profound need to invest in new business models and innovation in the Canadian cultural industries. Instead, C-11 takes tens of millions of dollars out of the hands of artists annually by waiving the so-called broadcast mechanical tariff and by playing politics with the blank copying levy.

Prior to my election to this place in May 2011, I derived my primary income in the arts and culture sector as a musician, a songwriter, a producer, a composer, and a journalist. I can tell the House that it is a very difficult way to make a living and raise a family. Most in that profession work terribly long hours for many years and most barely earn a dollar. Having been lucky enough to make my living in the arts, I can say it is potentially a good way to get rich, but a lousy way to make a living.

With the arrival of the digital era many believed this would herald a new day for artists, a dawning of a middle class where it was not always a feast or a famine, where new revenue streams and business models would raise the average income for Canadian artists from below the poverty line to something resembling a decent living. That is what we should be striving for always. I think it is fair to say that that dream has largely gone unfulfilled. Writers still make more money slinging burgers than they do from their work. The average annual income of Canadian artists is under $13,000.

It is important to remember that the spokespeople for the multinational music and movie businesses are not speaking for artists. They are speaking for their shareholders. Prior to the digital revolution, prior to Napster, BitTorrent sites and Netflix, artists were still struggling. Not a lot has changed for artists.

Let us be clear. Artists have always done most of the work and received the smallest share of the return. It was the same before the digital revolution and it is the same now. That is too bad, and Bill C-11 only makes the situation worse.

We know that Canadians support the arts and are willing to pay for it, but this bill wipes out $20 million in annual revenue that goes directly to artists and rights holders by eliminating the broadcast mechanical tariff. Surely in the hundreds of witness testimonies on Bill C-32 the government heard that this would be detrimental to artists and rights holders. Again, the government is very in touch with the business interests of private broadcasters and big Hollywood film studios, but it is out of touch with Canadian artists and their audience, the Canadian public, who supports them.

Bill C-11 could have set an innovative and exciting course for Canada's cultural industries and workers, the artists who create the content, as well as Canadian consumers.

In its current state, Bill C-11 would fall far short of moving Canada forward into the 21st century. However, we look forward to working with the government on constructive amendments to fix the bill.

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 5 p.m.
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Bloc

Jean-François Fortin Bloc Haute-Gaspésie—La Mitis—Matane—Matapédia, QC

Mr. Speaker, I have the honour to speak today to defend creators.

The massive use of new recording and copying technologies has caused major upheaval in the cultural sector. For years now, in sectors such as literature and the medical industry, for example, or even the gaming and software sectors, artists have been posting major losses in revenue, essentially because of piracy and illegal downloads.

Instead of lending an ear to the creators who make up the true foundation of Quebec's cultural industry, the government has chosen, once again, to try to impose a plan that will further reduce creators' revenues and benefit big corporations.

Quebec is unanimous in its opposition to the bill. Quebec's creators have condemned Bill C-32 and Bill C-11 with all their might, underscoring the inconsistency of Ottawa's position: “We recognize that music is worth something when it is copied to a CD, but it is worth nothing when it is copied to a digital audio recorder”. Quebec's cultural industry and its artists are against Bill C-11.

Stakeholders have called for such essential provisions as the imposition of royalties on Internet service providers, in order to compensate for the losses caused by illegal downloading, but those calls remain unanswered to this day. Yet people across Quebec are speaking in support of creators.

Only 8% of music revenues are given to copyright holders in the music sector, while Internet service providers keep 83%. Since cultural products are attractive to Internet service providers and represent a huge portion of their inventory, it is only fair that artists get a share of the revenues generated from distributing their works on the Internet.

The National Assembly has unanimously rejected the government's bill and called for substantial amendments. Organizations that are well aware of the consequences of adopting the provisions currently on the table, such as the Barreau du Québec and the Union des consommateurs, have protested in similar fashion. Even the Fédération des commissions scolaires du Québec finds that the damage caused to the creation industry outweighs the benefits the Conservative bill promises to provide to the education sector.

The Bloc Québécois believes that we must modernize the private copying system by taking into account the reality facing creators and other artists, so that they can receive fair compensation for their work. We must maintain the contributions coming from educational uses, as well as the royalties paid by broadcasters for ephemeral recording. Artists and other creators need this income. Without legitimate compensation, Quebec's creation industry itself is in jeopardy in the medium term.

By introducing a new copyright bill—which is a carbon copy of Bill C-32, a bill categorically rejected by creators—the Conservatives are once again showing their contempt for the vitality of Quebec culture. The Conservatives' bill forgets a fundamental principle: artists need an income to survive and to continue to create.

It is clear that this bill will make our artists poorer and will benefit big corporations. The Conservatives did not listen to any of the legitimate criticisms and are proposing amendments that would significantly benefit the software, gaming, film and broadcasting industries, at the expense of our artists' rights.

The Fédération des commissions scolaires du Québec said:

Accepting the principle that access to copyrighted works is synonymous with offering them free of charge would negate the importance of authors' contribution to our children's education, and weaken the school publishing sector.

The Union des artistes said:

The bill...does away with private copying and completely strips Internet service providers of any responsibility, when they already profit from cultural content free of charge. It exempts the education sector from paying copyright and kills reproduction rights.

To sum up, what are artists asking for? First of all, they want the government to implement a system of royalties on sales of digital audio players to compensate artists for their copyright. They also want legislation to prohibit illegal downloading of artistic creations, to amend the bill to ensure that educational institutions continue to pay copyright fees, to amend the bill to remove the YouTube exception, and to not limit pre-established damages. Artists also want to receive compensation that represents a fair percentage of the profits of Internet service providers, and to be able to distribute musical creations in exchange for compensation, rather than having them trapped behind a digital lock.

The Bloc Québécois would like to reiterate four important principles. First of all, it is not free. Artistic creations are not free. Creators, artists and artisans have created them and they deserve to be paid for their work, just as everyone else is paid for the work they do. We must encourage creation in all of its forms and ensure that artists are paid, that Internet service providers are assuming their responsibilities and that consumers can make copies for their personal use.

Second, we must support dissemination. Consumers must be able to take advantage of the increased accessibility provided by new technologies and artists must be able to take advantage of all these dissemination platforms. We must therefore promote the dissemination of artistic works on all existing platforms. Through its subsidy programs, the government must support dissemination via new media without negatively affecting conventional media, which are often where new works appear in the first place.

The third principle relates to increasing public awareness about the value of artistic creations. In order to protect against illegal copying, it is the government's duty to launch a public information campaign, targeted at youth in particular, to raise awareness about respecting artistic works and to explain that the law protects copyright.

The Bloc Québécois' fourth principle relates to cracking down on piracy. The new copyright legislation must also address illegal copies made by people for commercial purposes. The law should come down hard on professional pirates and known repeat offenders.

In short, the Bloc Québécois and artists want a bill that protects artists' copyright and pays them for their work. Helping our artists is another way we express our culture and the concept of our Quebec nation.

That is why the Bloc Québécois cannot support the bill in its present form.

The House resumed from October 21 consideration of the motion that Bill C-11, An Act to amend the Copyright Act, be read the second time and referred to a committee, and of the amendment.

November 1st, 2011 / 12:10 p.m.
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Conservative

The Chair Conservative David Tilson

Ladies and gentlemen, I'd like to reconvene the meeting.

We have three witnesses. Two are via teleconference, and one is here in Ottawa.

Monsieur Dan Bohbot, who represents the Quebec Immigration Lawyers Association, is here with us.

Good morning to you, sir.

We have, by video conference from Hamilton, Professor Arthur Sweetman from the Department of Economics at McMaster University, who appeared also on Bill C-11.

Good morning, Mr. Sweetman. Can you hear us?

November 1st, 2011 / 11:15 a.m.
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Conservative

The Chair Conservative David Tilson

You appeared for Bill C-11 in the past, and we appreciate your coming again.

We have Mr. Justin Taylor, who is the vice-president of labour and supply for the Canadian Restaurant and Foodservices Association.

We also have, via teleconference from Burnaby, British Columbia, at the other end of the country, Mr. Roger Bhatti.