Combating Counterfeit Products Act

An Act to amend the Copyright Act and the Trade-marks Act and to make consequential amendments to other Acts

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

Sponsor

Christian Paradis  Conservative

Status

In committee (House), as of June 12, 2013
(This bill did not become law.)

Summary

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

This enactment amends the Copyright Act and the Trade-marks Act to add new civil and criminal remedies and new border measures in both Acts, in order to strengthen the enforcement of copyright and trade-mark rights and to curtail commercial activity involving infringing copies and counterfeit trade-marked goods. More specifically, the enactment

(a) creates new civil causes of action with respect to activities that sustain commercial activity in infringing copies and counterfeit trade-marked goods;

(b) creates new criminal offences for trade-mark counterfeiting that are analogous to existing offences in the Copyright Act;

(c) creates new criminal offences prohibiting the possession or export of infringing copies or counterfeit trade-marked goods, packaging or labels;

(d) enacts new border enforcement measures enabling customs officers to detain goods that they suspect infringe copyright or trade-mark rights and allowing them to share information relating to the detained goods with rights owners who have filed a request for assistance, in order to give the rights owners a reasonable opportunity to pursue a remedy in court;

(e) exempts the importation and exportation of copies and goods by an individual for their personal use from the application of the border measures; and

(f) adds the offences set out in the Copyright Act and the Trade-marks Act to the list of offences set out in the Criminal Code for the investigation of which police may seek judicial authorization to use a wiretap.

The enactment also amends the Trade-marks Act to, among other things, expand the scope of what can be registered as a trade-mark, allow the Registrar of Trade-marks to correct errors that appear in the trade-mark register, and streamline and modernize the trade-mark application and opposition process.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, provided by the Library of Parliament. You can also read the full text of the bill.

Votes

  • June 12, 2013 Passed That, in relation to Bill C-56, An Act to amend the Copyright Act and the Trade-marks Act and to make consequential amendments to other Acts, not more than one further sitting day 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 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.

Combating Counterfeit Products Act
Government Orders

June 12th, 2013 / 6:45 p.m.
See context

NDP

Dan Harris Scarborough Southwest, ON

Mr. Speaker, here we are again, debating another bill that was put under time allocation, which is 44 or 45 times now.

The irony in this instance is that the government could have had an agreement with the opposition to speed the debate of this bill so that we would be using less time in the House than it took to bring in the time allocation motion, vote on it and then provide a full day of debate, because we in the NDP do want to see this bill go back to committee, where it can be approved. Therefore, we will be supporting it at second reading.

Again, we had time allocation brought in before the Minister of Industry, the person presenting the bill, had even spoken to it. We did not have one full speech in this House. There was a speech by the member for Simcoe—Grey, who spent half of her speech laughing at jokes being told to her by other caucus members. We did not have one full speech before time allocation was brought in.

I would say humbly that this is not democracy. This is not how Parliament is supposed to work. We are supposed to have the opportunity to have full debates in the House on the various issues that are brought forward.

Bill C-56, an act to amend the Copyright Act and the Trade-marks Act and to make consequential amendments to other Acts, which is now otherwise titled the “combating counterfeit products act”, is an important issue. It is my honour to rise today to present the lead-off speech on Bill C-56 for the NDP and the official opposition.

Normally our industry critic, the member for LaSalle—Émard, would be leading off on second reading comments on this bill. Our critic had planned to give her remarks on Friday when this bill was supposed to come up for debate; however, because of time allocation and the government playing games, we are here Wednesday evening instead, again preventing certain members of Parliament from participating in this debate in the way that they would like to.

In their rush to introduce yet more record-breaking time allocation motions—as I said, we are at 46 now—the Conservatives rescheduled all the House business this week.

As the NDP's deputy industry critic, it is indeed my privilege to address this bill on behalf of the official opposition. This is a bill the NDP takes very seriously, as opposed to the Conservative government, it would appear, because this bill was presented originally in March. It did not come up for debate until the end of May. Recommendations for this bill were made in a committee report in 2007, again in 2009, and then there were more recommendations from the industry committee in an intellectual property study that was done earlier this year. It has taken the government a very long time to start bringing these forward for implementation.

We have yet to have a whole speech by the Minister of Industry on this bill. Even then, if it was not going to be the minister, we would have thought that maybe it would be the parliamentary secretary, the member for Edmonton—Mill Woods—Beaumont, but that was not the case.

When the government presents a bill, it is supposed to justify why it is bringing that bill forward. It has yet to do that and has already implemented time allocation.

Instead of a full presentation by the government, what we had was the parliamentary secretary for human resources and skills development getting up and presenting a very short speech on this bill. In her speech she spent a lot of the time laughing and did not seem to be taking the bill seriously. It was so bad that the Speaker had to interrupt and ask if she was able to continue.

I mention all this because it seems to speak to the Conservative government's contempt for Parliament and to its continual practice of introducing legislation that can never be properly implemented because its budget cuts make it impossible.

There are many clichés we would use, but the Conservatives keep putting forth pieces of legislation that are either empty shells or just cherry-picked from among the many recommendations that we need to implement to have solid pieces of legislation. They put forth rules and regulations that perhaps cannot be enforced, because those budget cuts mean that no one will be there to enforce them.

Recent examples include Bill C-51, the safer witnesses act, which the Conservatives put forward without the funding in place to make many of its provisions actually meaningful. Another one, Bill C-54 would make changes to how we would deal with people deemed not criminally responsible, however, it would download the responsibility for mental health care onto the very provinces, which are having their health care budgets slashed again by the Conservative government.

Bill C-56 is another example of the Conservatives playing the shell game they so like to play. It is legislation that on one hand imposes some good rules and on the other hand, through the budget, cuts the jobs of those who are supposed to be enforcing these new rules. I will come back to that point later in my remarks.

Let me say upfront, again, that the NDP will support the bill at second reading so it can be sent back to committee and, we hope, fixed to maximum its impact. However, it would indeed be a first at our committee, if we actually saw recommendations and amendments that we brought forward voted on and passed by the Conservatives on the committee. That would be groundbreaking.

The bill dealing with counterfeiting and copyright infringement is important for both Canadian businesses and consumers, especially where counterfeit goods may put the health and safety of Canadians at risk. We will support the bill so it can go back to committee for further study and we want to ensure we maintain the necessary balance on copyright and trademarks.

For instance, the bill would give ex officio powers to our border officers, which the NDP has been calling for since 2007. However, it is very difficult to see how this will be implemented when, last year, the Conservatives slashed $143 million in funding to CBSA, which further reduced front-line officers and harmed our ability to monitor our borders.

CBSA expects to lose several hundred front-line officers by 2015. It is also important to note that in the past the government repeatedly has refused to take a balanced approach to copyright. The NDP believes that intellectual property requires an approach that strikes a balance between the interests of rights holders and the interest of users and consumers.

I will now take a few minutes to explain some of the details of the bill.

Bill C-56, the combating counterfeit products act, would amend both the Copyright Act and the Trademark Act. Its purpose is to strengthen enforcement of copyright and trademark rights and to curtail commercial activity involving infringing copies or counterfeit trademarks.

The proposed bill will add two new criminal offences under the Copyright Act for possession and exportation of infringing copies and creates offences for selling or offering counterfeit goods on a commercial scale. It creates a prohibition against importing or exporting infringing copies and counterfeit goods and introduces some balance to that prohibition by creating two exceptions: first, for personal use, items that are in one's possession or baggage; or second, items in transit. It also, as I said, grants new ex officio powers to border officials to detain infringing copies or counterfeit goods, a significant policy shift. Until now, border officials required a warrant before seizing infringing copies or goods at the border.

It also grants new ex officio powers to the Minister of Public Safety and border officials to share information on detained goods with the right holders so they can actually see what is being brought in and take measures themselves to combat that counterfeit and trademark infringement.

That is important, because the businesses do a great job of trying to protect their own products. Seeing what is coming into the country illegally and what products are counterfeited can give them ideas about how to combat that counterfeiting better for themselves.

The proposed bill widens the scope of what can be trademarked to the features found in the broad definition of sign, including colour, shapes, scents and tastes. Measuring the problem in counterfeit goods and copies in Canada and its corresponding impact on the economy is difficult.

The New Democrats, nevertheless, support dealing with counterfeiting, especially where health and safety concerns are at stake. As I have mentioned, it remains unclear to me and many others how the CBSA could implement these enforcement measures in the face of the cuts from budget 2012.

The United States and many industry groups have long called for border measures on counterfeiting. It remains important to continue to be vigilant to ensure that intellectual property laws balance the rights and interests of rights holders with those of consumers and users.

The government has long been aware of the difficulties in measuring the scale of counterfeiting for copies and goods in Canada, a challenge that was identified in a 1998 OECD report on “The Economic Impact of Counterfeiting”. One of the difficulties results from the clandestine nature of counterfeiting. Much of the data is estimated and based on actual seizures, which is anecdotal or comes from industry itself, in which case the collection methods may vary or be unavailable to assess.

In 2007, the industry committee report on counterfeiting recommended that the government establish a reporting system that would track investigations, charges and seizures for infringing copies and counterfeit goods as a means of collecting data.

A recent Industry Canada report published this year notes that, “It is difficult to obtain a precise estimate of the market for counterfeit or pirated products in Canada”. Why? Because, again, the government has delayed bringing this legislation forward. Even now that it has, the Conservatives have not put provisions into the bill to implement those measures I just spoke of so we can start collecting more robust data to more accurately determine the economic impacts of counterfeit and trademark infringement in Canada.

As I said, much of the information in Canada comes from statistics about actual seizures. Industry Canada notes that the retail value of counterfeit goods seized by the RCMP increased from $7.6 million in 2005 to $38 million in 2012.

In 2009, the OECD estimated that the international trade in counterfeit goods and infringing copies could be valued at up to $250 billion U.S. It is a mind-boggling number that there would be that many counterfeit and trademark infringed goods travelling around the world. Law-abiding companies are losing out on much of that revenue.

The same study also reiterated previous calls for better information. We know anecdotally that counterfeit products can pose risks to the health and safety of consumers, whether we are talking about counterfeit electrical components or unsanitary stuffing in goose-down jackets.

I mention unsanitary stuffing in goose-down jackets because when we were at committee, many different Canadian businesses and organizations presented before the committee. One such company was Canada Goose, which is certainly a Canadian success story. However, representatives of Canada Goose brought with them some counterfeit Canada Goose jackets they had collected. The things contained within those counterfeit jackets would make one's toes curl. There were things like feces in the lining, feathers that were not properly treated and sanitized before being stuffed in the jackets. Certainly they were not goose down or coyote fur. Many different animals were being used.

Unfortunately, it was very difficult, on the surface, to detect these jackets as being counterfeit. When we put a real Canada Goose jacket next to a counterfeit jacket, they looked identical. It was not until we took a microscope to it or started to pull the jacket apart that we started to see that one of the jackets was indeed counterfeit.

Other representatives that came before the committee were from Hockey Canada. They talked about the last Olympics we had in Canada and about professional sports jerseys. They found, through studies they conducted and at the Olympics, that sometimes in professional sporting events, up to 70% to 75% of the jerseys being worn at the games were counterfeit. Consumers are unwittingly buying illegal and counterfeit products when they try to support their sports teams. At the Olympics in Vancouver, many stops and arrests were made of individuals selling counterfeit Olympic paraphernalia and products.

It is a growing problem because there is a financial incentive there. There is money to be made in counterfeit goods. We certainly have a responsibility to try to stop as much of it at the border as we can. As for the stuff that gets across the border, we have to deal with it here and hold the appropriate people responsible.

In many cases, as I have said, it is very difficult for consumers to detect whether they are buying legitimate products. However, vigilance is also important and people who have any concerns about products they are buying should go to the manufacturers' websites and contact people in law enforcement if they think they have bought something illegal. There are many things people can do to prevent these crimes and, indeed, to ensure the products they are buying are legitimate.

Dealing with counterfeiting is important to both Canadian businesses and consumers. It is especially important where counterfeit goods put the health and safety of Canadians at risk. Yet again it remains unclear how the enforcement regime being proposed by Bill C-56 will be resourced. This bill would add significant new responsibilities to the duties of border officials during a time of significant budget reductions.

In budget 2012, the Conservatives imposed $143 million in cuts to CBSA, reducing front-line officers and further reducing our ability to monitor the borders. This is interesting. This year's CBSA report on plans and priorities alone indicates a loss of 549 full-time employees between now and 2015. At a time when there is more trade, goods and people crossing the border, we will be cutting front-line officers? It makes absolutely no sense.

Under Bill C-56, customs officers would be asked to make highly complicated assessments on whether goods entering or exiting the country infringed on any copyright or trademark rights. Such an assessment for infringing copyright would include, for example, consideration of whether any of the exceptions under the Copyright Act would apply, something with which the courts often struggle. The New Democrats want the CBSA to be adequately funded to implement this bill without compromising the other responsibilities of protecting Canadians and our borders from things like drugs, guns and other threats.

The United States has lobbied for stronger enforcement measures in Canada for counterfeit and pirated goods for many years. In the 2012 special 301 watch report, the office of the U.S. trade representative stated that the U.S. “continues to urge Canada to strengthen its border enforcement efforts, including by providing customs officials with ex officio authority to take action against the importation, exportation, and transshipment of pirated or counterfeit goods”.

In its June 2012 report on counterfeiting in the Canadian market, the Canadian Intellectual Property Council, a sub-group of the Canadian Chamber of Commerce, identified counterfeiting as a barrier to competitiveness and specifically recommended that customs officials have ex officio powers, that Canadian law be amended to bring criminal and civil sanctions for counterfeiting and piracy and that enforcement officials be encouraged to seek strong remedies for infringements.

It bears saying that many of the requests the United States made are, indeed, in this bill. Providing ex officio powers to the CBSA in order to track, monitor and confiscate copyright and trademark infringed goods are terribly important to our long-term safety.

In its recently tabled report, “Intellectual Property Regime in Canada”, the committee recommended border measures that we supported, including providing appropriate ex officio powers to customs officials, civil and criminal remedies for trademark infringement and counterfeiting, allowing customs officials to share information with rights holders regarding suspected goods. All members of the committee agreed that consumers acting non-wilfully should not be subject to excessive fines.

The New Democrats on the committee, of which I am one, filed a dissenting opinion that called on the government to also consult with consumer groups, as well as industry groups, in an effort to combat counterfeiting and piracy, that border officials receive appropriate authority to do their work while respecting civil liberties and due process and that the CBSA be adequately funded to combat counterfeiting without compromising its other important responsibilities to protect Canadians and defend our borders.

Combating Counterfeit Products Act
Government Orders

June 12th, 2013 / 7:05 p.m.
See context

Liberal

Geoff Regan Halifax West, NS

Mr. Speaker, I enjoyed the speech from my hon. colleague from Scarborough Southwest, with whom I sit on the industry committee at the House where we have heard some of the things he talked about.

One of the things he did not mention is airbags. Some of the testimony we have had suggested that counterfeit airbags come into Canada. Sometimes those airbags under-inflate and do not do anything to protect the person. Sometimes they can be so heavily inflated that there is too much pressure, so when they are activated the label on the steering wheel can pierce a person's heart. This has been proven with tests, not with real people obviously. That is an example of the kind of hazard these products can present to Canadians.

I want to ask my colleague about whether he thinks we need to have an education process in addition to this bill to educate Canadians. Also, is he concerned about the fact that this bill would allow goods to arrive in Canada and then be shipped to the U.S. or another country without being stopped or examined?

Combating Counterfeit Products Act
Government Orders

June 12th, 2013 / 7:05 p.m.
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NDP

Dan Harris Scarborough Southwest, ON

Mr. Speaker, I would like to thank my good friend on the industry committee for his hard work on the committee as well.

He brought up airbags, a health and safety issue. Of course, when a car gets into an accident and airbags deploy, they keep people safe. This really does demonstrate the challenges that exist potentially for border officials to monitor and track what is coming into the country. Certainly any goods coming into Canada should be subject to potential inspection and seizure. We as a country do not want to be unwittingly contributing to problems in other countries because of counterfeit goods.

Not only does the public need education, but if we are giving these new powers to border officials in order to be able to seize these goods, they have to be able to identify them. They have to be able to run tests, for instance, on airbags and other products. We have heard some troubling stories in the United States where military procurement has been impacted by counterfeit goods that ended up in military planes and even in civilian planes and other areas. These counterfeit goods could have catastrophic impacts, including loss of human life.

Certainly we do not want to be receiving those goods, nor do we want to be receiving them and then shipping them elsewhere. We should certainly be looking at all the goods that cross our borders, whether they are leaving here or staying.

Combating Counterfeit Products Act
Government Orders

June 12th, 2013 / 7:05 p.m.
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NDP

Charlie Angus Timmins—James Bay, ON

Mr. Speaker, I listened with great interest to my hon. colleague, particularly where he referenced the U.S. 301 watch list, and the comments about Canada in our trade policies and our counterfeit policies.

I am interested in this because in 2009, a special advisor to the now President of the Treasury Board, Zoe Addington, met with U.S. officials. According to their notes, she said that, “In contrast to the messages from other Canadian officials, she said that if Canada is elevated to the Special 301 Priority Watch List (PWL), it...might even help—the [Government of Canada's] ability to enact copyright legislation”.

Therefore, what that cable tells us is that the present President of the Treasury Boardhad his officials in Washington say to put Canada on the most notorious watch list, along with outlying countries like Yemen and North Korea, for being considered basically a bandit country and undermining our trade interests, because he thought it would help pursue an agenda in Parliament. I find that absolutely shocking.

The Computer and Communications Industry Association in the United States, which represents the largest software organizations in the world, went to Washington on Canada's behalf. We did not have any support from the Conservatives who are undermining our trade interests. It went on to say that, “the use of Special 301...unrelated to the adequate and effective protection of relevant rights delegitimizes the Special 301 process” because they are using it for policy ends. It said that it was completely unacceptable that they were targeting Canada, and said that in many respects Canada's laws are more protective of creators than the United States. This was before our present copyright bill came in.

How can they take seriously a government that would actually undermine our trade reputation internationally and say to our largest trading partner to put us on an outlier list along with North Korea and Yemen because it will help us pursue a copyright agenda? I find it shocking that the Conservatives would undermine our trade interests like this.

Combating Counterfeit Products Act
Government Orders

June 12th, 2013 / 7:10 p.m.
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NDP

Dan Harris Scarborough Southwest, ON

Mr. Speaker, once again, we have what I would call an instance of policy-based evidence. The government sought to create evidence in order to justify a potential policy. Another way of saying it would be, it tried to create a crisis so that it could ride in and fix it.

Where have we seen that kind of strategy before? We saw it with John Snobelen, the former education minister in the Mike Harris government in Ontario. Of course, who were main components of that same government? The current President of the Treasury Board, the current Minister of Foreign Affairs and the current Minister of Finance were all integral to that strategy of creating crises and then riding in to try to fix them.

Again, we have an instance where they sought to have us put on this list so that they could then justify policies that were being brought forward. However, what is absolutely ridiculous about this is that was in 2009. In 2007, there was an industry committee report and there were recommendations made. The government could have moved forward then. We had all-party agreements on many aspects. A bill could have been brought forward then, years before this happened, which again shows the ridiculous nature of some of the things the government sometimes does.

It is just like the government imposing time allocation on the bill. We could have had an agreement that saw us fast-track the bill, but instead the government came down again with time allocation. It wasted an hour on that. Now we are going to spend the whole next day debating the bill when we could have, in fact, reached an agreement and moved on more quickly to get the bill back to committee. Then the Liberal member who spoke earlier, the other members of the committee and I could have actually studied the bill and come forward with more recommendations.

Combating Counterfeit Products Act
Government Orders

June 12th, 2013 / 7:10 p.m.
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NDP

Pierre-Luc Dusseault Sherbrooke, QC

Mr. Speaker, I thank my colleague for his excellent speech. He is well informed and works hard at the Standing Committee on Industry, Science and Technology.

Naturally, we are against counterfeiting, and we must find ways to eliminate it as much as possible. However, the Canada Border Services Agency also needs the tools to detect counterfeit goods and intercept them before they cross our borders. The first step is detecting counterfeit goods, and that costs money.

Can he comment briefly on the tools available to the agency and whether it needs more tools to combat counterfeiting effectively?

Combating Counterfeit Products Act
Government Orders

June 12th, 2013 / 7:10 p.m.
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NDP

Dan Harris Scarborough Southwest, ON

Mr. Speaker, I would like to thank my colleague for his question.

It does not make sense to give our border services agency more responsibilities, and then turn around and cut its funding, but the government cut $143 million in its latest budget. The agency says that it will lose 546 full-time jobs.

How can the government give the agency more responsibility, more training and more to do if it has 546 fewer employees?

We have a huge land mass with many places to cross the border, not to mention that some of our ports are getting bigger. The agency needs more resources, not fewer, to ensure that it can do its job. If the government gives the agency more to do, it has to provide more resources. Keeping our country safe and sound costs money.

Combating Counterfeit Products Act
Government Orders

June 12th, 2013 / 7:15 p.m.
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Liberal

Geoff Regan Halifax West, NS

Mr. Speaker, I am pleased to rise to speak to Bill C-56, which is important even though it has some problems and should be improved. We need to debate this today.

Government members need to recognize certain issues. I hope that they will do so in committee, and that they will agree to adopt some important amendments.

For example, there is the fact, as I mentioned to my hon. friend from Scarborough Southwest, that this bill does not cover goods in transit. I am sure that our American neighbours would not be impressed if, for example, a counterfeit shipment travelling from Asia to Vancouver and then on to Los Angeles was not seized here. We are saying that it is their problem and we are not going to take any responsibility for it. That is not what we would ask of them in return. That is something that needs to be fixed.

Additionally, as legislators, we should not simply be ramming through flawed legislation just because the government has a majority. What we see here is a bill that has sat on the order paper for three months now, since it was introduced. The government has not moved it an inch since then. It has not brought the bill forward until today, near the end of the session, when the government is bringing forward its 45th or 46th time allocation.

The government is trying to rush through a whole series of bills, having the House sit until midnight for the last four weeks of the session, and not really giving any of these bills the kind of consideration that they deserve. The government is not allowing for the possibility that any of them might really be improved in committee. As my hon. colleague said, when was the last time that we saw the government side actually accept an amendment from the opposition? That is worrisome.

There are also questions about who would bear the cost of seizure, storage and destruction, particularly when it comes to small businesses. They are concerned about products coming into the country that are counterfeits of what they produce or that affect their copyright. I hope that we will get some clarity on these issues and the legislation that is under consideration in the brief period we are going to have.

I have also heard concerns about the increased powers that would be given to border officers, without any oversight from the courts. We have to keep in mind, as my friend said, that last year the government cut $143 million from the Canada Border Services Agency. Therefore, there is less ability there to do those kinds of jobs, but the government is giving them more to do. They are trying to do the jobs they have and the government is giving them much greater responsibility, and a very complicated responsibility, in assessing which goods coming in may be counterfeit or in breach of copyright and which ones are not.

We need to make sure that this legislation does not result in illegal or illegitimate seizures and violations of the Charter of Rights and Freedoms. We also have to ensure that border officials receive the proper training to deal with these very complicated matters. Sometimes, it is a question of what is copyrighted and what is not. We know from the discussion we had on the copyright bill last year that it can sometimes be complex, even for the courts. To ask our border officials to do this without much training and without giving them decent resources to provide that training is unreasonable. How is it going to work effectively if we add to their workload on the one hand, while reducing their resources on the other? These officials do a tremendously important job and we need to give them the tools they need to be able to do that job.

People like Professor Michael Geist, who is an expert on these issues and the chair of Internet and e-commerce law at the University of Ottawa, are raising copyright issues around this bill. Some voices—not a lot, I will admit, but some—even argue that this legislation may be a backdoor way of bringing back ACTA. I do not think that it is. There is very little in this bill that relates to it, but I appreciate those concerns and respect them. We should examine those concerns and hear from witnesses on topics like that at a thorough examination of this bill in committee.

It is clear that there are many issues, which we, as members of Parliament, have a duty to carefully examine in relation to this bill. That is why it will require the thorough assessment that I just spoke of when it goes to committee.

I hope the government does not simply employ its usual bullying tactics of ramming through another bill because it can. That is wrong and the government knows it.

I also hope we take the time to hear from many voices who support this so-called combating counterfeit products bill. Of course, we have to wait and see. The proof is in the pudding. When it actually gets into effect, we will see how well it does that. I think it will have some positive effect, but it will work better if we can improve it at committee.

Recently I met with members of the Mechanical Contractors Association of Canada and the Canadian Institute of Plumbing and Heating, who want to discuss Bill C-56 as part of their Parliamentary Awareness Day. They made some very coherent arguments in favour of this legislation. I think most, if not all, members of this House would agree with them.

Bill C-56 amends the Copyright Act and the Trade-marks Act to add new civil and criminal remedies. It would add new border measures in both acts in order to strengthen enforcement of copyright and trademark rights, and to curtail commercial activity involving infringing copies and counterfeit trademark goods.

Whether it is hockey sweaters, radio parts, or the jackets my friend talked about, all kinds of things come in and look like the real thing, but they are not. That is why it is important to be aware of and to deal with this. It has an impact on our economy and our jobs in Canada. We ought be mindful of it.

This would also amend the Trade-marks Act to, among other things, expand the scope of what can be registered as a trademark, allow the Registrar of Trade-marks to correct errors that appear in the Trade-mark register, and to streamline and modernize the trade-mark application and opposition process, all of which is positive.

As an aside, I wish we could see similar kinds of measures to examine the question of official marks, which are very problematic. One can have a group within a province, an association of some type of profession, for example, an association of massage therapists. They were given an official mark for Canada. The idea of these marks is that they can apply all across the country. There could be two groups of massage therapists in Nova Scotia. If one of them gets approved by the people in Ontario and the other one does not, then only one of them gets to use certain phrases that go along with the official mark. That makes no sense at all when the first group was limited to one province. There is a need to examine and amend the official marks legislation as well.

Our caucus recognizes the health and safety risks to Canadians, as well as the detrimental effects to the economy posed by counterfeit goods entering Canada. We believe this bill needs to be amended, but with a little co-operation from the government we believe that can be achieved at committee. The Liberal Party recognizes the need to provide new enforcement tools to help strengthen Canada's existing enforcement regime for counterfeit goods.

My colleagues on the industry committee will recall seeing the counterfeit Canada Goose jackets we heard about a few minutes ago, and hearing about the horrible stuff that can be in these fake jackets. It certainly is not the kind of thing that is going to keep people warm in the deep-freeze of Canadian winters. We have all heard stories of counterfeit circuit breakers being installed in government buildings, or of faulty Christmas tree lights causing house fires. These are counterfeit products that are dangerous for Canadians.

To give an idea of how widespread this problem is, let us consider the fact that 1,800 cases of counterfeit electronic parts, apparently made in China, have been discovered in U.S. cargo planes, helicopters and other military aircraft. Yes, I said military aircraft. Imagine what that is like and how scary it would be for those operating one of them, particularly in a place of conflict or danger.

This is a very big issue for government, businesses and consumers. With regard to consumers, counterfeit pharmaceutical drugs can be an issue. The drugs are improper, and it could be that the doses are too low or it is the wrong material entirely. That is pretty scary as well.

In April, the RCMP, provincial and local police conducted an operation at a flea market in Hamilton, and they seized about $100,000 in counterfeit goods. That included designer purses, jeans, sunglasses and DVDs. We do not think of these as endangering public safety or health, but they certainly have an impact on jobs in Canada.

Overall, the retail value of counterfeit products seized by the RCMP has increased over fivefold from 2005 to 2012, from $7.6 million to $38 million. This is just the estimate, of course.

The Liberal Party believes that Canadian businesses must be protected to ensure the well-being of the domestic enterprises and the health and safety of Canadians. It is also important, of course, to protect the jobs of Canadians and the integrity of the Canadian economy as a whole.

We would like to see a robust public education program regarding the possession, production and distribution of counterfeit goods. We would like to investigate and further study the challenges that the Internet and e-commerce pose as a loophole to the seizure and reduction in the presence of counterfeit products. We are talking about seizing shipments at the borders. When things are coming in one at a time by mail, by UPS, or whatever, it is a much more difficult for our border services to deal with.

With the current government's ongoing deficits, we question how the Conservatives would fund this new prevention and investigative system, particularly with the $142 million cut to CBSA last year. Border officers are by no means copyright experts. They would be given new and increased powers that are not overseen by the courts, which may lead to illegitimate seizures and violations of the Charter of Rights. That is certainly a problem. We also believe that small businesses should be exempted from the costs that would be imposed by the bill.

Several areas of concerns, other than those I have mentioned, have been raised. With the increased number of seizures due to increased powers being given to border officers and the RCMP, how would the government fund such extensive investigative legal operations, particularly in view of the cuts I talked about? Should genuine or non-counterfeit products be seized and destroyed, how would the government compensate companies and individuals? How would the government determine whether importers of counterfeit products are aware that these products are counterfeit? Why are there no provisions for counterfeit goods being transshipped through Canada?

Bill C-56 does strive to reduce the presence of counterfeit trademark goods being sold and distributed in Canada by providing new enforcement tools. The bill would bolster Canada's enforcement regime at the border, and domestically, and would address negative impacts of counterfeit goods by giving border officers the authority to detain suspected commercial shipments and contact rights holders. It would allow Canadian businesses to file a request for assistance with the CBSA, in turn enabling border officers to share information with rights holders regarding suspect shipments. Those are valuable and worthwhile things, especially if people have the resources to do it.

The bill would provide new criminal offences for commercial possession, manufacturing or trafficking of counterfeit trademark goods. It would provide legitimate owners with new tools to protect their rights and take civil action against infringers. It would create new offences for a trademark counterfeiter. It would provide better tools to investigate commercial counterfeiting.

We support the intent of the legislation, and we will support it at second reading to have it sent to committee. We support where it wants to go. However, we think it needs to be improved, and I hope my hon. colleagues would be open to amending and improving the bill at committee.

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June 12th, 2013 / 7:25 p.m.
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Conservative

Mike Allen Tobique—Mactaquac, NB

Mr. Speaker, I want to thank my colleague from Halifax West for his comments on the bill. It is a very important bill, and he brought up some of the very good things in it with respect to the trafficking of goods and the pirating of goods.

One of the things he commented on was the compensation for goods that have been seized, or the storage or destruction of those goods. In the context of the government being open to amendments, proposed section 44.07 of the bill does talk significantly about the cost. The licence holder is the person who is responsible for the costs, and they are able to be compensated, for example, if a court action deems they were not seized legitimately.

I am wondering what he sees might be missing in the compensation of costs that is not in proposed section 44.07 now?

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June 12th, 2013 / 7:30 p.m.
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Liberal

Geoff Regan Halifax West, NS

Mr. Speaker, the concern is that we are often talking about small businesses that do not have the wherewithal to have the legal representation they might need at the court hearings, or to fight for the compensation they are looking for. I think we want to make sure they are protected and that they are not going to face undue costs associated with these measures.

We heard at the industry committee from larger businesses that were happy and were prepared to take on the costs of storage and destruction of these things. The concern I have is what it is going to mean for smaller businesses. That is something we should hear about at committee, frankly. If my hon. colleague is right, that it would not impose a cost on those small businesses, let us hear about that. Let us have some witnesses who can actually speak to that.

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June 12th, 2013 / 7:30 p.m.
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NDP

Pierre-Luc Dusseault Sherbrooke, QC

Mr. Speaker, I thank my colleague for his speech. I have no doubt that he always works hard in committee.

Counterfeit goods that do not necessarily meet the same quality standards as those manufactured according to Canadian standards can pose a risk in Canada.

I would like him to talk about the risks posed by counterfeit goods to Canadian consumers because we do not have the means to block them and to ensure that they do not enter our market.

What are the risks associated with counterfeit goods?

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June 12th, 2013 / 7:30 p.m.
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Liberal

Geoff Regan Halifax West, NS

Mr. Speaker, I thank my colleague for his good question. I believe it is important to debate this in the House of Commons because it will help educate Canadians.

For example, if you take your car to a garage for repairs, it is possible that the brakes installed to replace your old ones will, in some cases, be counterfeit brakes. Just imagine. I already mentioned airbags and the problems we are having with them.

Brakes are another very good example because everyone recognizes and understands the importance of having good brakes and the need for them to be manufactured according to an appropriate standard. If someone obtains counterfeit brakes that do not work properly, the danger is obvious and clear. This can happen.

I also talked about prescription drugs and cases where they can enter or be sold in Canada without being the proper drugs manufactured according to appropriate standards.

It is very important to have measures that deal with counterfeit goods.

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June 12th, 2013 / 7:30 p.m.
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Liberal

Frank Valeriote Guelph, ON

Mr. Speaker, the hon. member mentioned the unlikely chance of any amendments being made to the bill. Notwithstanding that as in the past there is no bill that the government presents that is amended, I am wondering if he could highlight two or three of the most important things that he thinks need amending.

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June 12th, 2013 / 7:35 p.m.
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Liberal

Geoff Regan Halifax West, NS

Mr. Speaker, one of the things I have mentioned that is important to be amended is the question of transshipment. We do have a responsibility when things arrive in Canada, even if they are not staying here, to try to deal with that if we think there are counterfeit goods. That is important. I think it is the appropriate thing to do. We expect the same in return from our neighbours to the south, who we deal with so often in trade.

There are a number of other measures I mentioned that we ought to be dealing with. For example, I talked about the need for an education program, which I do not see coming from the government. My hon. colleague is right that we have not seen from the government a lot of interest in allowing amendments to pass when they come from the opposition. Conservatives seem so convinced that the bills they have come in perfect form. They arrive in Parliament fully formed, in absolute perfection, arriving from the departments, in fact.

To me, that is not what Parliament ought to be about. The government ought to recognize that having criticism, being attacked sometimes, is part of the democratic process. While it is not pleasant, it is necessary. It is important to have the consideration by Parliament of the bill, even if at times it gets partisan. However, it is about allowing that debate to happen and drawing from that possible ways to improve the bill.

I talked during my speech about five different ways the bill could be improved. While I think it is doubtful and I recognize that recent experience does not give one much basis for a lot of hope, I still retain some sliver of optimism that perhaps the government will consider amendments that come forward at committee.

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June 12th, 2013 / 7:35 p.m.
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NDP

Charlie Angus Timmins—James Bay, ON

Mr. Speaker, I listened with great interest to my hon. colleague about his hope that the government is actually interested in improving bills. Unfortunately, it seems to have decided that it is, like the First Vatican Council, infallible.

I was with my colleague during the copyright study. There were numerous problems identified in that bill that could have been fixed for the benefit of Canadians. Government members stood in the House and told Canadians that if there were amendments, they would consider them. However, they did not say the rest, which was that they would consider them and turn every single one down.

In that bill, the Conservatives had not thought through the issue of students with perceptual disabilities and how they would be unfairly victimized by the digital lock provisions. They could actually have fixed the digital lock provisions so that blind students and students with other perceptual disabilities would have been able to get the most of out their educations. The government decided to ignore that, despite the overwhelming evidence that it was targeting a small group of students who should have been able to access the works.

Given the track record of the government and its refusal to listen to the most reasonable amendments, does my hon. colleague think this bill will be another failed journey by the Conservative Party?