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, an excellent resource from 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 ActGovernment Orders

May 31st, 2013 / 12:20 a.m.
See context

Mégantic—L'Érable Québec

Conservative

Christian Paradis ConservativeMinister of Industry and Minister of State (Agriculture)

Combating Counterfeit Products ActGovernment Orders

May 31st, 2013 / 12:20 a.m.
See context

Simcoe—Grey Ontario

Conservative

Kellie Leitch ConservativeParliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour

Mr. Speaker, I have to say at this hour I am usually here on my own, just with your, so I am delighted to have so many guests. I am honoured today to rise and introduce C-56, the combating counterfeit products act, at second reading.

Last year our government welcomed the final passage and coming into force of the Copyright Modernization Act, which gave new rights and new tools for copyright owners and users, giving them the certainty and tools they need to fully engage in the online world. As part of the overall balance of the bill, the copyright modernization act introduced specific provisions to deal with the issue of online piracy.

With the combating counterfeit products act, we would be taking the next step in putting in place the legislative changes that are needed to deal with counterfeiting and piracy in the physical marketplace and at our borders. This bill would protect Canadians from harmful counterfeit products. It would help our creative businesses and workers, and law enforcement and border officers confront the increasing threat of trademark counterfeiting and copyright piracy. It would also bring Canada's laws in line with international standards.

Before describing the various features of this bill, please allow me to clarify what counterfeiting and piracy mean in the context of the--

Combating Counterfeit Products ActGovernment Orders

May 31st, 2013 / 12:25 a.m.
See context

Conservative

The Acting Speaker Conservative Barry Devolin

Order, please.

Combating Counterfeit Products ActGovernment Orders

May 31st, 2013 / 12:25 a.m.
See context

Conservative

Kellie Leitch Conservative Simcoe—Grey, ON

Mr. Speaker, my apologies. When I speak of counterfeit trademark goods, I am referring to knock-off goods--

My apologies. I am referring to knock-off goods that are distributed on a commercial scale and that closely resemble the legitimate goods, but that bear an unauthorized trademark--

Combating Counterfeit Products ActGovernment Orders

May 31st, 2013 / 12:25 a.m.
See context

Some hon. members

Oh, oh!

Combating Counterfeit Products ActGovernment Orders

May 31st, 2013 / 12:25 a.m.
See context

Conservative

Kellie Leitch Conservative Simcoe—Grey, ON

Mr. Speaker, it is easy to get a little caught up at this hour. I know that when even the whip is laughing at my comments, I have a definitely reached a new low in the House of Commons.

I am glad that you are staying straight-faced, Mr. Speaker. I will stay concentrating on you.

It is easy to associate counterfeit goods with designer clothes, watches and so on, similar to what was being spoken about in the lobby by the member for Mississauga South earlier this evening. The reality is that counterfeit goods extend well beyond luxury goods. They are found in nearly all types of commercial and industrial products, from shampoo to smart phones, from industrial ball bearings to brake pads--

Combating Counterfeit Products ActGovernment Orders

May 31st, 2013 / 12:25 a.m.
See context

Conservative

The Acting Speaker Conservative Barry Devolin

Order, please. If the parliamentary secretary is unable to proceed, would she prefer to cede the floor to another member?

Combating Counterfeit Products ActGovernment Orders

May 31st, 2013 / 12:25 a.m.
See context

Conservative

Kellie Leitch Conservative Simcoe—Grey, ON

Mr. Speaker, I will proceed.

Today they are more pervasive and more difficult to detect and, in this sense, much more problematic. Consumers may even unwittingly purchase a good that they assume to be legitimate, but which contains counterfeit components. We owe it hard-working Canadian families to prevent exposure to such products.

Copyright piracy is the making of illegal copies without consent of copyright holders and their subsequent commercial distribution. We know from our stakeholders, that copyright piracy is increasingly moving online.

The issue of copyright piracy in the physical marketplace is far from resolved, when we think of CDs, DVDs or software being offered for sale in stores and in other markets.

Commercial counterfeiting and piracy are growing issues in Canada and around the world. As with illicit activities, the scope of counterfeiting and piracy is difficult to track and measure.

However, this is what we do know. The RCMP investigated over 4,500 cases of IP crimes in Canada between 2005 and 2012. In 2005, the RCMP seized over $7 million worth of counterfeit and pirated goods. In 2012, this number had grown to $38 million, a fivefold increase.

Canada is not alone. Other developed countries are signalling a rise in the prevalence of counterfeit and pirated goods in the marketplace.

This increase in the value of seizures in Canada is also consistent with what we have heard from Canadian businesses. They have been telling us for years now that counterfeiting and piracy have an impact on innovation and economic growth across the country.

Over the last six years, organizations such as the Canadian Intellectual Property Council and the Canadian Anti-Counterfeiting Network have issued reports calling for legislative changes to deal with counterfeiting and piracy. Most recently, we heard the same calls from several witnesses at a study before the Standing Committee on Industry, Science and Technology.

The measures proposed in the bill are crucial if we are to keep creating high-tech jobs in the future.

Businesses have been overwhelmingly vocal in their support of the bill. For example, Mr. Kevin Spreekmeester, vice-president of global marketing at Canada Goose Inc. and co-chair of the Canadian Intellectual Property Council, said, on March 1:

Canadians have long been victims to the illicit counterfeit trade and the new measures announced today should be welcome news for consumers, businesses and retailers alike.

Mr. Jayson Myers, president and CEO of the Canadian Manufacturers & Exporters, explained that counterfeiting:

—has been a longstanding priority issue for manufacturers...[they] punish legitimate businesses. They are a drain on our economy and on jobs – and they put the health, safety and environment of every Canadian at risk...

Counterfeiting and piracy hurt our economy. However, beyond their economic impact, there are serious criminality and health and safety issues that we simply cannot overlook.

The commercial production and distribution of counterfeit and pirated goods has been associated with organized crime. This is just another line of business for them and it may help them fund other types of activities, such as drug smuggling and illegal firearm sales.

As for health and safety, there are numerous examples of counterfeit goods that could expose Canadians to danger. Think of the counterfeit batteries or car parts, medicines or baby food.

In 2005, 11% of counterfeiting and piracy cases examined by the RCMP involved harmful products. In 2012, this number grew to 30%.

I would also like to take a moment to speak about one of the particular issues that illustrates the growing threat posed by these goods.

In July 2012, Canada Border Services Agency officers referred a shipment to the RCMP for investigation. This shipment contained 476 counterfeit wheel bearings, with a commercial value of $45,000, which were to be used by the Canadian mining industry.

What this illustrates is the fact that these goods have not been subjected to Canadian safety standards and may cause harm as a result. Who knows whether these pieces of equipment would have actually functioned to the standard of levels that we expect in Canadian equipment.

With the new provisions in this bill, we will start to get a fuller picture of the threat that commercial counterfeiting and piracy pose to the Canadian economy and to address it within Canada and at its borders.

Now that I have described the scope of this issue and the very tangible consequences of counterfeiting and piracy for businesses, consumers and the economy, let me turn to a description of the key elements of Bill C-56, the combating counterfeit products act, and of how this bill would help in the fight against commercial counterfeiting and piracy.

To confront this, we must give new authorities to border officers to enable them to act when they encounter commercial counterfeit or pirated goods at the border. We must also give rights holders the tools they need to stop counterfeiting and piracy before these illegal goods can enter the Canadian market and undermine their brand and their work. Third, we must give law enforcement the tools it needs to pursue those who gain commercially from this illegal activity.

With respect to the bill itself, let me expand. First, the bill would strengthen Canada's intellectual property rights enforcement regime at the border. Currently, border officers are not allowed to search for and detain counterfeit and pirated goods without a court order obtained by the trademark or copyright owner, which has proven to be onerous for businesses overall.

Bill C-56 introduces a process that would allow rights holders to submit to the CBSA a request for assistance, which would enable border officers to share information with rights holders regarding suspect commercial shipments.

The request for assistance would allow rights holders to record details about their trademark or copyright at the border, and to provide contact information. It would also contain practical information about how to identify legitimate versus counterfeit or pirated goods. The request for assistance would be an effective tool to enable rights holders to defend their private rights in civil court.

Let me be clear. Bill C-56 would not allow border officers to seize goods for copyright or trademark infringement. It would provide the authority for border officers to temporarily detain goods suspected of being counterfeit or pirated, and then provide limited information to rights holders regarding those detained goods.

This information could only be used to determined if the goods were counterfeit or pirated, or to assist the rights holders in pursuing remedies in the courts. The courts would remain the only competent authority to determine whether goods detained at the border infringed intellectual property rights and to apply appropriate remedies.

The bill would also amend the Trade-marks Act and the Copyright Act to allow border officers to temporarily detain shipments suspected of containing commercial counterfeit and pirated goods. Border officers would be able to act either following a request for assistance or on their own initiative.

With these new measures at the border, we would only target commercial counterfeiting and piracy. There would be a personal use exemption, which means we would not be searching individual travellers possessing personal use quantities.

The bill would provide a specific exception at the border for individual consumers importing goods intended for personal use, as part of their personal baggage.

Goods that were made legitimately in the country where they were produced would be excluded from the new border measures.

With this bill, we would send a clear message. We understand the threats that counterfeiting and piracy represent for our businesses, for the economy and for the health and safety of Canadians, and we are acting accordingly.

Our government has been clear. Our focus remains on jobs, growth and long-term prosperity for Canadians. Counterfeiting and piracy directly threaten each of these. With the provisions in the combating counterfeit products act, our government would be taking action to curb the presence of these illegal goods in our country and at our borders.

Combating Counterfeit Products ActGovernment Orders

May 31st, 2013 / 12:35 a.m.
See context

Conservative

The Acting Speaker Conservative Barry Devolin

The time for government orders has expired. When this matter returns before the House, the hon. parliamentary secretary will have seven minutes remaining.

The House resumed from May 30 consideration of the motion that Bill C-56, an act to amend the Copyright Act and the Trade-marks Act and to make consequential amendments to other Acts, be read the second time and referred to a committee.

Combating Counterfeit Products ActGovernment Orders

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

NDP

The Deputy Speaker NDP Joe Comartin

Before we resume debate, I need to inform the House that because of the proceedings on the time allocation motion, government orders will be extended by 30 minutes.

Resuming debate, the hon. member for Scarborough Southwest.

Combating Counterfeit Products ActGovernment Orders

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

NDP

Dan Harris NDP 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 ActGovernment Orders

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

Liberal

Geoff Regan Liberal 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 ActGovernment Orders

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

NDP

Dan Harris NDP 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 ActGovernment Orders

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

NDP

Charlie Angus NDP 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.