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Crucial Fact

  • His favourite word was industry.

Last in Parliament November 2005, as Liberal MP for Chatham-Kent—Essex (Ontario)

Won his last election, in 2004, with 40% of the vote.

Statements in the House

Patent Act February 10th, 2005

Mr. Speaker, I am pleased to rise today in my place to begin the third reading of Bill C-29, which makes technical amendments to the Patent Act. Hon. members will recall that the changes provided in this bill are strictly technical and narrow in scope. We have made some further changes in the bill since it was introduced in the House last December.

The modifications to the bill are the result of representations received from intellectual property practitioners and that were presented to the committee which looked at some of the serious concerns.

Neither of these amendments materially changes the purpose or objective of Bill C-29 but both amendments are required for the bill to be effective in protecting intellectual property rights.

Before addressing the substance of these two amendments, let me remind this House of the issue at hand. Let me reiterate the points that were made during second reading of this bill.

We introduced Bill C-29 to respond to an unexpected court decision known as the Dutch case. The decision has raised uncertainties about the status of some patents. In order to apply for and maintain a patent application or patent, a set of fees must be paid. One of the factors affecting the fee payment is the size of the entity that is applying for the patent. If someone is a small entity, defined as an individual, a university or a business with 50 employees or less, the entity's fees will generally be half of those of large entities.

The definition of large and small entities sometimes becomes clouded when a business begins as a small entity but grows to a large entity, or a small entity is merged into a large entity, for example. This uncertainty of entity size sometimes leads to mistakes in determining the amount of fees that should be submitted.

The Commissioner of Patents administers the system and sets and collects the fees. In the past, if an entity had made an honest mistake in determining the level of the fee, the commissioner acted on the principle that the entity had acted in good faith. He gave the benefit of doubt and the entity was given an opportunity to top up his own fees.

That was the practice, but the Dutch case has terminated this practice and we now need to take corrective action, as the court found that the Commissioner of Patents had no legal authority to accept top up payments.

The case was appealed to the Federal Court of Appeal and on March 7, 2003, the court agreed with the lower court that late top up fees could no longer be taken.

Furthermore, the Federal Court of Appeal ruled that the determination as to whether an applicant would be considered a small or a large entity is to be fixed at the time of entry into the patent regime. This interpretation means that any applicant who had entered as a large entity and later became small, and paid commensurate fees, suddenly found themselves in the position of having underpaid the prescribed fees. These applicants and patent holders risk invalidation of their rights.

This creates a very difficult situation for holders of patents who may have not paid the right fee. An estimated 7,000 patents and applicants could be declared invalid if contested in the courts on the grounds that certain fees have not been paid at the proper entity level. Until this bill is passed, there is no legal way for these patent holders and applicants to rectify their situation. Bill C-29 seeks to end that confusion and remove the uncertainty.

As hon. members will recall from the second reading debate, the amendments contained in the bill provide a 12 month timeframe for patent holders and applicants who are negatively affected by the court decision to maintain their rights by making necessary top up payments.

This brings me to the two amendments to Bill C-29 that have been recommended by intellectual property practitioners in their representation to the committee.

The first amendment can best be described as an amendment to provide greater certainty. After the introduction of the bill on December 3, the Intellectual Property Institute of Canada advised the Canadian Intellectual Property Office that as currently worded it is not absolutely clear that clause 2 of Bill C-29 would apply to complex transitional provisions already found in the Patent Act.

We want to make it very clear that clause 2 will apply to the Patent Act's transitional provisions. Following the recommendation of the committee, the bill has been amended by adding at the end of the proposed new section 78.6 the following text:

(5) For greater certainty, this section also applies to applications for patents mentioned in sections 78.1 and 78.4.

The House will readily see that this amendment does not change the purpose of Bill C-29. In fact, it greatly clarifies the intent and ensures that all patents and patent applications caught by the Dutch decision are covered by this bill. Not proceeding with the amendment might leave some uncertainty in a bill that has been specifically introduced to clarify an uncertainty.

This brings me to the second amendment recommended at the committee stage. It also responds to the representations of intellectual property practitioners. They have told us and the committee that the requirement to provide information with respect to “the day on which the prescribed fee was paid” would create a significant compliance problem because patent agents may not being able to provide such information in every situation.

What would happen in the event that a patent agent could not accurately report the day on which the fee had been paid? What would happen, for example, if the fee had been paid many years ago and the relevant document is no longer available? According to the bill, as introduced last December, this would cause otherwise valid patents or patent applications to still be at risk.

The inability to provide information concerning the day on which the fee was paid should not invalidate a patent. Our objective is to create a system where innovation is protected, not one where innovators can be tripped up by red tape.

In the amended bill before us, the specific requirement of section 78.6(2) to provide information on the day in which the patent was paid has been removed. As in the case of the first amendment, this will not materially affect the purpose or objective of Bill C-29. It would make sure that the requirements can be met by practitioners.

These amendments are straightforward. They improve a bill that is designed to provide technical amendments to the Patent Act, amendments designed to clear up uncertainties. The bill had speedy passage at second reading and there is nothing in the minor amendments that would warrant a prolonged debate during third reading.

Although these technical amendments may seem like minor adjustments, they are in fact very important to the holder of patents potentially in default of the Dutch case. We should not delay this legislation. We should move quickly to clear up the uncertainties and thereby maintain Canada's reputation as a country that protects intellectual property rights.

Finally, let me remind the House that Bill C-29 also makes a technical amendment to the Jean Chrétien Pledge to Africa legislative provisions adopted during the last Parliament. It provides the other place with equal participation in assessing and recommending candidates to an expert advisory committee. This amendment clears up an oversight in the original legislation. No objections or concerns regarding these provisions were raised at the committee hearings.

I urge hon. members to pass the third reading of Bill C-29 as quickly as they can and allow it to proceed to the other place.

Patent Act February 9th, 2005

Madam Speaker, the prospect of Bombardier CSeries has created a great deal of interest in Canada. The government recognizes the importance of this program and is developing a national aerospace strategy that will provide context within which we can make decisions. We would like Bombardier to assemble the CSeries in Canada and are continuing to discuss areas of possible collaboration with our provincial counterparts.

That being said, I am sure the member would agree on focusing only on Bombardier gives a very limited view to aerospace industry. While Bombardier is important, we have other strong, competitive companies that are key players in this aerospace sector. These companies are also embarking on new research and development projects for their companies and competition in the future. Our national aerospace strategy will reflect this strategy.

Aerospace is a key industrial priority for the Government of Canada. We are developing a new national aerospace strategy to ensure continued growth and prosperity. We are interested in Bombardier and the entire aerospace industry.

Patent Act February 9th, 2005

Madam Speaker, the Canadian aerospace industry makes a significant contribution to the overall Canadian economy, with some 700 aerospace and defence firms across the country. It employs more than 75,000 people. Sales in 2003 exceeded $20 billion.

Aerospace is much more than just one Canadian traditional industry. It is one of Canada's leading advanced technology exporters. The sector invested approximately $1 billion on research and development in 2003. Aerospace is the second largest investor in R and D in Canada and the fourth in Canada's top 20 industrial R and D performers.

In recent years markets have been slow and competition is tight. Aerospace products require substantial investments and have long development periods. These realities are placing tough demands and new pressures on the aerospace sector. The government is quite conscious of the new pressures and wishes of the aerospace industry.

In the Speech from the Throne we made it very clear that aerospace is a key industry and a priority for the government. The government has committed itself to developing a national strategy to help the sector strengthen its technology leadership and position itself for the future.

A national aerospace strategy could provide the broad context within which the company could consider individual funding decisions. This broad context would include considerations such as the changing international business climate, the economic impact and fiscal implications of support, skills development, trade policy and individual investments that fit the overall direction of Canada's aerospace sector.

The Minister of Industry is moving quickly to develop this strategy. He is collaborating with the industry stakeholders and provincial counterparts. An initial strategic framework will be completed within the next few weeks to provide the context for pressing decisions. This initial framework would then pave the way for developing a long term, comprehensive strategic action plan.

In developing a national aerospace strategy, we will build on impressive achievements to date and on government programs, such as sales financing from Export Development Canada and research and development support such as that available from Technology Partnerships Canada. The partnerships, which have been forged between industry and government, have produced good results for companies and Canada.

Bombardier's success with its family of regional jets is a case in point. There are many other examples in which a risk sharing investment by the government has resulted in new aerospace business for firms in Canada.

Speaking of Bombardier, the third largest aircraft manufacturer in the world, the government also recognizes that the company is one of aerospace's top anchors. Bombardier's aerospace division is Canada's largest aerospace firm with sales of $11 billion, more than 50% of Canada's overall space output. The company employs 13,000 workers in its facilities in Montreal, Toronto and North Bay and relies on an extensive supplier network.

Members will know that Bombardier is currently considering a next generation aircraft, the CSeries, and we are doing everything we can to recognize timetables that Bombardier would require to move this project forward.

The federal government recognizes how important this aerospace industry is to Quebec and to all other Canadians. We are working very hard to develop a national aerospace strategy and will work hard to ensure the growth and prosperity continues.

Patent Act February 9th, 2005

Mr. Speaker, I want to congratulate the member for Windsor West for bringing the issue forward and colleagues who have spoken in the House who are very concerned about the balance that we are trying to create in Canada.

This is a unique balance in public interest. When we look at the implications of intellectual property in the pharmaceutical industry, the government must maintain a delicate balance between two important and competing policy objectives. On the one hand, we must encourage advancements in medicine by providing effective patent protection for new drugs on all fronts, and on the other hand, we must ensure that versions of drugs are able to move forward.

Bill C-274, introduced by the member for Windsor West, seeks to disrupt this balance by repealing the patented medicines notice of compliance regulations. The regulations together with the early working exemption under the Patent Act are two pillars of the government's balanced drug patent policy. The early working exception allows generic companies to use a patent drug for the purpose of seeking approval to market a generic version of a brand name drug.

Normally, the conduct of this would constitute patent infringement, but the early working exception allows a generic drug company to compete with Canada's health regulatory and approval process while the equivalent brand name drug is still under patent.

It is then possible for a brand name drug company to be in a position to enter the market as soon as possible after patent expiry. The generic pharmaceutical industry estimates that early working can accelerate the market entry of its products in Canada by three to five years.

While early working is intended to promote the timely market entry of generic drugs, the regulations are necessary to ensure that this exception to the patent infringement is not abused by generic companies who are seeking early product approval.

Patent protection is an important incentive in encouraging investment and promoting research and development of new and better medical therapies. The regulations provide incentives by ensuring that brand name drugs enjoy secure, stable, uninterrupted periods of market exclusivity prior to the eventual and irreversible arrival of generic competition.

If passed, the bill would seriously undermine Canada's balanced drug patent policy by effectively stripping brand name drug companies of the most effective patent enforcement mechanism that presently exists at their disposal.

Repealing the regulations would prompt the brand name pharmaceutical industry to withdraw its considerable R and D investments from Canada with a corresponding loss in research-intensive employment here. It would also compromise Canada's access to the latest medical therapies as brand name drug companies would no longer have any incentive to seek the Canadian market promptly.

Industry Canada and Health Canada are aware of the concerns of the member for Windsor West regarding the regulations and his reasons for advancing Bill C-274. In recent years representatives of the generic pharmaceutical industry have been increasingly vocal in allegations that brand name companies are abusing the regulations to unfairly delay generic competition, a practice they refer to as evergreening.

The government remains convinced however, that regulations are a vital part of this industry and Canada's balanced drug patent policy is important. Generic drug companies continue to challenge brand name patents early and often. And so, without the protection of regulations, infringing generic drugs could enter the market soon after the innovator and well before the expiry of the original product's patent.

That said, the government recognizes that there have been instances of behaviour compliance by the generic pharmaceutical industry. We have therefore developed a package of regulatory amendments intended to restore the original balanced policy intent behind the regulations.

The amendments, which were pre-published in the Canada Gazette Part I, on December 12, 2004 will facilitate the market entry of generic versions of brand name drugs immediately following expiry of relevant patents as the bill originally intended, while at the same time allowing brand name companies to duly promote improvements to the original form of the drug that are genuinely accepted.

If passed, this package of amendments would approve Canada's competitiveness as an investment location and would establish more predictable and stable rules relating to the intellectual property of pharmaceuticals. It is my hope that the member for Windsor West will support these amendments and, in so doing, support Canada's efforts to ensure that we continue to have a balanced drug patent policy regime that will continue to be the leading choice of investment for our pharmaceutical industry.

Employment Insurance Act February 8th, 2005

Mr. Speaker, I tried to make it very clear a minute ago, and I will reassure the House that any acquisitions by foreign investors have to be approved by the minister and will only be approved by the minister when it shows a net benefit to Canada.

In a situation where a foreign investor fails to live up to the commitments under the Investment Canada Act, the minister has the power to demand compliance and make sure compliance is carried out.

The minister and the legislation protect this country. I am certain that the minister would do nothing to hurt Canadian investment.

Employment Insurance Act February 8th, 2005

Mr. Speaker, before I begin I would ask my colleague to table the documents which he suggests he has in his hand.

The Government of Canada recognizes foreign investment plays a very important role in the Canadian economy. Foreign investors bring knowledge, capability, technology and can increase the productivity, efficiency and competitiveness of Canadian firms. These investments frequently help Canadian based companies to expand and create new jobs in Canada. Canadians have benefited greatly from opening the country's borders to trade and investment.

Since we recognize the importance of investment flows into Canada, Canada has a broad framework in place to promote trade and investment while at the same time protecting Canadian interests. The Investment Canada Act is a key part of the framework and it has been modernized to reflect our changing international commitments.

The Investment Canada Act provides a mechanism to review significant acquisitions of Canadian enterprises by non-Canadian companies and to determine if they will show a net benefit to Canada.

The factors considered as part of a net benefit test are listed in the Investment Canada Act. They include such considerations as the effect of investment on level of production, employment, competition in Canada and compatibility of investment with our economic and cultural policies.

The Minister of Industry is responsible for the Investment Canada Act. In this capacity he can negotiate enforceable commitments with investors during the review process to shape an investment and a deal in such a manner that it would provide a net benefit to Canada. Industry Canada's officials work closely with potential investors to negotiate these commitments. They also consult with other federal government departments and provinces to maintain the views and concerns that are relevant to the acquisitions.

I can assure the member that any investment reviews conducted under the Investment Canada Act are done with so much vigour that we ensure Canada's interests are protected.

The member should also be aware that any Canadian operations of foreign enterprises are required to conform to all Canadian rules and regulations. These include, but are not limited to, legislation related to labour relations, environmental protection and corporate reporting and accountability.

In conclusion, Canada wants and needs foreign investment. However, I can assure this House that acquisitions by foreign investors are only approved where they demonstrate a net benefit to Canada.

Department of International Trade Act February 7th, 2005

Madam Speaker, Canada is very concerned about foreign investment. We ensure that under the act we are protected. Acquisitions by foreign investors are only approved when they demonstrate a net benefit to Canada, and only after a thorough review has been performed.

The situation where a foreign investor fails to live up to the commitments under the Investment Canada Act, the minister has the power to demand compliance and commitment. There is absolutely no question that this Canadian government makes certain that investment coming into Canada is allowed. The government also ensures that it will protect Canadians and Canadian companies where it needs to.

Department of International Trade Act February 7th, 2005

Madam Speaker, we can all agree that foreign direct investment is an important part of the Canadian economy.

Foreign direct investment helps Canadians participate in the global economy. We benefit as foreign firms bring their knowledge, abilities, and increased productivity, efficiency and technical development. Of course, foreign direct investment increases the economy of Canada. All of this means the creation of higher quality jobs, higher quality wages, and that Canadians will maintain the highest standards of living in the world.

Canada faces intense international competition to attract foreign direct investment because of the advantages that it brings. It is our job to ensure we create and maintain a positive environment that gives the message to the rest of the world that Canada is a great place to do business.

Investment flows both in and out of Canada, and this too benefits Canada. Canadian companies have in fact been quite active in acquiring foreign firms. In 2003 the flow of foreign direct investment into Canada reached $358 billion, while the flow of Canadian direct investment abroad reached $399 billion. Also, according to Statistics Canada, for the period 1997 to 2002, although foreign companies acquired 345 Canadian firms, Canadian companies acquired 447 foreign companies valued at $124 billion.

This being said, let me assure the hon. members of the House that, in the Investment Canada Act, Canada has a mechanism in place to review significant acquisitions of Canadian enterprises by foreign companies.

Although the confidentiality provisions of the act do not permit me to comment on a specific transaction, generally the acquisition of a Canadian business by a World Trade Organization member enterprise involving assets in excess of $237 million is subject to review under the act. In order to obtain approval from the Minister of Industry, the minister responsible for the act, an acquisition by a foreign enterprise must demonstrate a net benefit to Canada.

The act lists the factors considered in the determination of net benefit. These include: the effect of the investment on the economy, productivity, industrial efficiency, product innovation and competition, participation by Canadians, compatibility with economic and cultural policies, and contribution to Canada's ability to compete in world markets.

Under the act it is not just a simple yes or no decision. Under the Investment Canada Act, we have the power to demand enforceable undertakings from the investor to shape the final deal so that it provides net benefit to Canada. I can assure every member of the House that every application that comes to Canada will be closely observed and monitored by the Government of Canada.

As part of the review process, the minister consults with other federal government departments, the provinces, Canadian businesses and all those who are affected. Canada wants and needs foreign investment. I can assure the House that acquisitions by foreign investors are only approved where, on balance, they demonstrate a net benefit to Canada.

Aerospace Industry February 1st, 2005

Mr. Speaker, we as a government treat all industry in this Canada equally. We are very concerned that we can make sure industries are successful. There is no question that at this point this federal government is ready to work with and deal with Bombardier to help them with whatever issues we can, but we have to be responsible. We have to discuss the issues with it and negotiate what we are doing.

Aerospace Industry February 1st, 2005

Mr. Speaker, we are well aware of the importance of the aerospace industry in Canada. It is critical for all of us. The aerospace industry in 2002 exported $21 billion worth of product. We believe we are working with that national industry and doing what we can to make sure there is a solid foundation to keep aerospace strong and viable in Canada.