Copyright Modernization Act

An Act to amend the Copyright Act

This bill was last introduced in the 40th Parliament, 3rd Session, which ended in March 2011.

Sponsor

Tony Clement  Conservative

Status

In committee (House), as of Nov. 5, 2010
(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 to
(a) update the rights and protections of copyright owners to better address the challenges and opportunities of the Internet, so as to be in line with international standards;
(b) clarify Internet service providers’ liability and make the enabling of online copyright infringement itself an infringement of copyright;
(c) permit businesses, educators and libraries to make greater use of copyright material in digital form;
(d) allow educators and students to make greater use of copyright material;
(e) permit certain uses of copyright material by consumers;
(f) give photographers the same rights as other creators;
(g) ensure that it remains technologically neutral; and
(h) mandate its review by Parliament every five years.

Elsewhere

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

March 10th, 2011 / 12:55 p.m.
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Conservative

Ed Fast Conservative Abbotsford, BC

--that the Supreme Court of Canada has no higher court that supervises it, especially coming from a law professor.

Let me ask you one other question, and that has to do with your statement. You made a statement that Bill C-32, with the amendments it makes, does not comply with our international obligations. Yet, on the other hand, you said that we are, with this bill, in fact implementing the WIPO treaties.

So you're saying that there somehow is non-compliance, and yet, on the other hand, there is compliance with WIPO. Which is it?

March 10th, 2011 / 12:50 p.m.
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Conservative

Peter Braid Conservative Kitchener—Waterloo, ON

Thank you.

In your opening comments you spoke about some of the realities of the Internet as well. One of the things that Bill C-32 does finally is allow Canada to implement the provisions of the WIPO treaties. Do you agree with that?

March 10th, 2011 / 12:45 p.m.
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Conservative

Peter Braid Conservative Kitchener—Waterloo, ON

Great. Thank you. So Bill C-32 needs a little bit of housekeeping, then.

We've had a number of eminent organizations, national organizations, before this committee. They've come to us and they've said the government should be applauded for the work that's been done on Bill C-32, that it's clear there have been extensive consultation processes that have taken place, that the bill perhaps isn't perfect, that it needs to be tweaked here, refined there, but that we've done a tremendous job of buttoning it down.

We had the Canadian Chamber of Commerce. We had the Canadian Council of Chief Executives. We had the Association of Universities and Colleges. We had student associations. We had the recording industry and we had the movie industry. They've all come here and said that.

Were they all wrong?

March 10th, 2011 / 12:45 p.m.
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Conservative

Peter Braid Conservative Kitchener—Waterloo, ON

Thank you, Mr. Chair, and thank you to our witnesses for being here this afternoon.

Professor Azzaria, in your opening statement you used some terms and descriptions of Bill C-32. For example, you said you thought it was a bit of a legal puzzle. You also said you thought it was opaque. I might suggest that those descriptions more appropriately apply to some of the presentations we've heard before this committee, including the ones today.

In any event, I'd like to try to get some more specifics, because you've made some broad statements.

As well, in your opening statement you said you thought the bill needed a little bit of housekeeping, but then in a response to a question you suggested the whole thing should be scrapped. Which is it?

March 10th, 2011 / 12:35 p.m.
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Director, Artisti

Annie Morin

The Copyright Act nevertheless needs to be improved, but not in the way proposed in Bill C-32. In the circumstances, it would be better to keep the present act rather than include the provisions of Bill C-32, which might cause utterly irreparable harm. One need only think of private copying. From the moment consumers can make copies in all kinds of artistic fields for private purposes—that wouldn't just involve music, but books as well, in particular—it will be difficult for a subsequent government to repair that. People will have enjoyed that option without ever having to pay a cent. Free copying will have become an acquired privilege. Once everything is free of charge, it's hard to say you're sorry, but that this is the result of the work of people who deserve to be paid. In short, in the circumstances, I believe it would be preferable for Bill C-32 not to be adopted.

March 10th, 2011 / 12:35 p.m.
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Bloc

Carole Lavallée Bloc Saint-Bruno—Saint-Hubert, QC

Would you say that it would be preferable for artists to live with the current act, which was amended in 1997, rather than accept Bill C-32?

March 10th, 2011 / 12:30 p.m.
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President, Union des artistes (UDA)

Raymond Legault

Mr. Moore referred to six requests submitted during the seminar at which we were consulted. That was in August 2009. At the time, we delivered a brief, evidence, to Mr. Moore. That evidence included nine requests. I'm going to read the list. However, I can tell you that only one request was accepted. As for the others, one was half-accepted and the other seven were rejected.

The requests were as follows: private copying; a system extended to include the audiovisual sector; exclusive rights granted by WIPO with transitional measures: exclusive rights would be granted, but not transitional measures; performances included in cinematographic works—as I said earlier, this is not the case in Bill C-32; a moral right—this appears in Bill C-32, but it states that an artist may waive it, which means that something is being given with one hand and taken away with the other; the impossibility of assigning uses that are not already provided by the act—Bill C-32 makes no reference to this; with regard to revenues over $1.25 million, we asked that both writer composers and performers have the right to the same thing—and that does not appear in Bill C-32; and lastly, with regard to the responsibilities of Internet service providers, we ask that there at least be a "notice and withdrawal" system. However, everything in Bill C-32 is a "notice and notice" system, that is to say that an artist is given the opportunity to say that a person is downloading music illegally and to request that a notice be sent to that person.

March 10th, 2011 / 12:30 p.m.
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Bloc

Carole Lavallée Bloc Saint-Bruno—Saint-Hubert, QC

Thank you very much.

First of all, good afternoon, everyone.

Good afternoon, Mr. Azzaria. I wanted to answer one of the questions that you asked at the end of your presentation. Then I'll put some questions to my friends from the UDA.

You're wondering why the government hasn't included the following right in its Bill C-32. That's because, as you noted, all revenue is taken away from artists under Bill C-32.

For the government, this is a loser-loser-loser situation. There is no respect for artists. Earlier we saw how Mr. Del Mastro addressed Ms. Atwood.

Furthermore, with this bill, the government impoverishes artists and culture; it establishes a main barrier to prevent the Copyright Act from being modernized; it prevents itself from combatting illegal downloading and also fails to comply with international treaties.

This kind of loser-loser-loser situation is incomprehensible. Bill C-32 strips artists of all their revenue streams and gives them no others.

Mr. Legault and Ms. Morin, welcome. I've had a question for you for some time.

The Minister of Canadian Heritage, James Moore, has often said that Bill C-32 addresses four of the six concerns of the UDA and Artisti. Now that you're here together, you'll be able to answer me.

Is that true? And what are those concerns?

March 10th, 2011 / 12:30 p.m.
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Assistant Dean, Faculty of Law, Laval University of Quebec, As an Individual

Georges Azzaria

I don't believe so.

This is one of the problems, and it has to be said because there will be challenges. If Bill C-32 is passed as it stands, there will be challenges for 10 years before the international and Canadian economic tribunals.

I don't see how Parliament has any interest in telling people to go and fight in the courts and then we'll see what happens.

Virtually all stakeholders who have come and talked about the three-step test have said—in any case, I heard a few say it before you—that this wouldn't pass the international test.

March 10th, 2011 / 12:30 p.m.
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Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

I have a few seconds left.

In your view, will Bill C-32 enable us to meet our international obligations?

March 10th, 2011 / 12:30 p.m.
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Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

You said that copyright is based on the right to property. In your view, what becomes of the right to property in Bill C-32?

March 10th, 2011 / 12:30 p.m.
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Director, Artisti

Annie Morin

It is.

As it currently stands, it's preferable for Bill C-32 not to be adopted.

March 10th, 2011 / 12:30 p.m.
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Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

Ultimately, we don't want to restrict access; we want there to be more access, so that people can use more cultural products, but we also want artists, creators and rights holders to be compensated for their work. That's the goal and that's what has to be demystified. The idea isn't to block access; we have to make it available, but while being fair.

My question is for the three of you. If I'm not mistaken, in your view, Bill C-32, as presented, not only does not improve the situation, but worsens it and should not be adopted. Is that the position of each of you?

March 10th, 2011 / 12:25 p.m.
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Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

Thank you, Mr. Chairman.

Thanks to each of you for being with us today.

My first question is for you Mr. Azzaria. You said that Bill C-32 faces us with a legal puzzle. The government is telling us that this will simplify and clarify matters. You're telling us the contrary. Can you clarify your thinking, please?

March 10th, 2011 / 12:20 p.m.
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Raymond Legault President, Union des artistes (UDA)

Thank you, Mr. Chairman.

Thank you for having us.

The Copyright Act must be amended. There can be no doubt about that. It is obsolete. It no longer meets Canada's international obligations and has not been adapted to the digital universe.

However, there are a number of elements in Bill C-32 that do not meet stated objectives or comply with the international treaties that Canada has signed. In addition, Bill C-32 generally runs counter to social choices made in the past, including the decision to promote collective management in order to guarantee creators a right to compensation for the uses made of their works.

Today, by adding exceptions without providing for a right to compensation, and by absolving certain players in the new economy of all responsibility to the detriment of creators, Bill C-32 runs counter to the modern orientations that Canada has adopted in the field of copyright.

Bill C-32 creates new exemptions for private copying. I will limit myself to the possibility for users to make private copies for later listening or viewing. The problem with this new exemption is that the numerous conditions for its implementation cannot readily be verified. How could a rights holder determine whether a user has retained the copy solely for the time necessary to watch the program at a better time? And what does "the time necessary" mean? A week, a month or a year? It's not defined.

It will clearly be impossible to verify whether the conditions of the exemption are met. Consequently, rights holders will be able to exercise no control over copies made by users, and, in actual fact, consumers will ultimately do what they want.

The bill provides for no compensation for rights holders whose works, performances and sound recordings are produced in that manner. And yet it would have been possible to expand the private copying system to include audiovisual copying as is the case in France.

Another stumbling block in Bill C-32 is the issue of technical protection measures and recourse offered to rights holders. Bill C-32 contains provisions prohibiting the circumvention of technical protection measures.

However, this opportunity for rights holders to put these measures in place is quite theoretical, in the case of performers, because they are not the ones who make the media incorporating their performances available to the public.

I would also like to emphasize that virtually none of the works that have been produced to date are equipped with these mechanisms or locks. And virtually all works circulate on the net through illegal downloading networks. This therefore means that it will never be possible to protect those works, which nevertheless enjoy immense popularity.

Bill C-32 does not come close to creating the necessary incentives for these TPMs to be effective in Canada. Most rights holders cannot afford to institute proceedings to collect to the paltry sums provided for under Bill C-32.

Another matter addressed by Bill C-32 is Internet service providers and their obligations with regard to copyright violations. The proposed amendments provide for a "notice and notice" system rather than a "notice and withdrawal" system that would require the service provider to withdraw the material in violation of copyright, as in the United States, for example.

The creation of this kind of obligation would have given rights holders real means to put a stop to the violations, and to do so quickly, thus limiting the economic damage caused. Internet service providers are absolved of responsibility for copyright violations that are committed on their networks, whereas they benefit from them to a large degree.

In another connection, Bill C-32 introduces new rights for performers. Although the UDA approves these additions, it deplores the fact that they are applied only in cases where the performance is fixed in a sound recording.

Consequently, performers whose performances are fixed in a medium including a visual aspect, such as music DVDs and digital audio files containing videoclips, do not enjoy the exclusive right of reproduction or other rights created by Bill C-32. This distinction is unfair and serves no purpose.

Furthermore, with regard to these new rights, Parliament should have ensured that the rights initially granted to performers could actually benefit them by providing that those rights could not be assigned before they were even created by the act.

The utility of this kind of transitional provision is not merely theoretical. There are practices in the industry whereby producers request that performers assign all copyright over their performances.

Lastly, Bill C-32 grants moral rights to performers, a fact that the UDA is very pleased about. However, we note that the moral right of a performer is recognized only where the performer's performance is given live and fixed in a sound recording.

It follows that artists whose performances are included in an audiovisual or cinematographic work will not enjoy a moral right over that performance.

The UDA notes that Bill C-32 provides that performers may be led to waive their moral rights, which poses a serious problem from the standpoint of Quebec's civil law.

In conclusion, I would say that, unless it undergoes significant amendments, Bill C-32 should be abandoned. While it claims to be modern and to favour creators, it in fact favours the users and businesses that benefit from their work.

Thank you.