Bill C-32 (Historical)

Copyright Modernization Act

An Act to amend the Copyright Act

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.

Copyright Modernization Act

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

Madam Speaker, the Bloc Québécois believes that Bill C-32, whose goal is apparently—I repeat, “apparently”—to update the Copyright Act, does not achieve that objective. The Bloc also believes that it needs to be amended in committee in order to do justice to artists, copyright holders and copyright in the truest sense of the word. Without amendments, this bill will be unbalanced and will favour large corporations at artists' expense. I will explain this.

The approach in this bill is disheartening. The government says it is helping artists, but it is not putting its words into action. Yesterday, in the House, the Minister of Canadian Heritage and Official Languages said that on May 10, 2006, the Bloc had voted against the Conservatives' budget, which included a 20% increase in the Canada Council's budget, but that is an error. I do not know whether it is unparliamentary to use the word “error”, but the fact remains that the Bloc voted in favour of the Conservatives May 10 budget that included a 20% increase. It was not an increase so much as a cut to the increase previously announced by the Liberals. The Liberals had announced a $150 million increase, which was then reduced to $30 million. We see that the minister is twisting words and passing himself off as someone who is helping artists. He says he is helping them, but he is not. The Bloc Québécois obviously voted against the bill the government introduced in 2009 to take money away from artists.

My point is that the principle has not changed. What the government and its ministers are saying and what they are doing are two different things. It is all well for them to keep saying that they are helping artists, the fact remains that the approach in this bill is totally unbalanced. In fact, what this bill does is help major U.S. companies.

It is too bad that people are not listening because some interesting things are being said. Madam Speaker, can you please ask the hon. members to be quiet? Thank you, I think that calm has been restored.

This bill is totally unbalanced because it benefits major U.S. companies and major computer gaming software companies to the detriment of artists. There are two totally disheartening approaches in this bill and seven deadly sins, if I can put it that way.

The first approach is one using digital locks. Sure, we can say that digital locks are necessary, and that they must be respected, but to base an entire bill on them is a bit much. With this bill, the government is telling artists that if they want to make money, all they have to do is put digital locks on their musical works to prevent anyone from copying them. If people want to make a copy for themselves, or to transfer the music to another format, it would be absurd to make them buy the original work again. That makes no sense, and it will not work. We are talking about the survival of artists and their art here, and this is important for many reasons. An approach based on digital locks is completely ludicrous.

This bill was developed for the big American film and video game companies, and digital locks meet most of their needs. For these big American and European film and video game companies, the government did a good job.

But the bill does not address the needs of artists. Artists do not want to put locks on their musical works. They do not want to restrict the distribution of their works; they want people to be able to enjoy them. But for that to happen, we need to modernize the Copyright Act and maintain the royalties and levies in the existing act. But that is what the government does not understand.

I spoke about seven deadly sins. The first should come as no surprise, since I was the one who moved a motion in the House to modernize the current Copyright Act in order to maintain the levy on digital music recorders, a motion that was adopted by a majority in this House.

Not having these royalties is like depriving artistic creativity of oxygen. Not having these royalties means that artists will no longer earn enough to continue doing what they do. I am not making this up. Earlier, the Minister of Industry and the Minister of Canadian Heritage spoke about taxes. It is incredible that ministers who should be sensible and should understand the meaning of words are using the wrong words and giving disinformation in order to reach their goal, which is to help American companies.

The system of copying for personal use needs to be updated. This system exists already; it is already in the law. We just need to add “digital audio recording equipment” to “cassette” and “CD”.

The exception known as the “YouTube exception” allows a mother to post her son's first steps on YouTube along with music, used in good faith. That seems nice enough but it opens the door to a whole slew of music piracy. The scope of this clause needs to be reduced, and these so-called works created from other works should be banned. That is exactly what it means to respect artists' rights.

In addition, Bill C-32 should require broadcasters to pay for ephemeral copies. Again, this clause is poorly written, unbalanced. It benefits broadcasters and, again, takes money from artists. It takes away royalties that would come to them.

And the damages that a copyright owner could be paid should definitely not be capped at $20,000. That is like saying that any pirate can put $20,000 on the table and can make millions of dollars with a copy they have made. It makes absolutely no sense to cap damages for a work that has been copied.

We must also make Internet service providers more accountable. There are two ways of doing so. On the one hand, they could contribute to content costs, as called for by AGAMM, an association that maintains that free music is a myth. This Quebec artists' association wants Internet service providers to pay them royalties. On the other hand, we must also make Internet service providers more accountable by forcing them to be proactive to stop piracy. I am not convinced that the notice and notice system—as it is commonly known—is working. That is, when people realize their work has been copied, they inform the Internet service provider, which simply sends a letter. I am not convinced that this works. It would be very interesting to examine this aspect in committee and look at the consequences of an escalating response. We definitely need to examine this aspect very seriously. However, it is clear that the status quo is not enough.

As I said earlier, the seventh deadly sin of this bill is the digital lock, which cannot be the cornerstone of a bill to protect copyright. This would mean that consumers could no longer make copies for their own use on their MP3 players. The minister said earlier that everyone supports digital locks. That is false. Consumers' associations do not support digital locks. The following quotation is from a news release dated June 4, 2010:

The Canadian Consumer Initiative or CCI [an umbrella group of consumer protection agencies] deplores the fact that, with this bill to reform the Copyright Act introduced earlier this week [on June 2], the federal government is once again abandoning consumers and giving in to the demands of corporations.

The members can read it. It was dated June 4 and can be found on the Canadian Consumer Initiative website and the Union des consommateurs du Québec website. It is quite interesting and explains why this will not help consumers. When the Minister of Canadian Heritage and the Minister of Industry say that no one opposes protection measures, they have it all wrong, because in fact, many people object to these digital locks. Once again, the Conservatives are denying reality.

The Bloc Québécois wants to amend this bill in committee. We think it needs to be amended according to four basic principles. First, we have to find a way to compensate artists and copyright owners. Musical works are not free. Music is not free.

Music belongs to artists, and artists have the right to be compensated when people listen to their music in different formats. We have to encourage creation and dissemination. That is the Bloc Québécois's second principle: supporting dissemination.

New technologies improve access to the things people create, and consumers should be able to benefit from that. I doubt that digital locks will support that. We have to promote the dissemination of artistic works on all existing platforms. Through its subsidy programs, the government must support dissemination via new media without negatively affecting conventional media, which are often where new works appear in the first place.

As I said earlier, music is not free. That is why the government must launch an information and awareness campaign for large, medium-sized and small consumers, who need to understand that music belongs to artists. People can buy CDs, they can buy music online and they can listen to it on rhapsody.com, but they must respect artists when listening to music. If they do not, creation, production and design will suffer, and we will be overtaken by culture from other countries, especially by American music.

We also have to crack down on what I call professional piracy. We know there are websites where piracy professionals make multiple copies or allow point-to-point or peer-to-peer transfers. This allows people to download and listen to music online for free. We have to crack down on this. We cannot just tell these pirates that it will cost them only $20,000 in damages every time they use a work of music. The bill, as written, may not be harsh enough. As far as damages are concerned, it is quite clear that we cannot limit the price of a work of music to $20,000.

In the upcoming debates on the so-called Copyright Modernization Act, it is clear that the Bloc Québécois will defend its principles any way that it can. We saw yesterday in the House with regard to the TradeRoutes and PromArt programs that this government does not defend artists and does not help them. In fact, the government does more harm than good. Bill C-32 will do more harm to artists than good. A number of groups are going to lose a lot, particularly in the publishing community. With the addition of a fair dealing exemption, some francophone publishers will end up closing their doors. What textbooks will we find in schools? They will be textbooks from other countries that have protected their culture and the copyright of their creators.

This government does not protect artists. It does not protect copyright and it does not protect copyright owners, which is consistent with its long “anti-artist” history. The Bloc Québécois truly hopes that, throughout Quebec, the jurisdiction of arts and culture will be transferred to the Government of Quebec. There is an overwhelming consensus on this. Quebec takes care of its artists, and one way it does that is by helping them tour internationally.

The Government of Quebec helps artists and copyright owners. The education sector is treated very well by the Government of Quebec, which pays royalties to publishing companies and artists when schools use their artistic works.

For the Bloc Québécois, the transfer of responsibility for arts and culture to the Government of Quebec would be a step towards what we really desire—our own country. Not only do we want to manage all our areas of activity, but we also want to support and help our artists.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Madam Speaker, the Liberal Party intends to take a very constructive approach to this because this is extremely complex legislation.

The issue of digital locks and TPMs are certainly very central to this whole thing. Let me repeat that the concept of digital locks or TPMs is not a subject with which we disagree. We want to make clear that individuals who purchase a product should be allowed to move that from one device to another for their personal use.

As it stands at the moment, Bill C-32, as proposed by the government, says that if there is a digital lock or a TPM on a product, then it would be illegal for a person to transfer it to another device for his or her personal use.

We have difficulty with that and it is something we definitely intend to explore. We will work with the NDP, the government and the Bloc on this issue.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Madam Speaker, it is with great pleasure that I rise today to begin the long awaited debate on Canada's proposed new copyright law, Bill C-32. If I may be permitted a personal comment, I would like to say that no other proposed legislation has occupied my time as the industry critic for my party as much as this bill has, nor have I received more visitors knocking on my door to discuss proposed legislation than for the case of Bill C-32. Suffice it to say there is a very large number of stakeholders watching very closely as Bill C-32 moves forward in the House.

I would like to go over the context in which we are undertaking this important task. Canada is right in the thick of its transition to the digital economy, which is having a major impact on our artists, writers, musicians, software developers, film-makers, photographers and others who create material protected by copyright.

We all recognize that the creators who inform and entertain us are major economic drivers. In Canada, according to a 2007 Conference Board of Canada study, culture generates over $80 billion in direct and indirect economic spinoffs every year. That accounts for more than 7% of our gross domestic product and creates about 1.1 million jobs in this country.

The digital economy is changing culture in this country. It is also changing our society and our economy. The information and communications technology sector employs some 600,000 Canadians and spends $6 billion a year on research and development. The digital economy is flourishing around the world. Last year, OECD countries invested nearly $3 trillion in hardware, software, communications and IT.

I know that Canada can play a leading role if it positions itself to exploit its full potential in this key sector. That would really boost the country's economic growth.

Among other innovations, the last decade brought us Facebook, the iPad, and YouTube, which have given Canadians unprecedented access to myriad choices. They have also presented a challenge to creators in terms of protecting the integrity of their work.

Unfortunately, when it comes to copyright, Canada has, for too long now, been way behind in terms of global best practices. Our outdated copyright legislation has been the subject of international criticism.

A 2005 OECD study found that Canada had the greatest per capita number of offenders engaging in illegal file-sharing. In May 2009, the United States put Canada on its blacklist of countries designated as being especially lax in protecting intellectual property, a list that includes Algeria, China, Russia, Pakistan, Indonesia and Venezuela.

Copyright and intellectual property protection have become a crucial component of trade talks with the European Union.

The time has come to ensure that our artists and creators receive fair compensation for their work and that, in this digital era, our entrepreneurs are compensated for their innovations. Canada must modernize its copyright legislation.

In short, the time has come for Canada to adopt a fair and balanced copyright law, one that takes the needs of both creators and consumers into account.

The Liberal Party of Canada is taking the following position with respect to the proposed copyright legislation. Bill C-32 takes a number of important steps to modernize copyright law, and at this time the Liberal Party will support sending the bill to committee. However, we believe serious challenges remain that must be addressed at committee.

Specifically, the Liberal Party has problems with digital locks and technological protection measures, or TPMs. The Liberal Party has concerns with the application of new TPM circumvention amendments in Bill C-32.

Specifically as it applies to music, video and other digital media, the Liberal Party believes the Copyright Act must allow Canadians who have legitimately purchased a CD, DVD or other product the ability to transfer their purchase onto other personal devices, such as an iPod, or make a personal backup copy on their computers so long as they are not doing so for the purposes of sale or transfer to others.

We do not believe that Bill C-32 achieves that principle at this time. There are various ways in which a solution could be found and we look forward to examining the different options in committee.

Let us talk about the exemption for the education sector. The Liberal Party agrees that educators need flexibility in order to ensure that education is as enriching as possible. However, we must see to it that authors and creators are paid fairly for their work. The education sector is in the best position to convey the message that copyright is important, and we must ensure that Canadians understand that it is important for our creators to be compensated fairly for their work.

With regard to the exemption for the education sector, the Liberal Party will attempt to amend the bill by proposing to clarify what exactly constitutes “fair dealing”. Naturally, the secret of a good policy always resides in the right balance. By defining what is fair, we will ensure that the law gives educators the necessary flexibility while offering artists, authors, and creators a better guarantee that their works will be protected.

Another issue is mash-ups. Bill C-32 creates a new exemption for user-generated content. However, it is broadly written and can create a potential opening for abuse. We will seek amendments to tighten the language to ensure that the mashup exemption can only be used for its intended purposes and not unexpectedly create a loophole for further copyright infringement.

On the subject of statutory damages, Bill C-32 defines new statutory damages for infringement of copyright. Many stakeholders have expressed deep concerns about this section. The Liberal Party believes applied statutory damages must be commensurate with the severity of the infringement.

With regard to the exhibition in public of works of art, the present Copyright Act defines the right to be compensated when a work created after June 7, 1988, is exhibited in public. The Liberal Party believes that this provision discriminates against artists who created works before 1988.

As for the resale of works of art, throughout Europe artists are compensated when their works are sold and then resold. The value of an original work may increase over the years and artists believe that a portion of the difference between the original price and the resale price should be paid to them. The Liberal Party proposes studying European practices in order to find a better way to compensate Canadian artists for their works.

Furthermore, the Liberal Party would also like to look at other technical issues surrounding, among other things, the collective responsibilities for neighbouring rights and the definition of exemptions with regard to hosting, information location tools and network services.

Modernizing Canadian copyright legislation is vital for our economy, job creation and appropriate compensation for our artists and creators. We believe that this modernization can best be achieved through dialogue and collaboration and we hope that all parties will work together to achieve this objective and to ensure that Canada continues to make a cultural contribution to the world.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Madam Speaker, I have been contacted in the last couple of weeks by Alberta small book publishers, including those who publish educational materials. They are very concerned about the implications of Bill C-32, which they consider provides broad access and use free of charge by educators that impacts the revenues of these small Canadian publishers and their continued existence.

I wonder how extensively the government consulted with small Canadian publishers. Did it meet with the Alberta small publishers association to review their concerns about the impacts on collective licensing?

[James Moore, Conservative, Minister of Canadian Heritage and Official Languages]

Madam Speaker, I thank the Minister of Industry for starting off this debate and I am very pleased to be a part of this as well as we take a historic step in this country.

We made a commitment as a government in the last election campaign, and also as part of our throne speech, that we would table new copyright legislation, and so we have. Bill C-32, the copyright modernization act, is our effort to get it right. The last time copyright legislation was dealt with in the House of Commons, there were some concerns raised by Canadians across the country and we have listened to those concerns. We have come forward with legislation that we think should have the support of enough members of Parliament in order to move Canada forward.

Canadians, more than ever before, are active consumers in digital media. We are increasingly purchasing our music online, as well as films and televisions shows. We are connecting with friends and colleagues via Facebook, Twitter and web interfaces in ways that were not imagined just a little over a year ago. As a country we have, by and large, fully embraced the Internet and how it has changed the way we innovate, create and live our lives.

Unfortunately, Canada's copyright regime has not kept up with the pace of change. The last time our copyright laws were updated, people were buying CDs and using pagers, not iPads and Netflix. The reality is that our copyright laws are older than most of the technologies that we enjoy today. That is why on June 2 of this year our government introduced Bill C-32 here in the House of the Commons.

We consulted Canadians before doing this. This bill reflects the diversity of opinions expressed during consultations held last summer. These consultations took the form of an interactive website, public meetings, round tables and written submissions from average Canadians. And because each region was included in these consultations, we received opinions from across Canada. Numerous Canadians spoke to the government, and it listened to them.

Copyright holders told us that their 21st-century business model depends on strong technological protection measures. And we listened: Bill C-32 contains protection measures such as digital locks to protect against piracy and to allow creators to choose how they wish to protect their works.

Artists and creators also told us that they deserve to be fairly compensated for their works, and we listened.

Likewise, consumers asked specifically for legislation that would reflect how content is delivered and stored in a myriad of devices. We listened, which is why this legislation, as the minister said, is technology neutral and clarifies for consumers the fact that they can now legally format shift and time shift the products they have purchased. Bill C-32 is forward-looking and flexible. It implements the WIPO treaties and brings Canada in line with international standards.

During our consultations last summer, Canadians were also clear with us on the issue of fair dealing. They wanted to see it expanded and improved. This bill accommodates that desire by adding education, parody and satire to the existing uses of what is called “fair dealing”. It recognizes legitimate rights of Canadian families, schools and libraries to make use of copyrighted materials for their purposes.

Canadians were also very clear that they do not want to pay unnecessary taxes or new levies on iPods, iPhones, laptops or computers, or even on automobile hard drives that CDs can be ripped directly into. We do not believe this is necessary. We do not think it is right. We think that is an old solution for an old problem and it does not embrace the fact of new media. Our government has been clear that we oppose any new tax or levy, which is why the levy issue has been left out of this legislation.

The government made a commitment to protect businesses, which are absolutely essential to Canada's economic success, and this commitment is at the centre of our copyright modernization bill.

I just want to let the House know about some of the support that this legislation has received. It has been broad based and quite substantial in terms of the number of people who have come on board to support this legislation.

The Entertainment Software Association of Canada, which represents Canada's video gaming industry, supports this legislation. It accounts for over 14,000 jobs across this country. In Montreal, Burnaby, Toronto and Charlottetown, P.E.I., in places all across this country, I met with video game and software developers who support this legislation. Here is what ESAC had to say. It believes this bill is “critical to the success of Canada’s digital economy”; it is good public policy and is essential to our economy. It said:

We applaud the government for showing leadership on this complex issue

The film and television industry also supports this legislation. Over 150,000 jobs are involved in this sector from coast to coast, representing $5.2 billion in the Canadian economy. The Canadian Film and Television Production Association said it applauds the government's copyright reform. The government is playing an important role “in ensuring that those jobs are maintained and that new jobs are added over time”.

Canada's recording industry is a multi-million dollar industry and producer of world-class musical acts in this country. It told us that it wants strong protection for artists to compete with the world's best. We agree and we listened. Let us hear what it has to say about our legislation. The CRIA applauds the government's copyright bill and says, “We thank the government for taking this step to protect the right of artists and other rights holders to earn a living from their work”. These changes are long overdue and welcomed by artists.

The artists themselves are supporting this legislation. Randy Bachman of BTO said the entertainment industry's ability to remain healthy is dependent upon a strong copyright framework. Bill C-32 is moving Canada into the digital and Internet age.

Juno Award winning artist Loreena McKennitt, who has sold over 13 million albums worldwide, said the changes proposed in the bill are “fair and reasonable”.

Independent recording artist Michelle McKibbon thanked the government for introducing Bill C-32, legislation “supporting...artists like myself”.

The Canadian Chambers of Commerce, representing approximately 300 of Canada's business associations and boards of trade, support the bill. They said they believe Bill C-32 “lays the foundation for future economic growth and job creation”.

The president of la Fédération des chambres de commerce du Québec, Françoise Bertrand, believes that Bill C-32 is critical to ensuring a competitive and stable business environment in Canada.

The Canadian Council of Chief Executives, which represents over 150 executives across the country and companies representing $4.5 trillion in assets, supports this legislation. This is what the former Liberal deputy prime minister had to say about this bill. He said Bill C-32 “will provide badly needed protection to Canadians who create music, films, games and other digital works.” Business leaders say it will protect creators and consumers. The government has struck an appropriate balance with its legislation.

The Council of Ministers of Education, CMEC, which represents all of Canada's 13 provinces and territories and their ministers of education, supports this legislation. The chair of CMEC, the minister of education in Nova Scotia, a New Democrat, Marilyn More says:

This legislation provides the clarity we have been looking for.... It is excellent that the bill allows students and educators to use Internet materials in their learning and teaching activities without fear of copyright infringement.

Ministers of education across Canada have responded positively to this new copyright legislation.

We consulted Canadians and we listened to them. We took this course of action because our government and the members on this side of the House know that the contribution made to Canada's economy by Canadian digital industries cannot be downplayed.

Other people have come forward as well to support this legislation. We get the sense that support for this legislation is broad based and substantive, if we look at the folks who are supporting this bill: the television and film industry, the music industry, digital new media folks, the business community and individual artists.

The Canadian Association of Research Libraries said it applauds the government, which has responded to the copyright reform concerns expressed by the library and education community. It stated:

The government has clearly listened to what the library and education communities said

The Globe and Mail said the government's new copyright legislation should be passed.

The newspaper is right. We think this legislation should be passed.

I do not want to go much further into the substance of the legislation beyond what the Minister of Industry had to say, because I have limited time. However, there is one thing that he did not mention that is a critical element of this bill. I hope all members in the House who are interested in this legislation recognize this important element.

The bill mandates that Parliament, every five years, will be forced to revisit and continually modernize Canada's copyright regime. So whether people have concerns about specific elements of this bill and think we should do a little bit more here and a little less there, the reality is that this legislation is an tectonic shift in Canada's regime with regard to copyright reform. We are forcing Parliament, from now forward, to forever make sure that Canada's copyright regime stays up to date.

Canada has not elected a majority Parliament since November 2000. It has been 10 years. As a result of the realities of minority Parliaments, often it is politically challenging for governments to be willing to step forward and to engage in the copyright issue. This legislation forces Parliament, regardless of political pressures, to make sure that Canada's copyright regime stays on the cutting edge so that Canada can continue to create jobs, so that we maintain the reputation that we have around the world as being not only an innovator and a leader in new technology, but also one of those countries that protects the rights of creators to have their works protected by law.

[Scott Simms, Liberal, Bonavista—Gander—Grand Falls—Windsor, NL]

Madam Speaker, I want to thank the minister for finally getting to this issue. I do not lay blame on any particular party. This is an issue that we have been dealing with, but under the radar. We have seldom dealt with it in the House, which is what we should be doing, and I congratulate all members for getting involved in this particular debate.

Specifically regarding the WIPO ratification, could the minister please point out in this bill where we are WIPO compliant particularly? What has compelled him to be WIPO compliant?

As well, this particular government has already put in one copyright bill. That was from some time ago. What has changed in Bill C-32 from the prior bill that he has put in the House? What does he consider the fundamental change?

Finally, he talked about the iPod levy. Could he please point out in the bill where he addresses the iPod levy exactly?

[Tony Clement, Conservative, Parry Sound—Muskoka, ON]

Mr. Speaker, as I was saying before you rightly interrupted me, I am pleased to speak today to begin second reading of Bill C-32, the Copyright Modernization Act.

This bill is a key pillar in the commitment this government made in the Speech from the Throne to position Canada as a leader in the global digital economy. We promised a bill that would modernize Canada's copyright law for the digital age, protect and create jobs, promote innovation and attract new investment to Canada.

With this bill, we are ensuring that Canada's Copyright Act is focused on the future and is responsive to an environment in which things happen quickly and change is constant.

A primary aim of any copyright reform must be balance. The copyright system must find a balance between interests that can seem to be competing, for example, between consumers who want access to material and artists and innovators who want to be and should be rewarded for their creativity.

However as hon. members are well aware, finding that balance can be and has been very difficult. It has eluded the House for over a decade, and balance for one group may be seen as unfair to another.

From July to September of last year, the hon. heritage minister and I held a national consultation on copyright issues. The bill before us was guided by the input of thousands of Canadians, creators, consumers, businesses, educators and intermediaries.

Let me begin with creators. During the consultations, creators told us they needed new rights and protections to succeed in a digital environment, and so the bill before us implements those kinds of rights and protections of the WIPO Internet Treaties and paves the way for a future decision on ratification.

The bill also empowers copyright owners to pursue those who enable copyright infringement, such as illegal peer-to-peer file sharing websites. At the same time, Canadians participating in the consultations told us they did not think it was fair for consumers to face exorbitant penalties for minor copyright infringement, and so the bill before us significantly reduces existing penalties for non-commercial infringement. It introduces the test of proportionality as a factor for the courts to consider when awarding statutory damages.

This brings me to the perspective of consumers and users. During the consultations, Canadians told us they wanted to use the content they had legally acquired. They wanted to time-shift television programs. They wanted to shift format from CDs to iPods. They wanted to post mashups on the web. They wanted to make backup copies.

Canadians will be able to record television, radio and Internet programming to enjoy it at a later time, if the bill is passed, with no restrictions as to the device or medium they wish to use. Just as important, this bill would remove any barriers in the Copyright Act to the introduction of new technologies like the network personal video recorder and cloud computing. The latter is critical to Canada's ability to participate in the digital world as a full partner. As well, for their private use, Canadians will be able to copy any legitimately acquired music, film or any other works on to any device or medium and make a backup copy.

There are some who would argue that consumers should have to pay a levy on iPods, smart phones and Internet services, the iPod tax as it were, to compensate artists. We disagree. We oppose the iPod tax as regressive, unfair and economically destructive. Why should consumers pay more for an iPhone or a BlackBerry even if the device is not used for music? It is unfair. It would make devices costlier, would not prevent piracy and would encourage more black markets.

Let us help artists by cracking down on those who would destroy value, not innocent purchasers of hardware.

Let us return to the provisions of the bill. The bill permits the inclusion of copyrighted material in user-generated content created for non-commercial purposes. The provisions will not interfere with markets for the original work, nor will they disrupt the growth of business models that have developed around the dissemination of user-generated content online.

The bill also includes important new measures for the print-disabled. Recognizing the opportunities that today's technology allows, it permits a person to adapt a copyright work into an accessible format on his or her own behalf.

For computer program innovators, the bill includes measures to enable activities related to reverse engineering for software interoperability, security testing and encryption research. It clarifies that the making of temporary technical and incidental reproductions of copyrighted material as a part of a technological process is acceptable.

What did we hear in our consultations from educators, museums and researchers? They told us that they needed more flexibility to use copyright material in the service of education and learning. The bill proposes new exceptions that would recognize the enormous potential that technology offers students.

The bill before us expands the existing uses allowed as fair dealing. It adds education, parody and satire, reconfirming this government's commitment to structured education and creativity.

We are building on a well-established feature of Canadian copyright law to respond to and meet the needs of educators, be they in the classroom, in a home-school setting or for training in the workplace.

Finally, let me outline how this bill responds to the needs of Internet service providers. The bill clarifies that ISPs and search engines are exempt from liability when they act strictly as intermediaries in communication, caching and hosting activities, but at the same time, ISPs will play a role in helping combat copyright infringement.

Fair, balanced and technologically neutral, this bill accomplishes all of these things, but it also helps our economy by encouraging two of the most powerful forces we have, consumers and creators. They are sometimes the same people. Regardless, they are the force that guarantees that Canadians are innovators and are capable of growing the knowledge economy. But consumers and creators cannot do it alone. They need modern copyright laws, and that is what Bill C-32 is all about.

[Tony Clement, Conservative, Minister of Industry]

moved that Bill C-32, An Act to amend the Copyright Act, be read the second time and referred to a committee.

Mr. Speaker, if it were possible I would like to split my time with my hon. colleague, the Minister of Canadian Heritage and Official Languages.

I am pleased to speak today to begin second reading—

Business of the House

[John Baird, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, certainly in the course of my comments I will answer both of those questions. We will continue debate today on Bill C-49, the preventing human smugglers from abusing Canada's immigration system act.

Tomorrow we will call Bill C-36, the consumer product safety bill. Since it was only reported back from committee today, we will need to adopt a special order, which I will propose after my statement. This is a bill that will help protect children, help protect families, and I think it speaks incredibly well of all four political parties that they put politics aside and are seeking speedy passage of the bill. So I would like to thank everyone in all parties for their support on this important initiative. It is a good day for Parliament.

On Monday, we will continue debate on Bill C-47, the second budget implementation bill. I know the member opposite has been waiting for this and I hope he will have the opportunity to speak to this important piece of legislation.

That would be followed by Bill C-49, the preventing human smugglers from abusing Canada's immigration system act; Bill S-2, regarding the sex offenders registry; Bill S-3, the tax conventions; Bill C-41, strengthening military justice; Bill C-48, the protecting Canadians by ending sentence discounts for multiple murders act; Bill C-29, safeguarding Canadians' personal information; and Bill C-30, on the Supreme Court of Canada decision in R. v. Shoker.

On Tuesday, we will call Bill C-32, copyright modernization. At the conclusion of debate on the bill, we will call Bill C-48, protecting Canadians by ending sentence discounts for multiple murders. Following Bill C-48, we will return to the list for Monday, starting with the budget implementation act, which again speaks to one of the member's questions.

On Tuesday evening we will have a take note debate on honouring our veterans and I will be moving the appropriate motion in a few minutes. I think it again speaks well that we are having a take note debate. I know the member for Vancouver East joined members of the Liberal Party, the Bloc Québécois and the Conservative Party in supporting this.

Thursday shall be an allotted day for the New Democratic Party, an opposition day as requested by the House leader for the official opposition.

Therefore, consultations have taken place among the parties and I am pleased to move:

That a take-note debate on the subject of the courageous contribution and service to Canada by Canada's Veterans take place pursuant to Standing Order 53.1, on Tuesday, November 2, 2010.

[Pamela Walsh]

Finally, I would like to discuss an issue of importance to Canada's current and future access to the digital economy. The copyright bill, Bill C-32, is positive in many respects, as it moves many current fair use practices, supported by the courts, into legislation. However, if this bill is passed as proposed, these rights can be taken away through the lock provisions within the bill. We encourage all members to look at this bill carefully as it relates to the future of digital access.

To finish, our submission asks members to consider: one, the need for increased investment in support of the digital economy; two, the potential of e-learning to support the digital economy; and three, the need for further consideration of changes to Bill C-32.

The university would welcome the opportunity to engage in further dialogue on any of these topics.

Thank you very much.

Safeguarding Canadians' Personal Information Act

[James Moore, Conservative, Minister of Canadian Heritage and Official Languages]

Mr. Speaker, I want to respond to the member from the New Democrat Party. I know that the member for Eglinton—Lawrence was on a roll about chihuahua governments, but I will bring him back to the issue at hand.

The member from the NDP asked what the government was doing about e-commerce. What 1995 language. It demonstrates a gap between what is actually happening in the digital field versus what was happening in the 1990s. I will speak on my own portfolio, as Minister of Canadian Heritage. We are proud of digitizing government content and ensuring that Canadian content is being supported as never before in the new media.

First, we put forward Bill C-32, a good-faith, comprehensive effort to modernize copyright legislation. We are prepared to work with all opposition parties to ensure that this legislation is effective. We have a stand-alone legislative committee, and this bill is going to go forward and help to advance in the digital economy. The first thing that the government has to do is protect people from those who want to harm Canada's creators by stealing from them, ripping them off and legitimizing piracy. We are going to do that.

There are other things that we have done in my department. We have created the Canada media fund. Previously, we had the Canada television fund and the Canada new media fund. To support digital products by Canada's creators, we merged the two to create the Canada media fund. We wanted to ensure that these products are available on the platforms that our media creators choose, not only to support television content but also to support new media, video games, stuff that is streaming online, and stuff that is available for download. We wanted to ensure that Canada's creators have access to more money than ever before to support the creation of content in the digital platform that they choose.

Although we were in a recession, we made a commitment in the last election campaign to maintain or increase funding for the CBC. We have kept our word. The reason is that the CBC has modernized itself. It has become a true pan-Canadian multimedia platform for Canadian content. We have worked with the CBC to ensure that this is the role that it performs. The National Film Board has iPad and iPhone apps that for the first time make it possible to stream Canadian digital content online. Tens of thousands of Canadian films and shorts, children's shows, and documentaries are available online, free, through the web, through iPad apps. We have gone across the board. There is a publications fund to support the digitization of magazines.

No other government in Canadian history has made a more comprehensive and aggressive effort to ensure the digitization of Canadian content and government information.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Thank you.

We've had the example of this great digital realm being like the Canadian Pacific Railway, yet it seems to me we continue to move on the idea that digital culture is something to be contained, as if we didn't want the railway to compete with the teamster horses so we have to limit how many tracks we're going to have.

Ms. Moore, I'd like to go to you on this. It seems to me that the notion of lifelong learning through digital education is crucial, yet we see with the imposition of digital locks. Rights that educators or students would normally have can be erased, and within Bill C-32 we actually see the provision of having to destroy class notes after 30 days because keeping your class notes would be some kind of threat.

I'd like to ask what you think of that. We look at our WIPO-compliant competitors, and within WIPO the digital lock provisions are really clear. Article 10 of the WIPO copyright treaty says that you can't use these measures like digital locks to override rights to normal use of a work. How do you think that allowing a software code designed by a corporation to limit, to deny, to exclude any kind of access arbitrarily will interfere with our ability to set up a truly forward-looking knowledge regime?

[Pablo Rodriguez, Liberal, Honoré-Mercier, QC]

Thank you, Mr. Chair.

Ms. Moore, as far as Bill C-32 goes, An Act to amend the Copyright Act, it will be discussed by another committee. It will not be the industry committee doing the study, but a legislative committee. So even though it is very much related to today's topic, another committee will be carrying out the study. I just wanted to let you know that.

Good afternoon, and thank you all for being here. Mr. Hennessy, we have discussed this issue before. You are here today to talk about emerging and digital media, and the opportunities, challenges and terms of reference that entails. That covers a number of elements. You had the choice of addressing any one or more of those aspects, and you chose to focus on foreign ownership.

According to your logic, if we open up telecommunications to foreign ownership—and we must first decide whether we are going to and, if so, to what extent—then we must also do so in broadcasting.

That concerns me on many levels because I get the sense that there would no longer be any limits at that point. I get the sense that you are willing to open up our companies that operate under the Telecommunications Act to foreign interests. You are also willing to open up companies that operate under the Broadcasting Act to foreign ownership.

Obviously, as you, yourself, said, everything is integrated. There is tremendous vertical integration. Just about everyone today is involved in telephone communications, broadcasting, content and so forth. I am very uncomfortable with the idea of opening things up that way, because I worry about what we would be left with in Canada. What would we be left with in terms of broadcasting companies and ultimately creative companies, those involved in producing content? If I were to apply your logic on liberalization, there would no longer be any limits whatsoever, and just about everything would be open. The way I see it, that would likely harm Canada's cultural industries.

So I want to know whether you envision any limits in your approach. For instance, should we open up only some of the broadcasting sector to foreign ownership, or all of it? In that case, should foreign ownership be limited to 49%, or should full ownership be allowed? Should these companies have to pass certain tests before they could be accepted? I would like you to elaborate a bit more on that, please.

[Kelly Moore, Executive Director, Canadian Library Association]

Thank you, Mr. Chair, and thank you for this opportunity to participate in this committee's study of emerging and digital media.

My name is Kelly Moore. I'm the executive director of the Canadian Library Association. CLA is Canada's largest national and broad-based library association, representing the interests of public, academic, school, and special libraries, professional librarians, library workers, and trustees, and all those concerned about enhancing the quality of life of Canadians through information and literacy.

Libraries of all kinds serve two primary functions: to provide access to information in whatever format it is produced or used, and to preserve information to ensure that it may be accessed in future. The digital revolution has caused an explosion in both the quantity of information and the variety of formats being produced, and the rate of change in technology is impacting information in ways we may not even understand. Certainly without strong digital and information policies, we risk losing material simply because we can no longer access it in the format in which it was produced.

Libraries are working to keep pace with the necessary changes to the ways we provide access, the materials we collect, the formats we preserve. Long gone are the days when a library's information was measured by stacks of books and drawers of card catalogues. Today, libraries are true centres of information within communities, schools, research institutions, and public and private sector work environments. In terms of digital information, libraries provide access not just to the Internet generally but also to electronic databases, e-journals, data sets, and other resources that are impractical or unaffordable for individuals themselves to maintain.

Libraries in Canada have some demonstrated successes with emerging and digital media. One key example is the metadata that allows digital images to be retrieved and which was developed by librarians. In Canada, initiatives such as Canadiana.org, already mentioned by Mr. Wilson, and the OurOntario project are using this metadata to help researchers access the digital files of items held in various different collections through a single search. It's no longer necessary to know that you must search for particular items in the holdings of a specific institution; you can find related items located in different physical spaces through a single virtual access point.

I would like to highlight some suggestions that CLA believes will help Canadians to meet the challenges and take advantage of the opportunities presented by emerging and digital media. For the most part, they will speak to questions 4, 5, and 6 in the terms of reference that this committee set out for the study. I will look at the need for a national digital strategy, the effect on copyright, access to broadband services, and the importance of open access to public information.

So what policies can the federal government develop to ensure that Canadians have both access to emerging and digital media and the skills needed to make the best use of the opportunities that these media provide? The first is the development of a national digital strategy. As has been mentioned in earlier submissions, various countries around the world have been investing in national strategies to take advantage of digital initiatives. Canada has no such plan to strategically digitize existing analog material to make it available online and to preserve and provide ongoing access to digitized or born-digital material. At present, there is no comprehensive overview of digitization projects already under way across the country. Efforts to develop and implement the national digital strategy are crucial to ensure that all information of enduring value to Canadians is and will continue to made accessible.

Such a digital strategy must also take into account the need for access to information at all stages of life. Canada's classrooms now have access to an unparalleled assortment of Internet and electronic copyrighted resources that allow for excellent access to information; however, too often access to such resources is limited to students, and there is often little opportunity for similar levels of access after students graduate. So these same resources must become seamlessly available to individuals as they progress through their careers. This will require support for the creation and purchase of digital content available to Canadians through public and academic libraries and in their work environments. In short, we must not let the fact that someone is no longer a student limit their ability to learn.

We must pass and implement a balanced copyright legislation. It is important to underline how decisions we make about copyright today will affect access in the future. CLA has issued a position paper on Bill C-32, and I believe that this committee, in some capacity, will be dealing with it in the coming months, but it is important here to reinforce the need for balanced copyright to truly benefit from emerging and digital media.

While there are elements of the bill that are very good, we are concerned that Bill C-32, as written, is not balanced. It provides copyright holders of material in an electronic format with almost unlimited power to determine the conditions under which people may use the material.

Libraries are built on the concept that most creative and innovative individuals cannot afford to purchase all of the material they must consult during their lives. All copyrighted material should be reasonably available through libraries, and copyright holders should not be allowed to lock out public use. Digital locks will act as a brake on the development of new applications and services. Allowing copyright holders the ability to determine how their products will be used creates barriers to the development of content for the new digital media.

The third point is to ensure access to sufficient bandwidth. In consideration of the impact of digital media, it is important that we think about how this information actually gets to users. There's a need to ensure that all Canadians have the means to access services and cultural content. Certainly access to broadband Internet in rural areas is a challenge that can affect the ability to take advantage of digital media. It is equally important to recognize that while there is sufficient bandwidth in most Canadian cities, cities are also places where the economically disadvantaged, new Canadians, and people with special needs who require services tend to reside. These Canadians often cannot afford broadband access, even when it is physically available to them. In order to participate in the digital environment, many urban residents also need high-speed Internet access in public places.

Libraries are here to fill this role. As Canada develops more digital content, more Canadians, both rural and urban, will turn to libraries for assistance. The reasons are clear. Libraries offer direction, assistance, and access to the technologies people require. For example, it is almost impossible for unemployed Canadians to find appropriate jobs without regularly checking online sites and having the ability to submit resumés electronically. The community access program offers some rudimentary access in this regard but is currently without secure funding. As we move forward, it will be important that CAP is strengthened and guaranteed.

The final point is to implement open access policies for public information and data. Emerging digital media requires content, and quality content can be developed through open access to Canada's public sector information and data. We encourage the government to make its information freely available in machine-readable formats based on common standards that can be exploited without the use of specific software.

There should also be a mandate from all major federal granting agencies that requires open access to publicly funded research. All researchers supported by Canadian taxpayers would be required to make public the published results of their research and the research data, with an embargo period of no more than six months. This initiative has already been undertaken in other national jurisdictions.

I want to thank you again for the opportunity to appear here today, and I will welcome any questions you might have. Thank you.

[Anne-Marie Jean, Executive Director, Culture Montréal]

Mr. Vice-chair, ladies and gentlemen, members of the committee.

Ladies and gentlemen, good morning.

Culture Montréal would like to emphasize the importance of maintaining and strengthening support for culture and the arts as a way of stimulating the economy.

Culture Montréal is an independent organization and place for reflection and action that contributes to building Montreal's future as a cultural metropolis through research, analysis, and communication activities. Culture Montréal contributes to the branding of Montreal as a cultural metropolis at the national and international levels.

Over the years, many studies have shown that culture and the arts are powerful levers for social and economic development. The arts and culture sector is resilient, very flexible and creates jobs. Investing in it stimulates the economy, thereby helping the federal government in its bid to rebalance the budget.

A recent study done by the Board of Trade of Metropolitan Montreal, Culture in Montreal: Economic Impacts and Private Funding, found that the cultural sector generates close to 100,000 direct jobs in the city, with an annual growth rate of 4.6% for the last 10 years, almost three times the total labour market average.

Another study carried out in 2009, L’économie des arts en temps de crise, showed the instability of artistic and cultural organizations in Quebec while also highlighting their exceptional resilience and flexibility during the economic downturn. Cultural organizations proposed various short-term solutions and came up with innovative long-term solutions that would encourage development and protect the sector from future economic disruptions.

Culture Montréal believes that to improve the competitiveness of the Canadian economy, Canada must pursue its strategic plans to encourage investment, creating sustainable jobs that will last beyond Canada's Economic Action Plan. This is why looking ahead to the 2011 budget, Culture Montréal recommends that the federal government increase its investment in the arts and culture sector to ensure that it grows and to maximize the economic and social spinoffs; that it encourage international recognition for Canadian artists and creators; that it contribute more to developing and maintaining cultural infrastructure, and more specifically increasing and improving areas to create, produce and broadcast and that it continue developing the Lachine canal, Old Montreal, the Old Port of Montreal and the Bassins du Nouveau Havre; that it establish new support measures for encouraging attendance at artistic and cultural events and for acquiring works of art; that it enact legislation to preserve and value our cultural heritage and pair it with an action plan with the provinces and territories, in keeping with the international conventions Canada has signed; that it establish a policy to integrate arts and architecture in federal buildings and that it increase access to employment insurance for all self-employed workers to create a better social safety net in Canada.

Without taking away from what we have already accomplished, the legislation should contain provisions allowing self-employed workers to join a public employment insurance system.

In conclusion, we wish to have the Government of Canada recognize the essential contribution of artists to the social and economic development of Canada and of Canadians, and that this recognition be made clear in all its policies, programs and bills. Bill C-32, An Act to amend the Copyright Act, for instance, must guarantee artists adequate compensation and value intellectual property. Creators, like all other Canadians, must be able to make a decent living from the fruits of their labour.

Thank you for your attention.

[Chris Tabor]

The tariff was first adopted in 1998-99 as part of, coincidently, Bill C-32. The policy impact statement was vague then. So the purpose of it, for us, has always been questionable. There's no explanation as to what the intended benefits would be, how they would--

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

We want to know why the agreement is not being negotiated by an existing forum. In particular, as far as Bill C-32 is concerned, how can Heritage Canada and the Government of Canada put copyright legislation on the table while they are negotiating at the same time copyright arrangements with other countries.

Fighting Internet and Wireless Spam Act

[Scott Simms, Liberal, Bonavista—Gander—Grand Falls—Windsor, NL]

Mr. Speaker, I was going to start off with some of the technical matters at the very beginning, including the title of the bill and some of the functions in clause-by-clause material, but I do want to pick up on one thing that was brought up by my colleague from Sudbury.

He talked about seniors, and this is a perfect illustration of why we work in this House to legislate practices like this, because many seniors now are using devices such as Facebook and text messaging. Pictures can be transferred through our phones now and that sort of thing. A lot of seniors get these emails and a lot of them become victims as a result in many cases. One of the reasons is that it is hard for public relations campaigns, such as Crime Stoppers and others, to keep the pace going with the methods with which they are communicating and getting their bad products out there. It started out with just emails. Now we have things such as text messaging and Facebook.

My hon. colleague brings up a good point. We are looking at victims now, and because the seniors' ranks are becoming much larger because of what we call the baby-boom effect, we do have to keep pace with legislation much more quickly than we have been thus far. I would have to say that we have been a little too delayed in this particular bill, but nonetheless we have it here and it is nice to see that all parties are in support and that we are going to do this exercise once again. I say “once again”, because we started out with Bill C-27, which was left over from the last session. Now we find ourselves with Bill C-28, and some modifications have taken place since then, which I will touch upon in just a few moments, but this indeed does look to enact an electronic commerce protection act, prohibiting the sending of electronic commercial messages, or spam email, without the prior consent of recipients.

One of the key elements of this is going to be the idea of consent and just how we have to formalize this. Not only that, but we have had to expand the idea of what consent means, whether it is implied or not. As we know, if we are dealing with websites, many of them prompt us for contact information and there is always that disclaimer or a box that we have to click on, giving consent to receive unsolicited email. That has to be brought into context.

We have to talk about the international context, which my hon. colleague from Mississauga South mentioned earlier. That is to say that in the context of the G8 we are the last ones to get on board, so it is time we saddled up to this particular issue and did it the right way. I would implore all members to send this to committee as soon as possible, similar to the last go-round with Bill C-27. Some modifications were made in Bill C-27 that help with the language and allow it to be a little more flexible.

This is not on the floor yet, but when we talk about the copyright bill, Bill C-32, which is on the order paper and hopefully will come up for debate pretty soon, we are looking at ways in which the context of digital technology is changing the way we act as legislators. Flexibility is required. Mr. Speaker, I am sure you will agree with me that in the context of flexibility, the legislation has to be devised and written so that it can be enforced in a way that gives people protection and preserves their rights but at the same time goes after the people out to do nefarious things, in other words, circumvent laws, whether it be about copyright and digital locks in Bill C-32 or, in this particular case, getting around the consent for people to receive this information. Sometimes these people are very deceptive. They pretend to be what they are not. They shroud themselves in a realm of legitimacy.

Whether they call themselves a bank or a financial institution, they parade themselves as such and become a part of a person's life or know they can get involved in a person's life by pretending to be something that has a great reputation. With the imagination of using emails, Facebook and messaging, they have ways of doing this. It seems there are advances every day in the criminality of this type of activity. So we have to look at that.

The other issue we have to look at, of course, is digital technology itself and how it proliferates in a short period of time. When we first tackled the issue in the House, we looked at it through a panel. We set up a panel to decide how we were going to deal with all the spam email. Billions of dollars every year are spent on trying to cut down on spam email. It now constitutes the majority of traffic around the world when it comes to e-commerce and emailing in general, for that matter.

We can well imagine that back then, as it was becoming a problem, we set up a panel. That was in 2004 and 2005 when we were primarily looking at emails. There was just that one form of communication that we were focused on. Since then, we have text messages and Facebook, which was not looked at in 2004-05 as it is a relatively new concept, and other modes of communication such as texting.

Right now, Mr. Speaker, I can take a picture of you and send it around the world. How about that?

[James Moore, Conservative, Minister of Canadian Heritage and Official Languages]

Madam Speaker, I was not really prepared to discuss this question from my Bloc Québécois colleague, but we are here to discuss the important matter of the firearms registry. I will take this opportunity to point out that our government is against a new tax, which goes against the interests of consumers, on iPods, BlackBerrys, computers, automobiles, laptops and anything else that is capable of playing music. But that is what the Bloc Québécois is proposing.

I understand the concerns she has raised about copyright, and that is why our government introduced Bill C-32, which would modernize our country's copyright laws. We conducted unprecedented consultations to ensure that everyone was involved in the copyright debate. As a result of our consultations, we introduced Bill C-32, a very responsible bill for both consumers and artists.

What we are talking about here is the fact that the NDP, the Liberals and the Bloc Québécois want to impose a huge new tax on consumers. The last time that the Bloc Québécois spoke here, the last time that this tax was proposed, it was a new $75 tax on every iPod, BlackBerry, computer and laptop, on anything that is capable of playing music.

This idea of imposing a new tax on iPods and MP3 players is not a new idea because there are very few new ideas, unfortunately, that come from the opposition on the issues of copyright and taxes. However, this idea is really toxic and, frankly, really dumb. This would punish consumers if we were to put in place a tax of up to $75 on iPods, Blackberries, cell phones, laptops, computers, memory sticks and automobiles, anything that is capable of playing digital music.

I understand the idea of modernizing the private copying levy and I understand the desire, but every time the opposition has come up with an idea with regard to this, I can say, as we have looked at this issue and we have struggled with this issue, that it gets very tricky.

This simplistic idea that has been put forward by the opposition, the Bloc Québécois, the NDP and the Liberal Party, with regard to a new iPod tax is incredibly shortsighted and it is an incredibly bad idea for consumers. It is not the way to go. We have artist after artist who has come forward and said that this is not the way to go.

We will go forward as a government will Bill C-32, the modernizing copyright legislation. We are prepared to work with the opposition parties to ensure the legislation is in the interest of consumers and in the interest of creators. We will not support an amendment to our copyright bill that puts in place a massive new tax on consumers. We will not support that. It will not happen.

However, we are more than prepared to take forward reasonable ideas to ensure that artists' creations are protected and to ensure that just compensation and the framework for that, through effective copyright legislation, goes forward. We also want to ensure that the legislation takes care of what is in the best interests of consumers.

This idea from the Bloc Québécois is a massive tax increase on consumers. It does not achieve the balance that we want to achieve, which is in the interest of consumers and creators, and we will block every effort by the NDP and the Bloc Québécois to put forward any tax on consumers that will punish consumers and do nothing that is in the long-term interest of creators.

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

Mr. Speaker, it is my great pleasure to be back in the late show once again. As you know, I have often taken part because we never get good answers to the questions we ask in the House. Question period is aptly named; it certainly is not answer period.

On April 20, I asked the Minister of Canadian Heritage a question in the House because he had stated the day before that only ADISQ was in favour of a royalty on MP3s. Everyone knows that an MP3 royalty is not a tax. It is money paid to a collective society that distributes rights, and that money is redistributed to artists according to a complex but fair formula.

Members of all of our households have purchased CDs and made copies for our MP3 players. We used to burn copies on blank CDs to play in our cars, and long before that, we made copies on four-track cassettes. These days, we are making fewer and fewer copies on four-track cassettes and CDs.

The current law, a descendant of the long-ago Bill C-42, recognizes the principle of private copying. We know that people make copies for themselves, and that is why royalties exist. They compensate for the shortfall in copyright revenue that artists might receive. They do not exist to legalize copying for any purpose or in any way whatsoever. Their purpose is not to market copies—anything but. They exist so that consumers do not feel like thieves every time they make a personal copy to listen to on their computer or MP3 player.

Of course we cannot purchase as many original CDs by a single artist as we have devices in our homes. The principle of private copying allows a family that purchases a CD to copy it to various media. Naturally, when the current legislation was passed in 1995, MP3 players did not exist. They do now. We are asking, have asked and will continue to ask the government, in the next few weeks, months and over the course of the year, when discussing Bill C-32, to update the legislative provisions for private copying by ensuring that not only will there be a levy on CDs, not only will there be a levy on cassettes, but there will also be a levy on MP3 players such as iPods. Nothing more, nothing less.

I know that in a few minutes my Conservative colleague will reply that it will cost $75 per device. An amount has never been set but it is obvious that this is a reasonable amount. We pay 29¢ in royalties on all blank cassettes and CDs. That is not a tax. We said it before and we will say it again. It is not in any way a tax. A tax is paid to government but in this case the payment goes to the artists. It is quite simply a royalty paid to artists. We already do this when we purchase an original CD of a musical work because a portion of the money is paid to the artist for copyright.

That was the purpose of my question.

Copyright

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

Mr. Speaker, groups of Quebec's artists, creators, authors, publishers and even consumers are opposed to Bill C-32 on copyright because the bill ignores the consensus of the Quebec cultural community concerning the remuneration of artists through levies on digital audio recorders and through making Internet service providers more accountable.

Will the Minister of Canadian Heritage and Official Languages admit that everyone in Quebec is opposed to his copyright vision, which benefits neither creators nor consumers?

[Dean Del Mastro, Conservative, Parliamentary Secretary to the Minister of Canadian Heritage]

Mr. Speaker, that was remarkable. The member jumped back and forth between both groups on both sides and talked both in favour of stronger, more prohibitive copyright legislation and weaker copyright legislation in the exact same speech. It is remarkable.

When we write a copyright bill, such as Bill C-32, it is about the appropriate balance.

The member is going to get angry when I say this. She has advocated on behalf of a tax on iPods, MP3s, laptops, PDAs, and BlackBerrys. She wants to put a tax on them. She wants consumers to pay this tax into some conglomerate fund which would then trickle down to the artists. We do not want to tax consumers.

She talked about how consumer groups are upset about digital locks. It is interesting. I gather from the member's speech that she is in favour of circumvention of digital locks. These are the technological protection measures that would protect against people buying a DVD, putting it on their computer and then sending it out to the Internet.

Under her provision, she is saying that they should be able to do that. It would not pay actors and it certainly would not pay the movie companies, but she is saying that she would put a levy on iPods and so forth so that she could then give the money to music artists for people who break the digital locks on movies and then send them out to the Internet. This does not make any sense at all. The people at home have to be confused. As I talk this out, her positions are in complete contrast with one another.

Bill C-32 is about balance. It is about balancing the rights of consumers and the rights of rights holders. That is why groups across the spectrum, musicians, actors, film companies, students, schools, have come forward and said that it is a balanced bill. Is it perfect? It is pretty tough to write a perfect copyright bill by its very nature. People are going to say they would really like to have just a little bit more rights one way or the other. Consumers would like just a bit more liberty in some ways and rights holders would like to have a bit more protection in some ways. It is about balancing the two.

What people cannot do is argue both in favour of stronger copyright rules and weaker copyright rules and somehow come out with a bill at the other end.

What she has proposed in her speech just a few minutes ago would anger artists and consumers at the exact same time. The member comes from Quebec. I am sure she knows that Montreal is the number three destination for the creation of video games in the world. The position the member is arguing is contrary to those software creators. They are the ones who are asking for technological protection measures to protect the work they are doing in the video game software industry. I cannot believe she would argue that we should not have digital locks on these things.

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

Mr. Speaker, on April 19, I asked the Minister of Canadian Heritage and Official Languages a question in this House about royalties on MP3s and copyrights. The minister told me to wait to see his bill in order to discuss it with full knowledge of the facts. I can now discuss it with full knowledge of the facts, for we have seen the bill.

The minister was tweeting again today on Twitter. He said that Bill C-32 was fair and had broad and deep support from across Canada, including from consumers, provincial ministers, the software industry, the music, film and television industries, small businesses, chambers of commerce and photographers.

Nothing could be further from the truth. We have seen that creators, artists, cultural organizations and the publishing community do not support this bill. Only businesses support it. I do not know what planet he lives on if he really believes that the bill has broad support across Canada.

Every day we receive press releases, open letters and opinion pieces criticizing this bill. I receive them from people not only from Quebec, but from the rest of Canada.

Today, the Canadian Consumer Initiative wrote to the minister to tell him that he was completely out to lunch on Monday, when, in answer to a question, he told me that this bill had the support of consumers and that the Canadian Chamber of Commerce acts in the best interests of the Conservatives, I mean consumers. That was a Freudian slip. It acts in the best interests of the Conservatives, not consumers.

The Canadian Consumer Initiative set the record straight and again condemned the protection of digital locks and the anti-circumvention provisions in the current bill. The letter goes on to say that, in the opinion of the initiative's members, the bill's provisions undermine Canadian consumer interests. I am not the one saying this; it is the Canadian Consumer Initiative, which is made up of four of Canada's largest consumer associations: the Consumers Council of Canada, the Public Interest Advocacy Centre, Option consommateurs and the Union des consommateurs.

When the Minister of Canadian Heritage and Official Languages confuses a chamber of commerce with a consumer advocacy group, we wonder where we are going with this sort of argument. We wonder whether it is really worthwhile talking to someone who does not know what he is talking about.

Today, the Association nationale des éditeurs de livres, ANEL, weighed in on this issue. It said that its board of directors had voted on a strong resolution against Bill C-32. According to ANEL, which is a Canada-wide association, new exceptions to fair use will deprive copyright holders of income they would normally receive. After examining all the provisions as a whole, in an attempt to anticipate the effects of the marketplace, the ANEL board of directors concluded that the bill would lead to the collapse of educational publishing, create serious difficulties for their collective and represent an obstacle to the development of its digital strategy. ANEL also concluded that it was a direct attack on traditional Quebec values of support for creators.

I would like to take a few moments to talk about AGAMM, which includes almost every big name in the Quebec music industry. This organization proposed that the minister have Internet service providers make a financial contribution consisting of a percentage of their sales revenues to music rights holders.

I do not have time to talk about ADISQ. I will let my colleague answer and come back to that.

[James Moore, Conservative, Minister of Canadian Heritage and Official Languages]

Mr. Speaker, Bill C-32, which we introduced in the House of Commons, is fair to both consumers and creators.

The Canadian Film and Television Production Association applauds the government’s proposed copyright reform. Film, television and online content creation is responsible for more than 160,000 jobs in Canada.

The government’s actions play an important part in ensuring that those jobs are maintained and that new jobs are added. We kept the promises that we made to creators and consumers.

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

Mr. Speaker, artists and creators are very critical of Bill C-32, the copyright bill. The bill's new digital lock will not help, because they will have to play the part of investigator, detective and lawyer—just like Claude Robinson—if they want their rights to be respected.

Does the minister understand that by forcing creators, artists and artisans to enforce their rights themselves, he is not giving copyright holders enough protection?

[James Moore, Conservative, Minister of Canadian Heritage and Official Languages]

Mr. Speaker, we are here. After the last election campaign, we made a commitment to Canadians in our throne speech to strengthen our system of copyright laws, which we have done. We have introduced our Bill C-32 here in the House to improve our copyright laws. This bill is balanced, and it serves the interests of consumers and creators.

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

Mr. Speaker, the government's Bill C-32, which is supposed to protect copyright, will allow people to copy any legitimately acquired work onto the device of their choice for personal use, without fear of repercussions. However, the ADISQ, UDA, Canadian Private Copying Collective and SPACQ would have preferred a levy on digital players like the one on blank CDs, which a House majority recently voted for.

Why is the government refusing to ensure that creators receive fair compensation?

Copyright Legislation

[James Moore, Conservative, Minister of Canadian Heritage and Official Languages]

Mr. Speaker, I will answer the serious part of the question, which is that we are very proud to announce that we have tabled Bill C-32, Canada's efforts to modernize Canada's copyright laws.

This is important legislation. It means jobs, it means protecting consumers and it means modernizing Canada's copyright legislation that is long overdue. This has been well received by a broad cross-section of groups across the country.

As my colleague might be interested to know, the Canadian Independent Music Association said, “Thank you for protecting the rights of artists to earn a living from their work”.

This is in the best interest of all Canadians.

Copyright Modernization Act

[Jay Hill, Conservative, Prince George—Peace River, BC]

moved for leave to introduce Bill C-32, An Act to amend the Copyright Act.

(Motions deemed adopted, bill read the first time and printed)