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.

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.

December 1st, 2010 / 5:15 p.m.


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Canada Research Chair, Internet and E-commerce Law, University of Ottawa, As an Individual

Prof. Michael Geist

Sure.

The notion of free dealing is one that is foreign to our copyright law, and indeed it's foreign to most copyright laws that I'm aware of. It is the notion that someone has the unfettered right to copy without any sort of compensation. A rights holder can choose to make their work available in that fashion, but you wouldn't typically find that in a copyright law.

Our law is no different. What our fair-dealing provision provides, as I mentioned at the outset, is essentially a two-stage test. It first identifies the kinds of specific categories that may qualify as a potentially fair dealing. Other countries have done away with this altogether. For example, in the United States there are no categories at all. Anything can potentially be, in their terms, a fair use. In Canada you first actually have to qualify for one of those categories. The changes within Bill C-32 expand the categories by establishing that parody, satire, and education would be new categories, but, critically, there is a second step, and this would be true for the United States and would be true here as well.

That second step is a full fairness analysis to determine whether or not the copying itself actually is fair. It is a six-part test that the Supreme Court of Canada has identified to take a look at how much is being copied, what alternatives exist, and what the economic impact or the impact of the person who is engaged in those sorts of copying is. That's the test that's used. There's a similar test in the United States.

Now, no one would ever ague that because the United States has fair use with no categories, any copying of any sort is perfectly permissible in the U.S. There are clearly limits to fair use, limits that are based upon this test.

Precisely the same situation is true here in Canada, where there are limits established by the courts. You heard me suggest that if there are real concerns about this, we could codify it within the legislation. What those limits ensure is that we are not talking about tens of millions of dollars in losses in unfettered copying whereby people will simply say, “I qualify for a category, so I can copy to my heart's content.” They will still have to ensure that the copying itself is fair.

Serge Cardin Bloc Sherbrooke, QC

Thank you, Mr. Chairman.

Lady, gentlemen, welcome.

I wish to ask you if we might be provided a copy of your brief or of your thoughts, all of your thoughts, relating to Bill C-32. You know that in the context of a committee such as this one, you do not have the possibility to express yourself completely. It would therefore be greatly appreciated.

I would like to give you the opportunity, Ms. D'Agostino, to express yourself further, to go into the matter more in depth. You opened the door earlier to a discussion with regard to adequate compensation for the works of creators, and you also expressed the desire that someone invite you to pursue this reflection. I would like to hear your views on this matter.

Dan McTeague Liberal Pickering—Scarborough East, ON

Thank you, Chair, and thank you, witnesses, for being here. We've long anticipated your arrival--in my case, at least, it's been since 2005. It's not as long as Mr. Geist, but certainly I have taken an interest in this area.

Recently there has been news about The Pirate Bay, the world's largest illegal peer-to-peer file-sharing BitTorrent website. You'll find this is a theme I raised with officials last week.

The Pirate Bay recently lost an appeal of a copyright conviction in Sweden. The court, as you know, found that “The Pirate Bay has facilitated illegal file sharing in a way that results in criminal liability for those who run the service”. The three site founders were sentenced to prison and fined some $6.5 million U.S., I believe.

In 2008, prosecutors said that The Pirate Bay had 2.5 million registered users, peaking at more than 10 million users simultaneously downloading files, and was making $4 million a year from site advertising. It's clear that the site was, if you will, a high-volume and very lucrative business.

I'd like to ask all three of you, if I could, how you see Bill C-32stopping, if indeed it does at all, sites similar to The Pirate Bay--sites that facilitate the mass distribution of unauthorized copies of works--from being able to operate here in Canada.

I'll start with you, Mr. Sookman, and work my way back.

Pablo Rodriguez Liberal Honoré-Mercier, QC

The people from the Barreau du Québec said that Bill C-32 was not...

Barry Sookman Partner, McCarthy Tétrault, Co-Chair of Technology Law Group, As an Individual

I would like to thank the committee for inviting me to appear today to provide input on Bill C-32.

Before starting my remarks, I would like to give you some background. I'm not telling you these things to boast, but because I understand some have expressed concern that I have one or two clients implicated in this legislation and that their views are shaping my perspective. This is not the case. I'm a lawyer who specializes in this area. I have worked and taught in it for many years. I'm a partner with the law firm McCarthy Tétrault and the former head of its intellectual property group. I'm an adjunct professor of intellectual property at Osgoode Hall Law School. I'm the author of five books, including the leading treatise on computer and Internet law. I'm a member of numerous committees, including those in the IP area. My involvement in copyright matters for creators, users, and intermediaries spans decades of practice. I've appeared in three precedent-setting Supreme Court of Canada cases, including CCH, which modernized fair dealing in Canada, and the Tariff 22 case, which examined the liability of ISPs. I appeared for the ISPs opposite a rights holder, SOCAN.

I'm here today in my personal capacity and am not representing my clients.

In introducing this bill, the government made it clear that its purpose was to enable Canada to have copyright legislation that would benefit the Canadian marketplace. It was drafted to create framework laws and to enable Canada to be a leader in the digital economy in line with our trading partners. I support these objectives. There are, however, areas where the bill will have unintended consequences that are inconsistent with those objectives. I hope to assist members of this committee in understanding these issues, many of which are technical in nature. In the limited time I have to address the issues, I would like to focus on several examples of technical problems that need to be fixed.

The government has said that the bill will give owners stronger legal tools to go after online pirates that facilitate copyright infringement. Minister Clement said that the bill goes after the bad guys, the wealth destroyers. To address this problem, the bill has a new section on the enabling of infringement. A technical problem is that as drafted, the section is likely ineffective, because it applies only to services designed primarily to enable acts of infringement. Most file-sharing sites, including peer-to-peer, BitTorrent, and pirate-hosting sites, are not designed primarily to enable acts of infringement but to facilitate the sharing of information and files.

There are two other technical problems. The government's intention is that ISPs should be exempt from liability when they act strictly as intermediaries. On the other hand, Bill C-32 is intended to ensure that those who enable infringement will not benefit from the ISP exceptions. However, the drafting does not make this clear. Only two out of the four exceptions expressly say this. Based on the differences in wording, a court might well conclude that a pirate-hosting site gets an ISP exception even when it is liable for enablement. This could not be anybody's intent.

Lastly, the bill exempts commercial enablers, the wealth destroyers, from being liable for statutory damages even when they facilitate infringement for a commercial purpose. This can't be anybody's intention.

The bill also contains a new exception that would let individuals take existing content and use it to create user-generated content. The intent is to permit an individual to use content to make a home video or create a mashup of video clips. This is an exception that to my knowledge does not exist anywhere else in the world. From a technical drafting perspective, the exception is so widely cast that it would most likely violate Canada's WTO TRIPS obligations. TRIPS mandates that exceptions must be subject to what is known internationally as the three-step test. The exception, as drafted, would permit individuals to do almost anything that the author could do with his or her work— including creating translations, sequels, or other derivative works—and publish the result on the Internet. They could also create collective works or compilations of works, such as the best of a TV series or their favourite iPod playlist, and post those on the Internet, and they can do a lot more. The result is that the author loses significant control over the uses of his or her work, a fundamental copyright concept.

Over and above this, there could be significant economic consequences to the author. The intention is to permit uses that would have no effect on the market for the work; however, the drafting permits aggregate effects on the market for the work, which would be very damaging and substantial.

Also, the individual's use of the UGC work must be non-commercial. A website operator can charge for disseminating the UGC work, but the author gets none of the remuneration. They would, however, in other countries that don't have this exception, countries that have let the markets solve the problem.

There are other technical issues with the bill that also need addressing, but, as the chair has pointed out, I'm out of time.

I would like to thank the committee again for inviting me to appear. I look forward to answering your questions.

Thank you.

Prof. Michael Geist Canada Research Chair, Internet and E-commerce Law, University of Ottawa, As an Individual

Thank you, Mr. Chair.

Good afternoon, everyone.

My name is Michael Geist. I am a law professor at the University of Ottawa. As I'm sure many of you know, I have been very active on copyright policy issues for many years. In 2007 I launched the Fair Copyright for Canada Facebook group, which grew to over 92,000 members and has local chapters across the country. Earlier this year I edited From “Radical Extremism” to “Balanced Copyright:” Canadian Copyright and the Digital Agenda. This book is the largest academic study on Bill C-32 to date, with peer-reviewed contributions from 20 leading Canadian experts.

That said, I appear before this committee today in a personal capacity and I represent only my own views.

While I am sometimes characterized as a copyright critic, the reality is that I am supportive of much of Bill C-32. When the bill was first tabled, I described it as flawed but fixable, and I had strong support for many of the compromises that are found within it. That's still my position.

l'm happy to talk about any elements of the bill, but I want to focus my opening remarks on two issues: fair dealing and digital locks. As you know, I believe the fair-dealing reforms represent an attempt to strike a balance between those seeking a flexible fair-dealing provision and those who are largely opposed to new exceptions altogether. I think the Bill C-32 compromise is largely a good one.

As a result of full-page advertisements and regular op-eds, we are all aware that some groups claim these changes will harm Canadian culture. l'd like to point to two reasons for thinking that the reality is far less worrisome and offer a potential amendment to alleviate some of those ongoing concerns.

First, fair dealing in education is not new. It already encompasses research, private study, news reporting, criticism, and review. As you can well imagine, these categories cover a considerable amount of the copying on Canadian campuses. These changes are not revolutionary but evolutionary. They are reforms that will enable the use of new technologies in the classroom and support student creativity, innovation, and curiosity.

Second, and most importantly, Canadian fair-dealing analysis involves a two-stage, two-part test. Part one is whether the use or the dealing qualifies for one of the fair-dealing exceptions. If it does qualify, part two is an analysis of whether or not the use itself is fair. The extension of fair dealing to education only affects the first part of the test. While Bill C-32 will extend the categories of what qualifies as fair dealing, it does not change the need for the use itself to be fair.

The Supreme Court of Canada has identified six non-exhaustive factors to assist a court that is part of a fairness inquiry, and this past summer the Federal Court of Appeal, in a case involving educational copying, confirmed that the Bill C-32 changes will still require a fairness analysis.

While I think some of these concerns are misplaced, there is still the potential to provide greater certainty to alleviate some of the writers' and publishers' fears. I believe this can be accomplished by codifying that six-part fairness test within the Copyright Act. This reform would ensure that judges would be required to assess the fairness of any use—including education—before it was treated as fair dealing. I believe it would also put to rest claims that fair dealing would lead to a free-for-all. In fact, quite the opposite is true; by design, the reforms would ensure that fair dealing is fair for all.

With regard to digital locks, which have been among the most discussed and most criticized aspects of the bill, I should start by clarifying that much of the concern does not come from digital locks per se. Companies are free to use them if they so choose, and there is general agreement that there should be some legal protection for digital locks since it is a requirement of the WIPO Internet treaties, and that's a clear goal of this legislation.

Rather, the concern stems from Bill C-32's unbalanced position on digital locks, in which the locks trump virtually all other rights, as the committee itself heard just last week from Mr. Blais in the context of education. This distorts the copyright balance not only for the existing exceptions within the Copyright Act, but also for the new consumer rights, which can be trumped by a digital lock just at the time they are widely found in devices, DVDs, electronic books, and more.

The most obvious solution to this would be to amend the bill to clarify that it is only a violation to circumvent a digital lock if the underlying purpose is to infringe copyright. This approach, which has been adopted by some of our trading partners, such as New Zealand and Switzerland, would ensure that while the law could be used to target clear cases of commercial piracy, individual consumer and user rights would be preserved.

l'd like to quickly make five points with respect to this proposal. First, this approach is compliant with the WIPO Internet treaties, which offer considerable flexibility in their implementation. I know there are competing opinions on the issue, but there is no shortage of scholarly analysis—including a piece I did in my book—as well as country implementations that confirm this is an option open to Canada. In fact, we need look no further than Canada's own Bill C-60 to see that Canadian officials recognize that this approach is consistent with WIPO.

Second, 13 years after the treaty, claims that Canada should adopt a U.S.-style approach run contrary to the emerging international record.

With the benefit of experience, there is a clear trend towards greater flexibility. Even the United States has recently added exceptions for jailbreaking phones and unlocking DVDs for some non-commercial purposes.

Third, the approach is entirely consistent with the goals of Bill C-32. It enables us to target commercial infringers who are profiting from their actions, since their circumventions would still constitute violations of the law. Meanwhile, it would provide businesses with the legal protections for locks that some are looking for and maintain consumer fairness by assuring Canadians that their personal property rights will still be respected.

Fourth, it is worth emphasizing that amending the new consumer exceptions alone--format shifting and the like--is not enough. For example, if the lock provision on format shifting were removed, consumers would still face the barrier of the general anti-circumvention provision. In order to address the issue, both must be amended to preserve the digital copyright balance.

Finally, in the event that the committee instead wants to consider specific, new, additional exceptions to the digital lock approach, I have provided the committee clerk with a full list of potential reforms, many of which are based on the rules found in other countries.

I look forward to your questions.

The Chair (Mr. Gordon Brown (Leeds—Grenville, CPC)) Conservative Gord Brown

I call the meeting to order.

Good afternoon, everyone. This is meeting number 5 of the Legislative Committee on Bill C-32.

Today, first of all, I'd like to thank our three witnesses. We have Pina D'Agostino, professor of intellectual property at Osgoode Hall Law School at York University. Second is Professor Michael Geist, Canada Research Chair of Internet and e-commerce law at the University of Ottawa. Finally we have Barry Sookman, partner at McCarthy Tétrault and co-chair of the technology law group there.

On behalf of the committee, I'd like to thank all three of our witnesses for appearing today on such short notice. Thank you very much.

We will start with a five-minute presentation from Professor Pina D'Agostino.

CopyrightOral Questions

December 1st, 2010 / 2:40 p.m.


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Port Moody—Westwood—Port Coquitlam B.C.

Conservative

James Moore ConservativeMinister of Canadian Heritage and Official Languages

Mr. Speaker, as I have said, we say that the balance exists already in Bill C-32. We balanced the rights and obligations of the government to protect those in the creative economy and also those of consumers.

We protect the rights of creators. We make piracy illegal in Canada. We also impose the international WIPO treaties. We also have limited fair dealing in this bill. We also protect the rights of creators to impose technological protection measures to protect what it is that they are creating.

We also stand up for consumers by having a notice and notice regime. We stand up for consumers by saying no to a massive new tax on iPods, cellphones, BlackBerrys and laptops.

We believe in balance and what is in the best interests of consumers and creators.

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

Mr. Speaker, this bill is unbalanced and irresponsible. Yesterday the artists said so themselves.

Among this delegation of artists was Claude Robinson, who fought a 15-year battle to have the courts recognize his copyright. He is a real symbol for copyright in Quebec. His presence reminded us that Bill C-32 transforms all creators into thousands of Claude Robinsons who will be left on their own to fight for their intellectual property rights and for fair compensation.

Is it not time to make significant changes to Bill C-32 to establish a fair balance between distributors and creators?

CopyrightOral Questions

December 1st, 2010 / 2:40 p.m.


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Port Moody—Westwood—Port Coquitlam B.C.

Conservative

James Moore ConservativeMinister of Canadian Heritage and Official Languages

Mr. Speaker, our government's policy on this issue is in Bill C-32. We are also in talks with the Government of Quebec. In fact, I had a meeting with Ms. St-Pierre this week. Yesterday, I spoke with the Union des artistes and I stressed to them that this bill addresses the interests of both consumers and artists.

This is what the Canadian Film and Television Production Association had to say: “We applaud this Conservative government's copyright reforms.”

This is a balanced, responsible bill that is in the best interests of all Canadians.

Folk Music AwardsStatements by Members

December 1st, 2010 / 2:10 p.m.


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Bloc

Pierre Paquette Bloc Joliette, QC

Mr. Speaker, the sixth annual Folk Music Awards gala was held on Saturday, November 20, in Winnipeg. Several Quebec artists were honoured, including Yves Lambert for his album Bal à l'huile, which won the traditional singer of the year award. Yves Lambert was, of course, one of the founding members of La Bottine Souriante and the Bébert Orchestre.

The ensemble of the year award went to Quebec's Le Vent du Nord for its album La part du feu. I should note that Yves Lambert and Le Vent du Nord are from the Lanaudière region.

To prove that I am not biased, I would also like to mention the songwriter of the year award, which went to a third Quebec artist, Francis d'Octobre, for his album Ma bête fragile.

I would like to take this opportunity to remind the government that awards do not pay the bills for artists and other creators, who are entitled to fair compensation for their work. That is why Bill C-32 needs major changes.

CopyrightOral Questions

November 30th, 2010 / 2:50 p.m.


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Port Moody—Westwood—Port Coquitlam B.C.

Conservative

James Moore ConservativeMinister of Canadian Heritage and Official Languages

Mr. Speaker, we listened to our artists: we conducted unprecedented consultations on Bill C-32. The Union des artistes is on the Hill today; I met with them. They had six proposals concerning our copyright bill. We agree with four of the six. However, we are against a new tax for consumers. That is not in the interest of consumers, artists or Canadians.

CopyrightOral Questions

November 30th, 2010 / 2:50 p.m.


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Port Moody—Westwood—Port Coquitlam B.C.

Conservative

James Moore ConservativeMinister of Canadian Heritage and Official Languages

Mr. Speaker, the Bloc Québécois is not telling the truth about this issue. It is saying that it is artists versus everyone else. This is what one Montreal artist had to say: “Illegal downloading has been catastrophic for me and many of my colleagues. The government has taken an important step in addressing this issue by introducing Bill C-32. I want to thank the Conservative government.“ A francophone artist from Quebec said that. We are taking responsible action for artists.

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

Mr. Speaker, this is not a tax. These are royalties that go to the artists.

According to a coalition of consumer associations, Bill C-32 will also penalize consumers. By giving in to demands from big business, the Conservative government is allowing artists' rights to be restricted, denied even.

Does the government understand that if it deprives artists of their copyright royalties, consumers will be deprived of new artistic works? If artists starve, culture starves.

CopyrightStatements By Members

November 30th, 2010 / 2:10 p.m.


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Bloc

Serge Cardin Bloc Sherbrooke, QC

Mr. Speaker, approximately 100 artists from Quebec are on the Hill today to tell the Conservatives that they do not want Bill C-32 as it is presently constituted. If significant amendments are not made to it, Bill C-32 will serve only to impoverish our artists while making big businesses richer.

When 400 industries, 38 multinational companies, 300 board of trade associations and 150 chief executives are all supporting the minister and applauding Bill C-32 as it now stands, it is because they stand to benefit greatly from the bill at the expense of our artists. Close to $75 million in royalties and copyright will no longer be paid to artists and artisans if Bill C-32 is passed.

These members of Quebec's creative community are here to remind the Conservatives that the fruit of their labour is not free and that the government should not abandon our artists and our culture, since our culture is the self-expression of our people and of the Quebec nation.