Copyright Modernization Act

An Act to amend the Copyright Act

This bill was last introduced in the 41st Parliament, 1st Session, which ended in September 2013.

Sponsor

Christian Paradis  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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

Elsewhere

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

Votes

June 18, 2012 Passed That the Bill be now read a third time and do pass.
May 15, 2012 Passed That Bill C-11, An Act to amend the Copyright Act, as amended, be concurred in at report stage with further amendments.
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by adding after line 15 on page 54 the following: “(3) The Board may, on application, make an order ( a) excluding from the application of section 41.1 a technological protection measure that protects a work, a performer’s performance fixed in a sound recording or a sound recording, or classes of them, or any class of such technological protection measures, having regard to the factors set out in paragraph (2)(a); or ( b) requiring the owner of the copyright in a work, a performer’s performance fixed in a sound recording or a sound recording that is protected by a technological protection measure to provide access to the work, performer’s performance fixed in a sound recording or sound recording to persons who are entitled to the benefit of any limitation on the application of paragraph 41.1(1)(a). (4) Any order made under subsection (3) shall remain in effect for a period of five years unless ( a) the Governor in Council makes regulations varying the term of the order; or ( b) the Board, on application, orders the renewal of the order for an additional five years.”
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by replacing line 11 on page 52 with the following: “(2) Paragraph 41.1(1)( b) does not”
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by replacing line 25 on page 51 with the following: “(2) Paragraph 41.1(1)( b) does not”
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by deleting lines 1 to 7 on page 51.
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by deleting lines 24 to 33 on page 50.
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by deleting line 37 on page 49 to line 3 on page 50.
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by deleting lines 17 to 29 on page 48.
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by deleting lines 38 to 44 on page 47.
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by adding after line 26 on page 47 the following: “(5) Paragraph (1)( a) does not apply to a qualified person who circumvents a technological protection measure on behalf of another person who is lawfully entitled to circumvent that technological protection measure. (6) Paragraphs (1)( b) and (c) do not apply to a person who provides a service to a qualified person or who manufactures, imports or provides a technology, device or component, for the purposes of enabling a qualified person to circumvent a technological protection measure in accordance with this Act. (7) A qualified person may only circumvent a technological protection measure under subsection (5) if ( a) the work or other subject-matter to which the technological protection measure is applied is not an infringing copy; and ( b) the qualified person informs the person on whose behalf the technological protection measure is circumvented that the work or other subject-matter is to be used solely for non-infringing purposes. (8) The Governor in Council may, for the purposes of this section, make regulations ( a) defining “qualified person”; ( b) prescribing the information to be recorded about any action taken under subsection (5) or (6) and the manner and form in which the information is to be kept; and ( c) prescribing the manner and form in which the conditions set out in subsection (7) are to be met.”
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by adding after line 26 on page 47 the following: “41.101 (1) No one shall apply, or cause to be applied, a technological protection measure to a work or other subject-matter that is intended to be offered for use by members of the public by sale, rental or otherwise unless the work or other subject-matter is accompanied by a clearly visible notice indicating ( a) that a technological protection measure has been applied to the work; and ( b) the capabilities, compatibilities and limitations imposed by the technological protection measure, including, where applicable, but without limitation (i) any requirement that particular software must be installed, either automatically or with the user's consent, in order to access or use the work or other subject-matter, (ii) any requirement for authentication or authorization via a network service in order to access or use the work or other subject-matter, (iii) any known incompatibility with ordinary consumer devices that would reasonably be expected to operate with the work or other subject-matter, and (iv) any limits imposed by the technological protection measure on the ability to make use of the rights granted under section 29, 29.1, 29.2, 29.21, 29.22, 29.23 or 29.24; and ( c) contact information for technical support or consumer inquiries in relation to the technological protection measure. (2) The Governor in Council may make regulations prescribing the form and content of the notice referred to in subsection (1).”
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by adding after line 26 on page 47 the following: “41.101 (1) Paragraph 41.1(1)( a) does not apply to a person who has lawful authority to care for or supervise a minor and who circumvents a technological protection measure for the purpose of protecting the minor if ( a) the copy of the work or other subject-matter with regard to which the technological protection measure is applied is not an infringing copy; and ( b) the person has lawfully obtained the work, the performer’s performance fixed in a sound recording or the sound recording that is protected by the technological protection measure. (2) Paragraphs 41.1(1)( b) and (c) do not apply to a person who provides a service to a person referred to in subsection (1) or who manufactures, imports or provides a technology, device or component, for the purposes of enabling anyone to circumvent a technological protection measure in accordance with subsection (1). (3) A person acting in the circumstances referred to in subsection (1) is not entitled to benefit from the exception under that subsection if the person does an act that constitutes an infringement of copyright or contravenes any Act of Parliament or of the legislature of a province.”
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by deleting lines 21 to 40 on page 46.
May 15, 2012 Failed That Bill C-11, in Clause 47, be amended by replacing line 25 on page 45 with the following: “measure for the purpose of an act that is an infringement of the copyright in the protected work.”
May 15, 2012 Failed That Bill C-11, in Clause 22, be amended by deleting lines 30 to 34 on page 20.
May 15, 2012 Failed That Bill C-11, in Clause 22, be amended by deleting lines 33 to 37 on page 19.
May 15, 2012 Failed That Bill C-11 be amended by deleting Clause 62.
May 15, 2012 Failed That Bill C-11 be amended by deleting Clause 49.
May 15, 2012 Failed That Bill C-11, in Clause 27, be amended by deleting line 42 on page 23 to line 3 on page 24.
May 15, 2012 Failed That Bill C-11, in Clause 27, be amended by replacing lines 23 to 29 on page 23 with the following: “paragraph (3)( a) to reproduce the lesson for non-infringing purposes.”
May 15, 2012 Failed That Bill C-11, in Clause 21, be amended by adding after line 13 on page 17 the following: “(2) The Governor in Council may make regulations defining “education” for the purposes of subsection (1).”
May 15, 2012 Failed That Bill C-11 be amended by deleting Clause 2.
May 15, 2012 Failed That Bill C-11 be amended by deleting Clause 1.
May 15, 2012 Passed That, in relation to Bill C-11, An Act to amend the Copyright Act, not more than one further sitting day shall be allotted to the consideration at report stage of the Bill and one sitting day shall be allotted to the consideration at third reading stage of the said Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at report stage and on the day allotted to the consideration at third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the Bill then under consideration shall be put forthwith and successively without further debate or amendment.
Feb. 13, 2012 Passed That the Bill be now read a second time and referred to a legislative committee.
Feb. 13, 2012 Passed That this question be now put.
Feb. 8, 2012 Passed That, in relation to Bill C-11, An Act to amend the Copyright Act, not more than two further sitting days shall be allotted to the consideration at second reading stage of the Bill; and that, 15 minutes before the expiry of the time provided for Government Orders on the second day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.
Nov. 28, 2011 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “the House decline to give second reading to Bill C-11, An Act to amend the Copyright Act, because it fails to: ( a) uphold the rights of consumers to choose how to enjoy the content that they purchase through overly-restrictive digital lock provisions; (b) include a clear and strict test for “fair dealing” for education purposes; and (c) provide any transitional funding to help artists adapt to the loss of revenue streams that the Bill would cause”.

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 5:05 p.m.


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Liberal

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

Mr. Speaker, by way of illustration, one of the major issues that would come out of this would be digital locks. There is not a lot of talk about the cultural arts and how this would be one of the mechanisms by which artists could protect their crafts.

I think, quite frankly, that the government is focusing way too much on this digital lock idea, and, of course, it is really just favouring a business model. When it comes to individual songs right now, digital locks are going by the wayside. We can see how the evolution of technology is basically indicating that we cannot afford to have an inflexible bill.

I am not too encouraged by the fact that there will not be a lot of changes and that the government will not be open to a lot of changes when the bill gets to committee.

I would ask my colleague about the cultural arts sector in Quebec that he spoke to in reference to the money that would be lost from the use of this levy. The government has tried to turn the debate around to this iPod tax idea, but this is still a lost revenue for artists.

What would my colleague propose that the government do to help get some of that revenue back and help our most vulnerable artists?

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 5:10 p.m.


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Bloc

Jean-François Fortin Bloc Haute-Gaspésie—La Mitis—Matane—Matapédia, QC

Mr. Speaker, when we spoke about a levy on digital audio players, the Conservatives said it was a new tax. However, it needs to be understood that this is not a new tax. A tax is revenue for the government, whereas a levy allows our artists and creators to receive fair compensation in light of the new reality. With the distribution of digital audio files comes copyright responsibility. There is a clear difference between imposing a new tax and collecting a fair levy on the purchase of a digital audio player.

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 5:10 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, I was not going to participate in this debate but I need to given that the Bloc, the Liberals and the NDP have all commented on a copyright bill with regard to this idea of extending the levy.

My Bloc Québécois colleague calls it a levy.

It is astonishing to me that a member of Parliament would stand in this place with so much enthusiasm and speak in favour of something, the technology about which he clearly has no idea of what he is talking about. People do not download MP3s and burn them onto discs anymore. Therefore, the idea of an iPod tax or a levy for MP3s, which is what the Bloc Québécois has been proposing for years, does not work. How does his proposal work with Stitcher and iCloud and the new streaming media advances that are being made right now?

The Bloc Québécois and the NDP proposals with regard to the idea of an iPod tax, as we call it, or extending the private copying levy, make absolutely no sense whatsoever to anybody who has even the simplest understanding of how technology works.

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November 14th, 2011 / 5:10 p.m.


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Bloc

Jean-François Fortin Bloc Haute-Gaspésie—La Mitis—Matane—Matapédia, QC

Mr. Speaker, I am still waiting for the question. That was more a statement or comment. What I have gathered from the minister's intervention is that the Conservatives, no matter what the vision of the opposition parties, clearly have an ideological vision. Hence, no matter what bill they introduce, they will defend it without taking into consideration the amendments or the suggestions of the opposition. Once again, the Conservatives do not understand the situation of creators. It has to be pointed out to them over and over again.

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November 14th, 2011 / 5:10 p.m.


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NDP

Andrew Cash NDP Davenport, ON

Mr. Speaker, it is an honour to rise this evening to speak to Bill C-11.

There is no question that Canada's Copyright Act is in dire need of an overhaul to reflect and to serve the needs and realities of artists, creators, rights holders and consumers in the 21st century. However, on too many counts Bill C-11 fails to meet the task at hand and for every problem that it attempts to fix, new problems are created.

We in the NDP and Canadians across the country have serious concerns about the bill in its present state, and we look forward to working constructively with the government to amend elements of the bill to address concerns that Canadian stakeholders have.

As we know, the bill was introduced in the last Parliament exactly in the state it appears before us today. This is not the first time the government has done this in the 41st Parliament. Indeed, since the election in May, it has introduced several bills that have been virtually word for word the same as the bills it put forward in previous Parliaments.

It is a bit early in the mandate of a government to show inertia, but from the recycling of bills, the omnibus crime bill, the ending of the long gun registry and the recycling of Bill C-11, this is a government that has begun to run out of ideas already. By limiting debate and railroading committees, the Conservatives have shown that they do not have any ideas themselves, and they sure are not interested in the ideas of Canadians who want to speak to the bill.

Notwithstanding the fact that the legislative committee looking at Bill C-32, as it was called in the 40th Parliament, met with over 100 witnesses who all spoke about the many serious problems that existed in the legislation, the legislation has not changed. What is more, we hear that the government is not interested in any more input from Canadians on the substance of the bill, and that is too bad. The government is missing an important and historic opportunity to craft a made in Canada copyright act that would stimulate innovation in digital industries and that would truly protect artists, other content creators and rights holders and at the same time balance the needs of consumers.

While the government does not seem interested any longer in what Canadians have to say about copyright, it certainly cares about the big boys in Hollywood and New York who want Canada to toe the line, and a deeply flawed line it is, that creative industries and consumers toe south of the border. The government's anti-circumvention position as it pertains to technological prevention measures, TPMs or digital locks, is a case in point.

I understand that if someone makes available thousands upon thousands of songs, movies, or pieces of software and is profiting from that activity, that person is clearly infringing on copyright for commercial purposes. Pirated DVDs sold on street markets or making semi-conductors specifically to allow gamers to hack their gaming platform to play pirated software are other examples. Someone is making money off of the blood, sweat, tears and creativity of artists and entrepreneurs, but the creators are not getting paid, and that goes beyond the regular practices of consumers to share and enjoy content.

However, much of the scare-mongering from major record labels and film studios unfortunately has tried to conflate the practices I have just described as the common practices of music and movie fans. This has led to the bizarre circumstances that we all know of, such as grandmothers being sued for downloading some tunes on the Internet.

The Conservatives could have crafted a Canadian-made solution to this very complex set of circumstances. Instead they caved to their U.S. buddies again. On the one hand, Bill C-11 finally recognizes common consumer practices which should be for the benefit of consumers and creators, such as time shifting, recording TV for later viewing, format shifting, as well as parody, satire and education as fair-dealing exceptions. On the other hand, all of this is moot if there is a digital lock on the content since that measure in the anti-circumvention measure that is attached to it supersedes all else.

What Canadian consumers win with one hand, they lose with the other. If there is a digital lock on a CD, they will not be able to make a back-up copy. If there is a digital lock on an e-book, they cannot change its format for use on a different type of e-reader. If there is a digital lock on a DVD, journalists will not be able to use part of it under the fair-dealing rights. It does not make sense that digital locks could supersede other rights that are guaranteed in the very same piece of legislation.

What is worse, not only do digital locks prevent Canadians from fully enjoying materials that they have legally purchased, they are also backed by incredibly unreasonable punitive damages with fines of up to $1 million and five years in jail for doing something that, if it were not for the presence of the digital lock, would be entirely acceptable. It is beyond logic.

While we in the NDP have an issue with the practice of suing fans and suing consumers, I would like to point out that it is only the very large multinational media outlets that could avail themselves of this kind of protection anyway. For example, members of the Canadian Independent Music Association as a block represent 24% of all music sales in Canada, which is larger than EMI and Warner music sales combined and greater than Sony music sales. This organization is made up of Canadian-owned companies, mostly small- and medium-size businesses which include record producers, labels, publishers, recording studios, managers, agents, and so on. In other words, they are the heart, soul and bones of the English language Canadian music business.

Few, if any, of the member organizations could pursue those who under C-11 infringe copyright through the courts. It would be cost prohibitive for them. While executives at the big multinationals slap themselves on the back at how compliant the government has been with C-11, the bill really does not help the independent music industry. It does not help the small businesses. It does not help the small entrepreneurs.

There is no question the music industry has gone through a very difficult time over the last 15 years. Therefore, it is all the more pressing that we craft copyright legislation that addresses the profound need to invest in new business models and innovation in the Canadian cultural industries. Instead, C-11 takes tens of millions of dollars out of the hands of artists annually by waiving the so-called broadcast mechanical tariff and by playing politics with the blank copying levy.

Prior to my election to this place in May 2011, I derived my primary income in the arts and culture sector as a musician, a songwriter, a producer, a composer, and a journalist. I can tell the House that it is a very difficult way to make a living and raise a family. Most in that profession work terribly long hours for many years and most barely earn a dollar. Having been lucky enough to make my living in the arts, I can say it is potentially a good way to get rich, but a lousy way to make a living.

With the arrival of the digital era many believed this would herald a new day for artists, a dawning of a middle class where it was not always a feast or a famine, where new revenue streams and business models would raise the average income for Canadian artists from below the poverty line to something resembling a decent living. That is what we should be striving for always. I think it is fair to say that that dream has largely gone unfulfilled. Writers still make more money slinging burgers than they do from their work. The average annual income of Canadian artists is under $13,000.

It is important to remember that the spokespeople for the multinational music and movie businesses are not speaking for artists. They are speaking for their shareholders. Prior to the digital revolution, prior to Napster, BitTorrent sites and Netflix, artists were still struggling. Not a lot has changed for artists.

Let us be clear. Artists have always done most of the work and received the smallest share of the return. It was the same before the digital revolution and it is the same now. That is too bad, and Bill C-11 only makes the situation worse.

We know that Canadians support the arts and are willing to pay for it, but this bill wipes out $20 million in annual revenue that goes directly to artists and rights holders by eliminating the broadcast mechanical tariff. Surely in the hundreds of witness testimonies on Bill C-32 the government heard that this would be detrimental to artists and rights holders. Again, the government is very in touch with the business interests of private broadcasters and big Hollywood film studios, but it is out of touch with Canadian artists and their audience, the Canadian public, who supports them.

Bill C-11 could have set an innovative and exciting course for Canada's cultural industries and workers, the artists who create the content, as well as Canadian consumers.

In its current state, Bill C-11 would fall far short of moving Canada forward into the 21st century. However, we look forward to working with the government on constructive amendments to fix the bill.

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 5:20 p.m.


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Oak Ridges—Markham Ontario

Conservative

Paul Calandra ConservativeParliamentary Secretary to the Minister of Canadian Heritage

Mr. Speaker, as members may have heard, through the summer I had many meetings with a lot of different groups with respect to the bill. What I heard consistently is how important the sector is to the Canadian economy. It is a $40 billion industry. Hundreds of thousands of jobs are created or supported through this industry.

The hon. member talked earlier in his discussion about debate, when he knows that this is something that has been before the House for many years. There have been thousands of hours of testimony from hundreds of witnesses, and hon. members of Parliament have been hearing the exact same thing.

He talked about the technical protection measures. In our neck of the woods, it is extremely important for those who create video games that there be technical protection measures that would support and protect that industry. Does he not support that?

Has he looked at other jurisdictions where similar things to what we have put in place in Bill C-11 have actually not limited the public's access to quality digital content but have actually improved it? Is the only solution the NDP has to continue to tax Canadians? Does he actually think the only way to support Canadian artists is to punish the artists and to punish Canadians and that a $40 billion industry is somehow going to collapse under the threat, as he would project it, of a $20 million levy that he suggests would no longer exist?

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November 14th, 2011 / 5:25 p.m.


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NDP

Andrew Cash NDP Davenport, ON

Mr. Speaker, I am a little surprised the hon. member opposite would just wave his hand at $20 million for a sector where the average annual income is under $13,000. I think the hon. member owes artists across Canada an apology.

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November 14th, 2011 / 5:25 p.m.


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Liberal

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

Mr. Speaker, I actually agree with my hon. colleague from the NDP. Not only that, I would add that the Conservatives did not seem to flinch when it came to the money that was potentially lost from the auto sector. It seems there was very little debate there.

The parliamentary secretary talked about the technological protection measures, TPMs, and this model that is out there to protect all of them. I will give him several examples of countries, including Australia and the United States, which looked at ways of circumventing TPMs for the reasons of education. As a matter of fact, they went fully into using TPMs and digital locks but backed away on several measures simply because they were too strong. Therefore, some exemptions were made.

I would humbly suggest using something like the three-step process by which we can judge TPMs as a way of circumventing them for instances such as education. That would be one of the measures. However, certainly he speaks truth to this matter by saying that it is just an all or naught measure that simply should be looked at once again, and in committee.

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 5:25 p.m.


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NDP

Andrew Cash NDP Davenport, ON

Mr. Speaker, there is no question this is a very complex bill. It is very difficult to balance all of the interests of all the stakeholders. It does Canadians no service to listen to this overheated rhetoric around taxing Canadians, taxing artists, hurting artists, and punishing artists. Canadians want to see some constructive debate. That is what we would like to see in committee.

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November 14th, 2011 / 5:25 p.m.


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NDP

Dan Harris NDP Scarborough Southwest, ON

Mr. Speaker, we heard the Minister of Canadian Heritage and Official Languages a few minutes ago say that anyone who does not agree with him does not understand technology. I, of course, would like to comment on that.

First, people who are pirating movies are burning them onto DVDs and people who are downloading songs are putting them onto iPods. What is it that the minister does not understand?

My hon. colleague talked about a $13,000 average income and making a decent living. What kind of missed opportunities does my colleague think there would be with Bill C-11?

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November 14th, 2011 / 5:25 p.m.


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NDP

Andrew Cash NDP Davenport, ON

Mr. Speaker, one of the great examples of innovation and a business model that works spectacularly is the collection of performance royalties by SOCAN. It licenses the songs. Artists become members and the organization collects that licence and disperses it to its members. It has worked for years and years and is a cornerstone of many artists' annual income. It is a very effective tool. It is one example that we would have liked the government to look at, ways in which we could license content and recoup it in a different way.

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November 14th, 2011 / 5:25 p.m.


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NDP

Laurin Liu NDP Rivière-des-Mille-Îles, QC

Mr. Speaker, copyright modernization has been needed for a long time, especially to introduce the principles contained in the World Intellectual Property Organization treaties, which the Canadian government signed on December 22, 1997.

Since the comprehensive revision of the Copyright Act in 1997, the act has not been substantially amended because of the inability of previous governments, both Liberal and Conservative, to introduce a bill that would balance the interests of creators, the industry and consumers. Bill C-11, and its predecessor in the last Parliament, Bill C-32, are along the same lines. The government is continuing to stress access to creative content without providing adequate compensation for the authors.

The Conservatives took a stand from the beginning. They are firmly on the side of large content owners in the United States: the movie studios, record labels and video game developers. Unfortunately, consumers and creators will pay the price. Allow me to speak for a while about creators.

The Copyright Act is the legal foundation that ensures that creations can be reproduced, presented and communicated to the public while guaranteeing proper compensation for their creators. To weaken copyright by increasing the exceptions that allow people to use creations without authorization or any financial compensation is tantamount to preventing creators from earning a living from their trade. It also does away with collectives. To weaken copyright jeopardizes cultural industries by cutting off their supply of creations and by preventing them from developing markets that meet the needs of consumers while protecting their investments.

Bill C-11 introduces dozens of exceptions to copyright, including an exception for broadcasting and one for private copying. These exceptions give individuals and companies the right to use creations without compensating the creators. According to the Canadian Conference of the Arts, the ream of new exceptions introduced by Bill C-11 will deprive creators of over $126 million a year. The Union des artistes du Québec estimates that the cumulative effect of the exceptions will decrease creators' income by 70%.

We know that the arts and culture sector is an important economic sector. According to the Canadian Conference of the Arts, it generates spinoffs of over $46 billion and provides work for over 600,000 people in Canada. However, without creators, the arts and culture sector would not exist. Nevertheless, the government insists on strangling creators by increasing the exceptions and failing to propose any measures that would compensate them for the resulting loss of revenue. This will have a huge impact on creators' ability to survive.

It is appalling to see that artists and creators receive only a small portion of the $46 billion generated by their work. Artists in Quebec are the best paid in Canada. Yet, with an average income of $24,600, they make 25% less than the average income of the total labour force. Their income dropped by 11% in the past 15 years, and now the Conservative government wants to impose its unfair copyright reform on them, which would deprive them of tens of millions if not hundreds of millions of dollars a year.

Meanwhile, despite the recession, commercial radio stations reported a pre-tax profit of 21% in 2009. They spent only $21 million on acquiring reproduction rights, which is less than 1.4% of their $1.5 billion in revenues.

Businesses have a right to earn a profit. However, creators also have a right to make a living from their work, and we must create a more balanced copyright regime.

If exceptions to the copyright principle are introduced, we must find another way to compensate creators. For example, some groups in the cultural sector have proposed extending the private copying exception to include digital audio recorders.

Instead of considering this proposal, the Conservatives preferred to stick to demagoguery. For example, they talked about a so-called iPod tax, when there is already a similar levy on traditional recording media. Furthermore, they were the ones who propose to increase the existing levies on cassettes, CDs and DVDs.

The problem with Bill C-11 is that it shows, once again, the Conservative government's contempt for artists and creators. This bill joins a long list of initiatives that weaken the arts and culture sector.

For example, I remind members of the cancellation in 2008 of the Trade Routes and PromArt cultural promotion programs; the Conservatives' refusal to double funding for the Canada Council for the Arts; their attack on the CBC, an important catalyst for our culture and our identity; cuts to the museum assistance program; and Bill C-10, which would allow them to censor films deemed contrary to public safety.

Next to creators, consumers are probably the biggest losers in this bill. By giving unprecedented powers to major multinational rights owners, Bill C-11 will result in a situation where digital locks will practically trump all other rights, including fair dealing for students.

Bill C-11 could mean that consumers, for example, would no longer have access to content they have paid for. In one example provided to us, distance-learning students would have to destroy their class notes within 30 days of the course's end in order to comply with provisions in Bill C-11. That is completely absurd, especially given that these provisions are subject to fines of more than $1 million and five-year prison terms. The NDP believes that Bill C-11 needs to be recalibrated to take consumers' rights into consideration.

To conclude, I should point out that this bill does contain some positive elements. Artists, creators and cultural workers in general are pleased with the amendments to distribution rights, performers' moral and reproduction rights, the longer duration of protection for musical works and the recognition of photographers' rights.

Nevertheless, Bill C-11 is unbalanced because it clearly favours the corporate sector. It needs significant amendments to meet the needs of consumers and creators as well. We hope that the government will listen to the artistic community, which is opposed to Bill C-11.

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November 14th, 2011 / 5:35 p.m.


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Port Moody—Westwood—Port Coquitlam B.C.

Conservative

James Moore ConservativeMinister of Canadian Heritage and Official Languages

A couple of points need to be cleared up, Mr. Speaker.

First, the hon. member opposite said that our government had cut funding for museums. That is not true. We have created two new national museums, increased funding for existing museums and for local museums across the country.

Second, she mentioned PromArt and Trade Routes, two programs costing $7 million. It cost $5 million to deliver $2 million worth of benefits. We eliminated those programs, took that money, gave it to the Canada Council for the Arts, which now has its highest budget ever. We have increased the Canada Council for the Arts budget by 20% with regard to copyright. Therefore, her facts are just wrong. I do not know who wrote her speech, but it is just wrong.

With regard to copyright, the only proposal the NDP members have talked about, and she mentioned it again and again in her speech, is the need to compensate artists, that artists have a right to an income.

The reality is the only proposal that the NDP has put forward on that measure is private member's Bill C-499, by the member for Timmins—James Bay, and it does call for a new tax on consumers. It says that people are downloading MP3s and in this transaction we need to tax that and that money should be collected into the private copying levy and distributed to artists.

I mentioned this as well to the member from the Bloc Québécois, but how does that work with iCloud? How does that work with streaming services? On the proposal from the NDP to compensate artists, even if one agreed with the premise, which I do not, how does that proposal work with streaming media? It is technologically impossible for the proposal of the NDP members to even achieve what they pretend it will achieve. How does it work?

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 5:35 p.m.


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NDP

Laurin Liu NDP Rivière-des-Mille-Îles, QC

Mr. Speaker, first, I deplore the fact that the Conservative government refuses to support an industry that contributes $85 billion per year to our country's economy.

Despite these significant contributions, the median earnings of an artist in Canada is just $12,900 per year, so these artists need to live off other jobs. It is important to encourage our cultural industry by paying those artists well for the work they have completed.

As for the private copying levy, the NDP's position is that we should update this levy to accommodate modern technology. The member should not just take it from us, but he could also take it from the Canadian private copying collective that supports our position and that represents thousands and thousands of Canadians across the country.

Copyright Modernization ActGovernment Orders

November 14th, 2011 / 5:40 p.m.


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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, there are a great deal of students across Canada who are quite concerned with regard to a potential impact of the bill if it were to pass as is. Would the member expand on this point?

For years, thousands of university students have done their reports and their studies at university. Now there is this whole cloud of confusion regarding what the obligation is as to whether they can retain their notes.

Could the member comment on the point that the legislation seems to imply that students will have to get rid of their studies after a 30-day period of time?