Mr. Speaker, I am delighted to rise today. It is a privilege to speak in support of Bill C-56, combating counterfeit products act.
One of our government's top priorities has been to help build safer communities for all Canadians. Now, more than ever, safe communities and economic prosperity go hand in hand. That is why our government has a robust agenda in place to disrupt fraud and to ensure that those who engage in these illegal activities face severe penalties. That is why, for example, we passed Bill C-59, so that criminals convicted of white-colour crimes can no longer be released from prison after serving only one-sixth of their sentence.
Similarly, counterfeit crimes are becoming more prevalent. They are a tangible threat to our economy that undermines innovation and the integrity of Canadian brands. It is not so simple as when one's aunt or cousin goes to China or Taiwan and buys a knock-off watch or purse, or when one buys something similar out of the trunk of a car in Toronto. That is only the tip of the iceberg. Counterfeiting threatens economic growth and job creation, as well as the health and safety of all Canadians. With this legislation, we are standing up for Canadian businesses and consumers to ensure they do not become victims of counterfeit crime by vast criminal organizations.
Bill C-56 deals with counterfeit goods and the ability of our border services and law-enforcement officials to take on this steadily rising problem. By counterfeit, we mean fake replicas of an original product. More specifically, it is an unauthorized reproduction of goods that are protected by a trademark. By registering these rights, the trademark owner is protected against the unauthorized use of the intellectual property. That means that any reproduction of the intellectual property owner's trademark is protected by Canadian law. Copies produced without the consent of a copyright holder are commonly known as pirated goods.
Let me be crystal clear: counterfeit goods are illegal. However, until now, rights holders have not had strong recourse to do anything about the theft of their intellectual property. The ability to enforce intellectual property rights and apply penalties on those manufacturing and profiting from intellectual property infringement has not been as comprehensive as is required in today's globalized world. Bill C-56 intends to rectify this. Commercial large-scale counterfeiting and related crimes pose a very serious threat to the health and safety of Canadians. They involve a vast array of products, ranging from clothes to medications to toys, cosmetics, batteries, electronics, books and multimedia.
Counterfeiting is on the rise in Canada, as it is in the rest of the world. These activities used to be localized, centred on high-end luxury designer goods. They were knock-offs closely resembling legitimate goods. However, this has developed into a worldwide industry that is much more dangerous than before. This is due to the technological process and the increase in global trade. Another reason is the perception by some that counterfeiting and piracy are victimless crimes. I assure members that they are not.
Canadians are often the innocent victims, purchasing goods they believe to be legitimate and safe. However, Canadians need to be confident that the products they buy are genuine and safe and will not cause harm to themselves or their families. The harm associated with the trade in counterfeit goods is significant. It not only includes health and safety risks posed by goods of inferior quality, but decreased consumer confidence in the marketplace, lost tax revenue for the government, and lost profits for intellectual property owners who suffer as a result of such infringement.
Bill C-56 would target the manufacturers and distributors of counterfeit and pirated products, those who profit from this crime. We are going after large-scale operations that victimize Canadian consumers.
Our government knows that the most effective way to stop the proliferation of counterfeit goods is by targeting those who create and sell the goods. Bill C-56 is designed to ensure that federal agencies and rights holders focus their efforts on those criminal operations that seek financial gain from the sale of these goods and not the individuals who purchase these goods for personal use.
For several years, Canadian businesses and industry associations have been relentlessly recommending changes to Canada's intellectual property legislation to better address the modern practices involved in counterfeiting. Our government consulted, and we listened. In 2012, the recommendations were discussed during hearings of the Standing Committee on Industry, Science and Technology, and we are making strides in addressing these needs.
We highlight the importance of protecting intellectual property to foster an environment that encourages economic prosperity, innovation and competition. In the rapidly changing global economy, protecting intellectual property is essential for international trade and overall economic growth. It is critical to ensuring that Canada remains competitive. The RCMP calculated that more than 4,500 cases of intellectual property crimes were investigated in Canada between 2005 and 2012. The retail value of counterfeit and pirated goods seized by the RCMP increased from $7.6 million, in 2005, to a staggering $38 million in 2012, a fivefold increase.
Other countries are also reporting an upward trend in both counterfeiting cases and total retail values. This is important. The Canadian Chamber of Commerce is convinced that organized crime groups are involved in counterfeiting in Canada, especially as these crimes see high profit margins and low risks of being caught. Organized crime groups typically use the Internet to acquire and sell counterfeit goods and are mostly involved in distribution operations, which are usually routed from the United States and Asia.
The exponential growth in the use of technology such as the Internet has increased the often unsuspecting consumer's accessibility to products which may be counterfeit. Counterfeiting is an issue of safety for Canadian consumers, as well as an issue of ensuring economic prosperity for Canadian businesses. We know that there is great profit to be found in counterfeit goods. Sophisticated organized crime groups involved in the lucrative sale of illegally produced counterfeit products may subsequently reinvest their products into other illegal activities, such as drugs and firearms, which threaten the safety and security of our communities.
The legislation before us today would go a long way to enhancing our efforts to combat this serious crime. The best way to stop illegal counterfeiting is to curtail the commercial distribution and sale of counterfeit and pirated goods in Canada. This bill would increase the capacity of the Canada Border Services Agency to deal with these crimes at the point of entry into Canada. It would allow border service officers and law enforcement officials to disrupt the availability of counterfeit and pirated goods in our markets.
The Canada Border Services Agency will now have the authority to detain these goods and alert the companies that invested in research and development to seek remedy in the courts. This would result in diminishing the financial incentive of organized crime groups seeking high profits with low risk. The bill would also help reduce trade in counterfeit goods by providing new enforcement tools to strengthen Canada's existing intellectual property rights enforcement regime both at our borders and within Canada, as well as bolster our existing protections against commercial counterfeiting activities. At the same time, it would ensure robust protection for Canadians who own or travel with items for personal use.
In the last couple of years we have taken concrete action to protect intellectual property, including passing the Copyright Modernization Act. However, more needs to be done, which is why this bill is imperative. Currently, a number of Canadian laws protect intellectual property rights.
As I mentioned earlier, an intellectual property right generally gives the holder protection against unauthorized use of their product. The Trade-marks Act and the Copyright Act allow intellectual property owners, be they individuals or companies, to institute civil proceedings when their rights have been infringed upon. However, these civil proceedings are so difficult, long and costly that the majority of victims feel that it is pointless to undertake them.
Bill C-56 intends to change that. It would provide rights holders with new tools to protect their intellectual property rights and take effective civil action against infringers. It creates new offences for trademark counterfeiting similar to those already in place for copyright piracy. As well, it would provide new criminal offences for the commercial possession, manufacture or trafficking of trademark counterfeit goods and copyright-infringement copies.
With this bill, rights holders would be able to file what is called a “request for assistance” with Canada Border Services Agency, which in turn would enable border service officers to share information with rights holders regarding suspect shipments. Border service officers would also have the authority to detain suspected shipments and share information with the rights holders. The bill would also strengthen the Trade-marks Act to support enforcement activities and better align Canada's intellectual property regime with international standards.
Counterfeiting is a very serious intellectual property violation that hurts us and like-minded countries. Canada has pledged to provide effective legal protection in accordance with the international agreements with our allies, such as the North American Free Trade Agreement.
National security and economic prosperity go hand in hand, and protection of our intellectual property is integral to this. Once passed, Bill C-56 would provide new tools to border service and law enforcement officers to enhance the security of Canada. It would reduce the presence of counterfeit goods in Canada, thereby protecting the integrity of our economy, supporting Canadian growth and job creation and helping to protect Canadians from the health and safety risks posed by harmful counterfeit goods.
In summary, this new legislation would protect Canadian consumers. It would protect Canadian manufacturers and Canadian retailers. It would protect the Canadian economy from the health and economic threats presented by counterfeit and pirated goods coming into our country.
Our government focuses on what matters most to Canadians, and our government will continue to stand up for Canadian consumers and businesses, ensuring that they do not fall victim to trademark counterfeiting. We will continue to create strong, modern rules to protect our economy and the health and safety of Canadians.
The bill before us today is just one more way we are moving forward with our plan for safe streets and communities, which is one of our key priorities on behalf of all Canadians. This plan focuses on strengthening legislation, tackling crime, supporting victims' rights and ensuring fair and efficient justice.
Today, with this legislation, we are covering off all the bases of the plan. We are strengthening current legislation by introducing new tools for rights holders to protect their intellectual property rights and take civil action against infringers. We are tackling serious and organized crime and are closing off one more avenue of financial profit for those who undertake illegal activity. We are supporting the rights of victims, not only those innocent Canadians who buy the counterfeit products but those rights holders whose trademark rights are illegally infringed. We are ensuring fair justice by giving rights holders the ability to pursue civil action.
Now is the time to implement legislation that will definitively address this issue. I therefore urge all members of the House to support the bill before us today and to work toward its expeditious passage.
