Thank you, Mr. Chairman.
Thank you, colleagues.
First, congratulations to the new critics from the opposition, certainly, but also to the new government members. As you know, this committee, over the sweep of the past many years in this place, has been known as a committee that tackles some of the more challenging and in-depth policy questions of the day. To have the leaders of all our respective parties entrust you with the tasks of some of this legislation, which can be pretty complex and technical, is a testament to your abilities. I look forward to working with you both today and beyond on a number of matters that are before us.
Also, having read the testimony that was offered before the committee, before the new members were brought to this committee, and the debate in the House of Commons, I think there's a commonality of view that something needs to be done about this piece of legislation. There's general support for this legislation, though I know the opposition is looking at possibly bringing forward some amendments, and the government members have expressed an openness to accepting some amendments. Hopefully, this will be a good beginning to a policy process that will serve Canadians well.
Again, Mr. Chair, I want to thank you for inviting me to appear to speak about Bill C-8, the Combating Counterfeit Products Act, and our government's work to stop pirated goods from entering the Canadian economy.
As the committee well knows, our government worked hard to modernize Canada's intellectual property laws in order to bring them into the 21st century. We promised to modernize the Copyright Act, and our government delivered on that promise. We introduced and passed a bill that balanced the needs of creators with those of consumers, but this was only part of the solution that was needed.
Globalization continues to open up new markets and expand trade around the world. As you know, Canada recently signed the most comprehensive trade agreement in history with the European Union that will provide preferential market access to more than 500 million consumers and to the union's annual $17 billion in economic activity.
Technology continues to change and has revolutionized the way we conduct business, and that has also made trade faster and more sophisticated. The world is quickly realizing the importance of modern, responsive and effective laws to ensure sustained economic growth and job creation.
We are no longer simply trading goods and resources with a few close allies on our continent. In today's modern economy, we are trading physical goods and intellectual property with more countries, more people, and more often. With this increased trade comes great opportunity and reward, but in trying to maximize these opportunities, we cannot ignore increased risks, namely, those presented by the theft and resale of Canadian intellectual property. We have taken the necessary steps through the Copyright Modernization Act to bring our domestic—and that's of course the key word, “domestic”—copyright laws in line with international standards.
But as the committee well knows, having studied this issue on several occasions, work still remains to be done in ensuring that goods which violate the Canadian intellectual property laws not be allowed into this country for commercial resale. Not only do such goods undermine the business success of legitimate Canadian companies, but they also represent a threat to the health and well-being of our families.
I have here, by the way, a number of examples of counterfeit goods that have been captured coming into Canada, such as counterfeit batteries, counterfeit clothes, a counterfeit Sidney Crosby Olympic jersey, and a number of items that cross boundaries, not only in terms of national identity and the hollowing out of the intellectual property of Canadian companies, but also in terms of being items that bring with them a number of public safety concerns that need to be taken into account, such as circuit breakers, batteries, extension cords, and so on, that are counterfeit and would not meet Canadian standards for sale.
This bill will amend the Trade-marks Act and the Copyright Act, and will give rights holders, border service officers and law enforcement the tools they need to work together to directly confront the growing threat of international counterfeiting and piracy.
In today's world, intellectual property is at constant risk. Counterfeit and pirated goods are increasingly finding their way through our borders and into the Canadian marketplace. The retail value of counterfeit goods seized by the RCMP has steadily increased, from $7.6 million in 2005 to $38 million in 2012. That is a 400% increase just in the past few years, and that's money and jobs being taken away from Canadians.
I'll give you some examples of how counterfeit goods are affecting Canadians. First, counterfeit goods threaten the safety of Canadians. We are not only talking about counterfeit Gucci bags sold on the street, but also how these pirated goods can be real threats to our daily lives. There have been many reports of counterfeit airbags, counterfeit toothpaste, children's toys, as well as food and beverages, that put the health and safety of our families at risk.
Second, counterfeit goods have often been linked with serious organized crime. Criminal groups use the profits from pirated goods to fund criminal activities, about which we all are very concerned.
Third, counterfeit and pirated goods are a threat to economic growth and jobs in Canada. When counterfeiters steal intellectual property for commercial purposes, it is Canadian businesses that are most affected. This is not only through the lost revenue from products gone unsold, but also through the damage done to brand integrity. When criminals bring counterfeit and pirated goods into this country, they are looking to make a quick profit, and they can very easily tarnish the strong reputations forged by quality Canadian brands.
Take, for example, Canada Goose, which has built a reputation as a world leading manufacturer of high-quality winter wear. Here is a company that has spent valuable time, energy and money to create a brand that is known the world over and is synonymous with quality. That being said, last year, Canada Goose's branding took a huge hit from subpar knock-offs coming into Canada.
As you can see, Mr. Chairman, it's not only our government that knows actions need to be taken. Stakeholders have overwhelmingly offered their support for the legislation we are here to discuss. For example, the vice-president of global marketing at Canada Goose and co-chair of the Canadian Intellectual Property Council said that “Canadians have long been victims to the illicit counterfeit trade” and the Combating Counterfeit Products Act is “welcome news for consumers, businesses and retailers alike”.
Food & Consumer Products of Canada said:
Counterfeit goods are a very real threat to the health and safety of Canadians. Their presence in the marketplace poses a risk to Canadians, hurts our economy....our members applaud the Harper government for taking strong and decisive action to address counterfeit....
Canadian Manufacturers & Exporters said, “We congratulate the government on taking action to improve the business conditions for companies investing and creating jobs right here in our communities.”
The need for the bill is quite clear. In order to help stop the spread of counterfeiting and piracy, this legislation gives Canadian rights holders and law enforcement agencies the tools they require to confront this threat at the border and to take action against those who profit from the commercial trade of counterfeit and pirated goods.
Specifically, the bill will give the authority to border officers to detain suspected counterfeit shipments and notify rights holders of the detention, whether the suspected goods are being imported or exported.
It will also create a new process called a request for assistance, which will allow rights holders to work with border officers and request that they detain commercial shipments suspected of containing counterfeit goods. In addition, this bill will provide rights holders with new tools to protect their own intellectual property rights and the ability to take legal recourse against infringers. It adds new civil causes of action that cover manufacturing, possessing, importing, exporting and attempting to export, counterfeit goods for commercial purposes. This will give rights holders a chance to stop infringers before the goods in question are sold in the market.
These changes are necessary and overdue. But I want to make it clear that this bill is intended to target only those who violate intellectual property with the intention to make money from it; personal use of counterfeit goods will not be targeted.
This bill was created to respond to the concerns of consumers and stakeholders and to ensure the security of our economy. Ensuring the health and safety of Canadians and helping stop criminal activity profiting from this trade are central to this legislation as well.
Mr. Chair, I want to thank the committee again for taking the time to study this important bill. I would urge all members of the committee to return this bill to the House as soon as possible so that we can ensure Canadian rights holders, customs officers, and law enforcement agencies have the tools they need to fight counterfeiting and piracy domestically at our borders.
Thank you very much.
