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Combating Counterfeit Products Act

An Act to amend the Copyright Act and the Trade-marks Act and to make consequential amendments to other Acts

This bill is from the 41st Parliament, 2nd session, which ended in August 2015.

Sponsor

James Moore  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

This enactment amends the Copyright Act and the Trade-marks Act to add new civil and criminal remedies and new border measures in both Acts, in order to strengthen the enforcement of copyright and trade-mark rights and to curtail commercial activity involving infringing copies and counterfeit trade-marked goods. More specifically, the enactment
(a) creates new civil causes of action with respect to activities that sustain commercial activity in infringing copies and counterfeit trade-marked goods;
(b) creates new criminal offences for trade-mark counterfeiting that are analogous to existing offences in the Copyright Act;
(c) creates new criminal offences prohibiting the possession or export of infringing copies or counterfeit trade-marked goods, packaging or labels;
(d) enacts new border enforcement measures enabling customs officers to detain goods that they suspect infringe copyright or trade-mark rights and allowing them to share information relating to the detained goods with rights owners who have filed a request for assistance, in order to give the rights owners a reasonable opportunity to pursue a remedy in court;
(e) exempts the importation and exportation of copies and goods by an individual for their personal use from the application of the border measures; and
(f) adds the offences set out in the Copyright Act and the Trade-marks Act to the list of offences set out in the Criminal Code for the investigation of which police may seek judicial authorization to use a wiretap.
The enactment also amends the Trade-marks Act to, among other things, expand the scope of what can be registered as a trade-mark, allow the Registrar of Trade-marks to correct errors that appear in the trade-mark register, and streamline and modernize the trade-mark application and opposition process.

Similar bills

C-56 (41st Parliament, 1st session) Combating Counterfeit Products Act

Elsewhere

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

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-8s:

C-8 (2025) An Act respecting cyber security, amending the Telecommunications Act and making consequential amendments to other Acts
C-8 (2021) Law Economic and Fiscal Update Implementation Act, 2021
C-8 (2020) Law An Act to amend the Citizenship Act (Truth and Reconciliation Commission of Canada's call to action number 94)
C-8 (2020) An Act to amend the Criminal Code (conversion therapy)

Combating Counterfeit Products ActGovernment Orders

October 2nd, 2014 / 11:05 a.m.

NDP

Jasbir Sandhu NDP Surrey North, BC

Mr. Speaker, as a parent I am very concerned about some of these counterfeit items. I talked about batteries exploding, and a number of Canadians have died from these sorts of products.

As a father of two children, I am very concerned, especially about batteries and such, because my son uses batteries in a number of different gadgets that he has.

The other case I pointed out was on the airbags that were being sold into the United States by an individual from my city. He has been jailed for six months in the United States. This is a very recent case. One would think that airbags would deploy and work properly when they are needed.

These are very serious health and safety issues for all Canadians. To detect these products and ensure that they do not come into the market, we need CBSA officers to inspect the goods that are coming in, so making cuts to the numbers of those officers is not going to help.

I encourage the government to provide the resources so that we can properly implement Bill C-8.

Combating Counterfeit Products ActGovernment Orders

October 2nd, 2014 / 11:10 a.m.

NDP

Charlie Angus NDP Timmins—James Bay, ON

Mr. Speaker, it is a great honour to rise in the House and speak to Bill C-8 on counterfeiting measures.

I have spoken many times over the last 10 years on these issues. In terms of legislative issues, often the issues regarding copyright, counterfeit, and trademark have been blurred, and there is a need to come up with coherent policies that protect citizens and rights holders.

This is not an easy situation, because we are in a market that has transformed itself incredibly since Lord Macaulay, in 1841, talked about the need to protect the writers of the time. He said we have to stop “the knaves who take the bread out of the mouths of deserving men”. Lord Macaulay believed there needed to be copyright provisions, but he also said there had to be a balance, that it was not about creating a monopoly for a certain group of book holders in London to stop upstarts who wanted to come in.

We know the story of the reason Hollywood exists. It is because California at that time was beyond the copyright laws of the Thomas Edison corporation. They moved out to the desert, not because it was beautiful but because they were the original pirate culture. They set themselves up and created an industry. The issue of these balances throughout history is a difficult act.

We have seen WIPO and ACTA, the secretive anti-counterfeiting trade agreement that received great international backlash from ordinary citizens because it was blurring the roles between domestic copyright policies, citizens' rights policies, and the issue of counterfeit.

Where this comes in is that we need to ensure that we can protect our rights holders and citizens from the counterfeit goods and bootleg operations that are undermining our economy. We need to ensure that we have the tools to go up against them.

When we see large corporate rights holders say they want to spread that across the board, we end up with an overreach, as with my colleagues in the Liberal Party saying we should go after individuals when a kid downloads a song and sends it to three friends.

The United States attempted, through its Digital Millennium Copyright Act of the 1990s, to create a legalistic response to the issues the digital culture was creating. After 35,000 lawsuits against citizens, the market did not come back. What was missing from the market at that time was a coherent plan for the remuneration of artists, who were facing some very difficult and challenging conditions because of the ease of copying. It used to be the only people who could actually copy were the ones who had the means of production, the bookbinders and record companies, but suddenly ordinary citizens could make copies, so the right to make copies became very challenged.

Canada had come up with one of the those solutions, which was the private copying levy. We recognized in Canada that people were going to make all manner of copies and that it would be impossible to remunerate artists for all the copying going on, so for every cassette that was produced, a few pennies were put aside into a fund for artists. The decision by the Conservative government to kill the private copying levy has cost the Canadian music industry $25 million a year. Given the conditions of the music industry in Canada, that is $25 million we cannot afford to lose.

Under the latest copyright act, the government killed the mechanical royalties for musicians and for the record industry, which is millions more. At a time when the artistic culture of our country is suffering very much, the need to remunerate those artists has been steadily whacked away. There is the issue of collective copying regimes in schools. It certainly needs to be updated because of the digital culture, but to simply undermine it would leave artists working for free and would make the intellectual and artistic development of our country much more challenged.

The other issue we are seeing now is the copyright board's rules on live streaming. In the United States, it is an abysmal situation. As an example, Lady Gaga was paid $162 in royalties for over a million plays. I think that was through Spotify, the streaming service.

For someone of the magnitude of Lady Gaga to receive a $162 cheque shows you just how impossible it is for any other mid-size artist to make a living and run a business doing the kind of music that is Canada's premier export. We can talk about our oil and gas and mining, but the talent that has come out of Canada in terms of music, our artists, playwrights, internationally, this is an industry that we cannot afford to undermine anymore.

In the United States the streaming royalties set by its copyright tariffs are so low that it is undermining the ability of any artist to survive. The Copyright Board of Canada has set it at 10% of the American rate. Therefore, they are living as paupers in the United States with what their copyright board has set for this new medium and in Canada it is only 10% of what the rate is in the United States. We would assume then if Lady Gaga had one million plays in Canada, she would get $16.50, which would make anyone decide to go and work at Tim Hortons rather than be an artist in this country.

Those are the issues we are facing in terms of the need to protect our artists. How do we protect our artists? We do not criminalize the consumer. We create a monetary stream. That is a reasonable solution. In terms of counterfeiting we have to separate the issues around protecting our artists and giving them the tools they need to be able to prosper, from the issues around being able to go after the counterfeit gangs.

I will stay on the artists' situation for one more minute. Where we have small businesses or small creative artists, if their trademarks or arts are taken by some counterfeit gang in China and reproduced, they have no mechanisms to go after them. Individual and small rights holders have no ability to go after these counterfeit operations. Sony and Warner Bros. can, but the individual creative rights holders who has their work stolen has no ability. If we are looking at international trade agreements, how do we provide provisions so that the small creative artists who are having their works stolen can respond?

The bill is really an attempt to bring Canada in line with what came out of the ACTA negotiations, which were secretive. It was an overreach. It was a process too beset by lobbyists to be credible and when it came to the public, there was a huge backlash. It was interesting to see that the backlash was in Europe. Therefore, we see some of these provisions have been modified somewhat.

Now the border guards are able to seize counterfeit goods at the border. That is a good provision because rights holders actually had to go to court and get a court order before, so it was very difficult. Giving border guards the ability to seize goods at the border is a reasonable solution to dealing with criminal counterfeiters. Counterfeit operations undermine our economy and they also undermine basic health and security in this country.

Again, I want to point out that our Liberal colleagues wanted to extend this to be able to go after individuals who are travelling, which would have made it the ultimate harassment tool for anyone travelling anywhere internationally. You could be pulled out of a line and told that officials wanted to look at your iPod and go through every one of your songs. My kids send me songs that they have downloaded, maybe from iTunes, but I would be liable for that. That would be an overreach, so the Liberal position of going after individuals and criminalizing individuals when the focus of our border guards should be going after the criminal gangs is very wrong-headed and out of step with pretty much the rest of the world, although maybe North Korea might side with them on that one.

If we are going to have counterfeit laws we need the resources so that border guards can go after counterfeiters. We have seen massive cuts in border services. We also need resources for the police because they still do not often see that this is an issue, going after the knock-off goods, going after the bootlegged DVDs. Perhaps we need to look at provisions that provide our police services with the incentive to clean up some of the illegal trades in goods that have undermined our economy and undermined safety for Canadians.

Combating Counterfeit Products ActGovernment Orders

October 2nd, 2014 / 11:20 a.m.

The Acting Speaker Barry Devolin

Before I go to questions and comments, I would just remind hon. members to address their questions and comments to the Chair. A couple of times this morning in the questions, members used the structure of “Mr. Speaker, through you to the member, why did you do this or why did you say that?” Members cannot do indirectly what they cannot do directly.

Questions and comments, the hon. member for Jeanne-Le Ber.

Combating Counterfeit Products ActGovernment Orders

October 2nd, 2014 / 11:20 a.m.

NDP

Tyrone Benskin NDP Jeanne-Le Ber, QC

Mr. Speaker, I thank my colleague from Timmins—James Bay for his very eloquent understanding of the situation. We did work together on the committee for Bill C-11 to reform copyright.

I would ask the member if he could comment further on these issues. He was speaking about the issues regarding artists and the limitations now placed on the remuneration for artists because of the changes to the mechanical rights regime, the copyright regime and the private copying regime. He spoke about how that differs, for example, from the more tangible counterfeiting of DVDs, Prada bags, or things that can be seized at the border.

Could the member comment a little bit about how he sees it being more difficult, if he does, in finding remuneration for artists under this copyright regime, as opposed to simply seizing goods at the border?

Combating Counterfeit Products ActGovernment Orders

October 2nd, 2014 / 11:20 a.m.

NDP

Charlie Angus NDP Timmins—James Bay, ON

Mr. Speaker, in 1928, the recording industry in the United States collapsed. It was the biggest single loss in the history of the recording industry. It happened because the radio came in. Why buy records when people could listen to the radio?

The industry was in deep crisis until it found a solution where it forced the radio stations to pay a share. Part of the reason that people were listening to the radio was because they were listening to music. That remuneration stream then brought in an unprecedented artistic development of artists across North America and Europe because they were able to be paid.

What we are seeing now in this changing culture is that artists have incredible new opportunities for getting their product out there, but they do not have any way to get paid. It is decimating our artists at a time when they have incredible international opportunities.

The issue is needing a balance. We have to find a remuneration monetization stream for our artists, but our legal issues need to be focused on going after the counterfeiters and bootleggers who are undermining the overall economy with commercial operations that use products and sell them, making money off of the backs of other people's work.

Combating Counterfeit Products ActGovernment Orders

October 2nd, 2014 / 11:20 a.m.

NDP

Marjolaine Boutin-Sweet NDP Hochelaga, QC

Mr. Speaker, my colleague is clearly very knowledgeable about the subject. That is why I would like him to contrast the New Democrats' approach to the Liberals' and Conservatives', especially with respect to striking a balance between the rights of consumers and those of artists.

Combating Counterfeit Products ActGovernment Orders

October 2nd, 2014 / 11:20 a.m.

NDP

Charlie Angus NDP Timmins—James Bay, ON

Mr. Speaker, when my colleagues and I were working on the Copyright Act, one of the issues was that the only thing brought forward by the Conservatives was digital locks. Digital locks will not create a market. Digital locks will not stop theft. Any kid who wakes up in the morning probably breaks three digital locks.

What we said was, rather than simply saying that we would put in all kinds of legal provisions for digital locks, let us find a monetization formula. It does exist. This is not rocket science. It has been done before. It is possible.

The focus for the New Democrats is to say that our artists have a right to be paid and a right to be protected. We are not going to go the route of the Liberals, which was to criminalize consumers, because young people share. Sometimes they share movies, whether it is right or wrong, and we could debate that all day. Going after families and taking them to court for millions and millions of dollars, which we saw happening in the United States, is a wrong-headed move. In the States, it undermined the market and kids just walked away from it.

How do we establish that balance? It is not by criminalizing consumers but by finding the monetary stream to protect our artists.

Combating Counterfeit Products ActGovernment Orders

October 2nd, 2014 / 11:25 a.m.

NDP

Marjolaine Boutin-Sweet NDP Hochelaga, QC

Mr. Speaker, I am rising today to speak to Bill C-8, An Act to amend the Copyright Act and the Trade-marks Act and to make consequential amendments to other Acts.

Today, I want to express my support for this bill. It is difficult to disagree with the principle. Clearly, combatting counterfeiting is important for Canadian businesses and consumers. I will certainly not speak out against virtue.

However, I would like to express a few reservations that I have, particularly with regard to this government's true commitment to protecting copyright in Canada and the enforceability of the bill. I hope that the government will listen to what I have to say and that my comments will help to improve the measures that will be taken if this bill is passed.

I think that everyone here can agree that we have to crack down on counterfeiting, both because of the negative impact that counterfeit goods can have on our economy and the economies of our neighbours and because of the danger they can pose to Canadians' health.

The clandestine nature of counterfeiting prevents us from being able to accurately determine the scope of the problem for our economy. According to the RCMP, in 2011, 80% of counterfeit goods came from China, a 46% increase as compared to 2005.

According to Industry Canada, counterfeiting has increased in recent years:

The retail value of counterfeit goods seized by the RCMP increased from $7.6 million in 2005 to $38 million in 2012.

Of course, that is only counting the goods that were seized.

In 2009, in a report entitled “Magnitude of Counterfeiting and Piracy of Tangible Products: An Update”, the OECD estimated the value of counterfeit and pirated goods in international trade at $250 billion. These numbers speak for themselves. There is an urgent need for effective measures to combat this growing phenomenon.

The Standing Committee on Industry, Science and Technology recently conducted a study on intellectual property. Many businesses testified in support of taking action at the border to fight the increase in illegal counterfeit goods.

In its 2013 report entitled “Intellectual Property Regime in Canada”, the committee made a number of recommendations regarding action to be taken at the border to prevent the import of counterfeit goods.

Similarly, in a dissenting opinion, the NDP members of the committee argued that the Canada Border Services Agency should be given sufficient funding to combat counterfeiting without compromising the other important responsibilities it has in protecting Canadians and defending our border.

Of course, because this was an NDP recommendation and would require an increase in government spending, even though this measure would protect the Canadian economy, the NDP was forced to submit it in a written dissenting opinion, because the Conservatives are too blinded by their ideology to see the benefits of such a measure for our industries. It makes no sense, but this is not the first time something like this has happened, and it probably will not be the last.

This government is full of contradictions. Only now has it come forward with Bill C-8, a nice collection of good intentions, although for years now, our American neighbours have been calling on Canada to bring in tougher measures against counterfeit products.

In its 2012 Special 301 Report, the Office of the U.S. Trade Representative made a statement regarding the Americans' position.

It said, in part, that the United States “continues to urge Canada to strengthen its border enforcement efforts, including by providing customs officials with ex officio authority to take action against the importation, exportation, and transshipment of pirated or counterfeit goods.”

This bill adds two new criminal offences under the Copyright Act for the possession or export of infringing copies and creates a prohibition against importing or exporting infringing copies and counterfeit goods.

Those are great principles. This could help fight counterfeiting, thereby protecting copyright, and help prevent counterfeit goods from entering the Canadian market—which hurts our economy—or passing through our borders and entering the U.S. The problem is that this will take mare than just words.

I actually have to wonder how this government can possibly claim to be serious about fighting counterfeit goods when in their 2012 budget, the Conservatives announced cuts totalling $143 million over three years to CBSA funding. Some $31.3 million was cut in 2012-13 and $72.3 million in 2013-14, for a total of $143.4 million that will be cut from the CBSA budget by 2014-15.

It is not hard to see that these very cuts will reduce the number of front-line officers and impair our ability to monitor our borders.

What is more, this year's report on plans and priorities indicates a loss of 549 full-time equivalent jobs by 2015 at the Canada Border Services Agency. This will reduce the agency's ability to discharge its responsibilities.

In other words, the government is speaking out of both sides of its mouth yet again. On one hand it says it wants to fight fraud, which is a good thing, but on the other hand it makes cuts that will prevent our border services from doing their job.

This bill gives even more responsibilities to CBSA just as the government keeps reducing the agency's ability to discharge them. Is that really what the government is proposing? I fail to see the logic in that.

Jean-Pierre Fortin, national president of the Customs and Immigration Union, commented on the 2012 budget cuts to the Canada Border Services Agency and how they would reduce border officers' ability to do their work:

These proposed budget cuts would have a direct and real impact on Canadians and our communities across the country: more child pornography entering the country, more weapons and illegal drugs will pass through our borders, not to mention terrorists, sexual predators and hardened criminals.

That is frightening.

In 2012, the union president was already saying that the agency would have a hard time protecting our territory. I wonder where the government thinks the necessary resources will come from for combatting the import of counterfeit goods, protecting Canadian industries, their transit from Canada to the United States, or for protecting Canadians from counterfeit products that might be dangerous for their health and safety, when it keeps cutting the agency's budget.

To effectively combat the entry into Canada of counterfeit goods, we need a lot more than words and good intentions. We need the means.

The NDP supports the measures that would help Canadian businesses keep jobs and production here, instead of transferring them to countries that have stricter copyright protections.

The NDP also wants to ensure that enough funds will be available so that laws like the one proposed in Bill C-8 can realistically be enforced, and so that the agencies responsible for enforcing them do not have to make choices that could compromise their other responsibilities, thus jeopardizing the safety of Canadians.

In this case, if the government is truly serious about wanting to crack down on counterfeit products coming into our country, it will have to give Canada Border Services the means to fulfill all of its responsibilities. The government will have to revise its decision to decrease the agency's budget and reverse the trend of reducing the number of front-line officers.

As I mentioned at the beginning of my speech, the New Democrats support the underlying principles of the bill and will vote in favour of the bill. We just want to ensure that this is not in vain.

Combating Counterfeit Products ActGovernment Orders

October 2nd, 2014 / 11:35 a.m.

NDP

Robert Aubin NDP Trois-Rivières, QC

Mr. Speaker, I thank my colleague from Hochelaga for her very relevant and informed speech.

What would she suggest we tell Canadians in the big cities, most of whom are well aware that a $20 Rolex is very likely not real and that a $25 Coco Chanel purse is a knock-off?

The sale of counterfeit products tends to be trivialized, especially in Quebec, where all kinds of counterfeit products can be found at flea markets. How can we inform Canadians that this is a real problem? How do we explain this to the average Canadian watching us today?

Combating Counterfeit Products ActGovernment Orders

October 2nd, 2014 / 11:35 a.m.

NDP

Marjolaine Boutin-Sweet NDP Hochelaga, QC

Mr. Speaker, I would like to thank my colleague for his question. We need to start by showing Canadians that, of course, counterfeit items may include handbags, but may also include things that harm not only people's health and safety, but also the Canadian economy.

For example, some bicycles are manufactured in Canada. However, the manufacture of bicycles or furniture generally goes to China. Canada is losing industries because of counterfeiting. I am not necessarily saying that counterfeit bicycles are arriving from China, but that this is an example of the Canadian industry losing to other countries. The same is happening with products counterfeited here since Canadian industries are being prevented from producing good products, which is also harming the reputation of good Canadian industries.

If we want to keep good jobs in Canada, we need to explain to Canadians that buying counterfeit products means that they are harming the Canadian industry and economy.

Combating Counterfeit Products ActGovernment Orders

October 2nd, 2014 / 11:35 a.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, I am pleased to be able to speak on Bill C-8, which is a bill that deals with quite sweeping changes to copyright infringement and intellectual property rights in Canada.

I presented numerous amendments to the bill before committee, and I am sorry to say that, shockingly, my amendments did not carry. I am afraid that this has become the custom due to the passage of, astonishingly, identical motions in 20 different committees at the same time, intended to deprive me of my rights to present substantive amendments at report stage. Since I have been going to many committees under this new edict, I have not had a single amendment carry at committee. However, I remain hopeful that one day the reasoned efforts I am making will meet with favour.

In the case of Bill C-8, as I mentioned, we would be making sweeping changes, perhaps the most sweeping changes in intellectual property rights law in Canada in over 70 years. We would make these changes without adequate hearings, study, or the proof of any need.

As a matter of fact, one prominent member of the Canadian bar, Howard Knopf, describes the effort to deal with counterfeiting and fake products with this headline: “Is Parliament Rushing to Respond to a Fake Crisis About Fake Products?”

So, we have copyright infringement and we want to protect, and I completely agree with all members of the House who have spoken to our desire to protect artists, innovators, and creators from having the products of their intellectual efforts pirated and stolen without adequate response. However, I will share with this House quite simply what we fear is happening here: we would create multiple offences for relatively minor matters, criminalize things that would normally be dealt with in civil efforts, and we would create new charges under the Criminal Code for offences for which we already have adequate measures within the Criminal Code to handle such infringements.

I want to first begin with the question of invasion of privacy, which is found at clause 59 of Bill C-8.

The definition of “offence” under the Criminal Code section dealing with wiretapping would be amended to include infringements found and created in Bill C-8. It is important to note that this section is not before us at the moment because when we are amending one legislation and creating Bill C-8, we do not always go back and look at the legislation we are changing. However, I think it is important for all members in this place to look at the Criminal Code section that Bill C-8 would amend.

Bill C-8, intended to deal with copyright and trademark, would amend section 183 of the Criminal Code. If we look at section 183, we find that the definitions of “offence” deal with the following: first is high treason; second is intimidating Parliament or a legislature; third is sabotage; then is forgery, sedition, highjacking, endangering the safety of aircraft, offensive weapons, breach of duty, using explosives.

This category of offences, I think all members of this House would agree—even those who do not have statutory interpretation training—are offences of a high order and significant, dangerous activities in the Criminal Code for which we want to be able to have access to wiretap. However, we would now add offences under copyright and trademark infringement, as created by this proposed act. Now, that is a step too far for the Green Party.

It means that, immediately upon passage of Bill C-8, we would see the day that people who, for instance, in a number of fact settings that we certainly do not contemplate as dangerous, could have their phones wiretapped. There is accidental downloading, as the hon. member for Timmins—James Bay mentioned, and most high school kids could break this proposed law any day of the week without planning to make a fortune for themselves or do anything other than download illegally from a website.

A noted lawyer in this area, Howard Knopf, was not a witness and was not allowed to speak before the committee. However, he mentioned that “The DNA and fingerprints of the movie and record industries are all over this bill”. Why else would we want to allow the RCMP and law enforcement agents to have the ability to wiretap the phones of people they suspect have downloaded illegally?

Copyright infringement in this new scenario, the brave new world of Bill C-8, goes quite far into activities that one would not ordinarily consider dangerous at all, not even criminal, but they will be criminalized. For instance, under some sections of the bill, it would not be hard to imagine that someone had infringed copyright under the bill by playing at a private function, such as a wedding, tunes that normally would be played by disc jockeys at various events. That could prompt a wiretap if they were so inclined.

These changes are quite sweeping. I do not believe the Canadian public is aware of what Bill C-8 proposes to do or the complexities and confusion that would be created by the way this legislation is structured.

Under Bill C-8, if criminal remedy is available for anyone who knowingly distributes copies of a work in which copyrights exist, that could capture a kid downloading or using files on BitTorrent. We do not want to encourage those activities, but on the other hand, the level of criminality and the ability to wiretap for those offences is certainly extreme.

The trademark and copyright area is a difficult area. People who work in this area are concerned that the bill could also inadvertently capture parallel imports. Parallel imports are also referred to as grey products. They are in a murky area. A parallel import is not actually infringement of copyright at all. It is not a counterfeit or a piracy measure. I will use an example from New Zealand that I found when I was looking for a commonplace example to explain what I mean by parallel imports.

In New Zealand it is common for luxury car dealers to go to Malaysia, buy a Mercédes Benz, which is cheaper there, then import that vehicle legally into New Zealand and sell it at the price Mercédes Benz wants to sell that car for in the New Zealand market. People who go to the trouble of getting the car in Malaysia have not broken any law and they make a fair bit of money on this.

It is generally considered that parallel imports increase consumer choice, aid competition and keep prices low. The way the bill is structured, it could quite easily capture parallel imports inadvertently, not counterfeit nor pirate imports. Not only do we capture parallel imports, we could then have the ability to wiretap to find out what that group is doing.

This legislation has a lot wrong with it. The failure to make any effort to make it more precise is astonishing when one considers that these fundamental changes to our copyright law are being pushed through without adequate time to consider the implications.

My colleague from Hamilton made an interesting point. How could a border guard be expected to have sufficient grasp of this complex area of international copyright law to distinguish between a parallel import and a counterfeit or pirated good? It is simply beyond the scope of even people who practise this area of law full-time to make such a determination on the spot at the border.

I will turn quickly to the recommendations that Howard Knopf would have made had he been allowed to speak at committee. I will quote from an article he wrote. The first recommendation was:

The numerous references apparently intended not to interfere with the free flow of parallel imports are inconsistent and present potentially serious drafting problems that require further study. The bill should propose appropriate declaratory language for both the Copyright Act and Trade-marks Act that makes is absolutely clear that, with the exception of the sui generis book importation scheme now found in s. 27.1 of the Copyright Act, neither of these acts shall in any restrict the importation, distribution or sale of any product...

The second recommendation was:

It would be mistaken and harmful to criminalize routine copyright and trade-mark infringement activity and there is no need to add additional criminal sanctions, much less wiretap enablement provisions or any provisions that would authorize the warrantless search of travelers to determine whether they have infringing items in their baggage...

The third recommendation was:

The bill should contain no provisions that are not essential for the purpose of combatting counterfeit...

I urge this place to accept that this legislation will require massive amendments very soon.

Combating Counterfeit Products ActGovernment Orders

October 2nd, 2014 / 11:45 a.m.

Liberal

Wayne Easter Liberal Malpeque, PE

Mr. Speaker, I appreciate what the leader of the Green Party put on the table, but when I listened to her remarks, it concerned me that a very important witness was not invited to the committee. Could she inform the House why that was the case?

I know committees have not worked well in recent years, but they are supposed to look at all the angles. It seems rather strange that consistently amendments from no one other than the government seem to be accepted. That is not how this place is supposed to work. Opposition members and other witnesses have good ideas, too. It might even prevent the government from having their legislation tossed back by the Supreme Court.

Could the member tell me the credentials of the witness and if she knows any reason why that person, with his expertise, was not invited to come to the committee to assist all Canadians in making better legislation?

Combating Counterfeit Products ActGovernment Orders

October 2nd, 2014 / 11:45 a.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, Howard Knopf has over 30 years' experience in copyright infringement law. He attached a CV and sent it to the committee. In his letter to the committee he said the following:

—if there is to be a bill - we need to get it right. Here is my offer to appear sent to the Committee on November 11, 2013. It seems that that the Committee does not wish to hear me on this.

He went on to say:

I would like to offer to appear before your Committee in my own personal pro bono capacity as a witness in order to address certain issues of serious concern regarding Bill C-8. While the overall purpose of the Bill is commendable, namely to reduce commercial counterfeiting and piracy, and the drafting shows very diligent work and great competence overall, the devil is in the details and there are 50 pages of highly technical details in this instance - some of which have profound policy implications.

He closed with a PS, which, in light of the comments from the member for Malpeque, are troubling. He wrote:

PS--Interestingly, the Committee has heard both from Lorne Lipkus and his son David Lipkus, both of the same anti-counterfeiting law firm, in separate presentations that were presumably both very much in favour of this legislation, and presumably both advocating for it to go even further.... But, a Committee that is rushing to judgement and refusing to hear testimony that it might not like, while hearing separate testimony from a father and son in the same law firm with the same focus, is really rather unusual--even by Parliamentary Committee standards.

Combating Counterfeit Products ActGovernment Orders

October 2nd, 2014 / 11:50 a.m.

The Acting Speaker Barry Devolin

Is the House ready for the question?

Combating Counterfeit Products ActGovernment Orders

October 2nd, 2014 / 11:50 a.m.

Some hon. members

Question.