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 the Library of 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 (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)
C-8 (2016) Law Appropriation Act No. 5, 2015-16
C-8 (2011) Law Appropriation Act No. 1, 2011-12
C-8 (2010) Canada-Jordan Free Trade Act

Combating Counterfeit Products ActGovernment Orders

January 31st, 2014 / 12:25 p.m.

Liberal

Geoff Regan Liberal Halifax West, NS

Mr. Speaker, I would like to thank my hon. NDP colleague for his question.

First of all, I mentioned the cuts that the 2012 budget made to the Canada Border Services Agency, but I appreciate the fact that he also brought up the cuts made to the RCMP.

As I said, I do not understand how the government can think that cutting services is going to improve them. No doubt there will be fewer border officials and RCMP officers to protect our jobs in Canada and to ensure that counterfeit goods do not enter the country.

Combating Counterfeit Products ActGovernment Orders

January 31st, 2014 / 12:25 p.m.

NDP

Anne Minh-Thu Quach NDP Beauharnois—Salaberry, QC

Mr. Speaker, I thank my colleague from Halifax West for his speech.

His speech falls in line with what we are saying, namely that this is a step in the right direction, but there are not enough resources and data to allow border services officers and the RCMP to do their jobs in the best possible conditions.

However, when the Liberal Party was in power between 1993 and 2005, it did not adequately fund the fight against counterfeit products. In a report by the Standing Committee on Industry, Science and Technology published in 2007, the RCMP stated that in 2005, it laid over 700 charges for intellectual property crimes. However, the RCMP said that it only had enough resources to investigate a small fraction of the cases brought to its attention.

Why did the Liberals refuse to adequately fund this area of enforcement, and are now calling on the Conservatives to do so?

Combating Counterfeit Products ActGovernment Orders

January 31st, 2014 / 12:25 p.m.

Liberal

Geoff Regan Liberal Halifax West, NS

Mr. Speaker, I want to thank the hon. member for the question.

I am sure she listened to my speech, but perhaps she missed the part where I mentioned the figures for 2005 and 2012, when there was a significant increase in the number of counterfeit products entering Canada. Before 2005-06, the number was much lower. The issue has evolved considerably.

The hon. member is saying that the previous government, which has not been in power for eight years, could have taken measures to combat counterfeiting. I agree that we must always try to find ways to combat counterfeiting. At the same time, does the hon. member truly remember that before 2006, there were a lot of comments and concerns in the country about counterfeiting, the way there is now in companies for example? I do not think so.

Combating Counterfeit Products ActGovernment Orders

January 31st, 2014 / 12:30 p.m.

NDP

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

Mr. Speaker, my colleague raised the issue of the lack of data, which is required to crack down on counterfeiting. Then there is my Liberal Party colleague, who said that the problem did not exist when his party was in power.

An OECD report published in 1998 concluded that it was difficult to measure the scope of counterfeiting and imitation merchandise in Canada. Since this has been an issue since 1998, it is completely false to say that it did not exist when the Liberal Party was in power.

Why did his party not do more to address this issue when it was in power?

Combating Counterfeit Products ActGovernment Orders

January 31st, 2014 / 12:30 p.m.

Liberal

Geoff Regan Liberal Halifax West, NS

Mr. Speaker, I would like to thank the hon. member for her question.

I remember the time period she is referring to. The Liberal government came to power after the Conservatives left a $42 billion deficit, and we introduced several measures to address that issue. Unfortunately, the NDP did not support any of those measures.

Many of the measures were implemented and worked well. For example, they improved Canada's economy and lowered interest rates.

To respond to her specific question, I do not remember people telling me or other members that it was a serious problem. Perhaps there were international reports, such as the one my colleague mentioned, but they did not deal with the type of problem we have now.

The fact is that counterfeit products were worth $7.6 million in 2005, and that rose to $38 million in 2012. I imagine that they are worth more like $45 million or $55 million today. That increase is what we should be focusing on.

Combating Counterfeit Products ActGovernment Orders

January 31st, 2014 / 12:30 p.m.

NDP

Philip Toone NDP Gaspésie—Îles-de-la-Madeleine, QC

Mr. Speaker, I would like to thank our colleague for his presentation because he has provided some interesting information.

Counterfeit goods can seem authentic and have the right logo, but we do not always know which country they come from. That is the case for Coke cans, for example.

With this bill, there will be fewer officers at the borders. Does my colleague believe that we have the resources we need to properly protect Canada's borders? Has the bill been sufficiently improved?

Combating Counterfeit Products ActGovernment Orders

January 31st, 2014 / 12:30 p.m.

Liberal

Geoff Regan Liberal Halifax West, NS

Mr. Speaker, I thank my hon. colleague for his question.

These improvements are necessary, but we could do more. We must improve the bill and, as he said, also provide the resources our officers need under this legislation to protect our country from counterfeiting.

Combating Counterfeit Products ActGovernment Orders

January 31st, 2014 / 12:30 p.m.

Kitchener—Waterloo Ontario

Conservative

Peter Braid ConservativeParliamentary Secretary for Infrastructure and Communities

Mr. Speaker, it is certainly a privilege for me to rise today and speak in support of Bill C-8, the combatting counterfeit products bill. I will begin by indicating that I will be splitting my time with the member for Durham.

Counterfeit products are a threat to all Canadians. They undermine the success of Canadian businesses by stealing the good reputation of a business in order to sell knock-off goods. The inferior nature of these knock-off goods then serves to tarnish the reputation of quality that the real Canadian business has worked so hard to establish.

However, counterfeit products are not simply a threat to Canadian businesses. Counterfeit automobile parts, counterfeit circuit breakers, counterfeit drugs, and many more dangerous counterfeit products also pose a threat to the health and safety of Canadians. The government has reintroduced the combatting counterfeit products act because we are committed to ensuring that the hard-earned reputations of Canadian businesses are maintained and that all Canadians are protected from the dangers posed by counterfeit products.

I would like to take this opportunity to focus on one of the key elements of Bill C-8. New provisions introduced in this bill would provide businesses and rights holders with better tools to stop those who form a part of the supply chain for counterfeit goods and to obtain compensation from them . These supply chains are essential to the spread of counterfeit products and are directly responsible for counterfeit products entering the Canadian marketplace.

Under the current Trade-marks Act, it is prohibited to sell, offer to sell, distribute, or advertise counterfeit products or services. What this means is that any person found to be selling, distributing, or advertising counterfeit products can be sued by the rightful owner of the trademark that the counterfeit products are attempting to imitate. For example, if someone is selling counterfeit jackets out of the back of a van, the legitimate company, under the current law, is able to sue that individual, both to stop him or her from selling and as a means of getting compensation for the damage done by the counterfeiter. Similarly, that company would also be able to sue an individual who is advertising counterfeit jackets or an individual who is found to be distributing counterfeit jackets to others for the purpose of sale.

However, the problem with this current system is that it does nothing to target those individuals who are part of the supply chain that enables the sale of counterfeit products. Under the current law, the rightful trademark owner has no means of stopping those who produce, import, export, or store counterfeit products prior to a distributor or seller actually selling the counterfeit goods. To illustrate the problem, allow me to give some examples.

Let us imagine that a manufacturer of car parts finds a production line for counterfeit car parts operating somewhere in Canada. Under the current Trade-marks Act, despite knowing that car parts with another person's trademark on them are being produced, the owner of the trademark would be unable to ask a court to stop the production line. Until those individuals producing fake car parts attempted to make a sale or began to advertise their counterfeit products, the owner of the trademark would have no legal recourse to stop them or obtain compensation for damages.

In another case, let us imagine that a brand-name hockey manufacturer finds a series of storage units full of hockey jerseys bearing a counterfeit trademark. Under the current Trade-marks Act, the legitimate manufacturer would have no grounds to seize the counterfeit jerseys, even if the manufacturer was certain that they were indeed counterfeit. Until the legitimate manufacturer could produce evidence of the sale, attempted sale, or advertising of these counterfeit jerseys, he or she would not be able to seize the jerseys. Imagine if this was one's favourite hockey team.

Again, imagine that a legitimate electronics company has grounds to believe that an importer is bringing thousands of fake smart phones into the Canadian market. As members can appreciate, this would be a concern for me as the member of Parliament for Waterloo, for obvious reasons.

Under the current law, they would be unable to go to court to get an order preventing that importer from bringing those counterfeit smart phones into Canada. Unfortunately, once the counterfeit phones arrive in Canada, it is much more difficult to ensure that they are not released into the Canadian market, where unsuspecting Canadian consumers may be tricked into purchasing them.

Clearly, there are gaps in our current laws that need to be filled in order to better combat counterfeiting. Our legislation needs to be updated to ensure rights holders can protect their rights and that Canadian consumers can have confidence that they are purchasing the goods they intend to.

Part of what the combatting counterfeit products bill proposes to do is to fix these loopholes in the law. It would do so by adding new civil provisions to the Trade-marks Act that would tackle all parts of the counterfeit supply chain, not just point of sale.

Specifically, the Trade-marks Act would be amended so that along with selling, distributing, or advertising, individuals who are found to be manufacturing, causing to be manufactured, possessing, importing, exporting, or attempting to export counterfeit products could also be stopped and sued for damages by rights holders. These are overdue provisions.

Under the proposed changes contained in the combatting counterfeit products bill, a legitimate car parts manufacturer would be able to stop the manufacturers of counterfeit car parts under the new manufacturing provision. A legitimate hockey equipment company would be able to seize the storage units full of fake hockey jerseys under the new possessing provision. Under the new importing provision, a legitimate electronics company would be able to prevent an importer from bringing counterfeit smart phones into Canada.

These new provisions will serve to better protect the interests of rights holders by giving them the ability to ask a court to halt the actions of members of the supply chain for counterfeit products. The new provisions will also create a much-needed deterrent to those counterfeiters who, up until this point, had been able to participate in the supply networks critical to counterfeit operations with little risk that they could be targeted by the law.

To sum up, we need the expanded civil provisions contained in the combatting counterfeit products bill to effectively combat counterfeit products that pose serious risks to Canadian businesses and to Canadian consumers. I urge my fellow members of this House to swiftly pass the combatting counterfeit products bill.

Combating Counterfeit Products ActGovernment Orders

January 31st, 2014 / 12:40 p.m.

NDP

Pierre Nantel NDP Longueuil—Pierre-Boucher, QC

Mr. Speaker, I would like to thank my colleague for his speech. He is quite right because protecting patents and intellectual property, as well as ensuring the safety of Canadians, is something to be enthusiastic about.

However, I would like to know his thoughts on whether what is being required of border services is realistic. Can he say whether any projections have been made in that regard?

Combating Counterfeit Products ActGovernment Orders

January 31st, 2014 / 12:40 p.m.

Conservative

Peter Braid Conservative Kitchener—Waterloo, ON

Mr. Speaker, in fact CBSA and our border agents want the provisions contained in this particular bill.

In many cases, they actually see and witness counterfeit products crossing the border, but they are powerless to do anything. CBSA has underscored to us very clearly that they want these provisions and that they have the resources to apply these important new authorities and powers, and once they are provided, Canadians will be safer and our borders will be more secure.

Combating Counterfeit Products ActGovernment Orders

January 31st, 2014 / 12:40 p.m.

NDP

Dan Harris NDP Scarborough Southwest, ON

Mr. Speaker, I was in the committee when we were doing the study on intellectual property. Certainly CBSA would be happy to have these new powers, but they also want the resources to go along with them so that they can actually get the training they need to identify counterfeit and other goods and the staff to be able to do searches and seizures.

I also want to ask the member, because he was part of the committee, why the government refused to agree to the NDP's amendment that there should be reports back to Parliament on this issue.

Earlier I raised with the parliamentary secretary the other issue, which is that we do not adequately measure what is actually being counterfeited and what has come in. We have anecdotal evidence, but we do not have research-based data to track the quantities of counterfeit goods.

Why is it that the member himself voted against reporting back to Parliament on this bill?

Combating Counterfeit Products ActGovernment Orders

January 31st, 2014 / 12:45 p.m.

Conservative

Peter Braid Conservative Kitchener—Waterloo, ON

Mr. Speaker, I appreciate my colleague's question. I did enjoy the opportunity to work with him while at the industry committee.

My colleague mentioned the study on intellectual property. It was actually my motion that triggered that important and very comprehensive study of intellectual property at the industry committee, where we had the opportunity to hear from many Canadians and Canadian businesses and manufacturers about the importance of updating our copyright and combatting counterfeiting legislation in this country.

CBSA has indicated that it very much wants to have these additional powers and will have the resources to do so. We look forward to increased opportunities and the ability to deal with this important issue and to track this information.

Combating Counterfeit Products ActGovernment Orders

January 31st, 2014 / 12:45 p.m.

NDP

Philip Toone NDP Gaspésie—Îles-de-la-Madeleine, QC

Mr. Speaker, I listened carefully to the speech by my colleague on the government side.

This is definitely a step in the right direction, and we are always delighted when the government goes in the right direction, but there are still not enough resources. This government seems to have a great deal of difficulty understanding that resources are needed to make improvements. Every time the government takes a step forward, it insists on taking a step backwards. For example, when it passes one regulation, it abolishes another. This government seems to go in opposite directions at the same time.

The Parliamentary Secretary for Infrastructure and Communities says that the required resources will be available to implement what is being proposed by Bill C-8 today. Even the union is wondering where these resources will come from. Exactly what resources is he talking about?

Combating Counterfeit Products ActGovernment Orders

January 31st, 2014 / 12:45 p.m.

Conservative

Peter Braid Conservative Kitchener—Waterloo, ON

Mr. Speaker, it is clear that Groundhog Day must be coming, because the NDP uses two or three different members to ask the same question.

In any event, I will give the answer, which is this: CBSA resources, specifically border guards, have increased by 26% under our government. The CBSA has clearly indicated that it has the resources to apply these new powers within the current envelope. This is long overdue, and we look forward to getting it done on behalf of Canadian businesses and consumers.

Combating Counterfeit Products ActGovernment Orders

January 31st, 2014 / 12:45 p.m.

Durham Ontario

Conservative

Erin O'Toole ConservativeParliamentary Secretary to the Minister of International Trade

Mr. Speaker, it is my privilege to rise today in the House to speak, for the second occasion, on our important work to update our intellectual property regime and, more specifically, to combat counterfeit products, Bill C-8.

This is not just a modernization of our IP regime here in Canada but a bill that would have major impacts on public safety, on economic activity and revenues, and on jobs, because counterfeit products not only lead to risk for Canadians but lead to job losses.

Our present legal framework for intellectual property is also incredibly out of date. Like many areas, our government is moving on important issues of public policy, while other previous governments preferred to kick the can down the road. In fact, the Trade-marks Act was last amended in the 1950s and is out of date. That is before many members of the House were born. Also, with respect to trademarks, it does not even recognize the current state of intellectual property.

A few years ago, I had the good fortune to have a column in Marketing magazine, and in 2012 I wrote a column on the emergence of sound trademarks in Canada. It might interest the House, especially on a Friday, to know that in the U.S. sounds have been trademarked for some time. We are all familiar with the NBC TV broadcast chime that started with radio and is on television. We all know the MGM lion roar. Well, the MGM lion roar is now a sound mark. In 2012, the Canadian intellectual property office allowed, for the first time, a sound mark. A lot of our big companies and big brands will use a sound to associate a connection with that brand. In the marketplace it is called a sound mark or a sting.

Even the language of the act would be modernized from using the old term “wares” to using the more broad and modern term “goods”.

The landscape has changed. Sounds, colours, three-dimensional shapes, textures, and even taste are a critical part of a brand's identity. Companies, employers in Canada, spend millions of dollars securing these brands and this intellectual property.

Speaking of colours being associated with brands, I cannot resist to note that the colour blue is widely known to associate with strength and trust, while the colour red is considered boisterous and flashy. I think these differences between blue and red illustrate the differences between the Conservative leader and Liberal leader perfectly.

Bill C-8 would also enable IP rights holders to stop counterfeit goods at every step in the process: ports, distribution, and retail. As I mentioned the first time I rose to speak on this subject many years ago, for five years I was in-house corporate counsel at Procter & Gamble in Canada. In 2006, I was confronted with the ugly face of counterfeit goods in my job as a lawyer for the company. I assembled a brand protection team, with the support of the company president, Tim Penner; my general counsel, Eric Glass; our head of security, a proud OPP veteran working for P&G, Rick Kotwa; and a regulatory scientist, Jennifer Cazabon, who was in the gallery earlier today with her daughter, Maya. We put together a team to investigate and stamp out counterfeit goods that were affecting that company. They were not only affecting its revenues, its investments in Canada, and its jobs but potentially the safety of people who buy products because they trust the brand. They trust the logo, the trademark.

Bill C-8 would allow rights holders, like Procter & Gamble and other companies, to stop counterfeit goods throughout the criminal activity used to bring them to consumers' homes. The bill would provide better tools to investigate commercial counterfeiting and help reduce trade and counterfeit goods by promoting new enforcement tools to strengthen our current enforcement regime. The bill would provide new criminal offences that criminalize the commercial possession, manufacture, or trafficking of counterfeit goods or trademarked counterfeit goods.

It would also create new offences for trademark counterfeiting and equip law enforcement and prosecutors with the right tools to stamp out this problem.

The act would also give border officials, the CBSA, the authority to detain suspected shipments and contact the intellectual property rights holders about their brands and their rights being attacked. It would allow Canadian businesses to file a request for assistance with the Canada Border Services Agency, in turn enabling border officials to share that information with the rights holders regarding suspect shipments.

This bill is yet another example of our government consulting widely with employers and key stakeholders, and listening. These changes, protections, and new enforcement mechanisms are what industry and rights holders have been demanding for over a decade. Increasingly, our well-trained and professional workers at CBSA have also been asking for these tools to do their job better and more efficiently.

It is also important to note, on the subject of counterfeit goods, that criminal networks around the world are feeding on counterfeiting as a highly lucrative profit to help fuel other enterprises. We know that these international criminal networks throughout the world bring tremendous harm and oppression, not just here in Canada but around the world, and the proceeds from these IP crimes fuel that. In 2005, the RCMP declared organized crime to be the primary actor in this area of malfeasance. Stamping out counterfeit products and IP crimes starves these criminal networks of funding and the ability to hurt.

The public safety elements of Bill C-8 are also very important and deserve highlighting. The bill would give border officers additional tools to work with their government partners at Health Canada and the RCMP. This would ensure that unsafe or unsanitary products that could harm Canadians are pulled from the market.

In my case, Procter & Gamble found that law enforcement officers could tell it that they knew there was a suspicious activity regarding one of its brands, but there could be no tracking and no proper investigation. There would be no prosecution because the tools were not there; so law enforcement, busy as it was, would have other priorities that were more likely to lead to criminal charges and jail time.

I hope we can move ahead quickly with the passage of this bill. By protecting consumers and families and by encouraging businesses through innovation, protecting their brands, and encouraging them to invest in Canada, these amendments would not only promote innovation and creativity; they would help stimulate job growth.

In my situation, while I was at Procter & Gamble, this one employer in eastern Ontario was the largest private sector employer in the communities of Belleville and Brockville, making important investments in manufacturing jobs in an area of our province that has chronic unemployment. Large companies around the world estimate losses in the hundreds of millions or billions of dollars due to the theft of the goodwill surrounding their brands.

The Canadian Anti-Counterfeiting Network, leading Canadian employers, brands, and academics have all been asking for us to update our intellectual property regime in Canada and provide law enforcement with the tools to stamp out these products, which will not only lead to job losses but will fuel crime and pose health risks to Canadians across the country. I truly hope that all my friends in the House will recognize that there has been a decade of asking for this. With our government, we are delivering.