Bill C-8 (Historical)

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 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.

[Anne Minh-Thu Quach, NDP, Beauharnois—Salaberry, QC]

Thank you, Mr. Chair.

By introducing this amendment, we just wanted to point out that similar imports would no longer be included in Bill C-8. A number of experts and witnesses have made submissions asking the committee to clarify this point. We want to make sure that small and medium-sized businesses are not the only ones paying the price for this type of trade, which makes it possible to offer competitive prices to consumers. It is a legal trade that meets the health and safety standards.

[Judy Sgro, Liberal, York West, ON]

Thank you, Mr. Chair.

The issue that just adds to that is why are we in such a rush on Bill C-8? It's an important piece of legislation, and I do think all of us probably would like to support it. This just adds another reason to ask if we have to start clause-by-clause today.

Can we not continue to seek some more information for another couple of meetings? Where's the deadline? And what's the pressure that this was to be done in three and a half or four meetings? Could someone explain that to me?

[The Chair, Conservative, David Sweet]

Good afternoon, ladies and gentlemen. Bienvenue à tous. Welcome to the seventh meeting of the Standing Committee on Industry, Science and Technology.

Pursuant to the order of reference of Monday, October 28, 2013, we are considering Bill C-8, An Act to amend the Copyright Act and the Trade-marks Act and to make consequential amendments to other Acts. Today we'll be considering it clause by clause.

Pursuant to Standing Order 75(1), consideration of clause 1 shall be delayed.

First I'll go Ms. Charlton, who wants to raise a point. It was agreed among the parties that she would do that first.

[Glenn Thibeault, NDP, Sudbury, ON]

That flows right to my next question.

What's your perspective on whether Bill C-8 will protect Canadian consumers from unwittingly purchasing potentially dangerous counterfeit products found in some of Canada's largest retail chains?

[Glenn Thibeault, NDP, Sudbury, ON]

Sure. I know we're going to get to some questions soon, and some of my colleagues will ask about the resource piece.

But in your opinion, do you think Bill C-8 will have a tangible impact on the volume and flow of counterfeit products entering Canada?

[The Chair, Conservative, David Sweet]

Good afternoon, ladies and gentlemen.

Welcome to the sixth meeting of the Standing Committee on Industry, Science and Technology, where we're hearing evidence with regard to Bill C-8, An Act to amend the Copyright Act and the Trade-marks Act and to make consequential amendments to other Acts.

Before us in person we have Kevin Spreekmeester, vice-president of marketing for Canada Goose, and via teleconference we have Joy Nott, the president and chief executive officer of the Canadian Association of Importers and Exporters.

I will follow the agenda that is before us.

By the way, colleagues, you'll see that we have time set aside between 5 and 5:30 for committee business. I think we have a committee budget that we're going to deal with, along with some other items.

Now we'll go to the witnesses.

Yes, Mr. Bélanger?

[Brian Masse, NDP, Windsor West, ON]

With regard to CBSA, Canada Border Services Agency, right now they are undergoing significant cuts; from 2012 to 2015, approximately $160 million is being gutted from them. Just recently they moved the east coast marine operations to Toronto with regard to intelligence gathering. They also cut the marine dogs from the service. I'm told that significantly affects the speed and capability of getting intellectual property abuses and contraband, in particular, off the streets and keeping it out of our country.

We're also moving on Bill C-8, which is actually going to allow CBSA officers to suspend materials they believe are contraband. Are your members interested in that issue? Contraband has actually been rising significantly in Canada, including not just regular T-shirts and CDs, but it's actually circuit breakers and other types of public infrastructure.

[Judy Sgro, Liberal, York West, ON]

You're all very sweet. Thank you all so very much.

Since we seem to have this increasing speed to deal with this bill.... We have a memo that says we may have to put in our amendments as early as the coming Wednesday.

To any of you at the table, do you.... I'm glad we're dealing with Bill C-8, not to go on record as going the wrong way, but I see health and safety concerns being raised. I also see opportunities to talk more about a simplified procedure. Otherwise, it's the rights holder that's going to get hit with added costs and problems, whereas if we were to put in a simplified procedure or administrative regime—call it whatever you like—it seems to me that we would be saving money.

The government talks about spending tax money and so on. I think we should make sure that whatever we do is not adding costs that we don't have to for anybody other than the people who are doing the criminal activity, which I'd like to see us go stronger on from that perspective.

I guess that's the first question: do you think we should be spending more time on this bill to put more teeth into the bill?

Second, because I may not get the floor again, Mr. Keon, you mentioned legal opinions in regard to the distinctiveness issue that you're concerned about. Would you be prepared to give those to the committee to make sure that we all have adequate information?

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Thank you, Mr. Chair.

Thank you to all the witnesses for appearing today.

I will be addressing my questions to you, Mr. Keon. First of all, thank you very much to your industry for the medicines you've donated to Health Partners International. They celebrated $40 million worth of medicines distributed to the world's most needy last year. I know that's in large part your industry. Even now they're delivering medicines to the Philippines. So thank you very much for that.

My question is also in relation to the definition and the suggestions you've made. I see by your brief...which I found quite disturbing, to be honest, as a lawyer as well, because of the changes.

My understanding, in relation to the definition in the current act, is that you are only making a suggestion that two words be deleted, in essence—three words, but only two different words—and in the new definition in Bill C-8, there are actually 14 words that you're suggesting that are different.

So there's quite a difference between the old definition and the new definition, and you're only suggesting a minor change to the old definition—a tweak, in essence—because of the case law that has taken place over the last how many years.

[Anne Minh-Thu Quach, NDP, Beauharnois—Salaberry, QC]

Right. Perfect.

Both of you also addressed the issue of cybercrime involving products sold over the Internet. Should any measures be added to Bill C-8 to cover everything sold over the Internet?

[Anne Minh-Thu Quach, NDP, Beauharnois—Salaberry, QC]

So there should be more resources. When the Minister of Industry came to testify, he clearly repeated a number of times that there would be no further investment, that all of it would be part of people's duties.

Should we have an amendment to Bill C-8 that would add financial and human resources? Would you recommend that?

[Carla Ventin]

I think the border officers would require perhaps more resources. I mean, let's think about this. Counterfeiters are becoming much more sophisticated. If the officers are going to be given additional responsibility at the border, I think more training would be required. I think that's a key consideration.

But also, to help alleviate that concern somewhat, don't forget that Bill C-8 will actually allow—for the first time—the border officers to contact and discuss with the rights holders.... For example, our member companies have intelligence and can help out at the border. Hopefully that would be helpful, and we look forward to working with the border officers on this.

[Anne Minh-Thu Quach, NDP, Beauharnois—Salaberry, QC]

Thank you, Mr. Chair.

Thank you to everyone for being here to testify about this very important subject.

My questions are for Carla Ventin and Mr. Gagachev.

You both spoke about additional resources. Mr. Gagachev, you rightly said that you had to use specialists in your industry in particular, even retired gentlemen, to do inspections. Under Bill C-8, all these additional responsibilities would be given to our Canada Border Services Agency officers, with no additional financial or human resources.

Does that trouble you? Do you think the lack of resources will cause problems in applying the legislation?

[Carla Ventin]

We're satisfied as well.

Many of our products line the grocery shelves and drugstore shelves. These are products that you put in your mouth and that touch your skin, so the stakes are very high. These are a concern for us, and we think Bill C-8 will address that on the counterfeit side.

As I mentioned in my remarks, there are also other products, non-compliant products. These are products that are also a health and safety risk. They are not counterfeit, but they do pose a health and safety risk to Canadians, both inside and outside the product. For example, on the inside these products may not comply with Canada's very strict rules and regulations. They may have ingredients that have not been approved in Canada. This is a really big concern.

[Judy Sgro, Liberal, York West, ON]

To our other two witnesses, you made comments with regard to concerns on health and safety issues. You certainly raised some concerns with us that are of significance. Are you satisfied that Bill C-8 will be able to address those?