Thank you.
There are a few particular sections. The first is in regard to the non-commercial user, which is the section 22 clause. We understand the government is trying to allow innocent consumers to use the Internet without undue restrictions. This section opens a door that is unprecedented in the world. The non-commercial user language is vague, and could potentially lead to the devaluation of musical copyrights. Notwithstanding the sections that try to balance this, we feel that not having a clear enforcement mechanism that will deal with this will lead to devaluing of copyrights and the abuse of creators' moral rights.
Another very troubling section is the notice and notice provisions in section 41. The independent music sector is built on individual entrepreneurs and small businesses. The section as drafted places an unreasonable burden on the copyright holders to enforce their copyrights. It's impractical to expect copyright owners to go to court every time there is an infringement notice. The copyright infringer will continue to infringe with impunity, knowing there is very little chance that the copyright owner will have the resources to come after such infringement. We strongly urge the government to reconsider this section and create a fair, robust, and equitable provision that provides protection for ISPs while still allowing for notice and takedown of illegally posted intellectual property.
As for statutory damages, capping statutory damages at $5,000 will make damages the cost of doing business on the Internet. Individuals and small-business copyright owners will look at the cost of litigation versus damages and decide that litigation is impractical. Further, even if there is a judgment, it's far too small to have any real impact on infringers. Again, copyright infringers will infringe with impunity. In fact, the provisions of this section will create a vehicle of licensing for infringement.
Another section that is very important to us is ephemeral rights. Revenues in the music industry have steadily declined over the past ten years, leading to a crisis in the business. At a time when the music industry needs support, the bill further erodes revenue in this business. The removal of the requirement to pay a broadcast mechanical licence will lead to a reduction of nearly $21.2 million of revenue.
The royalty exemption presently in section 68 of the Copyright Act creates $1.2 million in exemptions for the first advertising revenues of commercial radio stations to pay neighbouring rights royalties. We feel this provision was put in at a time when there was supposed to be a transition to neighbouring rights. At this point, we feel it should be removed. It would create another $8 million of additional revenue to the music industry.
We would also like to request that the length of copyright in all areas be increased from 50 years to 70 years in order to maintain parity with all other jurisdictions.
I guess I am out of time.