The way I think of Bill C-18 is that it's payment in lieu of licensing agreements for copyright-protected material. Google uses material to their business benefit without formal permission, and Bill C-18 is a negotiated settlement in order to compensate for that behaviour.
I would argue that it's working. I think Cal and Rod noted as well that money is flowing to publishers. It's being used to put journalists on the street, telling the stories for Canadians. It's a strong and courageous piece of legislation that is supporting the industry and making a difference to us.