Counterfeiting, pursuant to our acts as they are currently drafted for trademarks, is the reproduction of a trademark on wares that are covered by a trademark registration. I would extend that to wares in the same category. If I have a registration for a shirt and somebody reproduces my trademark on a baseball cap, I would consider that counterfeit. For copyright, it is the reproduction of the work that is protected by copyright.
Incidentally, Mr. Geist mentions unauthorized copies, and there is a very important distinction to make regarding the issue of grey goods. There will be a decision coming down from the Supreme Court some time this year on the Euro-Excellence case. This is a case dealing with Toblerone chocolate and based on which we will know whether grey goods, which are legitimate but are imported into Canada in violation of the rights of the local distributor, constitute a violation of copyright or not.
When you're dealing with something that is unauthorized, you have to be careful, because some unauthorized can be counterfeit and some unauthorized can just be grey goods. My definition of counterfeit excludes grey goods.
What's the impact on the Canadian economy? Somebody may very well be right in saying we don't know the full impact. The reason for that is that it's illegal. People who operate in illegalities don't keep detailed records. I know; that's what I'm confronted with on a daily basis. That's my first answer.
Instead of asking what the impact of counterfeiting is on the Canadian economy, why don't we ask what the social benefit of counterfeiting is?
Contrary to what I've read in some minutes of the security committee, I can assure you that counterfeiting does not promote innovation. It is not fair competition; it's unfair competition. You should not link counterfeiting with two innovative products that are going head to head in the marketplace or two companies that are really trying to outdo each other to come up with a new idea. That's not it. You have one innovator who is coming up with something new, and you have somebody else riding on his coattails.