Thank you, Mr. Chairman and members of Parliament.
My name is Graham Henderson. In addition to being president of the Canadian Recording Industry Association, I'm also on the steering committee of the Canadian Anti-Counterfeiting Network. It's on their behalf that it's my pleasure to specifically address the Canadian Anti-Counterfeiting Network's recommendations.
I should say at the outset that the solutions are not complicated, nor need they be expensive. Other countries have already figured this out. There are road maps..
In many respects, we are far behind our trading partners. We can look to the intellectual property enforcement policies of Europe, the United States, and Japan, as well as the model legislation promulgated by the World Customs Organization, of which Canada is a member.
If I may, I would like to direct the committee's attention to the documents that the Canadian Anti-Counterfeiting Network has tabled for your review. The first is a press release in which a CACN/Pollara study found that 39% of Canadians have knowingly or unknowingly purchased counterfeit products. The number in the United States is 13%. It's three times higher in Canada. The second item is the questions that were asked.
The third document is a case study, a morality tale, if you will, that shows exactly how bad it is out there. It focuses on a Vancouver counterfeiter of DVD products who repeatedly flouted the system over a period of years. He was repeatedly charged, repeatedly convicted, and in his final bout with the law he received a $5,000 fine. It's worth reading.
We've also included a PowerPoint deck, which I've seen some of the members flipping through. This is included to show the shocking variety of products available in Canada as counterfeit products.
I've also included a speech that I gave to the Economic Club of Toronto, which will serve as a summary of the road map that I'll talk about momentarily.
Finally, and perhaps most importantly, is the Canadian Anti-Counterfeiting Network's road map for change. This is the executive summary, together with—and most importantly—in the last few pages, our recommendations.
We've also provided you with an excerpt from that road map that decisively links the activities with organized crime. I might add that this two-page document flatly contradicts the testimony you heard from a previous witness. Organized crime is involved, and you'll see here that CSIS, Interpol, and the RCMP have all indicated that this is the case.
What exactly do we need to do? Well, as I say, the Canadian Anti-Counterfeiting Network has drafted a detailed list of recommendations, a copy of which is in front of you. It would be impossible to cover them all in depth, so let me touch on a few.
To remedy the lack of police and prosecutorial resources dedicated to counterfeiting and insufficient criminal penalties, we must, one, provide the RCMP and the Department of Justice with adequate financial and human resources to effectively address counterfeiting; and two, adequately fund an intellectual property crime task force composed of police officers, customs officers, and federal prosecutors to guide and coordinate IP criminal enforcement. These exist in many, many countries.
To update outdated and ineffective intellectual property crime legislation, we need to, one, enact legislation that clearly defines trademark counterfeiting as a specific criminal offence under the Trade-marks Act; and two, enact legislation to make camcording in a theatre a criminal offence. To empower customs officials, we need to implement legislation clearly prohibiting the importation of counterfeit goods. And we need to provide the CBSA with the express authority, which it lacks, to detain, target, seize, and destroy counterfeit goods on its own initiative.
Finally, and perhaps most importantly—although it's difficult to pick one—to help elevate the status of intellectual property in this country and to make us a more prosperous and more competitive nation, we need to follow the lead of other nations and establish federal and provincial intellectual property coordination councils with ministerial involvement. They exist in Brazil, in the United States, in England, and they exist in Japan.
We can do this. You have heard from officials only about how hard this is and about how many hurdles have to be cleared. I think a world record was set for the use of the word “complex”. We and the other stakeholders who have appeared before you are here to tell you that it is simply not that difficult.
Starting five months ago, the Canadian Anti-Counterfeiting Network began preparing a pioneering study that examined the economic impact of counterfeiting, the legislative and regulatory weaknesses giving rise to the problem, and the intimate link between innovative economies and the robust protection of intellectual property. Finally, it surveys best practices internationally. It was officially released today and is in the process of being translated. The moment it is, it will be provided to this committee.
Thank you.