Evidence of meeting #5 for Industry, Science and Technology in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was products.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Scott Smith  Director, Intellectual Property and Innovation Policy, Canadian Chamber of Commerce
Lorne Lipkus  Partner, Kestenberg Siegal Lipkus LLP, Canadian Intellectual Property Council, Canadian Chamber of Commerce
Jim Keon  President, Canadian Generic Pharmaceutical Association
Carla Ventin  Vice-President, Federal Government Affairs, Food and Consumer Products of Canada
Vladimir V. Gagachev  Manager, Regulatory Affairs, Electrical Sector, Eaton Industries (Canada) Company

5:20 p.m.

Conservative

Ed Holder Conservative London West, ON

So what's in the legislation proposed now that's consistent with what goes on in the United States and in the EU?

5:20 p.m.

Partner, Kestenberg Siegal Lipkus LLP, Canadian Intellectual Property Council, Canadian Chamber of Commerce

Lorne Lipkus

It's partially inconsistent. It's consistent in the sense that cost is there. In the United States it's a very minimal cost. It's not all the cost, which it is in Canada. In the United States it's destroyed by customs, everything is done, and they get a bill, which I understand is $100 or $150, and the rights holders are paying those costs.

I'm not as familiar with the cost in the EU, but I do know that there have been no bills for some of the detentions. I've read that in their reports, and those reports are of course public. In many of the cases, they're going by way of simplified procedure and customs is just destroying it. So although there is a cost, it's much less than what is proposed we have in Canada.

5:20 p.m.

Conservative

Ed Holder Conservative London West, ON

But it does belong to the rights holders now?

5:20 p.m.

Partner, Kestenberg Siegal Lipkus LLP, Canadian Intellectual Property Council, Canadian Chamber of Commerce

Lorne Lipkus

Not in all cases, but in some cases.

5:20 p.m.

Conservative

The Chair Conservative David Sweet

Mr. Thibeault has a 30-second question.

5:20 p.m.

Conservative

Ed Holder Conservative London West, ON

I appreciate that. Thank you.

5:20 p.m.

NDP

Glenn Thibeault NDP Sudbury, ON

Mr. Gagachev, in relation to the breakers and the electrical circuitry you were talking about, you were able to rhyme off how many—and they found one in this building. Are there statistics out there that can show us how many, or how concerned we should be in relation to how many counterfeit circuits are out there? It's pretty disconcerting.

5:20 p.m.

Manager, Regulatory Affairs, Electrical Sector, Eaton Industries (Canada) Company

Vladimir V. Gagachev

Absolutely not. As I mentioned in my report, we can only inspect those that look suspicious to the people who report them to us. I've been training people and telling people, but as a brand owner, we cannot tell them everything; we have to hide something, otherwise it's a catch-up game. The bad guys always catch up.

As Mr. Lipkus said, we ask them for a photograph, and most of the time we can tell from the photograph that the brand owner called. Again, it's whether the owner of the equipment or the inspector can spot it, and those are the key people I need to work with and I do work with. It's a fluke. We cannot possibly check them all. We advise buying from authorized sources. That's extremely important.

I did mention in my report that unauthorized re-sellers of equipment concerned with public safety has to be addressed.

5:25 p.m.

NDP

Glenn Thibeault NDP Sudbury, ON

Thank you, Mr. Chair.

5:25 p.m.

Conservative

The Chair Conservative David Sweet

Thank you, Mr. Gagachev.

I've adopted a new habit. When I see a product, I now call the manufacturer, if it's an online product, and ask them if they're an authorized seller, because it's so ubiquitous now.

I want to thank the witnesses. A number of colleagues mentioned just how important this subject is for us, and although we may disagree on process, we are all agreed on stemming the tide of this criminal activity that's endangering our citizens.

I want to thank you for bringing the concerns of your industries and also for your expertise; it's been very enlightening.

Colleagues, we're now adjourned.