Thank you, Mr. Chairman and honourable committee members.
My name is Robert Malcolmson, senior vice-president of regulatory affairs at BCE. With me today is my colleague Mark Graham, senior counsel, legal and regulatory at BCE. We appreciate your invitation to provide Bell's views on how to maximize the benefits to Canadians and our economy through the review of the Copyright Act.
Bell is Canada's largest communications company, employing 51,000 Canadians and investing $4 billion per year in advanced networks and media content. These investments allow us to provide advanced communications services that form the backbone of Canada's digital economy. We are also a key supporter of Canada's cultural and democratic system, investing approximately $900 million per year in Canadian content and operating the largest networks of both TV and local radio stations in the country.
I think we bring a unique and balanced perspective to the issues you are considering. As a content creator and major economic partner with Canada's creative community, we understand the importance of copyright and effective remedies to combat piracy. As an Internet intermediary, we also understand the need for balanced rules that do not unduly impede legitimate innovation. I look forward to sharing this perspective with you today.
I'll begin with piracy. There is an emerging consensus among creators, copyright owners, legitimate commercial users and intermediaries that large-scale and often commercially motivated piracy operations are a growing problem in Canada. Piracy sites now regularly reach up to 15.3% of Canadian households through widely available and easy-to-use illegal set-top boxes. This is up from effectively zero five years ago.
In addition, last year there were 2.5 billion visits to piracy sites to access stolen TV content. One in every three Canadians obtained music illegally in 2016. Each of these measures has grown significantly over time. According to recent research conducted for ISED and Canadian Heritage, 26% of Canadians self-report as accessing pirated content online. TV piracy in Canada has an estimated economic impact in the range of $500 million to $650 million annually.
In the light of these concerning trends, we believe the most urgent task facing the committee in this review is to modernize the act and related enforcement measures to meet the challenges posed by global Internet piracy without unduly burdening legal businesses. To be clear, this does not mean targeting individual Canadians who are accessing infringing material. Rather, it means addressing the operators of commercial-scale copyright-infringing services. It is these large infringing operations that harm the cultural industries that employ more than 600,000 Canadians, account for approximately 3% of our GDP, and tell the uniquely Canadian stories that contribute to our shared cultural identity.
With this in mind we have four recommendations.
First, we recommend modernizing the existing the criminal provisions in the act. Criminal penalties for organized copyright crime are an effective deterrent that do not impact individual users or interfere with legitimate innovation.
Section 42 of the Copyright Act already contains criminal provisions for content theft undertaken for commercial purposes, but they have grown outdated. They deal with illegal copying, while modern formats of content theft rely on streaming. These provisions should be made technologically neutral so that they apply equally to all forms of commercial-scale content theft.
Second, we recommend increasing public enforcement of copyright. In jurisdictions such as the U.K. and the United States, law enforcement and other public officials are actively involved in enforcement actions against the worst offenders. The committee should recommend that the government create and consider enshrining in the act an administrative enforcement office and that it direct the RCMP to prioritize digital piracy investigations.
Third, we recommend maintaining the existing exemptions from liability related to the provision of networks and services in the digital economy. These exemptions protect service innovation without diluting the value of copyright.
Fourth and finally, we recommend considering a new provision that specifically empowers courts to order intermediaries to contribute to remedying infringements. This would apply to intermediaries such as ISPs, web hosts, domain name registrars, search engines, payments processors, and advertising networks. In practice this would mean that a new section of the Copyright Act would allow a court to issue an order directly to, for example, a web host to take down an egregious piracy site, a search engine to delist it, a payment processor to stop collecting money for it, or a registrar to revoke its domain.
While financial liability for these intermediaries is not appropriate, they can and should be expected to take these reasonable steps to contribute to protecting the value of copyright, which is essential to a modern digital and creative economy.
Thank you for the opportunity to present our views. We look forward to your questions.