Thank you very much.
It's good to be with you. Thank you for the opportunity to speak to the committee.
My branch chairs the Interdepartmental Working Group on Intellectual Property Issues. That working group is composed of representatives of the 10 departments and agencies that all have an interest or responsibilities related to intellectual property, which explains the number of officials that are here today.
I intend to provide you with an overview of the issue, outline international efforts to combat counterfeiting and piracy, and explain the purpose of the working group.
My colleague from the Department of Justice, Cal Becker, will describe Canada's current IPR system. RCMP Chief Superintendent Mike Cabana will address the criminal enforcement aspects of the issue. Kimber Johnston, from the Canadian Border Services Agency, will speak to civil procedures and border enforcement issues. Lastly, Diana Dowthwaite, from Health Canada, will speak to health and safety concerns. We would then be pleased to take any questions you have.
First and foremost, counterfeiting and piracy is a growing global problem. Although the issue has been presented by opponents of stronger IP enforcement as a victimless crime and one that's only a problem for rich countries, this is really not the case.
For example, fake pharmaceuticals represent at most 1% of our drug supply. Some developed countries are faced with a drug supply that consists of up to 50% fakes, which poses a much bigger threat to the health and safety of their societies and more severe financial impacts on their economies.
There are also concerns about fake merchandise, such as car brake pads made from sawdust, unsafe electrical goods, and a range of other products.
I will ask my colleague from the RCMP to address this concern and other emerging trends when he speaks to enforcement activities.
Counterfeiting and piracy has gained the attention of the international community, as witnessed by the prominence of the issue on the agendas of the Security and Prosperity Partnership of North America, or the SPP, the G-8, the OECD, the APEC, the WCO, the WTO, and the WIPO.
For instance, under the SPP, we drive closer cooperation among Canada, the U.S., and Mexico on IPR protection and awareness initiatives. The G-8 is providing leadership and guidance by making IPR a priority. The OECD has undertaken the task of measuring the economic impact of counterfeiting and piracy. APEC encourages IP experts from member countries to discuss and share best practices. The World Customs Organization is discussing instruments for border authorities to improve efforts to address counterfeiting and piracy violations. The World Trade Organization provides a forum for members to discuss the trade-related aspects of intellectual property rights. The World Intellectual Property Organization is a forum for all countries to address issues related to the international legal framework.
That is only the multilateral side. Bilateral activities and interests all focus on this issue. The United States has devoted significant resources to this as part of its bilateral diplomatic efforts with specific countries, including Canada.
Canada appeared in the U.S. trade representatives' 2006 special 301 report, which is driven by U.S. industry and is typically used by the United States trade representatives to apply pressure on trading partners on IP issues. Canada has been on the lowest level of the list for the last 11 years. We share the company of the EC, Italy, and Mexico, among others on this list.
Both domestic and international factors have led the Government of Canada to undertake a review of the regime. That's where our interdepartmental working group comes in.
Ten key agencies and departments are examining the issues to identify and analyze potential solutions. The group is currently studying options to improve our regime, with the intent to prepare recommendations for consideration. Broad progress has been made, but the work is not yet complete.
As government representatives, we rely on private sector groups and work closely with them. They include the Canadian Chamber of Commerce and the Canadian Anti-Counterfeiting Network. We regularly consult these groups through surveys, round tables and seminars. That partnership is absolutely critical for a better understanding of our respective interests and concerns.
Canada believes that collaboration between countries, including industry and not just governments, is essential. The problem is global.
On that note, I will hand it over to my colleague from the Department of Justice, Cal, so he can provide you with an explanation of our current IPR system.