Mr. Speaker, I wish to speak specifically to a couple of clauses in Bill C-36 and in particular how they relate to the Copyright Act. I refer specifically to clauses 26 and 27 on which we have to do a quick review.
As the member just mentioned, we have shared some time together on the Standing Committee of Canadian Heritage which is presently wrestling with a number of issues relating to copyright.
It is my position, and it was expressed recently by somebody who knows well, that Bill C-32, when it went through the process of becoming legislation in 1996 and enacted in 1997, basically exacerbated the complexities of what was already an overly complex bill.
The concern of the bureaucracy at this point, as I understand it, is that they not get into amending the Copyright Act too quickly and that in fact they do a proper job.
What we are dealing with in committee is the World Intellectual Property Organization treaty, otherwise known as WIPO, which Canada signed but has not ratified. At this particular point the world copyright treaty and the world performances and phonograms treaty, otherwise known as the WCT and the WPPT, are both in limbo as far as Canada is concerned.
The best advice that we have at this particular point from the people involved in the heritage and the industry ministries, the bureaucrats, is that we have to amend domestic legislation before we can get into actual ratification legislation for us to be part of the WIPO treaties.
The reason I mention this as a background is that it adds to the fact that the Minister of Canadian Heritage has said that she could not envision making any changes to the Copyright Act as presently legislated without those changes being taken in their entirety. We have had a stiff arm from the minister and from her bureaucracy to any changes that are absolutely essential to the Copyright Act.
Problems are currently being created by the Copyright Act, problems that in fact have an awful lot to do with employment, particularly in the broadcast industry. These problems, which were created and built into Bill C-32 at the time that it was enacted, were built into it in such a way that people in the broadcasting industry are presently being laid off. Therefore we are talking about something urgent.
The difficulty to this point has been that the minister has refused to consider any idea at all of making amendments to the Copyright Act. The position of the Canadian Alliance and myself has been that this is bogus. There is no reason in the world why she could not have made those changes.
I draw to the attention of the House that the minister has indicated support, for example, for Bill S-20, presently going through the other place, with respect to photographic works. This is a bill that would amend the Copyright Act.
Therefore, apart from Bill C-36, out of one side of her mouth she has said that she will have nothing to do with changing the copyright bill but out of the other side of her mouth she has said that Bill S-20 is fine, in spite of the fact that it would alter the Copyright Act.
Now we come clauses 26 and 27 in Bill C-36 which both call for changes to the Copyright Act. Effectively what I am doing today is challenging the minister. Seeing as she must be prepared to go further, not only by her support of Bill S-20 but also by her support and the tabling of this legislation to change the Copyright Act as contained in Bill C-36, I challenge her to do so.
It is interesting that the clauses, which are so vexatious and create the problems, particularly for small market broadcasters, are contained in section 30 of the Copyright Act. However the minister is prepared to change section 30.5 of the Copyright Act but I want to deal with section 30.8. It is interesting that she is changing the Copyright Act to allow for this legislation in subsection 30.8(7). Well section 30.8, which is built into the Copyright Act, is the one that is the problem. My thesis of course is that if she is prepared to change subsection 30.8(7) for the purposes of this act, surely as an amendment in committee she and the government must be prepared to accept an amendment to section 30.8.
Sections 30.8 and 30.9 of the Copyright Act have to do with the right of broadcasters to do electronic transfer, a transfer of medium. It is referred to as ephemeral rights. Ephemeral simply means an electronic transfer that does not create any value. It simply takes place. If we look at section 30.8 of the Copyright Act it says:
It is not an infringement of copyright for a programming undertaking to fix or reproduce in accordance with this section a performer's performance or work, other than....
And it goes through that. I draw members' attention to the fact that it says “It is not an infringement of copyright for programming”. It then goes through paragraphs (a), (b), (c) and (d) and then subsections (2) to (11) inclusive and gives all of the reasons why it is not an infringement of copyright.
However a flaw was built into not only section 30.8 but also section 30.9, which have to do with a different way of fixing the music, that is electronically creating a record of the music, and in spite of the length of these sections in the Copyright Act, they would be annihilated or wiped out.
The minister is prepared to change subsection (7). I am simply asking her to delete subsection (8) which reads:
This section does not apply where a licence is available from a collective society to make the fixation or reproduction of the performer's performance, work or sound recording.
We would also delete subsection 30.9(6) of the Copyright Act which reads:
This section does not apply if a licence is available from a collective society to reproduce the sound recording, performer's performance or work.
If I have not been clear to this point I want to point out that sections 30.8 and 30.9 are about exceptions. A the time the copyright bill was enacted there were no collectives in place. Therefore it was the clear intention of the government and of the minister, who was the minister at the time, that these exceptions would exist for the broadcast industry.
What basically happened was that there were side negotiations quite literally out in the hallway, which I saw with my own eyes, between the Bloc Quebecois, which, as we will recall, was the official opposition in the 1993 Parliament, and the parliamentary secretary to the minister to get the bill approved by an artificial deadline that the Minister of Canadian Heritage put into place. During the dickering and the give and take that took place what the Bloc member got from the parliamentary secretary was these clauses that annihilate the exemptions.
A colleague of mine was just telling me about a small radio station in Fort McMurray, Alberta. We can imagine that the Fort McMurray radio station does not have a giant marketplace and does not have a tremendous amount of revenue. My colleague was shown a cheque by that radio station manager payable to the collective of over $20,000. In my constituency, in Cranbrook, British Columbia, we are looking at a radio station that must lay off an individual from the radio station which is already bare bones because its cheque is $57,000 which is more than a year's salary for a nominal worker at a radio station. We are talking about legislation, which was ill-conceived, done in haste, done in compromise and done in give and take, that is costing jobs in the Canadian broadcasting industry.
What is it about? When a radio station purchases a piece of music from a publisher a royalty is paid. The royalty is paid to the company which then goes through to the artist and so on and so forth. That is fine. They are receiving value.
Let us say that it is fixed on CD. They then would take the CD and historically they put the CD into a CD player, one of a bank of CD players. They would program that CD player: number one would play track 6, number two would play track 2 and number three would play track 5 or whatever the numbers were. Then the disc jockeys, when they were talking on the radio and the next song was up, they would simply push the button and then the CD would turn, track 4 would play and away it would go.
Now there is value there because when the radio station plays the music it has the opportunity to collect money from the advertisers who advertise for the people listening to the radio station that is playing the music.
Everything is fine up to that point except that technology has caught up to the point that rather than the disc jockeys having to put those individual CDs into the players, select the tracks and press the buttons, now a programmer simply takes those cuts and puts them on to a hard drive. The disc jockeys now only have to press a button and away it goes.
However what have we done? We have moved the digital image from the CD, or whatever the recorded medium was, which creates the audio that we hear on our car radios, into the hard drive. That is all. There is no value there. It is simply an easier way for the radio station to perform this task. In addition, there is now the transfer sometimes of that digital imagery by satellite or by broadband.
It is the difference between physically putting a CD into a FedEx package and shipping it across the country and then someone playing track 4 off there or by pressing a button and instantly, by broadband or satellite, that digital image goes from this computer to that computer. That is all it is. There is nothing more to it than that.
What has happened is that the industry has been smacked with a $7 million bill retroactive three years because it has been using new technology and receiving absolutely no value for it. This is the amazing thing about this particular exemption that was intended to be an exemption. It clearly and specifically states in sections 30.8 and 30.9 of the Copyright Act that the broadcasters have the right to do this.
The only reason they are being whacked with these millions of dollars very simply is that there was some dickering going on in the back hallway in Parliament during the committee process.
I come back to the bill we are talking about. Bill C-36 very clearly and specifically refers to the Copyright Act, subsection 30.8(7). I am very simply challenging the minister to do what is right for the broadcasters, to do what is right for the people in the broadcast industry and to simply extend the amendment to the Copyright Act to delete the next paragraph, that this section does not apply where a licence is available from a collective society to make the fixation or reproduction of the performer's performance, work or sound recording.
Somebody asked if it was not just a little too smart, with a bill dealing with the archives and the library, to try to extend this through to legislation that absolutely must be done. Was it not just a little too smart to make that connection? I say no, not at all. There is a principle here. The Copyright Act as it presently exists is wrong, absolutely wrong. It creates a penalty on broadcasters, on their business and on their employees. It creates a penalty that currently is costing jobs. It creates a penalty that is without principle a transfer of wealth from an industry which, although it is not on its backside, is an industry that does not have a lot of latitude on the profit side.
I would like the minister to realize that profit is not necessarily a dirty word. I would like the minister to realize that her backbenchers have been contacted by people from the Canadian Association of Broadcasters, from the local radio stations, explaining this to them, that there is support for this change.
Seeing as Bill C-36 will very likely pass, and certainly my caucus joins me in supporting the bill in principle so the bill can move to committee, we could have these necessary changes done in just a matter of a few days. This is long overdue because as we speak, people are receiving pink slips for absolutely no reason.