Mr. Speaker, as I was saying before you rightly interrupted me, I am pleased to speak today to begin second reading of Bill C-32, the Copyright Modernization Act.
This bill is a key pillar in the commitment this government made in the Speech from the Throne to position Canada as a leader in the global digital economy. We promised a bill that would modernize Canada's copyright law for the digital age, protect and create jobs, promote innovation and attract new investment to Canada.
With this bill, we are ensuring that Canada's Copyright Act is focused on the future and is responsive to an environment in which things happen quickly and change is constant.
A primary aim of any copyright reform must be balance. The copyright system must find a balance between interests that can seem to be competing, for example, between consumers who want access to material and artists and innovators who want to be and should be rewarded for their creativity.
However as hon. members are well aware, finding that balance can be and has been very difficult. It has eluded the House for over a decade, and balance for one group may be seen as unfair to another.
From July to September of last year, the hon. heritage minister and I held a national consultation on copyright issues. The bill before us was guided by the input of thousands of Canadians, creators, consumers, businesses, educators and intermediaries.
Let me begin with creators. During the consultations, creators told us they needed new rights and protections to succeed in a digital environment, and so the bill before us implements those kinds of rights and protections of the WIPO Internet Treaties and paves the way for a future decision on ratification.
The bill also empowers copyright owners to pursue those who enable copyright infringement, such as illegal peer-to-peer file sharing websites. At the same time, Canadians participating in the consultations told us they did not think it was fair for consumers to face exorbitant penalties for minor copyright infringement, and so the bill before us significantly reduces existing penalties for non-commercial infringement. It introduces the test of proportionality as a factor for the courts to consider when awarding statutory damages.
This brings me to the perspective of consumers and users. During the consultations, Canadians told us they wanted to use the content they had legally acquired. They wanted to time-shift television programs. They wanted to shift format from CDs to iPods. They wanted to post mashups on the web. They wanted to make backup copies.
Canadians will be able to record television, radio and Internet programming to enjoy it at a later time, if the bill is passed, with no restrictions as to the device or medium they wish to use. Just as important, this bill would remove any barriers in the Copyright Act to the introduction of new technologies like the network personal video recorder and cloud computing. The latter is critical to Canada's ability to participate in the digital world as a full partner. As well, for their private use, Canadians will be able to copy any legitimately acquired music, film or any other works on to any device or medium and make a backup copy.
There are some who would argue that consumers should have to pay a levy on iPods, smart phones and Internet services, the iPod tax as it were, to compensate artists. We disagree. We oppose the iPod tax as regressive, unfair and economically destructive. Why should consumers pay more for an iPhone or a BlackBerry even if the device is not used for music? It is unfair. It would make devices costlier, would not prevent piracy and would encourage more black markets.
Let us help artists by cracking down on those who would destroy value, not innocent purchasers of hardware.
Let us return to the provisions of the bill. The bill permits the inclusion of copyrighted material in user-generated content created for non-commercial purposes. The provisions will not interfere with markets for the original work, nor will they disrupt the growth of business models that have developed around the dissemination of user-generated content online.
The bill also includes important new measures for the print-disabled. Recognizing the opportunities that today's technology allows, it permits a person to adapt a copyright work into an accessible format on his or her own behalf.
For computer program innovators, the bill includes measures to enable activities related to reverse engineering for software interoperability, security testing and encryption research. It clarifies that the making of temporary technical and incidental reproductions of copyrighted material as a part of a technological process is acceptable.
What did we hear in our consultations from educators, museums and researchers? They told us that they needed more flexibility to use copyright material in the service of education and learning. The bill proposes new exceptions that would recognize the enormous potential that technology offers students.
The bill before us expands the existing uses allowed as fair dealing. It adds education, parody and satire, reconfirming this government's commitment to structured education and creativity.
We are building on a well-established feature of Canadian copyright law to respond to and meet the needs of educators, be they in the classroom, in a home-school setting or for training in the workplace.
Finally, let me outline how this bill responds to the needs of Internet service providers. The bill clarifies that ISPs and search engines are exempt from liability when they act strictly as intermediaries in communication, caching and hosting activities, but at the same time, ISPs will play a role in helping combat copyright infringement.
Fair, balanced and technologically neutral, this bill accomplishes all of these things, but it also helps our economy by encouraging two of the most powerful forces we have, consumers and creators. They are sometimes the same people. Regardless, they are the force that guarantees that Canadians are innovators and are capable of growing the knowledge economy. But consumers and creators cannot do it alone. They need modern copyright laws, and that is what Bill C-32 is all about.