moved
that Bill C-2, an act to amend the Radiocommunication Act, be immediately referred to the Standing Committee on Industry, Science and Technology.
Mr. Speaker, I am very pleased to rise in the House this morning to introduce what I believe is an important piece of legislation, both for the broadcasting sector and for the Canadian consumer.
The government has made the creation of a 21st century economy one of its highest priorities for Canadians. This commitment emphasizes ensuring that the commercial context in this country is favourable, that is, that it fosters the entrepreneurial spirit and rewards ingenuity and diligent work.
Among other things, this means that the market regulation framework must protect intellectual property. This means having regulations that encourage risk-taking and support innovation. It also means having legislation that contributes to fair competition and penalizes—as it should—those who profit unduly from the labour and entrepreneurial spirit of other people.
This legislation deals with all those factors. The bill before us deals with the growing problem of pirated direct broadcast satellite signals, and is intended to strengthen our ability to protect one of our most important cultural sectors.
I am sure that most of the members of this House are aware of this illegal technique. Briefly, people engaged in this illicit business import and build equipment that can be used to decode program signals broadcast by satellite. They then sell this illegal equipment to consumers who are thus able to get satellite television free of charge.
I have heard some suggest that this is a victimless crime, that stealing from big, faceless companies is somehow much more acceptable in our society than stealing from our neighbours.
Let me assure the House that this is not a victimless crime. The theft of the satellite signals denies legitimate Canadian broadcasters, content producers and programmers millions of dollars a year. It robs money from an industry that supports thousands of jobs. It is not only morally and ethically wrong, it is illegal.
Such actions contravene the Radiocommunication Act. In fact, a Supreme Court decision in April 2002 determined that the unauthorized recording of any encrypted subscription programming signal is illegal, no matter where it originates.
Nevertheless, it is becoming increasingly apparent that the current legislation is simply inadequate for resolving the growing number of problems are we face. Law enforcement officials and broadcasters do not have the tools necessary to dissuade criminals who import, design and sell illegal technical devices. The purpose of this bill is to correct this situation.
Let me note right away that the government does not intend to target every home in Canada. We must put an end to pirating, but we will not succeed in doing so by filing lawsuits against the average citizen. We must instead target the businesses that make large profits from the sale of illegal material.
Make no mistake, satellite signal piracy is a very lucrative, black market activity in Canada. The broadcasting industry estimates that between 500,000 and 700,000 people in Canada receive unauthorized direct-to-home broadcasting services. Studies by the industry show that such activities result in the loss of some $400 million a year in subscription revenue.
This is a substantial sum of money, especially given the enormous investment required by this relatively new, direct satellite broadcasting. This industry also relies on innovation and new satellite technologies.
Some of the capital intensive investments are made to constantly improve security measures. For instance, direct-to-home companies regularly use electronic countermeasures. In other words, they send signals on their system to scramble or deactivate pirated receivers.
The industry is responsible for keeping security measures up to date. It is a responsibility they take seriously. For companies in this industry to get a return on their investment, they need a fair market.
The bill proposes to discourage satellite piracy in three ways.
First, we want to make it more difficult to obtain the hardware required to steal a satellite signal. The bill would give the Canada Border Services Agency an important tool to accomplish this.
Although the Radiocommunication Act prohibits the importation of illegal receivers, equipment continues to flow across the border. Customs officials have told us that it is difficult for them to determine which imported equipment may be used for illegal purposes and which will not.
The bill provides for better control at the border by requiring an import certificate issued by the Minister of Industry for anyone wishing to bring satellite signal decoding equipment in to Canada.
Second, the bill would increase the penalties prescribed in the act to a level that would provide a meaningful deterrent to that piracy. There are penalties under sections 9 and 10 of the current act but dealers clearly do not find these penalties to be daunting. In fact, increasingly they see them as an acceptable cost of doing business and factor them into their business planning.
If we are going to allocate law enforcement resources to address this issue, and the government believes we should since this clearly as criminal activity, we need to make sure that prosecution will in fact deter piracy. The punishment needs to fit the crime. We need to send a stronger message, both to industry and the courts, that Parliament regards signal piracy as a serious offence. The new penalties proposed in the legislation will do just that.
Finally, this bill reinforces the right to pursue civil remedies in court. It provides the broadcasting industry with the tools it needs to best defend its interests. This industry has attempted to slow the growth in pirated satellite services by launching civil proceedings against the main resellers in Canada, but such recourse is both expensive and ineffective.
It is difficult to prove the causal link between an illegal act and the extent of actual losses suffered by the broadcasting industry. This bill allows this industry to recover damages stipulated in the act instead of having to prove actual losses.
Under this bill, victims of commercial pirating will be able to claim legal damages of up to $100,000. This will compensate for the theft of their intellectual property and discourage illegal activity.
I must add that, in addition to measures to stop the theft of satellite signals, this bill also includes measures on public safety. The use of pirated receiver cards has been found to create signal interference with licensed radiocommunication systems of emergency and police services. This alone requires that the necessary measures be taken.
I realize that some fears persist. During earlier discussions on this issue, members of the House raised concern about programming content and the need to broaden the material available on Canadian airways. This is a very interesting and important discussion that needs to take place; however, it is a subject for a different debate. We cannot allow ourselves to be distracted from the real issues here. This is satellite piracy.
We are not talking about limiting choices for Canadian consumers. We are talking about preventing the erosion of Canada's broadcasting system by stopping activities that are clearly illegal.
We do not want to target Canadians who watch television, but rather those individuals who profit from pirated signals.
This bill reinforces existing legislation in Canada. It has received broad support from all the stakeholders in Canadian broadcasting, as well as officials responsible for law enforcement and customs services. It will also ensure a fair chance for Canada's cultural sector and guarantee sustainable competition in broadcasting, which will benefit Canadian consumers.
For these reasons, I encourage members of this House to join me in supporting this bill.
