Mr. Speaker, it is a great honour to rise in the House and speak to Bill C-8 on counterfeiting measures.
I have spoken many times over the last 10 years on these issues. In terms of legislative issues, often the issues regarding copyright, counterfeit, and trademark have been blurred, and there is a need to come up with coherent policies that protect citizens and rights holders.
This is not an easy situation, because we are in a market that has transformed itself incredibly since Lord Macaulay, in 1841, talked about the need to protect the writers of the time. He said we have to stop “the knaves who take the bread out of the mouths of deserving men”. Lord Macaulay believed there needed to be copyright provisions, but he also said there had to be a balance, that it was not about creating a monopoly for a certain group of book holders in London to stop upstarts who wanted to come in.
We know the story of the reason Hollywood exists. It is because California at that time was beyond the copyright laws of the Thomas Edison corporation. They moved out to the desert, not because it was beautiful but because they were the original pirate culture. They set themselves up and created an industry. The issue of these balances throughout history is a difficult act.
We have seen WIPO and ACTA, the secretive anti-counterfeiting trade agreement that received great international backlash from ordinary citizens because it was blurring the roles between domestic copyright policies, citizens' rights policies, and the issue of counterfeit.
Where this comes in is that we need to ensure that we can protect our rights holders and citizens from the counterfeit goods and bootleg operations that are undermining our economy. We need to ensure that we have the tools to go up against them.
When we see large corporate rights holders say they want to spread that across the board, we end up with an overreach, as with my colleagues in the Liberal Party saying we should go after individuals when a kid downloads a song and sends it to three friends.
The United States attempted, through its Digital Millennium Copyright Act of the 1990s, to create a legalistic response to the issues the digital culture was creating. After 35,000 lawsuits against citizens, the market did not come back. What was missing from the market at that time was a coherent plan for the remuneration of artists, who were facing some very difficult and challenging conditions because of the ease of copying. It used to be the only people who could actually copy were the ones who had the means of production, the bookbinders and record companies, but suddenly ordinary citizens could make copies, so the right to make copies became very challenged.
Canada had come up with one of the those solutions, which was the private copying levy. We recognized in Canada that people were going to make all manner of copies and that it would be impossible to remunerate artists for all the copying going on, so for every cassette that was produced, a few pennies were put aside into a fund for artists. The decision by the Conservative government to kill the private copying levy has cost the Canadian music industry $25 million a year. Given the conditions of the music industry in Canada, that is $25 million we cannot afford to lose.
Under the latest copyright act, the government killed the mechanical royalties for musicians and for the record industry, which is millions more. At a time when the artistic culture of our country is suffering very much, the need to remunerate those artists has been steadily whacked away. There is the issue of collective copying regimes in schools. It certainly needs to be updated because of the digital culture, but to simply undermine it would leave artists working for free and would make the intellectual and artistic development of our country much more challenged.
The other issue we are seeing now is the copyright board's rules on live streaming. In the United States, it is an abysmal situation. As an example, Lady Gaga was paid $162 in royalties for over a million plays. I think that was through Spotify, the streaming service.
For someone of the magnitude of Lady Gaga to receive a $162 cheque shows you just how impossible it is for any other mid-size artist to make a living and run a business doing the kind of music that is Canada's premier export. We can talk about our oil and gas and mining, but the talent that has come out of Canada in terms of music, our artists, playwrights, internationally, this is an industry that we cannot afford to undermine anymore.
In the United States the streaming royalties set by its copyright tariffs are so low that it is undermining the ability of any artist to survive. The Copyright Board of Canada has set it at 10% of the American rate. Therefore, they are living as paupers in the United States with what their copyright board has set for this new medium and in Canada it is only 10% of what the rate is in the United States. We would assume then if Lady Gaga had one million plays in Canada, she would get $16.50, which would make anyone decide to go and work at Tim Hortons rather than be an artist in this country.
Those are the issues we are facing in terms of the need to protect our artists. How do we protect our artists? We do not criminalize the consumer. We create a monetary stream. That is a reasonable solution. In terms of counterfeiting we have to separate the issues around protecting our artists and giving them the tools they need to be able to prosper, from the issues around being able to go after the counterfeit gangs.
I will stay on the artists' situation for one more minute. Where we have small businesses or small creative artists, if their trademarks or arts are taken by some counterfeit gang in China and reproduced, they have no mechanisms to go after them. Individual and small rights holders have no ability to go after these counterfeit operations. Sony and Warner Bros. can, but the individual creative rights holders who has their work stolen has no ability. If we are looking at international trade agreements, how do we provide provisions so that the small creative artists who are having their works stolen can respond?
The bill is really an attempt to bring Canada in line with what came out of the ACTA negotiations, which were secretive. It was an overreach. It was a process too beset by lobbyists to be credible and when it came to the public, there was a huge backlash. It was interesting to see that the backlash was in Europe. Therefore, we see some of these provisions have been modified somewhat.
Now the border guards are able to seize counterfeit goods at the border. That is a good provision because rights holders actually had to go to court and get a court order before, so it was very difficult. Giving border guards the ability to seize goods at the border is a reasonable solution to dealing with criminal counterfeiters. Counterfeit operations undermine our economy and they also undermine basic health and security in this country.
Again, I want to point out that our Liberal colleagues wanted to extend this to be able to go after individuals who are travelling, which would have made it the ultimate harassment tool for anyone travelling anywhere internationally. You could be pulled out of a line and told that officials wanted to look at your iPod and go through every one of your songs. My kids send me songs that they have downloaded, maybe from iTunes, but I would be liable for that. That would be an overreach, so the Liberal position of going after individuals and criminalizing individuals when the focus of our border guards should be going after the criminal gangs is very wrong-headed and out of step with pretty much the rest of the world, although maybe North Korea might side with them on that one.
If we are going to have counterfeit laws we need the resources so that border guards can go after counterfeiters. We have seen massive cuts in border services. We also need resources for the police because they still do not often see that this is an issue, going after the knock-off goods, going after the bootlegged DVDs. Perhaps we need to look at provisions that provide our police services with the incentive to clean up some of the illegal trades in goods that have undermined our economy and undermined safety for Canadians.
