:
Mr. Speaker, as I was saying earlier, the clock is ticking, and while this government is unravelling, mired in scandal, we have before us a bill introduced by the . It is a great honour for me to speak this evening as the official opposition industry critic.
The Conservatives boast about being good economic managers and supporters of industry and economic growth, but they dragged their feet on the only bill in recent memory that affects industry and seeks to tackle problems related to counterfeiting.
Now they want to rush the bill through. What is the urgency? What do they have to hide? What are the real reasons behind this sudden interest in Bill ? Are they trying to change the channel, divert attention from this government's mismanagement, or did pressure from trade partners finally get to the ?
Canadians and the people of LaSalle—Émard have lost all confidence in this government. They do not believe that this government is fit to govern.
[English]
More and more Canadians mistrust the government. They feel it has something to hide. They feel that the Conservatives are not fit to govern.
[Translation]
As the industry critic for the official opposition and the representative of the people of LaSalle—Émard, I rise in the House today to speak to Bill , which is also known as the Combating Counterfeit Products Act.
As soon as this bill was introduced on March 1, 2013, the NDP got to work. We met with many stakeholders. All of them recognized the importance of effectively combatting counterfeiting, and they all said that Canada has to have the tools to do it. They also raised a number of questions about the enforcement of the bill and expressed doubts as to whether the government was really willing to wage an effective war on counterfeiting.
Once again, the Conservatives used this bill in a misleading way. The wording of the bill is not misleading; rather, the government's actions are inconsistent with an effective fight against counterfeiting.
That is the first point I wanted to make. In order to combat counterfeiting at our borders and in Canadian ports, we need human and financial resources. We therefore find it difficult to understand how we will be able to enforce this ambitious bill when the Canada Border Services Agency is facing $143 million in cuts, not only to front-line services but also to intelligence services that are crucial to fighting illegal activities such as counterfeiting.
What is more, 549 full-time jobs will be lost between now and 2015. We have also learned that the wants to interfere in customs officers' legitimate collective bargaining process, once again, without understanding how that undermines labour relations.
The RCMP's budget and resources have also melted away like snow on a warm day. The government needs to put its money where its mouth is, as we say. The Conservatives rarely do that.
The NDP recognizes the importance of combatting counterfeit products, particularly those that could jeopardize the health and safety of Canadians.
Despite the lack of conclusive data, we recognize that this is having an impact on Canadian industries.
We condemn the cuts to the Canada Border Services Agency and the RCMP, which are our front-line defence against counterfeiting, as I mentioned.
The second point I want to talk about is the government's lack of action. Once again the Conservatives have dragged their feet. The cuts we condemn show that they are not serious about combatting counterfeiting.
The problem of counterfeiting has come up many times in recent decades. A report was tabled in 1998. The issue of counterfeiting has come up over the years, and we must acknowledge the impact this issue has had on Canadian industries and consumers.
I want to talk about what has been happening in recent years. In 2007, a report by the Standing Committee on Industry, Science and Technology entitled “Counterfeiting and Piracy are Theft” described the impact counterfeiting has on the Canadian economy. The report made 16 recommendations. In its supplementary opinion, the NDP made two recommendations. A number of these recommendations were ignored, even though industry stakeholders, trading partners and even Canadian consumers continued to raise the issue.
Furthermore, during the Standing Committee on Industry, Science and Technology's study of intellectual property, which concluded in 2012-13, a number of stakeholders criticized the government's inaction.
Here is what Martin Lavoie, the director of policy for Canadian Manufacturers and Exporters, said in committee:
We have been advocating since 2006 for more resources for customs agents to stop the transit of counterfeit products...
The introduced this bill in the House on March 1, 2013, after which we heard absolutely nothing. Now here he is as we are on the verge of adjourning for the summer. I am sorry. On May 30, 2013, at 12:26 a.m., we had a rather pathetic speech from the . She kept breaking into fits of laughter, which shows how seriously the government takes counterfeiting.
The third point I want to talk about is the lack of conclusive data regarding counterfeiting in Canada. I cannot help but denounce the cuts made to Statistics Canada, which continue to have an adverse effect. I am not the only one who feels that way. The stakeholders we heard from at the Standing Committee on Industry, Science and Technology did as well.
Canadian industries, exporters, manufacturers and small and medium-sized businesses need these statistics, which are snapshots of our economy. They are not the only ones who need them. We, as parliamentarians, use them to make informed decisions. If we do not have hard data that show the trends in recent decades, we cannot predict future trends. These data give us an accurate picture of Canada's economic situation, employment, prosperity, innovation and so on.
Conclusive data allow parliamentarians, legislators and public servants to establish policies that are not based on anecdotal evidence, but on solid data and recognized scientific methods. That is what is happening here with counterfeiting. We know that there is problem, that goods have been seized and that the issue has been raised everywhere in the world. However, unfortunately, it is very difficult to grasp the magnitude of the problem and the best way to address it.
A lot of data have been provided but, as I said earlier, it is difficult to evaluate the methods used to gather those data. In addition, data are not always collected using scientific methods that would help us understand the magnitude of the problem.
The data provided have been of more of an anecdotal nature, and they do not give us an idea of how widespread the problem is internationally. That is why it is important that Canada and the rest of the world have access to these data. This has been brought up many times.
I have some data here that I can share with those who are watching. In Canada, much of the information comes from statistics on actual seizures. For example, Industry Canada reports that:
The retail value of counterfeit goods seized by the RCMP increased from $7.6 million in 2005 to $38 million in 2012.
Still, more details would be useful. In 2009, the OECD estimated that international trade in counterfeit goods and pirated copies could be worth as much as $250 billion. In the same study, the OECD renewed calls for better access to information, saying once again that there are not enough data.
Moreover, anecdotal evidence suggests that counterfeit goods can threaten consumer health and safety. Counterfeit electrical components—I believe someone mentioned this already—and toxic stuffing in a goose-down jacket are two examples of that. I can confirm that because a Canada Goose company representative testified before the committee and I had the opportunity to see the jacket and the material inside it.
Again, the NDP will support Bill because counterfeit goods can threaten Canadians' health and safety and tarnish the name and reputation of Canadian companies like Canada Goose. A company with a name like that could not be more Canadian. We recognize how important it is to fight counterfeiting effectively.
In its 2007 report, the Standing Committee on Industry, Science and Technology called on the Government of Canada to establish an annual reporting system to provide statistics on the efficacy of the Canadian intellectual property enforcement system. The committee went on to list what it wanted to see in the report: the number of investigations, the number of charges laid against counterfeiters and pirates, the number of criminal sentences obtained, the number of counterfeit and pirated shipments seized by the Canada Border Services Agency and the country of origin and approximate value.
My question for my colleague is this: did the government act on that recommendation? That would give us some data to work with.
The lack of conclusive data makes things harder for everyone—the investigators, officers and legislators studying the issue—when the time comes to find ways to fight counterfeiting effectively. We believe that having good data and an accurate picture of what is going on would enable us to implement effective measures.
[English]
Bill , the combating counterfeit products act, would amend both the Copyright Act and the Trademark Act. Its purpose is to strengthen enforcement of copyright and trademark rights and to curtail commercial activity involving infringing copies of counterfeit trademarked goods. This bill would add two new criminal offences under the Copyright Act for possession and exportation of infringing copies and would create offences for selling or offering counterfeit goods on a commercial scale. I want to stress that because it is an important point in the bill. It would create a prohibition against importing or exporting infringing copies and counterfeit goods, and would introduce some balance to that prohibition by creating two exceptions.
The first exception would be for personal use. If someone crosses the border with something in his or her possession or baggage, which the person bought and did not know was counterfeit, that would be for personal use. However, we want to ensure that we study that closely at committee to ensure the exception would be solid.
The second exception, and it is an important one, would be for items in transit control. That would be items that would be transiting in Canada but not passing the border. They are not necessarily in Canada, but in transit control.
Another point is that it would grant new ex officio powers to border officials to detain infringing copies or counterfeit goods. That would be a significant policy shift. Until now, border officials required the private rights holders to obtain a court order before seizing infringing copies or goods. Therefore, that would be an important change. It would grant new ex officio powers to the and border officials to share information on detained goods with rights holders. Also, it would widen the scope of what can be trademarked to the features found in the broad definition of “sign”, including colour, shape, scent, taste, et cetera.
While the granting of ex officio powers to customs officials has been a recommendation of the counterfeit report of 2007 and reiterated by stakeholders, two main issues were raised with this provision in Bill . First, the Canadian Anti-Counterfeiting Network's first recommendation in one of its reports stated, “provide the RCMP and the Department of Justice [or border official]”, which it did not mention, but I think is what it meant, “with adequate financial and human resources to effectively address counterfeiting”. These were industry representatives who were stating that.
On the other hand, Dr. Michael Geist, from University of Ottawa, raised the issue of the complexity, and my colleagues from heritage and ethics, who studied Bill extensively, can attest to that. He discussed the complexity of detecting copyright infringement and also raised the question of changes in court oversight. Dr. Geist said, “While officials are not intellectual property experts, the assessment includes consideration of whether any of the Copyright Act's exceptions may be applied. These determinations are complex--courts often struggle with this issue...”, and so on.
While meeting with them in consultation with my NDP colleagues, Dr. Geist, industry, and stakeholders, raised a lot of issues regarding this bill.
In closing, I would like to reiterate that the NDP recognizes the importance of controlling counterfeit goods, especially those that could pose a risk to the health and safety of Canadians.
We recognize that counterfeiting hurts Canadian industries. We condemn the cuts that affect front-line workers who fight counterfeiting.
I sincerely hope that the government will appreciate the importance of studying this significant bill in committee and the resulting recommendations.
:
Mr. Speaker, I rise today to speak to the second reading of Bill , the combating counterfeit products act, and to bring to the attention of the House: first, the risks presented to Canadian consumers by commercial counterfeiting; and second, to the problems this creates for businesses that employ Canadians.
Not that long ago, consumers did not need to worry about the risks and dangers of counterfeit products. The term “counterfeiting” itself was generally associated with making false currency and few people had even heard of intellectual property crime. Then, over time, things began to change. Counterfeit T-shirts or brand name replicas showed up in flea markers. Travellers from abroad returned home with supposedly brand name watches bought at cheap prices from street vendors, yet within a few days, the watches stopped working or the bands left coloured stains on their wrists. Supposedly, brand name luggage or footwear was bought at such bargain prices that it seemed too good to be true, and it was. Generally, these products fell apart in very short order.
Today, Canadian consumers are wiser and more wary. Sadly, we are increasingly exposed to counterfeit goods in our domestic market and Canadians and Canadian businesses have been victimized and hurt. Today, the problems imposed by counterfeit products extend far beyond the breakdown of a cheap wristwatch or a pair of shoes. Today, counterfeiting can pose a range of very serious health and safety risks to consumers.
Today, fraudulent reproductions of many trusted trademark or copyrighted products infiltrate the legitimate market. Every day counterfeit products enter Canada, from electronics and electrical components to automotive parts and machinery, from batteries and toys to perfumes and pharmaceuticals. The level of sophistication of counterfeit products has increased, along with the range and diversity of products which are counterfeited. On the one hand, some counterfeit operations may not be sophisticated at all. The RCMP reports instances where counterfeiters simply went through dumpsters at construction sites to recover used and discarded circuit breakers. They repackaged them and sold them as new.
However, other operations are very sophisticated, indeed, where dangerous items are made in large quantities for sale to Canadians who may not know the origin of the materials in the products that they buy. For example, investigators intercepted a package at a Vancouver postal authority. It led them to a warehouse that contained 15,000 counterfeit pills packaged in blister packs. The estimated total value of these seized counterfeit drugs exceeded $1 million. At the same warehouse, the investigators also seized clothing and accessories that had been labelled with counterfeit brands, which threaten the production and work of our own Canadian innovators and workers. The resale value of these counterfeit goods was estimated to be in excess of $5 million.
There is no doubt that counterfeit products have become more sophisticated. In addition, the production and supply chain has also become more sophisticated, as well as the method of importation. Some counterfeiters ship the counterfeit labels separately from the products to avoid detection. Once in Canada, the labels are then affixed to the finished products.
Shockingly, counterfeit labels are not only limited to brand names but to the safety certification labels. These are labels that consumers trust to show that a product meets certain industrial standards, knock-off labels that purport product testing and certification by the underwriters, laboratories or the Canadian Standards Association. These labels are meant to deceive the consumer into believing the product meets Canadian safety standards. In fact, electrical equipment that carries a false CSA label may pose hazards to the unsuspecting consumer through malfunction, fire or electrocution.
The falsification of safety certification labels clearly demonstrates some of the risks that consumers face when they buy a counterfeit product, but there are many more examples.
In the past three years, the number of RCMP investigations involving counterfeit pharmaceuticals has more than doubled. Counterfeit pharmaceuticals have already caused a death in Canada. In 2006, a woman from British Columbia bought medication from an unlicensed pharmaceutical website that purported to be Canadian. The medication was, in fact, manufactured overseas. It had been contaminated with toxic metals during its production and the woman subsequently died.
Last year, the RCMP investigated another case of counterfeit caplets that purported to be bee pollen. They actually contained carcinogenic substances that were banned for sale in Canada.
There are many examples of how counterfeit or pirated products have victimized the people who have purchased them, whether through the health and safety risks that I have outlined, or the inconvenience and monetary loss of buying products that do not live up to the standards of the brand. Counterfeit products make it more difficult for consumers to trust the marketplace.
The bill before us represents a major step forward in protecting consumers from counterfeit products and counterfeit services. It gives the enforcement authorities and rights holders the tools they need to crack down on counterfeiters.
Rights holders can submit a “request for assistance” to the Canada Border Services Agency, CBSA, to provide information to border service officers about their brand and products. With this information, border service officers will be able to contact the rights holders when commercial shipments that are suspected of containing counterfeit products are detained at the border. The rights holders can then launch civil proceedings. In fact, rights holders can seek civil remedies for the manufacturing, distribution and possession with intent to sell counterfeit goods instead of waiting until those goods are put up for sale in the marketplace as is currently the case today.
As well as these civil remedies, there are also new criminal offences in the Trade-marks Act for which law enforcement agencies can lay charges. Selling, distributing, possessing, importing or exporting counterfeit goods for the purposes of trade will be prohibited.
Let me emphasize the phrase “for purposes of trade”. This is important because the bill would not target individual consumers who knowingly or inadvertently bring back a counterfeit product to Canada for personal use. Border services officers would not seize private iPhones suspected of containing pirated copies. Nor would they seize a suspected counterfeit wristwatch or a handbag. In fact, the bill contains a specific exception at the border for goods intended for personal use as part of the traveller's personal baggage. Therefore, Bill would target counterfeiters who make a business of importing and exporting knock-off products.
Many may ask this. Where is the harm in cheap products? However, Canadians recognize the dangers of purchasing counterfeit items.
Last year, Microsoft Canada commissioned a survey. The survey revealed that 84% of Canadians said that they did not knowingly purchase a counterfeit product, less than half of the consumers surveyed felt they knew how to identify counterfeit and genuine products and 71% of Canadians agreed that counterfeit goods were harmful to the economy.
It is clear from these survey results that the Canadian public agrees with this bill and has a strong interest in and a growing understanding of the problems posed by counterfeiting. Again, 71% of Canadians agree that counterfeit goods are harmful to our economy.
I would now like to draw the attention of members to the problems that large-scale commercial shipments of counterfeit goods create for the businesses that employ Canadians. Indeed, we see significant support for the measures in Bill from innovative Canadian entrepreneurs and creators who are the most impacted.
In a globalized economy, strong, modern marketplace framework rules protect innovation. In a knowledge-based society, this is particularly true of the laws governing intellectual property, or IP.
Intellectual property covers a broad range of innovation, and I will focus my remarks today on trademarks and copyright, the protection of which are at the heart of Bill .
Over the years, this government has taken important steps to update IP laws to keep them in line with the demands of the 21st century. Hon. members will recall that last year we passed the Copyright Modernization Act. Since then, many of its provisions have come into force as of last November. As a result, I am proud to say that Canada has now implemented a responsive copyright regime that balances the needs of content creators and users.
The bill before us today would update Canada's IP enforcement regime governing trademarks and copyright and would provide new tools to strengthen the protection of these rights. It would give rights holders the tools they need to work with law enforcement authorities to protect their intellectual property at the border and domestically.
Counterfeiting threatens Canadians' health, safety and economic well-being. It is not a victimless crime.
Over these past months, the Standing Committee on Industry, Science and Technology, chaired by the hon. member for , heard from many witnesses as it prepared its report on Canada's intellectual property regime. That report was tabled March 18. I recommend it to anyone who seeks a better understanding of the IP regime in Canada.
During the hearings, the committee learned about the impact that counterfeiting has had on the competitiveness of Canadian businesses and the Canadian economy as a whole. Hon. members can imagine what impact a low-quality, counterfeit product could have on a customer who has paid for what was assumed to be a high-quality and genuine product. One can imagine how difficult customer relations might be when dealing with a consumer who has bought a product in good faith and found it to be not up to the company's standards. Certainly, a counterfeit product would damage the reputation of the brand, as well as the store or the company selling it. This makes both the company, as well as the consumer, a victim of counterfeiting.
The integrity of our economy is threatened when consumers are exposed to counterfeit items and as a result lose confidence in the marketplace. It leads to reduced revenue for the rights holders and therefore, reduced growth, reduced incentive to invest and hire, and reduced incentive for the creation of innovation. Commercial counterfeiting carried out by criminal organizations is not a victimless crime.
A company like Canada Goose Inc. makes a concerted effort to combat counterfeiting. Its website gives tools to help potential customers determine whether the product they are buying is genuine. However, as the committee report outlines, some companies prefer not to draw attention when counterfeiters knock off their products. The chair of the Canadian Anti-Counterfeiting Network told the committee that having a name associated with a counterfeit product may damage the market for some products, so some companies do not want to tarnish the image of their own brand.
Although some businesses can be reluctant to sound the alarm about their products, there has been a marked rise in the number of counterfeiting cases that the Royal Canadian Mounted Police has documented. It estimates that between 2005 and 2012, the value of counterfeit and pirated goods seized has increased fivefold from $7.6 million to $38 million. Last year, for example, there were 726 occurrences of intellectual property crimes reported by the RCMP. Some 45% of those cases involved apparel and footwear. Another 20% involved piracy of audiovisual and copyrighted works. Nine per cent involved consumer electronics and a further 9% involved personal care products, like toothpaste, shampoo and soap that Canadian families rely on to be safe and healthy.
The bill before us would give the RCMP, the Canada Border Services Agency and the rights holders the tools that they need to combat and curtail counterfeiting.
Under the current system, a court order is required before border services officers can seize commercial shipments of counterfeit products. The Entertainment Software Association of Canada pointed out that this in effect requires a rights holder to know beforehand that goods are about to be smuggled across the border. As one can imagine, this would be difficult.
Under Bill , however, if rights holders suspect that shipments of counterfeit goods may be crossing the border, they would need only send the CBSA a request for assistance, with information to help identify their brand. The border services officers would have access to information needed to identify, detain and refer suspected shipments to rights holders. The rights holders could then pursue the matter civilly with the courts.
The bill also provides a new criminal offence for the commercial possession, manufacture or trafficking of trademark counterfeit goods. The rights holders community has welcomed this bill. For example, Canada Goose Inc. has said, “The strengthened border measures will play a vital role in protecting jobs for Canadian manufacturers, as well as unsuspecting consumers looking for bargains from those that would do them harm.”
The Entertainment Software Association of Canada stated:
Equipping border service agents with the necessary tools to seize counterfeit products...will help take a bite out of this ongoing problem. Protecting IP is critical to the Canadian economy, especially for content industries like ours, which depends on talent, imagination and creativity to generate returns.
The Canadian Anti-Counterfeiting Network stated:
...counterfeiting has grown into a criminal activity that supports everything from organized crime to terrorism.... [That is mainly because] in the current landscape the risk of getting caught is low while the profit margin is extremely high. With this new legislation the risk assessment will begin to change.
These are just some examples of the support that has come from businesses and business organizations.
Finally, I would like to quote from the Canadian Chamber of Commerce. The collective businesses state, “We urge all political parties to support the bill and to ensure the speedy passage of this important legislation.”
I could not agree more. Canadian employers and law enforcement are working to prevent the damage caused by commercial counterfeiting to Canadian lives, our economy and Canadian jobs. Let us do our part in this House. I urge all hon. members to join me in supporting the swift passage of this bill.
:
Mr. Speaker, I will be sharing my time with my colleague from this evening.
We have heard about a number of issues that have surfaced. Once again, I will just say that Bill , amends both the Copyright Act and the Trade-marks Act. Its purpose is to strengthen the enforcement of copyright and trademark rights and to curtail commercial activity involving infringing copyright or counterfeit trademarked goods. It sounds pretty comprehensive.
A couple of things have surfaced through our party, and I would like to reinforce them. We believe that dealing with counterfeiting and infringement is important for both Canadian businesses and consumers, especially where counterfeit goods may put the health or safety of Canadians at risk. That is a good thing. We need stronger enforcement to make sure that this does not happen.
However, it is difficult to see how a bill like this would be implemented, since the Conservatives slashed $143 million in funding from CBSA last year, which further reduced front-line officers and harmed our ability to monitor our borders. I do not quite understand. We are increasing the task, and it is a good one, for border services officers, but at the same time, there are fewer people to do the job.
I have visited border services officers at our border crossings, and I know that these people work flat out. They have a tough job as it is. If we decrease their staffing, it is inconceivable how this particular legislation could be enforced. That is a question that needs to be discussed early at the committee stage or in further discussions.
[Translation]
Therefore, it is difficult to quantify the problem of counterfeiting and pirating in Canada and its economic impact. On this side of the House, we support the fight against counterfeit goods, especially when they pose a risk to health and safety, as I just mentioned. We need to determine if the Canada Border Services Agency will be able to implement these enforcement measures in light of the 2012 budget cuts.
The United States and industrial groups have been calling for measures to stop counterfeit goods at the border for a long time. It remains important to continue being vigilant in order to ensure that intellectual property laws strike a balance between the interests of rights holders and those of consumers or users. We are trying to strike a fair balance between the two.
The government has long been aware of how difficult it is to measure the magnitude of counterfeit and copied goods in Canada. This challenge was identified in the 1998 OECD report entitled The Economic Impact of Counterfeiting and Piracy and is due to the clandestine nature of counterfeiting. Much of the data consists of estimates based on real seizures, isolated testimony and data from the industries themselves.
In its 2007 report on counterfeiting, the industry committee recommended that the government establish a reporting system for investigations, charges, and seizures of counterfeit goods and pirated copies as a way to collect data. According to the more recent 2013 report, it is difficult to obtain a accurate estimate of the value of counterfeit and pirated goods on the market in Canada.
The NDP believes that it is important to fight counterfeiting for the sake of Canadian businesses and consumers. It is especially important when counterfeit goods put the health and safety of Canadians at risk. All the same, we do not know how the enforcement regime proposed in Bill will be paid for. This bill gives border services officers new responsibilities at a time of budget cuts.
In their 2012 budget, the Conservatives slashed the CBSA's funding by $143 million, effectively reducing the number of front-line officers and our ability to monitor our borders. According to the CBSA's report on plans and priorities for this year, 549 full-time jobs will be lost by 2015. That is significant. If the agency is losing 549 jobs at the same time it is being given new responsibilities, how is it supposed to implement this bill?
This bill will require customs officers to carry out very complicated assessments to determine whether goods entering or leaving the country infringe copyright or trademark. That is not easy. It is not like looking for something and finding it. It is more complicated than that and takes more time. When assessing whether copies are pirated, officers have to determine whether any of the exceptions in the Copyright Act apply. Even the courts have trouble figuring that out sometimes. The NDP wants to make sure that the CBSA has adequate financial resources to implement this bill.
[English]
This is a point we have been trying to make. If one has new responsibilities that are even more complicated, with new technology, then instead of cutting back resources, there should be additional resources of trained personnel added to the border services to deal specifically with this rising problem.
The industry committee recently conducted a study on intellectual property that, in part, examined these issues. Witnesses testified in favour of increasing border measures to tackle counterfeit and infringing goods. In its 2013 report, “Intellectual Property Regime in Canada”, the committee recommended border measures, including providing appropriate ex officio powers to customs officials, introducing civil and criminal remedies for trademark counterfeiting and allowing customs officials to share information with rights holders regarding suspect goods.
:
Mr. Speaker, I am pleased to rise today to speak to Bill , on behalf of my riding of Sherbrooke.
I have a vested interest in this issue because the Sherbrooke area in the Eastern Townships is very close to the border. This is therefore very important to me and concerns me deeply. I am sure that my colleague from , who is now listening and probably thinking along the same lines, shares my interest and concerns. Indeed, the recently visited Stanstead, as a result of reports of the porous border. This happened against a backdrop of recent revelations and surprises about illegal immigrants.
However, it is also true, with regard to counterfeit goods, that the easier it is for dishonest people or criminals to cross our borders, the more our country suffers.
As the member for , I am understandably very interested in our borders, given their proximity. Indeed, my riding is less than 30 minutes away from the U.S.
By the way, I would like to thank the member for , who has worked on this file and continues to do so every day. She is passionate about this issue and about her work. I am convinced she will represent our views when the time comes, when the bill is being studied in more detail in committee.
We hope that that will happen soon because the government is addressing this at the last minute, as was mentioned earlier. It seems to be at the bottom of their list of priorities at the tail end of this parliamentary session. It is hard to believe the government when it says that this is a priority. We have been waiting for this bill for a long time. It was introduced on March 1, 2013. Today, the government is saying that it is a priority, just as the session is coming to a close. So much for good intentions and good faith.
We will be supporting the bill at second reading. It is common knowledge that this bill has been anticipated and talked about for years now. I think the discussions go back to 2007. There have also been talks with the United States, which is an important player in the fight against counterfeit goods. The United States is essential to our country because it is our major trading partner.
It is important for Canadian businesses and consumers that we fight counterfeiting, particularly when counterfeit goods can put Canadians' health and safety at risk. It is a rather important point that I also mentioned earlier when I asked the member for a question.
The member mentioned that auto parts could sometimes be counterfeit. That clearly endangers the lives of some Canadians who go to the local garage to have their car fixed. They might wind up with counterfeit parts that are not up to Canadian standards. The brakes or airbags might not be up to Canadian standards.
This is a very important issue in the sense that it could endanger the safety and lives of Canadians when they think they are using a product that complies with current standards. However, they might eventually realize they are using a counterfeit product, meaning that some malicious person tried to copy an existing product. Those are not necessarily the safest of products.
There is also the matter of resources. I talked about that this evening during this debate on Bill . I also mentioned it in my questions to my colleagues. I talked about the lack of resources at the Canada Border Services Agency.
The minister and most of the members who have spoken try to play with the numbers and say that since 2005, the total budget has increased, that it will decrease relative to 2012, but that in fact, since 2005, it has increased. They are playing with the numbers. However, the truth is that less money will be available for the agency in 2013. That is a number that is easy to come up with.
The keeps saying that the budget has increased relative to 2005, but the reality is that the agency will have less money than it did last year. That is a budget cut. There are no two ways about it.
The government often likes to compare its spending to that of the Liberal government in 2005. It says this is an increase. However, the increase in funding allocated to the departments in question is below the level of inflation since 2005. Any administrator knows that if costs increase and the budget does not keep pace with the increase in costs, then this can be considered a budget cut. It is a simple calculation that seems to escape the government when it talks about increases from the time the Liberals were in power to now.
That is another debate we could have in the wake of the Conservatives' budget cuts. This bill puts additional responsibilities on border services officers. They are being asked to take on more responsibility and be on the lookout for counterfeiting, but they are not being given the resources they need. That point has been raised by a number of people since Bill was introduced.
The bill creates two new criminal offences under the Copyright Act. These offences have to do with the possession or export of infringing copies. The bill also creates offences for selling or offering for sale any counterfeit goods on a commercial scale. The bill also prohibits the importation or exportation of infringing copies or counterfeit goods and balances out this ban with two exceptions.
These two exceptions are important. The first has to do with personal use, so copies that are in an individual's possession or baggage. The second has to do with copies that are in transit control. If I have the time, I will discuss the notion of transit control later on.
The bill is truly focused on fighting crime. It is often criminal groups that choose to use counterfeit goods in order to make money. Organized crime groups are often the ones that are trading in counterfeit goods. This bill will does not directly target average people who may inadvertently be in possession of or have purchased counterfeit goods.
The bill also gives border officials new powers that authorize them to detain infringing copies or counterfeit goods. That is an important policy change, since up until now, border officials required copyright holders to first get a court order before they would seize infringing copies or counterfeit goods. This request to grant these powers to officers has been discussed since 2007, I believe.
In conclusion, I want to say that it is unfortunate that this bill assigns new responsibilities but does not provide any resources to carry them out. We are asking the officers to do more with less. The NDP thinks that is unacceptable. If you ask someone to take on added responsibilities, you have to give them the resources to do so.
:
Mr. Speaker, it is a privilege to rise tonight to speak in support of Bill , the combating counterfeit products act.
In fact, I am happy to advise this House that my remarks tonight mark a unique occasion when as a member of Parliament I can stand in this House and speak on a government bill on important public policy that I spent a considerable amount of time advocating for in life before politics. I spent several years of my professional life as a lawyer, combatting the rise of counterfeit goods and its impact upon public safety and our economy.
I am also extremely proud to now be part of a government moving to address the negative consequences of the scourge of counterfeit goods. I will use part of my time to talk about this experience. I think it is important for this House to hear real-world accounts from the private sector on why this legislation is needed.
I hope to show my colleagues that the inaction or delay suggested by my friends in the NDP is simply not acceptable. The member for mentioned, several times, the challenges of litigation tonight in debate. That is something I will touch upon because I have led such litigation efforts in this area.
Counterfeit goods are putting public safety at risk. Counterfeit goods are impacting economic activity and revenues. Counterfeit goods can lead to job losses for Canadians. Counterfeit goods and the proliferation of trademark infringement, passing off, and piracy have also become some of the fastest-growing sources of revenue for organized crime.
For many years I was the in-house corporate lawyer for Procter & Gamble in Canada. Not only is P & G a respected global company with branded products that Canadians use in their homes every day, it is also the largest private sector employer in eastern Ontario. With manufacturing facilities in Belleville and Brockville, Ontario, and head office operations in Toronto, P & G employs thousands in Ontario and makes products that are shipped across North America and around the world. It might surprise this House to learn that every Swiffer pad in the world was made in Brockville, Ontario, just an hour from here.
These are important manufacturing jobs in Ontario. They are also critically important to the global economy and trade. Jobs like these in Canada and around the world are put at risk with counterfeit goods.
It was estimated, at the time I worked there, that the scourge of counterfeit goods cost P & G close to $1 billion annually in lost revenue. In these challenging economic times, that is $1 billion that is not invested in innovation, investment, or job creation. This is just the impact on one employer, so we can multiply that literally by hundreds of companies and employers that sell or distribute branded products across Canada.
In 2006, I was confronted with the ugly face of counterfeit goods in my job. Everything I will talk about now highlights the excellent work that P & G and other companies in the industry did to raise these issues. I should also add that I am not violating any solicitor-client privilege; I am talking about publicly known information.
While the company had long worked with law enforcement to investigate counterfeit batteries and some isolated personal care products being counterfeited and sold in Canada, a public health advisory from Health Canada on counterfeit toothbrushes led me to devote considerable time and energy to this file. This advisory came about when a Canadian purchased a counterfeit toothbrush at a value vendor and choked on the bristles that became dislodged when they began brushing.
For such a seemingly innocuous product, there was a serious risk of health. Counterfeit goods contain unknown ingredients or materials. They are made improperly. They have no quality assurance. They are often manufactured in unhygienic surroundings. Only a few months earlier, counterfeit Colgate toothpaste, in the U.S., was found to contain antifreeze.
These events led me to create a brand protection team for Canada. I was fortunate to have Rick Kotwa, a 30-year OPP veteran and head of security for the country, to lead our investigative efforts. I was also lucky to have Jennifer Cazabon, an extremely sharp regulatory scientist, who helped keep public safety and regulatory issues at the forefront of what we developed as a brand protection program. The president of the company at the time, Tim Penner, saw how important this issue was for the company. He empowered our team to investigate and isolate counterfeit distributors across Canada.
Over the next few years we worked diligently on these issues, and we were truly astounded by the size of the counterfeiting problem in Canada and indeed throughout the world. With the backing of a terrific corporate leader like Tim Penner, P & G spent considerable resources pursuing investigation and litigation against distributors and retailers in Canada, despite the fact that we knew we would rarely be able to collect damages or our costs. The company took a leadership position, like many did, in this fight against counterfeit products.
What became clear to me very quickly was that the laws and regulatory structures in Canada needed to radically evolve to address this new and growing risk to public safety and the criminal activities related to it. I began to work directly with the Canadian Chamber of Commerce, the Retail Council of Canada, the Food and Consumer Products Council, and the special purpose organization created for this very issue, the Canadian Anti-Counterfeiting Network.
I would like to thank these organizations, and their member companies, for championing these issues for many years. At these meetings, I got to know many of them, particularly Lorne Lipkus, someone who for more than a decade has been a lean, mean counterfeit-busting machine. He has raised public awareness on this issue more than anyone else in Canada. I thank these people. Our government is listening, with Bill .
The Canadian Anti-Counterfeiting Network released its road map for change on counterfeiting and piracy in 2007. CACN, industry and employers across Canada have engaged with government in the years since 2007. There have been several years of careful consideration and consultation on these issues, at a variety of levels. Our government has listened, and Bill attempts to address the public safety risks and economic damage caused by counterfeiting. While the New Democrats continually rise tonight to say that more time is needed to explore or debate these issues, I say that the time to act is now.
Our government has been listening, particularly to Canadian employers and their industry groups, and documents like the road map. I want to highlight a few specific sections from the road map that are addressed by Bill , and I would remind this House that it was released in 2007.
The combating counterfeit products act would provide better tools to investigate commercial counterfeiting and help to reduce trade in counterfeit goods by providing new enforcement tools to strengthen Canada's existing enforcement regime. These are specifically cited as recommendations 1.1 and 1.2 in the road map. The act would provide new criminal offences for the commercial possession, manufacture or trafficking of trademarked counterfeit goods, as per recommendation 1.4.
The act would create new offences for trademark counterfeiting, equipping law enforcement agencies and prosecutors with the tools they have been asking for to combat this problem. That is recommendation 4.1 from the road map.
Finally, the last item I will highlight is that this act would give border officers the authority to detain suspected shipments and contact the intellectual property rights holders. They would be able to do this because intellectual property rights holders would be able to file a request for assistance with Canada Border Services Agency. This in turn would enable border officers to share information with intellectual property rights holders regarding suspect shipments so they can be tracked. This addresses recommendations 6.2 and 6.4.
This bill is indeed the culmination of several years of consultations and direct advocacy from Canadian employers, and industry groups like the Canadian Anti-Counterfeiting Network and the Canadian Chamber of Commerce, among others. I have highlighted specific portions of this proposed legislation that have come directly from these consultations.
Canadians must know that purchasing counterfeit goods is not a victimless crime. That purse and those watches fuel criminal activity. Counterfeit goods actually feed criminal networks around the world and are fast becoming the lifeblood for these organizations, which in turn bring tremendous harm and oppression to people in Canada and around the world.
In the last few years, Interpol has directly connected profits from counterfeit good sales to the funding of terrorism. In 2005, the RCMP declared organized crime to be the primary actor in the field of counterfeit goods sale and distribution in Canada.
In 2005, the U.S., Canada and Mexico, at the security and prosperity partnership meetings, addressed this issue as a major economic and public safety issue that fuelled organized crime across North America.
Finally, it is important to also note that in 2006, the U.S. trade representative placed Canada on the special 301 watch list for the 12th consecutive year. That is a trade watch list, because the intellectual property rights regime and regulatory structures in Canada were deemed inadequate. I might note that in 2006, that was the 12th year, almost perfectly coinciding with the previous Liberal government's time in office.
Our laws and regulations had not been addressed in a generation and criminal organizations were taking advantage of our weakness. Our trade partners were demanding that we get serious. Bill is part of our effort to get serious on combatting counterfeit goods.
Since our government came to office in 2006, we listened to employers, including the CACN and other groups, consulted through road map documents and various public groups and forums and what has been produced is Bill . It is a balanced attempt to update our intellectual property rights regime in Canada.
Going back to what got me into this area, the Canadian who was fooled into buying the counterfeit brush. which steered my career down this path, was fooled because the criminals were literally stealing the good will associated with Procter & Gamble's toothbrush brand. The intellectual property behind the brand, from the trademarks to the industrial designs, were being used by criminal organizations to trick people into buying shoddy products that had not been manufactured in the way the brand would expect. These criminal groups could then funnel these profits into other criminal enterprises and even terrorist activities around the world.
In the last few years when I became aware of this issue, a few areas scared me, literally, out of sleep. Many believe the dog food crisis years ago in Canada was fuelled by counterfeit ingredients from a Chinese producer.
Counterfeit electrical goods have been seized and found by the Canadian Standards Association, not just before being put in homes and hospitals, but after they have been installed, where counterfeiters have stolen the intellectual rights and trademarks that the CSA uses in its seal and that electricians across the country have learned to trust when they install things in people's homes. Electrical goods are counterfeited.
Aircraft and military parts in the U.S. have been found to be counterfeit, not only putting the lives of the operators, the men and women in uniform, at risk, but putting people in and around their use at risk as well.
This problem is vastly greater than a handbag or a watch. It is public safety, first and foremost, and it is combatting organized crime on a secondary level.
The proposed bill will give border officers additional tools to work with government partners—Health Canada and the RCMP—as well as intellectual property rights holders to better ensure that commercial shipments are free from harmful counterfeit goods or from counterfeit labels.
Shipments of any provenance that do not meet the standards or that affect intellectual property rights will be detained and investigated and will not be permitted to get out to the Canadian consumer.
We also need to protect intellectual property in Canada to allow our businesses to invest, innovate and create jobs. The last time the Trade-marks Act was substantially updated was in 1954. There is now a wide range of possibilities for businesses to differentiate themselves. This bill recognizes the new and innovative ways that businesses use intellectual property to distinguish their goods and services from those of competitors.
These rights holders are employers and employ thousands of Canadians across the country. Protecting their intellectual property rights protects jobs. Sounds, scents, holograms, position marks, colours, numerals, figurative elements, 3D shapes, textures and now even taste are commonplace in the world of intellectual property. This bill would specifically allow for the registration of these non-traditional trademarks, giving them the same level of protection as a traditional mark.
Finally, the bill would improve the reliability of information found in the trademark register. It would simplify the overall trademark registration process by streamlining some of the requirements and removing all impediments to the use of electronic documents. It is important for Canada to have a trademark register that is accurate and up to date. This bill would allow the Canadian Intellectual Property Office, or CIPO, to easily and quickly correct blatant and obvious errors after registration, instead of the intellectual property rights holder having to go through the time and expense of seeking an order from the Federal Court.
While the central focus of this bill is the criminal, civil and border enforcement measures, there must be a high level of legal certainty that a legitimate owner's registered trademark is valid in order to get the most out of that regime. By streamlining certain registration procedures, this bill would ensure a high level of effectiveness, efficiency and validity for Canadian trademark owners, while saving them time and money in the process.
For example, if a Canadian business owner wishes to register his or her trademark, which was previously registered in another country, he or she will no longer need to provide certified copies of the foreign registration as proof. This would save both time and money, as applicants would no longer have to contact the foreign intellectual property office and pay a fee to obtain a certified copy.
In opposition proceedings, an applicant must reply to a statement of opposition with a counter-statement that responds to each allegation. With this bill, the counter-statement would need only state that the applicant intended to respond to the opposition, thereby lessening the burden on applicants when the opposition would be first filed.
Rules on the registrability of a trademark would be made clear. A key element in trademark law is that a trademark must be distinctive. That is, it must be capable of distinguishing the goods and services of the business from those of other businesses. The bill would ensure that any trademark that would be registered would meet the distinctiveness requirement.
Currently an application for a certification mark, which guarantees that a good or service meets certain standards, must be based on actual use. The bill would allow applications for certification marks based on the proposed use, thereby harmonizing with the approach taken by other types of trademarks.
In 1954, the last time this act was touched, it was difficult to imagine that electronic communication and the dissemination of documents would be so prevalent, so the Trade-marks Act and its provisions were very much paper-based. The bill would remove paper requirements and would allow for the filing and handling of all documents electronically.
I cannot assure the House enough that Bill is not only critical to the public safety of Canadians. Whether they brush their teeth in the morning, feed their pets or turn on their lights, they need to know the marks and seals that they have come to trust are legitimate and that people abusing this trust will be prosecuted to the fullest extent of the law.
We must also recognize that by shutting this door to counterfeiters, we are also shutting the door to criminal organizations. They have quickly moved in and found the margins, and the ability to operate by stealing the intellectual property of Canadian employers allows them a means to fuel their criminal organizations and activities, including terrorism, which our government spends millions of dollars combatting.
This bill is a good attempt at getting our regime updated. We have listened to industry.
I would be pleased to answer questions or comments from my colleagues on this important legislation.
:
Mr. Speaker, as the member of Parliament for Kitchener—Waterloo and as a member of the industry, science and technology committee, I am pleased to have the opportunity to rise this evening to speak to Bill , the combating counterfeit products act, at second reading.
The flow of counterfeit and pirated goods crossing our border is of mounting concern. Knock-off goods undermine the integrity of legitimate Canadian businesses and raise their costs. They deceive consumers and often put their health at risk. They siphon off tax revenue and fuel the growth of organized crime. For all of these reasons, I support Bill , the combating counterfeit products act, which is one more step in our government's march toward a modern and strong intellectual property regime.
For my part today, I would like to look at how the proposed act would promote public safety by fighting serious and organized crime.
First, however, let me reflect on the nature of counterfeit and pirated products, why they are so hard to detect and why they have become such a pressing issue.
Modern counterfeiters operate in more subtle ways than they did in the past. They often remain out of sight, and their clandestine goods reach our borders unannounced and too often undetected. What is worse, their wares often make it all too easily onto the open market to be sold to often unsuspecting customers and consumers.
Counterfeit goods can take the form of consumer products such as clothes, appliances and toiletries—household items that we need to be safe—and even health products like medications that Canadians rely on for their families. Frankly, they can be anything that can be produced and distributed for profit.
Modern-day counterfeiters have an utter contempt for copyright and trademark laws, for the health and safety risks posed by unsafe or inferior products, for the lost tax revenue for our infrastructure and essential services, for the lost profits for intellectual property owners and for lost consumer confidence in the marketplace.
It is disturbing to note this criminal activity is also becoming more common. Between 2005 and 2012, the RCMP estimates that it investigated more than 4,500 cases of intellectual property crime in Canada. During that same period, the value of counterfeit products seized by the RCMP skyrocketed from $7.6 million to $38 million.
As high as these numbers are, they are only a drop in the ocean. Remember that $38 million represents the value of the seized products. How many other products manage to cross the border? How many more millions of dollars were lost? How many more consumers were put at risk?
One fact is clear: counterfeiting is on the rise not just in Canada, but around the world.
At least two House of Commons committees have published detailed reports confirming the growing threat posed by these goods, not only to the Canadian economy but also to health and to safety.
Many of our trading partners have already taken steps to strengthen their intellectual property enforcement regimes. We cannot afford for Canada to be at a disadvantage compared to our peers. We need a made-in-Canada solution that takes account of the key international developments in the fight against commercial counterfeiting.
For several years industry associations have been pushing for changes to Canada's intellectual property legislation. I am proud to say that Bill responds to demands for a modern approach to combat counterfeiting and piracy.
Once passed, the bill will help reduce the availability of counterfeit and pirated goods in Canada. In so doing, it would protect the integrity of our economy, support Canadian growth and jobs, and help protect Canadians from the health and safety risks posed by harmful counterfeit goods.
From a public safety perspective, a successful attack on counterfeit goods also means taking a lucrative source of revenue away from serious and organized crime. To that end, the bill would introduce new enforcement tools to strengthen Canada's existing intellectual property regime, both within Canada and at our borders. It would also bolster existing protections against commercial counterfeiting activities.
In this way we would be better equipped to prevent large shipments of counterfeit goods from entering Canada. By disrupting the distribution of illegitimate goods, we would make it more difficult for organized crime to make a profit.
Let us make no mistake: the collection and distribution of significant quantities of counterfeit products is not the random work of a few isolated individuals. The scope of the problem and the profit involved would suggest that organized crime is involved.
What is the attraction? Organized crime can take the profits from counterfeit goods to support any number of nefarious activities, from trafficking drugs to smuggling firearms. In other words, the profits from all these fake products are buying real drugs and real guns and threatening the safety of our streets and communities.
Our government stands firm in the fight against organized crime. The bill would give the RCMP new tools to combat the threat posed by counterfeit and pirated goods when serious and organized crime is believed to be involved.
At the same time, it would not be used at the border to search individual travellers who happen to possess counterfeit or pirated goods for their personal use. I will have more to say about the role of consumers in a few minutes, but first let me provide a more detailed overview of the proposed legislation.
It often takes years of hard work and significant investment to develop intellectual property, not to mention the huge effort to turn that property into a brand that consumers identify and trust. Counterfeit goods, then, do not simply result in lost sales for trademark and copyright owners: they also undermine hard-earned reputations and can put the very existence of businesses at risk.
The proposed legislation would help Canadian businesses protect their brands and works. Currently, if counterfeit trademark or copyright goods are sold in the marketplace, for example, the rightful owners could take legal action through civil courts. Specifically, they could ask for civil remedies for the manufacture, distribution and possession with intent to sell counterfeit goods, but how do the rightful owners stop these goods from entering the market in the first place?
Under current legislation, rights holders must first get a court order to have authorities detain suspicious goods at the border. The amount of specific information needed to obtain a court order can lead to delays that work to the advantage of criminals.
Bill would streamline this system, allowing trademark and copyright owners to submit a so-called request for assistance to the CBSA and provide information to help identify suspicious goods, thus assisting rights holders to seek civil remedies.
These officers in turn would share information about the detained goods with rights holders. Armed with this evidence, rights holders could then pursue the matter in the courts, as I mentioned a few minutes ago. This collaborative approach would help take the wind out of the sails of organized crime.
Of course, the bill supports the Canadian judiciary system for determining who has copyright and trademark rights, thereby protecting against abuse or misuse of these new border measures.
Rights holders would pay the costs associated with the detention of goods, and the proposed legislation would also contain safeguards for information sharing. Importers would also be notified if their shipments were detained and would have the right to inspect them.
Finally, if the system was being abused, the Canada Border Services Agency could remove a rights holder from that request for assistance process, so there are safeguards.
While the new act would introduce civil remedies, it would also strengthen our criminal law.
Currently the Criminal Code has limited offences relating to trademark fraud. The laws primarily target conduct related to forgery of a trademark; possessing instruments for forging a trademark; defacing, concealing or removing a trademark; and passing off wares or services as genuine, with intent to deceive.
These offences, however, do not go far enough. That is why the bill would make it an offence to sell, distribute, possess, import and export counterfeit goods for the purpose of trade. Offenders would be subject to fines and face possible jail time.
In addition, new criminal offences for possessing and exporting pirated goods for the purposes of trade would be added to the Copyright Act. That would allow the RCMP to seize counterfeit and pirated goods. These provisions were not proposed lightly, but considering that profits from such goods can end up in the hands of organized crime, we need to pursue and prosecute offenders more diligently. That is why the proposed legislation would provide new powers to investigate commercial counterfeiting.
Mr. Speaker, you will note now that I said “commercial counterfeiting”. The proposed legislation will not result in searches of travellers at the border who may possess counterfeit and pirated goods for their personal use—we know that consumers do not always know the origin of a product they acquire in good faith for personal use—nor will the government be pounding on the door of law-abiding citizens who may own knock-off DVDs.
The proposed new authorities to seize goods and prosecute are intended to be used against those who knowingly bring in counterfeit goods with the intent to sell, rent or distribute them in the marketplace. That said, I believe consumers play a role in the fight against counterfeit goods. Canadians are increasingly aware that commercial counterfeiting is not a victimless crime and that knock-off goods do hurt. They hurt intellectual property owners who lose hard-earned income. They hurt law-abiding Canadian taxpayers, as commercial counterfeiters do not pay their share. They hurt the entrepreneurial drive that stimulates innovation and fosters new economic growth. Most insidiously, they hurt innocent people through defective products that maim, injure and sometimes even kill.
In the end, Canadians pay a truly high price for the fake products commercial counterfeiters sell. By being smart consumers, all Canadians can help us combat the scourge of counterfeiting and piracy. In so doing, we can all do our part in the fight against serious and organized crime.
I would like to close by putting Bill into a larger legislative and policy context. This new act is part of this government's ongoing commitment, a commitment I have been very proud to be involved in, to strengthen protection for intellectual property and to ensure our communities are safe.
The bill would complement the Copyright Modernization Act that recently came into force. Together these two pieces of legislation would create a comprehensive approach to the protection of intellectual property rights. I want to reassure the House that Canada is committed to the efficient flow of legitimate goods across our border. We will work with all of our trading partners to ensure that our actions to enforce intellectual property rights do not themselves become barriers to legitimate trade. Our country so depends on the flow of trade.
Canada has always been a trading nation, and no more so than now, but for all the benefits brought by the global economy, there are associated risks. Faced with an escalating threat of counterfeit and pirated goods and in response to the calls for action from industry, the government has tabled this bill before the House. I believe Bill is fair and balanced legislation that helps us tackle the scourge of counterfeit and pirated products while protecting the rights and the interests of individual consumers, travellers and legitimate business.
By passing this bill, we not only protect industry, consumers and government revenue, but we can also make progress against serious and organized crime. For all these reasons, I urge all members of the House to join me in swift passage of the bill.
:
Mr. Speaker, before beginning my speech, I would like to mention that I will be sharing my time with the , who is also the member for . He is one of the members who works the hardest in the House of Commons. What is more, he is the most ardent defender of the rights of Canadians. The NDP is really proud of its parliamentary leader.
I would also like to mention the great work that my wonderful colleague from has done. She gave an excellent speech. She has a good grasp of the dynamics of the situation. I listened very carefully to her speech, which was very enlightening. I am also very pleased to mention my colleague from 's excellent work. He talked about the importance of border protection. Over the past few months, there have been major scandals in the ridings of Sherbrooke and Compton—Stanstead. Incidents have shown that our border is indeed porous. Unfortunately, the Conservative government did not do its job and did not make sure that our border is secure.
Bill , amends the Copyright Act and the Trade-marks Act. It seeks to strengthen the enforcement of copyright and trade-mark rights and to curtail commercial activity involving infringing copies and counterfeit trade-marked goods.
This bill creates two new criminal offences under the Copyright Act. They deal with the possession and export of infringing copies. The bill also creates offences related to the sale or offering for sale of counterfeit goods on a commercial scale. It creates a prohibition against importing or exporting infringing copies and counterfeit goods. Finally, it grants border officials new ex officio powers to detain infringing copies and counterfeit goods.
These are important changes, since up until now, border officials required copyright holders to first get a court order before they would seize infringing copies or counterfeit goods. These are the main changes proposed in this bill.
However, it is important to understand that this bill assigns new tasks to border authorities, to the border officers. As I have already said, as my colleague from said so well earlier, and as my colleague from often says during question period, there are already problems at the border. Ensuring safety at the border to allow the border authorities to do their job properly is problematic. The reason is quite simple: $143 million was cut from the Canada Border Services Agency. There were already problems, but instead of strengthening the border, the government made more cuts to the Canada Border Services Agency, which is irresponsible. This will have a direct impact on jobs. It will affect officers who work to protect our borders. Five hundred and forty-nine jobs will be cut, which means 549 fewer people to do the work at the borders across Canada, including in the Sherbrooke area and at the Compton—Stanstead border.
This is not going to improve the situation, despite the fact that this bill makes some corrections, as a number of members have mentioned. I am not one to make partisan speeches. I will even mention the hon. member for , who made a very important speech and talked about a number of things, including the fact that this bill needs to be improved in committee. I think it is a shame that we have to hear such things.
It is 11:35 p.m. and I am a bit tired, so that explains why I sometimes lose my train of thought. I think it is important to the democratic process for us to be here, even at 11:35 p.m., to make speeches, debate bills, propose amendments and provide explanations about the validity of these bills. We will support this bill at second reading so that it can go to committee. That is very important.
This is directed mainly at the Conservatives, because I know that NDP members do an excellent job in committee. I do not know how many times I have made speeches in the House about the excellent job NDP members are doing in committee. They listen carefully to the recommendations made by experts and then bring them forward in the form of amendments.
We will support this bill. As a number of members have mentioned today, we have been waiting for this bill for a long time. We must strengthen the fight against counterfeiting to ensure respect for the efforts of Canadian businesses and the goods they produce and to protect the health and safety of all Canadians.
Several of my colleagues have given good examples of car parts and other items we use every day that could put our health and safety at risk. That is why this kind of bill is so important. It will essentially guarantee that the products Canadians use are safe.
However, the Conservatives, who are currently in power, have to provide the necessary financial and human resources to implement this bill. We will support it and study it in committee.
I must appeal to the Conservatives once again, because unfortunately, as we have seen many times in the past, they have not been listening. I hope they will listen closely to all of the experts who testify before the committee, and I urge them to take the experts' recommendations into account along with amendments that the NDP and others will make based on the experts' recommendations. I hope they will improve this bill. That would be a first step to show that they are acting in good faith.
They could also show they are acting in good faith by investing the necessary money and human resources to ensure all Canadians benefit from a bill that meets their expectations.
The government has been aware of this problem for a long time. Difficulty measuring the scale of counterfeiting and pirated goods in Canada has been a challenge from the start. The OECD's 1998 report entitled “The Economic Impact of Counterfeiting and Piracy” was a first look at the scale of the problem.
I am running out of time, so I will wrap up my remarks. This bill must meet the needs of Canadian consumers and protect health and safety. The Conservatives must reverse their decision to cut the CBSA's budget by $143 million, a decision that will result in the loss of 549 jobs. Otherwise, this bill will not really benefit Canadians.
:
Mr. Speaker, the enthusiasm is overwhelming. I am moved. Especially considering that we are coming to the midnight hour, the enthusiasm New Democrats have for the House of Commons, for democracy and even for debate is stirring and important, because there has been a certain lack of enthusiasm for debate coming from the Conservatives.
The will know the actual number. I think we are at 47 or so time allocation motions. On all of these bills, and this is one of those bills, we seek to find some comfort for the Conservatives, who are often looking for comfort, particularly when there is a lot of turmoil in their lives, much of it self-inflicted. They want these kinds of things to move at an orderly pace. We offer them an orderly calendar. A certain number of New Democrats will speak and allow the bill to go ahead, and they still shut down debate, even under those circumstances. One wonders what the motivation is sometimes. I think we are up to 47. Again, if the government House leader rises tonight, he will be able to remind us.
This bill is an important one. The Conservatives say that it is critically important. How critical it is in their minds begs the question, simply because it was first introduced on March 1 of this year, seven or eight years into their mandate and 27 years after the last time the bill was reviewed. My friend from the Conservatives earlier talked with some great expertise about the importance of this thing. If it were important, one would think it would be a priority, and if it were a priority, one would not think that the 11th hour of this particular sitting and session of the House of Commons would be the time they would move the bill. If this were devastating to the Canadian economy, to the intellectual property rights regime in Canada, our ability to trade with other nations and all of these things that have been talked about, it would be a priority, but it is not a priority. It is a panic. When things are panicked, mistakes are made.
It is important for my friends to realize that they cannot quite have it both ways. If they say that this is urgent and desperate and we need to move it through rapidly, then one says that there has been a majority government for two years. Other bills have been moved, some of certainly less consequence or even quality, some would argue. I am thinking of a few bills, such as Bill . My friends will remember Bill C-30, the Internet snooping bill, which the so eloquently justified by saying to the opposition and to all Canadians that one was either with the Conservatives or was with the child pornographers. Do members remember that classic? That was a good one. They got rid of that bill. It was a bigger priority than this piece of legislation.
However, let us talk about the bill, because it is important. We will take a look at Bill and see what it actually would do.
New Democrats have been aware of the importance of protecting intellectual property rights in Canada. It is important both for our own industry and our ability to innovate and design leading-edge technology, as Canada has so often done in the past, particularly when we used to have things like industrial development strategies, but not so much with these guys. We had export policies that said that adding value to our resources in Canada was a priority for the federal and provincial governments, but not so much with that side.
We agree with the merits of this bill and agree with sending it to committee. We believe that we need to hear from the experts. We have one or two experts in the House of Commons who maybe spent a previous life looking at the intellectual property regime in Canada and around the world. I do not claim that expertise, and I think most members of Parliament would not either. We need to rely on the experts, and not just the industry experts, and this is important for us as New Democrats. While those voices are critical to the design and implementation of legislation, we need to hear from the border guards, who are the folks who are going to be potentially seizing some of these products. We will have a very challenging time distinguishing between the bootlegged products people have talked about and other products that would offer serious harm or threats to Canadians' safety and health.
My friend talked about toothbrushes and toothpaste that caused people harm, but it gets even more serious than that. There is medical equipment that is improperly made. It is counterfeit, and Canadians are exposed to this, because they trust the label on the brand. It is not about buying a sweater for a child and hoping that it is the actual brand. Some of these things are quite important. When buying brake pads for one's car, one wants to ensure that they are actually brake pads that will stop the car.
The problem with counterfeit is that it can so often appear as something that is solid and consistent and legitimate. The reason it is so effective is that it looks good.
We have been having a bit of a debate. I do not want to say that it has been a nerd fight, but we have been arguing about the numbers. The numbers do not really help out the government's case in terms of providing help for the border officials who are meant to guard our borders, not just from counterfeit products, which is important, but even more important, from illegal contraband and weapons. They come into this country, some would argue, through our ports, where 2% to 3% of all containers are inspected. That is not a lot, and with those types of odds, some smugglers will just take the chance of getting caught, because the ability to make money is so great.
We have heard from the CBSA itself in this year's report. This is not a report produced by the official opposition. This report is produced by the border agency. We have heard that the government has cut $145 million from the border agency this year. Excuse me, I want to get the number right. It is $143 million. I exaggerated. It is not $145 million but $143 million. I want to make sure the number is right. I do not want to upset anyone on the other side.
The CBSA's report on plans and priorities indicates a loss, not a gain of 1,000 and a loss. It indicates a net loss of 549 full-time-equivalent positions. If the CBSA is not telling the truth or has its numbers wrong, I would encourage those on the government side to help it out a little. The Conservatives are entitled to their own opinions but not their own facts. The facts of the matter are that there are 549 fewer full-time-equivalent positions. If we are going to ask them to do more with fewer staff, is the law worth the paper it is written on?
We need two things, of course. We need the tools. This is an update of the legislation, and New Democrats support the updated legislation. Things have changed since the last time we looked at these intellectual property regimes that are so important for businesses that are looking to innovate and trade. If we do not look at legislation often, we want to get it right. To the Conservatives who say that one hour of debate is good enough, that we can zip it through committee and get it back out the door and then wait 30 years to correct the errors we make, I say that it is not right.
Nearly 100% of the amendments the opposition moved were based on testimony from experts, from border officials, from those in industry and those who deal with intellectual property. We hope that there is some sort of new openness, because the Conservatives have rejected virtually everything we have offered before, because they can, not because they have any counter-argument.
I have been at the committee hearings where we quote witnesses everybody agreed with when they testified. We move the change the witness suggested. There is no debate or counter-argument from the Conservatives. There is a vote, they kill it and they move on. We just do it over and over again.
A number of pieces of legislation have moved through the House completely unamended. Some of these bills are hundreds of pages in length. They are technical bills amending other acts. Sometimes as many as 60 other acts of Parliament are amended by one bill. The government does not change anything based on the testimony it hears. The testimony we hear, in very specific and technical ways, offers another viewpoint.
It raises the question of what is going on. Why would a government claim to have a keen interest in helping manufacturers and innovators in this country protect their intellectual property and a keen interest in helping consumers, yet not allow border officials to have the tools and services they need?
If we hear from border officials that we should change something in the legislation and New Democrats happen to be the party offering the amendment to the bill, for goodness sake, I hope the Conservatives change some of their patterns and hubris and say that it does not matter which political party moves it. What matters is whether it is a good amendment and whether it is a good improvement. Going through hundreds of pages of laws without any changes smacks of a certain unfortunate level of arrogance.
On this legislation, let us make sure that the tools we are offering our border officials also match up with the planning priorities—not the stated planning priorities of the government, not the stated spending priorities, but the real priorities, with real money and training.
We have talked about giving border security officers new powers to play a discerning and defining role in investigating the products to make sure that they are contraband, or not. That requires new training. We all admit it, but we do not see in any spending priorities from the government actual resources for training. CBSA has to take it from something else.
To the government, to all members of the House, let us do what the House of Commons is built to do: study legislation, look at it, take our time and get it right. If we are only going to do this once every generation, and if it is so important for our industry, then let us make sure we get it right.
:
Mr. Speaker, it is great to have the opportunity to speak to Bill . I want to thank my colleagues from , , , and who also commented on the bill.
I will agree with my colleagues from the NDP that this has been a very good debate tonight. It is an interesting debate on an interesting bill. Even though I do not serve on the industry committee, it has been—
An hon. member: You want to now.
Mr. Mike Allen: Yes, I might want to go to the industry committee now.
However, it is really an interesting bill. Before I get into some of the details of the bill, when I was in my consulting realm, I always talked about the change imperative for companies and the reasons for bills and why they were so important.
We have had a bit of discussion about counterfeit products and foods. We have discussed a number of things in the House tonight. We have talked about the level of problems with counterfeit worldwide. Some have estimated it at $250 billion and some at $400 billion to $600 billion. A significant percentage, or at least a good percentage of that, is tied to organized crime, which has to be a concern to the House as well as to the citizens of Canada.
I represent one of the largest potato-growing areas in Canada, with two large McCain french fry plants. There is a significant amount of intellectual property that goes into the development of new potato breeds and those types of things. As well, there is a lot of research into foods. McCain Foods does a tremendous amount on its french fries worldwide. All of this is very important intellectual property for these industries.
Innovation is alive and well in many of our industries. Many of those who represent forestry and agricultural ridings know it is the same for them as well.
The proposed combating counterfeit products act is the latest in our government's ongoing efforts to strengthen and modernize Canada's intellectual property laws. It will help confront the realities and challenges presented by large-scale commercial shipments of counterfeit goods. It will also respond to concerns raised by Canadian consumers and job-creating innovators and will provide a made-in-Canada approach to fighting counterfeiting that is compatible with the approaches of our allies.
Counterfeit goods are more pervasive now than ever before. Seizures of counterfeit goods by the RCMP increased fivefold between 2005 and 2012. Not only is counterfeiting increasingly pervasive, it is increasingly dangerous to Canadian consumers and costly to our economy.
Anything can be the target of counterfeiters, from everyday consumer goods to car parts. We have heard about brake parts and hockey jerseys. Earlier today we heard about Canada Goose, face wash, shampoo, batteries for cars, golf clubs and even wine.
This disturbing trend affecting Canadians' health and safety needs to be addressed right away. Over 30% of counterfeiting now involves harmful products, compared to 11% in 2005. Without these robust measures, these products will make their way into our homes and our children's playgrounds.
As was said earlier tonight, a lot of these products are getting harder and harder to identify. Being an avid golfer, I can speak to the fact that somewhere in the area of two million counterfeit golf clubs enter the market every year, as well as wine. It gets harder and harder to pursue these types of things because it is hard to tell the difference between what is counterfeit and what is real.
The government takes counterfeiting very seriously, and this bill would give Canadian rights holders and law enforcement the tools they need to combat this growing problem that exists at the border and domestically and to target those who profit from the commercial trade of counterfeit goods.
Specifically, the bill would give the authority to the border services officers to detain suspected shipments. Border services officers would have the authority to detain suspected counterfeit goods that were imported into Canada or that were exported from Canada on their own initiative.
When I was talking before about some of the golf clubs and wine and how hard it was to even trace some of these things, I looked at the website of a company that now provided the scanning tools to try to identify some of these types of things. It is interesting that it was talking about the wine industry and how it was taking counterfeit product and putting it into original-type bottles to be sold. There were 17,000 bottles which were deemed to be counterfeit. It was estimated that it would take 7,000 hours and $1 million for this to all be assessed.
I know there are many people in the House of Commons who would love to be in on that project and on the committee responsible for assessing these 17,000 bottles of wine. I can think of all kinds of things at midnight that would be interesting to see.
When we talk about the golf club industry, counterfeiting is so pervasive that the industry is actually investing to help the border services officers in the U.S. get the training to identify counterfeit golf clubs. This is because they have a different regime from the one we have in terms of responsibility.
Once the suspected goods are detained, border services officers will have the authority to communicate with the copyright owner or the registered trademark owner to inform them that a suspected shipment has been encountered. This bill would also allow for the creation of a new process, called the “request for assistance”. It would allow the rights holders to seek assistance from border services officers by supplying information about their copyright and registered trademarks. The request for assistance would also facilitate communications between border services officers and rights holders.
The bill would provide rights holders with new tools to protect against counterfeiting and to take civil action against infringers. The new civil causes of action would target manufacturing, distribution and possession with the intent to sell counterfeit goods. Currently, counterfeit goods must be sold or offered for sale before a rights holder can initiate a civil action. With the combatting counterfeit products act, rights holders would be able to initiate a civil trial earlier in the supply chain, before these goods reached the market where they could deceive and harm Canadians' and steal Canadians jobs.
The bill would add new criminal offences to help combat counterfeiting for the purposes of trade. These target the sale of counterfeit goods, as well as manufacturing, importing, exporting and processing counterfeit goods, if they are intended to be sold or distributed on a commercial scale. The bill would also add new offences for exporting and possessing pirated copyright goods. These offences are meant to complement the existing criminal offences in the Copyright Act, such as the sale, rental and importation for sale or rental of copyright-infringing copies.
I really appreciated the comment that was made by my colleague from with respect to his background and experience in this field. He gave us some real context for the House on this debate tonight.
The bill would recognize newer practices, such as applying counterfeit labels just before sale. Sophisticated counterfeiters want to ship goods separately from labels so as to avoid being caught. To deal with this, new offences would target the sale of counterfeit labels or the manufacture, importation, exportation or possession of counterfeit labels for the purposes of trade.
In addition, the bill would introduce minor amendments to the Trade-marks Act, which has not been modified since the 1950s. For example, the bill would remove unnecessary paperwork requirements for businesses during the trademark application process, would modernize the language found in the act and explicitly would allow the registration of non-traditional trademarks, including sounds, scents and holograms. Overall, the bill would improve the Trade-marks Act by aligning the legislation with modern business practices.
The problem of counterfeiting is not just a Canadian problem. It is a global problem in which Canada is one destination among the many for counterfeit goods. As I indicated earlier, there are estimates that the counterfeit market could be $250 billion, but that does not count some of the DVDs and similar items that are pirated as well. That could take it to well over $500 billion.
This bill would provide a domestic response to a global problem. It is a made-in-Canada solution that would ensure our intellectual property enforcement regime would be compatible with global standards. It is a domestic approach that draws on the best practices of peer countries.
Let us take a moment to look at border regimes in some of the other countries, because that is important.
In the EU model, customs authorities have ex officio authority to temporarily detain suspected infringing goods. They cannot take ownership and seize or destroy the goods.
In the EU, rights holders may apply to customs authorities for enforcement of their IP rights at the border. In these cases, it is the rights holders who assume all the costs of the border enforcement process, possible ensuing civil action and the storage and disposal of suspected IPR infringing goods. In return, they will be informed of any resulting border detention.
However, in the EU, when the action of IP rights infringement results in the violation of public laws—for example, criminal fraud or a threat to public safety—the state can also commence criminal investigations and prosecutions, the cost of which is assumed by the government.
In the U.S. model, it is the federal government that is primarily responsible for enforcing IP rights at the border. In particular, the U.S. customs and border protection is responsible for detecting, seizing and disposing of counterfeit and pirated goods found at the U.S. border. If an importer takes issue with the seizure, it is customs and border protection and not the courts that decide the issue, making administrative determinations on the existence and validity of IP rights. Customs and border protection has the authority to impose administrative fines for violations. It also absorbs all the costs of the IP rights enforcement process, ensuing litigation, storage and disposal of goods.
In terms of the overall approach to IPR enforcement, Bill proposes a made-in-Canada approach, an approach that is appropriate and well-suited to Canada's needs. The bill reflects the fact that the enforcement of intellectual property rights is primary the rights holders responsibility, while acknowledging some role for federal agencies.
For example, to temporarily detain suspected counterfeit goods and inform rights holders and in the area of criminal enforcement, which will be worked out between them and the RCMP, the determination of whether goods are counterfeit is ultimately left to the courts.
The new request for assistance process will allow border services officers to use information provided by rights holders in their request for assistance document in order to determine whether there are reasonable grounds to suspect that the shipments contain counterfeit goods. If there is a suspicion, the border service officer can detain the shipment and notify the rights holder of a suspected shipment. The rights holder is then given a period of time to decide whether he or she will pursue the matter in civil court.
The RCMP and Health Canada will be given the chance to decide whether the shipment at issue may be a criminal or a health and safety matter respectively.
The detention of suspected goods allows the RCMP or Health Canada to pursue the matter criminally and the rights holder to pursue the matter civilly.
The border services officer does not make a final determination on whether the detained goods are counterfeit. Only a judge in a court has the power to do that. That is a departure from some of the questions that have been asked tonight, because that is the court process. I know I will get some questions on this with respect to the financial aspect of CBSA. That is important for us to know.
Since the tabling of the bill in March, many stakeholders have been in support of the bill. These include the Canadian Intellectual Property Council, the Canadian Anti-Counterfeiting Network, Canadian Manufacturers & Exporters, Electro-Federation Canada, the Entertainment Software Association of Canada and Food & Consumer Products of Canada.
While the bill is supported by a majority of stakeholders, some misconceptions have been heard. I will take the opportunity to address these concerns.
Some have suggested that the bill grants border services officers more power without judicial oversight, in a sense expecting these officers to be copyright and trademark experts. This is simply not true. As I mentioned before, they would have the authority to detain goods based on a reasonable suspicion that the goods were counterfeit. The ultimate authority to determine whether goods are counterfeit can only come from a judge in a court.
Some members may have heard the misconception that the bill was the result of international pressures to change our laws. In fact, the bill was developed in response to repeated calls by Canadian stakeholders, including innovative businesses, which we have talked about tonight, that employ Canadians.
As early as 2006, the Canadian Anti-Counterfeiting Network released a position paper on the need for legal reform in Canada to address intellectual property crime. In 2007, it released another report on counterfeiting and piracy in Canada. It was also in 2007 that two parliamentary committees, the Standing Committee on Industry, Science and Technology and the Standing Committee on Public Safety and National Security, both heard several stakeholders on this issue.
Since 2009, the Canadian Intellectual Property Council has also released reports asking for legislative changes in the area. More recently, in 2012, the standing committee that this will be referred to also heard from many witnesses about the issue of counterfeiting. Many others have met with or written to government officials with their concerns. Canadian stakeholders have been clear about the economic and health and safety issues associated with counterfeiting. This bill shows that we have listened.
There should be no concerns that Canadians will have luggage and their personal music devices searched for counterfeit goods and pirated copies. I am glad we have consensus on that. With everybody who spoke to that, it is very clear in the bill that this is not an attack on individuals personally for bringing things across the border.
Personal baggage will not be searched for counterfeit or pirated goods upon entering Canada, nor will personal music devices be searched. In fact, Bill clearly identifies such goods for personal use to be outside the scope of the legislation. The bill would provide the tools to pursue those who aim to profit from commercial counterfeiting activities: those who manufacture, possess, import, export or attempt to export for the purpose of sale and distribution, as well as those who sell or distribute counterfeit on a commercial scale. We are going after the core of the problem, the criminals, often highly organized and sophisticated, who prey upon unsuspecting Canadian customers.
Intellectual property legislation is always about creating a balance between owners and users. Bill provides a carefully balanced approach to protecting Canadians against the effects of counterfeiters. A strong intellectual property rights regime is central for any knowledge-based economy such as Canada's in order to foster an environment that promotes innovation, attracts new investment and stimulates economic growth.
As the committee moves forward with the bill, our government remains committed to working with Canadian rights holders as well as our international partners in fighting against counterfeiting. The bill will send a clear message to those who aim to profit from counterfeit goods that what they are doing is against Canadian law.
In conclusion, counterfeiting hurts jobs, threatens growth, and it exposes Canadians to health and safety risks. With this bill, our government continues to stand up for the economy, the rights holders and for all Canadian consumers. I thank all my colleagues in the House and all my colleagues from the opposition parties for their willingness to support this at second reading to send it to committee.
:
Mr. Speaker, I can barely contain my emotions as I rise in the House because I know that the entire nation is hanging on my every word as I weigh in on this important debate.
I would like to begin by quoting a 13th century French poet named Rutebeuf. Some 700 years ago, Rutebeuf wrote:
What has become of the friends
Whom I held so dear
And loved so much
One could paraphrase his words today:
What has become of the principles
That I praised so highly
And boasted of so much
I am, of course, talking about the Conservative Party and the bitter disappointment it has inspired among its supporters.
For years, while it was in opposition, this government said that it would clean up Ottawa, bring change and act according to the following principles: integrity, transparency, freedom of expression and enabling parliamentarians to do their work.
What has happened since the beginning of the Conservatives' majority mandate? Parliamentarians are being prevented from talking, debating issues and making suggestions. The government is imposing time allocation. It is forcing committees to work behind closed doors. It is doing exactly the opposite of what it promised Canadians.
It is good that we are debating Bill , the Combating Counterfeit Products Act today. What we are seeing is counterfeit debates. Democratic freedom is being undermined and parliamentarians are being prevented from doing their work.
With this bill, that makes 47 gag orders. Forty-seven motions to limit members' speaking time on government bills. This evening, the came to announce another gag order. A 48th gag order is coming.
I think that the Conservatives are aiming for 50 before the session ends. They must want to end on a round number or something like that. It must be as simple as that.
However, these are the same Conservatives who would tear their hair out and shout whenever the Liberals dared impose time allocation after weeks of debate. Once in power, these same Conservatives today put their principles behind them and can impose time allocation after an hour or two of debate by saying that it is a matter of urgency and that the bill absolutely must be passed because it is of vital importance.
In the meantime, they tell reporters that the NDP should give consent to adjourn Parliament and go home. It is one or the other: they cannot have their cake and eat it too. They cannot say that a bill urgently needs to be passed and then complain that the NDP is keeping them in Parliament and forcing them to work and answer their questions.
Let me come back to the bill. I come from a family that is well-rooted in the cultural community. My father is a writer and my brother is a musician, so copyright is very important to me. I know that this bill is about more than just copyright as it relates to artists, but it can have consequences for that.
It is important because copyright and intellectual property are related. These are fundamental to respecting creators and people who develop products, whether we are talking about cultural products, merchandise or high-technology products. This evening we talked about pharmaceutical companies and many other things.
This debate is important to the NDP. We believe that this bill is headed in the right direction. However, members will understand that I will probably raise a concern in a few minutes. The Conservatives often do not walk the talk, as people used to say when I was young. However, this bill does have good intentions.
We have to recognize the importance of innovation in economic development and the fact that the creators of these innovations are entitled to the resulting profits. We must not allow third parties to copy what they have developed, built or imagined and abscond with the fruits of their labour.
That is outright theft of the revenues generated after a product, good, idea or concept is created and developed. It is rather difficult to know what happens surreptitiously, under the table. There are estimates but, in this case, we only have the value of seizures of counterfeit goods by the RCMP. It says that seizures increased from $7.6 million in 2005 to $38 million in 2012. That is significant.
As my colleague pointed out earlier, it is probably just the tip of the iceberg. That is just what was seized. There must be a lot of counterfeit goods in the world.
I think that if we have an opportunity to travel around the world, we will see all these young people in tourist areas who sell brand name watches that are fakes. This is just one of many examples of what we can see when we travel around the world.
In 2009, the OECD estimated that the international trade in counterfeit and pirated goods could be valued at up to $250 billion. I think it is worth studying this issue and doing what is necessary to solve the problem.
Bill is a step in the right direction but the official opposition would be much happier if we had the resources to serve our ambitions. We are not just talking about the loss of money but a risk to Canadians and Quebeckers. We learned from the testimony of several witnesses that counterfeit goods often pose a risk to the health and safety of consumers.
We heard this evening about counterfeit electrical components that can be dangerous and can cause short-circuits, as well as about poor quality counterfeit winter jackets or vests with unsanitary stuffing that do not do the job. Counterfeiting is of even greater concern to us when it has an impact on the health and safety of our constituents.
However, I must admit that I am sad and disappointed. This bill is so important for Canadian companies and consumers that we would like the Conservative government to allocate the resources needed to enforce it. For the time being, we still do not know where the funding for the enforcement regime set out in Bill will come from. That is not just a minor detail.
This bill imposes significant new duties on Canada Border Services Agency officers at a time when budgets are being cut. That is where the Conservatives' true colours shine through because we know full well that they are imposing an additional burden, additional standards and additional rules on the CBSA. They are proposing measures and then turning around and cutting $143 million from the CBSA'S budget. The Conservatives are giving the CBSA more work to do and telling them that the work needs to be done, but then they are not giving them the resources they need to do that work.
According to the Canada Border Services Agency's report on plans and priorities, 549 full-time jobs will be cut by 2015. Of course, some of those jobs will be border officer positions. The CBSA will therefore have fewer financial resources, more work to do and fewer employees to do it.
What we heard the say this evening was wonderful. Every time we try to show the practical implications of the Conservative government's blind cuts to public services, the Conservatives tell us that our figures are inaccurate and that they are going to give us the facts.
What is funny is that last year they announced $4 billion in cuts to services for Canadians. They said they would cut the cost of bureaucracy, red tape and photocopies, but that this would not affect services for Canadians. They said they would cut 19,600 positions, but that this would not make a difference or have any impact.
In its report on plans and priorities, the Canada Border Services Agency itself says that 549 jobs are going to disappear, yet the Conservatives say no, that is not true. That happens every time we provide an example. According to the , the real numbers show that the budget is going to increase by 27%. He needs to talk to the .
When the announced his budget reduction plan, he said that there would be cuts of 5% to 10% across the board, that no one would escape. However, every time we mention job cuts and the impact on services, the government says that it is not a question of cuts, that there will actually be an increase in funding. There will be more border services officers and the budget will increase.
If every budget cut has turned into an increase, I want to talk to the . How will he get rid of the deficit in time for the next election in 2015?
The government cannot talk out of both sides of its mouth. It cannot say that it will increase resources for the Canadian Food Inspection Agency, for example, and then put it on the chopping block, as it has done with every other government agency and department.
Last year, I found the first few pages of the budget to be fascinating. They contained an additional $51 million allocation to the Canadian Food Inspection Agency. In subsequent pages, where the bad news is usually found, the government's three-year budget reduction plan reduced the agency's budget by $56 million. I went to see a finance department official to ask whether the $51-million allocation or the $56-million reduction was right. He told me that both were right and that they would result in an overall reduction of $5 million.
The Conservatives obviously do not like to adjust the good news figures they want us to believe to reflect the reality of the cuts being made. We are seeing that, in several departments and in organizations such as Service Canada and other agencies, the Conservatives' budget cuts hurt.
This bill has good intentions, but in practical terms, on the ground, it will reduce services for Canadians. As the Conservative member who spoke before me said, if the government does not give teeth and real resources to this bill, border officers will have to be bold and do the work that the government does not dare do, without the resources that the government does not dare give them. This will be an additional burden on border officers.
That is a concern of ours. Once Bill is passed, customs officers would be asked to make highly complicated assessments on whether goods entering or exiting the country infringe on any copyright or trademark rights. Such an assessment for pirated copies would include, for example, consideration of whether any of the exceptions under the Copyright Act would apply to a product such as the CD or DVD that the officer is looking at. That is something with which the courts often struggle. We would be asking border officers to do sensitive, detailed work without providing them with enough employees, training or resources to do the job. That is worrisome.
Would traffic at our border crossings into the United States be slowed down? Would that mean that people will have to wait even longer because the border officer has to check the contents of a truck filled with boxes and ensure that those are not contraband or counterfeit goods? In addition, although there used to be two of them to do the job, now there is just one officer. That will increase the burden on border officers, make their task harder and increase their workload, and that is what concerns us.
I would like to talk about the lack of respect the Conservative government has for border officers. The Canada Border Services Agency is in the process of negotiations, and yet, for the first time in the history of Canada's public services, the Conservative government will try to impose a collective agreement based on recommendations published by the public interest commission on June 5.
Once again, the government is not showing respect for free collective bargaining. It wants to increase their workload. It is not even honouring their ability to freely negotiate their contract and collective agreement. Furthermore, the government wants to impose a new contract that would contain salary increases that are lower than what other public servants have obtained or are obtaining.
I want to put this in perspective, because it is absolutely one of the consequences of the Conservatives' attitude towards workers. I wanted to take this opportunity to talk about the government's lack of respect for the border officers in how it is handling the renewal of their collective agreement.
I also want to remind members of the Conservatives' attitude towards intellectual property. Earlier this evening, my colleague from said that the assistant to the minister who is now the went to Ottawa to ask that Canada be put on the 301 watch list because of its poor record on protecting intellectual property laws. This list includes countries that are as effective as Yemen and North Korea at protecting intellectual property.
By the Conservatives' twisted logic, being on the black list, being one of the bad guys, being among the world's worst offenders when it comes to protecting intellectual property rights, would actually give us an incentive to enact appropriate legislation. As if we need the whole world to see us as incompetent, unable to protect our own creations, our own inventions, our own innovations. As if we need to be compared to Yemen or North Korea before we can take action.
The funny thing is that, after the 's top official intervened, it worked. A few weeks later, Canada was on the list. Everyone here should be ashamed of the fact that our country is on the same list as countries that care so little about such critically important issues as copyright and protecting intellectual property.
I know it is late, but I would like to thank all of my colleagues for their speeches this evening. They were all excellent, and so were the questions. I would also like to thank all of the people who work behind the scenes, people who work for the caucus and the leader's office and who are here to support us and help us do our work even if that means working until 1 a.m.