Canada To Modernize Copyright Law

by Glen Shapiro, LawAndTax-News.com, New York

04 June 2010

Tony Clement, Canada's Minister of Industry, and James Moore, Minister of Canadian Heritage and Official Languages, have announced the introduction of legislation to modernize Canada's Copyright Act.

The bill attempts to update Canada's intellectual property laws to take account of new technologies such digital music and MP3 players, brings Canadian copyright legislation into line with international standards by implementing the World Intellectual Property Organization Internet Treaties, and provides new tools to enable copyright holders to pursue infringers, such as peer-to-peer file sharing websites.

“Our government promised to introduce legislation that will modernize Canadian copyright law for the digital age while protecting and creating jobs, promoting innovation and attracting new investment to Canada,” said Clement. “This legislation will ensure that Canada’s copyright laws are forward-looking and responsive in a fast-paced digital world.”

Under the bill, individuals will be permitted to 'format shift,' in other words copy legally acquired music onto devices that they own provided it is for personal use. This includes copying music from CDs onto MP3 players. In addition, individuals will be allowed to 'time shift,' or record internet, radio or television broadcast for viewing or listening at a later date.

According to a summary of the bill, copyright owners would have "stronger legal tools to go after online pirate sites that facilitate copyright infringement" and the legislation clarifies that those who "knowingly facilitate infringement" are liable in Canada. Creators will also have new "making-available rights" to allow them to control how their works are made available online.

The bill introduces a new civil remedy for copyright owners against those who knowingly enable infringement of copyright. This new remedy supplements existing criminal powers to deal with pirate sites with new stronger tools for copyright owners that make liability for enabling of infringement clear. However, the government says that search engines and internet service providers (ISPs) will be unaffected by this provision, "to the extent that they act as true, neutral intermediaries."

In an attempt to tackle online piracy, the bill introduces a 'notice and notice' approach, whereby ISPs will be obliged to pass on a copyright infringement notice issued by a copyright owner to the customer in question. ISPs will be required to keep details of customers accused of copyright infringement on record for use in a possible court action, but will not be compelled to terminate accounts, as has been the approach in other countries.

However, the bill also ensures that Canadians will not face disproportionate penalties for minor infringements of copyright by distinguishing between commercial and non-commercial infringement. Under current law, for commercial and non-commercial infringements, copyright owners can sue for statutory damages ranging from CAD500 (USD480) to CAD20,000 for each work that is infringed. For example, a case involving 50 works would translate into a minimum payment of CAD25,000, and a maximum of CAD1m. The new bill will dramatically reduce an individual's exposure in cases of non-commercial infringement. In such cases, statutory damages will be reduced to a one-time payment of between CAD100 and CAD5000 for all infringements that took place prior to the lawsuit. For commercial infringement, there will be no change from the current law.

The bill has won the backing of the Canadian Intellectual Property Council (CIPC), which said that it "fully supports" the government's efforts to modernize copyright legislation.

"Canadian businesses need better protection against the enormous financial toll of online piracy. A strong and modern copyright law will also help our country compete more effectively in the global economy," the CIPC stated.

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