Canadian Coalition for Electronic Rights
 

In what should come as little surprise to industry observers, Canada has again been placed on the USTR Special 301 Priority Watch List for 2010. Perhaps Canadians can take solace in the fact that we’re not in this alone, as all the countries’ populations on the Priority Watch List comprise of approximately 2/3 of the world’s population.

The specific wording of the Canada section of the report is much the same as 2009, with 2010 priorities being:

• Proceed with legislative copyright reforms to update Canada’s copyright laws.
• Address Internet piracy by fully implementing WIPO.
• Improve the IPR enforcement system to provide deterrent sentences and stronger enforcement powers, focusing on border enforcement.

2009 priorities were listed as:

• Promptly and effectively implement key copyright reforms.
• Strengthen copyright laws by implementing WIPO, ASAP.
• Curb the volume of infringing products and their distribution with stronger border enforcement.

At this point, the USTR likely feels like it is flogging a dead horse when it comes to Canada, however, this simply is not the case. As Michael Geist points out, Canada has already taken many steps to deal with the opportunities and challenges of the new digital economy including: declining piracy rates when compared to other Priority Watch List members, sales declines in the recording industry are not as sharp as those in other industrialized countries (i.e. US and Japan), enacting swift anti-camcording legislation, Canada has improved its IP standing with groups such as the BSA and some even have shown Canadian copyright laws to be stronger than the US in certain circumstances.

The USTR Special 301 Report has come under increasing criticism for being tired and out of date, being wrought with procedural and transparency issues and being a tool by which to bully foreign governments with. What’s further dis-heartening this time around is the USTR seemed to ignore the formal input by the Computer and Communications Industry Association (.pdf) whose submission highlighted the following:

CCIA opposes placing Canada on any Special 301 list in the company of nations that genuinely fail to provide adequate and effective protection. Canada’s current copyright law and practice clearly satisfy the statutory “adequate and effective” standard. Indeed, in a number respects, Canada’s laws are more protective of creators than those of the United States.

Canada has made clear its commitment to cultural creativity and to updating its copyright laws as evidenced in the 2008 and 2010 Throne Speeches. The resulting legislation is expected as early as June of this year. The CCER remains confident that the Ministers of Industry and Heritage will recognize the differences between unfair, heavily influenced international reports and Canada’s right to develop legislation that reflect the values, inputs and ideals of Canadian creators and consumers alike.

As if the pressure from US based lobby groups and trade organizations like the USTR and the MPAA wasn’t threatening enough to Canadian sovereignty, it now appears that the European Union has decided to throw its weight around in an effort to influence Canadian policy. Canada and the EU are in the midst of negotiating the Comprehensive Economic and Trade Agreement (CETA). The virtues of such Agreement are being bestowed by Industry Canada as:

Liberalizing trade in goods and services could bring a potential 20% boost to bilateral trade and GDP gains of up to $12 billion (or €8.2 billion) for Canada by 2014. A CETA with the EU could deliver commercial benefits across many goods sectors, including aerospace, chemicals, plastics, wood products, aluminum, fish and seafood, light vehicles and automotive parts, and agriculture products such as wheat, beef, and pork; it could also deliver benefits across services sectors such as transportation, engineering and computer services. The study also shows potential for enhancing the relationship in areas such as investment, labour mobility, regulatory cooperation, environment, and science and technology.

However, as the omnipresent Michael Geist and The Wire explain, the devil is in the details. While this new trade agreement may indeed be beneficial to boosting bilateral trade and providing all the economic advantages that come with it, it also provides a conduit to shaping and influencing Canada’s domestic IP polices. A recently leaked document outlines plans for increased political pressure against Canada and dismisses the 2009 consultations on copyright as a “tactic to confuse”.

Now a second document has leaked, though it is not currently available online. The Wire Report reports that an EU document dated November 16, 2009, features candid comments about Canada and the EU strategy. The document, called a “Barrier Hymn Sheet” leaves little doubt about the EU’s objective:

“Put pressure on Canada so that they take IPR issues seriously and remedy the many shortcomings of their IPR protection and enforcement regime…”

The document states that the trade negotiations are a “unique opportunity [for Canada] to upgrade its IPR regime despite local anti-IPR lobbying.” It includes an assessment of recent copyright reform efforts, noting that two bills have died due to “political instability.” The document adds that the copyright reform process was revived in 2009 with the national copyright consultation, but notes dismissively it may have been a “tactic to confuse.”

After less than a month in office the new US Ambassador to Canada wasted little time re-hashing the stereotypical view of Canada and its supposed lax copyright laws. Speaking at a conference in Montreal on Canada-US relations, David Jacobson indicated that Canada deserves its position on the USTR’s Priority Watch List for not legislating copyright reforms dictated by the US (read: lobbyists, corporations).

Considering Mr Jacobson’s litigious past, he spent over 30 years at the prestigious Sonnenschein Nath & Rosenthal LLP, one shouldn’t be too surprised by his rhetorical salvo against Canada and its copyright laws. Canadians can expect more of the same from Mr Jacobson and his office. It just remains to be seen whether the Harper Government will choose to amend Canada’s Copyright Act in a manner consistent with Canadian’s views and ideals or the bullying tactics of US litigators, lobbyists and trade groups.

Sonnenschein’s Intellectual Property & Technology Practice includes an active and extensive international trademark and patent practice. The firm has established a network of foreign counsel—local intellectual property practitioners in countries around the world—who provide vast and wide-ranging expertise in the laws of the countries in which the firm’s clients conduct business, source manufacturing, distribute products or chase infringements and counterfeits.

It seems Mr Jacobson’s message is getting through to Canada’s monopolistic-like media outlets and their mis-informed editors. I would invite Mr McKenna and other interested readers to inform themselves with this well written piece at TechDirt. Or if you prefer a well researched piece containing actual statistics and numbers, read here.

As expected the Office of the United States Trade Representative released its Special 301 Report today however it includes a special twist this year. Canada has been promoted to the “Priority Watch List”. That’s right, when it comes to the protection of Intellectual Property in the eyes of a biased, lobby dependent, cabinet level position of the US Government Canada now joins the ranks of China, Russia, India and Algeria (just to mention a few).

The move is not unexpected, given recent comments from Vice President Joe Biden and U.S. Congressional panels as well as the demands from U.S. lobby groups. Those same groups will now dust off their press releases that lament the “embarrassment” of being included on the list (never mind that countries that represent more than 70 percent of the world’s population are on the list) and the failure to introduce U.S.-style reforms (never mind that Canada enacted anti-camcording laws in 2007, introduced C-61 last year, is an original negotiating partner in the ACTA negotiations, joined the U.S. as a third party in the WTO copyright complaint against China, etc.).

Source: Michael Geist

So as things ramp up for E3 the ESA’s propaganda machine kicks into high gear so you of course know they issued a press release applauding this move by the USTR about 3 seconds after the Special 301 Report was released.

Putting Canada on the ‘Priority Watch List’ is a signal of the Obama Administration’s commitment to strengthening global intellectual property protection, and its intent to address this issue firmly with the Canadian government,” said Michael D. Gallagher, CEO of the ESA, which represents U.S. computer and video game publishers. “Canada’s weak laws and enforcement practices foster game piracy in the Canadian market and pave the way for unlawful imports into the U.S.”

Source: The ESA

Copyright reforms should be handled by sovereign nations in the normal discourse of their legislative assemblies. Canada has made clear its commitment to protect its intellectual properties. It should not stray from this course because a heavily influenced and lobbied report from another country claims its not pulling its weight. The Special 301 Report is entirely driven by the corporate lobbyists and lacks any dissenting voices of reason outside of US copyright special interest groups. Hopefully our Members or Parliament will listen the voices and concerns of their constituents and not the US corporate lobbyists who have the power of the media and press releases at their disposal. Ministers should ask themselves or be told, could a representation of over 2/3 of the world population really be guilty of comprising the USTR’s ‘Axis of Copyright Evil’?