Mr. Speaker, here we are again, debating another bill that was put under time allocation, which is 44 or 45 times now.
The irony in this instance is that the government could have had an agreement with the opposition to speed the debate of this bill so that we would be using less time in the House than it took to bring in the time allocation motion, vote on it and then provide a full day of debate, because we in the NDP do want to see this bill go back to committee, where it can be approved. Therefore, we will be supporting it at second reading.
Again, we had time allocation brought in before the , the person presenting the bill, had even spoken to it. We did not have one full speech in this House. There was a speech by the member for , who spent half of her speech laughing at jokes being told to her by other caucus members. We did not have one full speech before time allocation was brought in.
I would say humbly that this is not democracy. This is not how Parliament is supposed to work. We are supposed to have the opportunity to have full debates in the House on the various issues that are brought forward.
Bill , which is now otherwise titled the “combating counterfeit products act”, is an important issue. It is my honour to rise today to present the lead-off speech on Bill C-56 for the NDP and the official opposition.
Normally our industry critic, the member for , would be leading off on second reading comments on this bill. Our critic had planned to give her remarks on Friday when this bill was supposed to come up for debate; however, because of time allocation and the government playing games, we are here Wednesday evening instead, again preventing certain members of Parliament from participating in this debate in the way that they would like to.
In their rush to introduce yet more record-breaking time allocation motions—as I said, we are at 46 now—the Conservatives rescheduled all the House business this week.
As the NDP's deputy industry critic, it is indeed my privilege to address this bill on behalf of the official opposition. This is a bill the NDP takes very seriously, as opposed to the Conservative government, it would appear, because this bill was presented originally in March. It did not come up for debate until the end of May. Recommendations for this bill were made in a committee report in 2007, again in 2009, and then there were more recommendations from the industry committee in an intellectual property study that was done earlier this year. It has taken the government a very long time to start bringing these forward for implementation.
We have yet to have a whole speech by the on this bill. Even then, if it was not going to be the minister, we would have thought that maybe it would be the parliamentary secretary, the member for , but that was not the case.
When the government presents a bill, it is supposed to justify why it is bringing that bill forward. It has yet to do that and has already implemented time allocation.
Instead of a full presentation by the government, what we had was the parliamentary secretary for human resources and skills development getting up and presenting a very short speech on this bill. In her speech she spent a lot of the time laughing and did not seem to be taking the bill seriously. It was so bad that the Speaker had to interrupt and ask if she was able to continue.
I mention all this because it seems to speak to the Conservative government's contempt for Parliament and to its continual practice of introducing legislation that can never be properly implemented because its budget cuts make it impossible.
There are many clichés we would use, but the Conservatives keep putting forth pieces of legislation that are either empty shells or just cherry-picked from among the many recommendations that we need to implement to have solid pieces of legislation. They put forth rules and regulations that perhaps cannot be enforced, because those budget cuts mean that no one will be there to enforce them.
Recent examples include Bill , the safer witnesses act, which the Conservatives put forward without the funding in place to make many of its provisions actually meaningful. Another one, Bill would make changes to how we would deal with people deemed not criminally responsible, however, it would download the responsibility for mental health care onto the very provinces, which are having their health care budgets slashed again by the Conservative government.
Bill is another example of the Conservatives playing the shell game they so like to play. It is legislation that on one hand imposes some good rules and on the other hand, through the budget, cuts the jobs of those who are supposed to be enforcing these new rules. I will come back to that point later in my remarks.
Let me say up front, again, that the NDP will support the bill at second reading so it can be sent back to committee and, we hope, fixed to maximum its impact. However, it would indeed be a first at our committee, if we actually saw recommendations and amendments that we brought forward voted on and passed by the Conservatives on the committee. That would be groundbreaking.
The bill dealing with counterfeiting and copyright infringement is important for both Canadian businesses and consumers, especially where counterfeit goods may put the health and safety of Canadians at risk. We will support the bill so it can go back to committee for further study and we want to ensure we maintain the necessary balance on copyright and trademarks.
For instance, the bill would give ex officio powers to our border officers, which the NDP has been calling for since 2007. However, it is very difficult to see how this will be implemented when, last year, the Conservatives slashed $143 million in funding to CBSA, which further reduced front-line officers and harmed our ability to monitor our borders.
CBSA expects to lose several hundred front-line officers by 2015. It is also important to note that in the past the government repeatedly has refused to take a balanced approach to copyright. The NDP believes that intellectual property requires an approach that strikes a balance between the interests of rights holders and the interest of users and consumers.
I will now take a few minutes to explain some of the details of the bill.
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 or counterfeit trademarks.
The proposed bill will add two new criminal offences under the Copyright Act for possession and exportation of infringing copies and creates offences for selling or offering counterfeit goods on a commercial scale. It creates a prohibition against importing or exporting infringing copies and counterfeit goods and introduces some balance to that prohibition by creating two exceptions: first, for personal use, items that are in one's possession or baggage; or second, items in transit. It also, as I said, grants new ex officio powers to border officials to detain infringing copies or counterfeit goods, a significant policy shift. Until now, border officials required a warrant before seizing infringing copies or goods at the border.
It also grants new ex officio powers to the and border officials to share information on detained goods with the right holders so they can actually see what is being brought in and take measures themselves to combat that counterfeit and trademark infringement.
That is important, because the businesses do a great job of trying to protect their own products. Seeing what is coming into the country illegally and what products are counterfeited can give them ideas about how to combat that counterfeiting better for themselves.
The proposed bill widens the scope of what can be trademarked to the features found in the broad definition of sign, including colour, shapes, scents and tastes. Measuring the problem in counterfeit goods and copies in Canada and its corresponding impact on the economy is difficult.
The New Democrats, nevertheless, support dealing with counterfeiting, especially where health and safety concerns are at stake. As I have mentioned, it remains unclear to me and many others how the CBSA could implement these enforcement measures in the face of the cuts from budget 2012.
The United States and many industry groups have long called for border measures on counterfeiting. It remains important to continue to be vigilant to ensure that intellectual property laws balance the rights and interests of rights holders with those of consumers and users.
The government has long been aware of the difficulties in measuring the scale of counterfeiting for copies and goods in Canada, a challenge that was identified in a 1998 OECD report on “The Economic Impact of Counterfeiting”. One of the difficulties results from the clandestine nature of counterfeiting. Much of the data is estimated and based on actual seizures, which is anecdotal or comes from industry itself, in which case the collection methods may vary or be unavailable to assess.
In 2007, the industry committee report on counterfeiting recommended that the government establish a reporting system that would track investigations, charges and seizures for infringing copies and counterfeit goods as a means of collecting data.
A recent Industry Canada report published this year notes that, “It is difficult to obtain a precise estimate of the market for counterfeit or pirated products in Canada”. Why? Because, again, the government has delayed bringing this legislation forward. Even now that it has, the Conservatives have not put provisions into the bill to implement those measures I just spoke of so we can start collecting more robust data to more accurately determine the economic impacts of counterfeit and trademark infringement in Canada.
As I said, much of the information in Canada comes from statistics about actual seizures. Industry Canada notes that the retail value of counterfeit goods seized by the RCMP increased from $7.6 million in 2005 to $38 million in 2012.
In 2009, the OECD estimated that the international trade in counterfeit goods and infringing copies could be valued at up to $250 billion U.S. It is a mind-boggling number that there would be that many counterfeit and trademark infringed goods travelling around the world. Law-abiding companies are losing out on much of that revenue.
The same study also reiterated previous calls for better information. We know anecdotally that counterfeit products can pose risks to the health and safety of consumers, whether we are talking about counterfeit electrical components or unsanitary stuffing in goose-down jackets.
I mention unsanitary stuffing in goose-down jackets because when we were at committee, many different Canadian businesses and organizations presented before the committee. One such company was Canada Goose, which is certainly a Canadian success story. However, representatives of Canada Goose brought with them some counterfeit Canada Goose jackets they had collected. The things contained within those counterfeit jackets would make one's toes curl. There were things like feces in the lining, feathers that were not properly treated and sanitized before being stuffed in the jackets. Certainly they were not goose down or coyote fur. Many different animals were being used.
Unfortunately, it was very difficult, on the surface, to detect these jackets as being counterfeit. When we put a real Canada Goose jacket next to a counterfeit jacket, they looked identical. It was not until we took a microscope to it or started to pull the jacket apart that we started to see that one of the jackets was indeed counterfeit.
Other representatives that came before the committee were from Hockey Canada. They talked about the last Olympics we had in Canada and about professional sports jerseys. They found, through studies they conducted and at the Olympics, that sometimes in professional sporting events, up to 70% to 75% of the jerseys being worn at the games were counterfeit. Consumers are unwittingly buying illegal and counterfeit products when they try to support their sports teams. At the Olympics in Vancouver, many stops and arrests were made of individuals selling counterfeit Olympic paraphernalia and products.
It is a growing problem because there is a financial incentive there. There is money to be made in counterfeit goods. We certainly have a responsibility to try to stop as much of it at the border as we can. As for the stuff that gets across the border, we have to deal with it here and hold the appropriate people responsible.
In many cases, as I have said, it is very difficult for consumers to detect whether they are buying legitimate products. However, vigilance is also important and people who have any concerns about products they are buying should go to the manufacturers' websites and contact people in law enforcement if they think they have bought something illegal. There are many things people can do to prevent these crimes and, indeed, to ensure the products they are buying are legitimate.
Dealing with counterfeiting is important to both Canadian businesses and consumers. It is especially important where counterfeit goods put the health and safety of Canadians at risk. Yet again it remains unclear how the enforcement regime being proposed by Bill will be resourced. This bill would add significant new responsibilities to the duties of border officials during a time of significant budget reductions.
In budget 2012, the Conservatives imposed $143 million in cuts to CBSA, reducing front-line officers and further reducing our ability to monitor the borders. This is interesting. This year's CBSA report on plans and priorities alone indicates a loss of 549 full-time employees between now and 2015. At a time when there is more trade, goods and people crossing the border, we will be cutting front-line officers? It makes absolutely no sense.
Under Bill , customs officers would be asked to make highly complicated assessments on whether goods entering or exiting the country infringed on any copyright or trademark rights. Such an assessment for infringing copyright would include, for example, consideration of whether any of the exceptions under the Copyright Act would apply, something with which the courts often struggle. The New Democrats want the CBSA to be adequately funded to implement this bill without compromising the other responsibilities of protecting Canadians and our borders from things like drugs, guns and other threats.
The United States has lobbied for stronger enforcement measures in Canada for counterfeit and pirated goods for many years. In the 2012 special 301 watch report, the office of the U.S. trade representative stated that the U.S. “continues to urge Canada to strengthen its border enforcement efforts, including by providing customs officials with ex officio authority to take action against the importation, exportation, and transshipment of pirated or counterfeit goods”.
In its June 2012 report on counterfeiting in the Canadian market, the Canadian Intellectual Property Council, a sub-group of the Canadian Chamber of Commerce, identified counterfeiting as a barrier to competitiveness and specifically recommended that customs officials have ex officio powers, that Canadian law be amended to bring criminal and civil sanctions for counterfeiting and piracy and that enforcement officials be encouraged to seek strong remedies for infringements.
It bears saying that many of the requests the United States made are, indeed, in this bill. Providing ex officio powers to the CBSA in order to track, monitor and confiscate copyright and trademark infringed goods are terribly important to our long-term safety.
In its recently tabled report, “Intellectual Property Regime in Canada”, the committee recommended border measures that we supported, including providing appropriate ex officio powers to customs officials, civil and criminal remedies for trademark infringement and counterfeiting, allowing customs officials to share information with rights holders regarding suspected goods. All members of the committee agreed that consumers acting non-wilfully should not be subject to excessive fines.
The New Democrats on the committee, of which I am one, filed a dissenting opinion that called on the government to also consult with consumer groups, as well as industry groups, in an effort to combat counterfeiting and piracy, that border officials receive appropriate authority to do their work while respecting civil liberties and due process and that the CBSA be adequately funded to combat counterfeiting without compromising its other important responsibilities to protect Canadians and defend our borders.
Mr. Speaker, I am pleased to rise to speak to Bill , which is important even though it has some problems and should be improved. We need to debate this today.
Government members need to recognize certain issues. I hope that they will do so in committee, and that they will agree to adopt some important amendments.
For example, there is the fact, as I mentioned to my hon. friend from , that this bill does not cover goods in transit. I am sure that our American neighbours would not be impressed if, for example, a counterfeit shipment travelling from Asia to Vancouver and then on to Los Angeles was not seized here. We are saying that it is their problem and we are not going to take any responsibility for it. That is not what we would ask of them in return. That is something that needs to be fixed.
Additionally, as legislators, we should not simply be ramming through flawed legislation just because the government has a majority. What we see here is a bill that has sat on the order paper for three months now, since it was introduced. The government has not moved it an inch since then. It has not brought the bill forward until today, near the end of the session, when the government is bringing forward its 45th or 46th time allocation.
The government is trying to rush through a whole series of bills, having the House sit until midnight for the last four weeks of the session, and not really giving any of these bills the kind of consideration that they deserve. The government is not allowing for the possibility that any of them might really be improved in committee. As my hon. colleague said, when was the last time that we saw the government side actually accept an amendment from the opposition? That is worrisome.
There are also questions about who would bear the cost of seizure, storage and destruction, particularly when it comes to small businesses. They are concerned about products coming into the country that are counterfeits of what they produce or that affect their copyright. I hope that we will get some clarity on these issues and the legislation that is under consideration in the brief period we are going to have.
I have also heard concerns about the increased powers that would be given to border officers, without any oversight from the courts. We have to keep in mind, as my friend said, that last year the government cut $143 million from the Canada Border Services Agency. Therefore, there is less ability there to do those kinds of jobs, but the government is giving them more to do. They are trying to do the jobs they have and the government is giving them much greater responsibility, and a very complicated responsibility, in assessing which goods coming in may be counterfeit or in breach of copyright and which ones are not.
We need to make sure that this legislation does not result in illegal or illegitimate seizures and violations of the Charter of Rights and Freedoms. We also have to ensure that border officials receive the proper training to deal with these very complicated matters. Sometimes, it is a question of what is copyrighted and what is not. We know from the discussion we had on the copyright bill last year that it can sometimes be complex, even for the courts. To ask our border officials to do this without much training and without giving them decent resources to provide that training is unreasonable. How is it going to work effectively if we add to their workload on the one hand, while reducing their resources on the other? These officials do a tremendously important job and we need to give them the tools they need to be able to do that job.
People like Professor Michael Geist, who is an expert on these issues and the chair of Internet and e-commerce law at the University of Ottawa, are raising copyright issues around this bill. Some voices—not a lot, I will admit, but some—even argue that this legislation may be a backdoor way of bringing back ACTA. I do not think that it is. There is very little in this bill that relates to it, but I appreciate those concerns and respect them. We should examine those concerns and hear from witnesses on topics like that at a thorough examination of this bill in committee.
It is clear that there are many issues, which we, as members of Parliament, have a duty to carefully examine in relation to this bill. That is why it will require the thorough assessment that I just spoke of when it goes to committee.
I hope the government does not simply employ its usual bullying tactics of ramming through another bill because it can. That is wrong and the government knows it.
I also hope we take the time to hear from many voices who support this so-called combating counterfeit products bill. Of course, we have to wait and see. The proof is in the pudding. When it actually gets into effect, we will see how well it does that. I think it will have some positive effect, but it will work better if we can improve it at committee.
Recently I met with members of the Mechanical Contractors Association of Canada and the Canadian Institute of Plumbing and Heating, who want to discuss Bill as part of their Parliamentary Awareness Day. They made some very coherent arguments in favour of this legislation. I think most, if not all, members of this House would agree with them.
Bill amends the Copyright Act and the Trade-marks Act to add new civil and criminal remedies. It would add new border measures in both acts in order to strengthen enforcement of copyright and trademark rights, and to curtail commercial activity involving infringing copies and counterfeit trademark goods.
Whether it is hockey sweaters, radio parts, or the jackets my friend talked about, all kinds of things come in and look like the real thing, but they are not. That is why it is important to be aware of and to deal with this. It has an impact on our economy and our jobs in Canada. We ought be mindful of it.
This would also amend the Trade-marks Act to, among other things, expand the scope of what can be registered as a trademark, allow the Registrar of Trade-marks to correct errors that appear in the Trade-mark register, and to streamline and modernize the trade-mark application and opposition process, all of which is positive.
As an aside, I wish we could see similar kinds of measures to examine the question of official marks, which are very problematic. One can have a group within a province, an association of some type of profession, for example, an association of massage therapists. They were given an official mark for Canada. The idea of these marks is that they can apply all across the country. There could be two groups of massage therapists in Nova Scotia. If one of them gets approved by the people in Ontario and the other one does not, then only one of them gets to use certain phrases that go along with the official mark. That makes no sense at all when the first group was limited to one province. There is a need to examine and amend the official marks legislation as well.
Our caucus recognizes the health and safety risks to Canadians, as well as the detrimental effects to the economy posed by counterfeit goods entering Canada. We believe this bill needs to be amended, but with a little co-operation from the government we believe that can be achieved at committee. The Liberal Party recognizes the need to provide new enforcement tools to help strengthen Canada's existing enforcement regime for counterfeit goods.
My colleagues on the industry committee will recall seeing the counterfeit Canada Goose jackets we heard about a few minutes ago, and hearing about the horrible stuff that can be in these fake jackets. It certainly is not the kind of thing that is going to keep people warm in the deep-freeze of Canadian winters. We have all heard stories of counterfeit circuit breakers being installed in government buildings, or of faulty Christmas tree lights causing house fires. These are counterfeit products that are dangerous for Canadians.
To give an idea of how widespread this problem is, let us consider the fact that 1,800 cases of counterfeit electronic parts, apparently made in China, have been discovered in U.S. cargo planes, helicopters and other military aircraft. Yes, I said military aircraft. Imagine what that is like and how scary it would be for those operating one of them, particularly in a place of conflict or danger.
This is a very big issue for government, businesses and consumers. With regard to consumers, counterfeit pharmaceutical drugs can be an issue. The drugs are improper, and it could be that the doses are too low or it is the wrong material entirely. That is pretty scary as well.
In April, the RCMP, provincial and local police conducted an operation at a flea market in Hamilton, and they seized about $100,000 in counterfeit goods. That included designer purses, jeans, sunglasses and DVDs. We do not think of these as endangering public safety or health, but they certainly have an impact on jobs in Canada.
Overall, the retail value of counterfeit products seized by the RCMP has increased over fivefold from 2005 to 2012, from $7.6 million to $38 million. This is just the estimate, of course.
The Liberal Party believes that Canadian businesses must be protected to ensure the well-being of the domestic enterprises and the health and safety of Canadians. It is also important, of course, to protect the jobs of Canadians and the integrity of the Canadian economy as a whole.
We would like to see a robust public education program regarding the possession, production and distribution of counterfeit goods. We would like to investigate and further study the challenges that the Internet and e-commerce pose as a loophole to the seizure and reduction in the presence of counterfeit products. We are talking about seizing shipments at the borders. When things are coming in one at a time by mail, by UPS, or whatever, it is a much more difficult for our border services to deal with.
With the current government's ongoing deficits, we question how the Conservatives would fund this new prevention and investigative system, particularly with the $142 million cut to CBSA last year. Border officers are by no means copyright experts. They would be given new and increased powers that are not overseen by the courts, which may lead to illegitimate seizures and violations of the Charter of Rights. That is certainly a problem. We also believe that small businesses should be exempted from the costs that would be imposed by the bill.
Several areas of concerns, other than those I have mentioned, have been raised. With the increased number of seizures due to increased powers being given to border officers and the RCMP, how would the government fund such extensive investigative legal operations, particularly in view of the cuts I talked about? Should genuine or non-counterfeit products be seized and destroyed, how would the government compensate companies and individuals? How would the government determine whether importers of counterfeit products are aware that these products are counterfeit? Why are there no provisions for counterfeit goods being transshipped through Canada?
Bill does strive to reduce the presence of counterfeit trademark goods being sold and distributed in Canada by providing new enforcement tools. The bill would bolster Canada's enforcement regime at the border, and domestically, and would address negative impacts of counterfeit goods by giving border officers the authority to detain suspected commercial shipments and contact rights holders. It would allow Canadian businesses to file a request for assistance with the CBSA, in turn enabling border officers to share information with rights holders regarding suspect shipments. Those are valuable and worthwhile things, especially if people have the resources to do it.
The bill would provide new criminal offences for commercial possession, manufacturing or trafficking of counterfeit trademark goods. It would provide legitimate owners with new tools to protect their rights and take civil action against infringers. It would create new offences for a trademark counterfeiter. It would provide better tools to investigate commercial counterfeiting.
We support the intent of the legislation, and we will support it at second reading to have it sent to committee. We support where it wants to go. However, we think it needs to be improved, and I hope my hon. colleagues would be open to amending and improving the bill at committee.
Mr. Speaker, I am pleased to rise today to speak to the second reading of Bill .
Counterfeit goods hurt our economy. They undermine innovation and the integrity of Canadian brands. They threaten economic growth and they threaten job creation. Moreover, they threaten the health and safety of Canadians.
The bill before us takes important steps to modernize Canada's intellectual property legislation to address counterfeiting. I would like to speak to the impact this bill will have on those who have created a copyrighted work or have invested in a registered trademark. I would then like to demonstrate how our measures will protect Canadian consumers and families while targeting commercial counterfeiting.
Bill introduces changes in four key areas: border enforcement, greater civil tools to enforce intellectual property rights, reduced red tape burdens on rights holders and improved criminal offences. These are all worthy objectives and deserve our support, which it seems we are achieving tonight. They will help protect legitimate businesses from unfair competition by those who minimize costs and maximize profits through counterfeiting.
It is difficult to obtain a precise estimate of how big a problem counterfeiting truly represents in Canada. The rights holders are often reluctant to report that their products are being counterfeited. They are concerned that their brand image will suffer as a result.
The RCMP calculates that between 2005 and 2012, over 4,500 cases of IP crime were investigated in Canada. During that period, the retail value of counterfeit goods seized by the RCMP increased fivefold, from $7.6 million to $38 million.
Sales of counterfeit items represent lost income for a legitimate rights owner for a genuine product. Given that many incidents of counterfeiting are not reported, we can assume that the actual cost in lost sales to rights holders is much more.
Counterfeiting costs the legitimate rights holders in other ways. It costs in terms of the effort to maintain customer relations with consumers, who may be dissatisfied with the quality of a product, not realizing that it was not produced by the legitimate rights holder. It also has a cooling effect in terms of innovation. It makes rights holders more reluctant to invest in the development of new, innovative products if they know that their research will only serve to enrich others who will knock off cheap counterfeit versions of their products. The counterfeiters have no R and D costs. They have no advertising costs. They are piggybacking on the investments made by the legitimate rights holders.
It costs in terms of giving serious and organized crime a foothold in the marketplace. According to Interpol, the profits are so high in counterfeiting that it serves as a magnet to those who seek ways to finance other criminal activity, including drug trafficking, human smuggling and robbery. Some people may believe that counterfeiting is a victimless crime. This is clearly untrue.
Over the years, many hon. members have devoted their time and knowledge to studying the challenge of counterfeiting. I would remind the House that both the Standing Committee on Industry, Science and Technology and the Standing Committee on Public Safety and National Security studied the problem in 2007. Again, last year, the industry committee called witnesses to testify about the impact of counterfeiting and other intellectual property issues.
I am sure that hon. members were attentive to the tabling of our committee's report in March on Canada's IP regime. It makes several recommendations regarding counterfeiting and piracy of trademarks and copyrights.The committee recommends, for example, that legislation should introduce both civil and criminal remedies for trademark counterfeiting. The bill before us would create such a regime for both civil and criminal remedies. It would provide rights holders with expanded civil causes of action. Holders of registered trademarks would be able to stop counterfeit goods earlier in the supply chain, before they reached the market. Under the current system, rights holders can pursue civil action only if the offender has sold or distributed a counterfeit product. In other words, the manufacture or possession of counterfeit products is not against the law.
Under clause 21 of the bill before us, “A person shall not manufacture, cause to be manufactured, possess, import, export or attempt to export any goods”. Clause 21 also addresses the increasing phenomenon of counterfeiters shipping the knock-off products separately from the counterfeit labels. The practice is to attach the labels at the last minute so as to avoid detection. Under the bill before us, rights holders can pursue civil remedies against those who manufacture or ship labels intended to be later attached to those counterfeit goods.
The committee report calls for a combination of civil and criminal remedies. On the criminal side, the bill would ensure that selling, distributing, possessing, importing or exporting counterfeit goods for the purpose of trade would be prohibited and subject to fines and possible jail time. In addition, new criminal offences for possessing and exporting pirated goods for commercial purposes would be added to the Copyright Act.
In its report on Canada's intellectual property regime, the standing committee recommended that Customs officials be allowed to share information with rights holders regarding suspected goods. The bill would grant border service officers the authority to search for and detain suspected counterfeit goods and to inform trademark owners of the detention.
Under the current regime, a rights holder must obtain a court order to stop a suspected shipment. Under the current system, rights holders must know, among other things, that counterfeit goods are coming from a particular location in an approximate time period, and they must also provide enough information to identify the goods, as required by the court.
There are many ways in which this system is inadequate for the rights holder. Perhaps the rights holder knows that goods are coming from a particular factory but cannot identify when or how. Perhaps the trademark holder does not gather enough evidence to convince a court to act. Perhaps the Canada Border Services Agency encounters suspected counterfeit goods, but under the Customs Act, does not have the authority to take action or notify a trademark or copyright owner in the absence of a court order. Perhaps the rights holder does not know that a shipment is coming, and under the current regime, the trademark holder remains in ignorance. In each of these cases, enforcement at the border is not an option.
This bill before us would remedy that situation by granting border services officers the authority to detain suspected counterfeit goods on their own initiative. It would also facilitate detention through the request-for-assistance system. Through this system, rights holders would be able to provide Canada Border Services Agency with information about their copyright or registered trademark as well as contact information. The border services officer would use this information to help identify and detain suspected counterfeit goods and would have the authority under the Trade-marks Act or the Copyright Act to detain them. Through the consequential amendments to the Customs Act contained in this bill, the border services officer would then have the authority to contact the rights holders to share relevant information regarding these goods to determine whether the goods were indeed counterfeit, and that the rights holder would have the option of pursuing civil action.
In other words, the CBSA would be able to provide the rights holders with limited, necessary information that would help in a civil case.
The bill before us would give the rights holder, the CBSA and law enforcement the tools required to crack down on counterfeiting. As a result, we would reduce the damage that counterfeiting inflicts on the Canadian economy, including reduced sales for legitimate businesses and lost tax revenue for governments.
I would also like to draw the attention of the House to the impact of the bill on consumers and the protection it would afford to individual Canadians.
The legitimate businesses whose products have been copied illegally are not the only victims of counterfeiting. Because counterfeit products forgo safety regulations, certifications and quality controls, the consumer who purchases them has also been victimized.
For example, purchasers of counterfeit pharmaceuticals have no way of knowing whether the active ingredient is the required dosage for their prescription. Purchasers of counterfeit batteries do not know that the product may be prone to exploding or leaking. Purchasers of counterfeit children's toys may be putting children in danger of choking hazards or toxic paints. Purchasers of counterfeit electronic items may be buying products that could ignite or explode.
Consumers have become the victims of counterfeit products in many different ways, but today I would like to remind the House that it is in no way the intention of this bill to victimize them any further by confiscating products they have purchased for their own personal use.
Let me remind the House of where the laws governing counterfeiting are made stronger and clearer.
Under the current law, there are many gaps in the ability to go after counterfeiters in either the criminal or civil courts. There is no action that can be taken for goods that have not yet reached the marketplace. An individual is not violating a trademark owner's rights by manufacturing or importing counterfeit goods that will be sold.
It is possible to import counterfeit goods to sell in Canada, it is possible to have a warehouse full of trademark-infringing goods to be sold in the future and it is also possible to make counterfeit goods to sell in Canada or counterfeit labels that will be put on those goods.
Presently it is unlawful to sell counterfeit goods on the street or in a store. It is also unlawful to sell goods with a mark that might be confused with a registered trademark. This bill would close any loopholes by giving trademark owners the ability to stop counterfeit goods at all stages of the distribution chain, from manufacturing to retail sale. It would also create a civil action for selling or offering for sale labels or packaging that is to be applied to counterfeit merchandise.
I want to be very clear that these provisions are designed to target the commercial operations of counterfeiters. They provide federal agencies and rights holders with the tools to confront criminals who gain commercially from the sale of these goods. We believe that the best way to stop illegal counterfeiting is to crack down on commercial counterfeiting at its very roots.
The measures apply only to those who knowingly possess counterfeit goods for commercial purposes. They are not targeted at the private, non-commercial activities of individuals. They are not designed to prosecute individuals who have purchased counterfeit or pirated products. We are not going after individuals who may own a pirated DVD or a counterfeit watch bought from a sidewalk vendor. Counterfeit items found in an individual's luggage for personal use will not be seized by border service officers.
In fact, the bill provides a specific exception at the border for individuals who happen to have counterfeit or pirated goods that are intended for personal use as part of their personal baggage. This exception is in no way intended to encourage the personal use of counterfeit goods, but it protects Canadians and enables border services officers to focus their attention on the root cause, which is the commercial abuse of trademarks and copyright, a growing problem in Canada and around the world.
I expect that the new civil and criminal measures included in the bill will give rights holders and law enforcement the tools they need to bring commercial counterfeiting cases before the courts. This will raise the profile of the problems that counterfeiting has created in Canada's economy and the health and safety risks they pose to consumers. The measures in the bill are designed to help federal agencies and rights holders target their efforts to confronting criminals who gain commercially from the sale of these goods.
Many Canadians regard buying counterfeit goods as unethical, as our industry committee was told in meetings throughout the past quarter, although some see it as a victimless crime. However, awareness is growing, and I believe there will be significant public support for reducing the damage done to Canadian jobs and the health and safety risks to consumers that are caused by these counterfeit goods.
I would remind the House that the bill before us responds to many of the recommendations made by the committee. It would enable border <services officers to detain counterfeit items and to share limited information with rights holders. It would introduce new civil and criminal remedies for trademark counterfeiting and copyright piracy. It would grant an exception to consumers who bring across the border counterfeited or pirated goods for their personal use. It would provide additional criminal offences and tools to strengthen Canada's enforcement laws.
The bill represents an important step in the government's ongoing efforts to create the marketplace framework laws, including intellectual property laws, that foster innovation, jobs and economic growth in Canada. I would ask hon. members to join me in protecting Canadian consumers' health and safety and in protecting the work of innovative Canadian entrepreneurs and the jobs they create.
I hope all hon. members will join me in supporting swift passage of Bill .