ARCHIVED — Executive Summary

Supporting Culture and Innovation: Report on the Provisions and Operation of the Copyright Act

Executive Summary

Introduction

This report is submitted to parliamentarians in compliance with section 92 of the Copyright Act, which requires that the Minister of Industry table a report within five years of the coming into force of Bill C-32 in September 1997 to initiate a comprehensive review of the Copyright Act. It also follows up on A Framework for Copyright Reform (the Framework document), released by the Government of Canada in June 2001 to guide future copyright reform.

Copyright is the right of the creator of an original work (and certain other subject matter) to authorize or prohibit certain uses of the work or to receive compensation for its use. It may be an exclusive right to control certain uses such as reproduction or a right to receive compensation such as the communication to the public or performance in public of a sound recording. Remuneration and control for rights holders, and the dissemination and access to their works, are the two fundamental principles underlying Canadian copyright policy.

Since it came into force in 1924, the Copyright Act has been an effective tool for fostering the creation of works by Canadians, and for enabling users, schools, libraries, communities, businesses and governments in Canada and around the world to have access to and use of these works. This important framework law contributes to the growth of many sectors of the Canadian economy and to the cultural richness and diversity of Canadian society.

Through the review and reform of the Copyright Act, the Government of Canada aims to provide better copyright protection and to ensure that the Copyright Act remains among the most modern and progressive in the world. Copyright reform will support the increased investment in knowledge and cultural works as set out by the Government of Canada in the 2002 Speech from the Throne and in its Innovation Strategy.

Over the years, the Government of Canada has ensured that the Copyright Act remains adapted to Canadians' priorities and values and continues to provide a fair, clear and efficient framework for the creation and dissemination of copyright-protected works. Today more than ever, copyright policy and law are being challenged by new and rapidly evolving technologies, global competition, and the growing importance of knowledge as a factor in economic success and cultural development. Given its direct impact on the creation and dissemination of new copyright material over media of all kinds, the Act must continue to evolve to respond to all these developments.

The Internet and digital technologies are continuously challenging the traditional notions of copyright as well as establishing new frontiers for the potential operation of the Copyright Act. These technologies enable the making of perfect copies that can be instantly transmitted around the world, making it difficult to control their use.

All stakeholders have called for copyright policy to be clarified for the use of digital technologies. Rights holders are looking for confidence in the protection of their material in an on-line environment. At the same time, users call for clear and fair rules of access and use of Internet content. In meeting cultural and economic policy objectives, policy makers will therefore need to balance competing domestic interests, and to assess the impact of new scientific and technological breakthroughs.

Canada must also learn from other nations' best practices and must continue to respect its obligations under international copyright and related rights treaties, such as the Berne and Rome Conventions, and under international trade agreements, namely the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). It also adhered to the principles embodied in two World Intellectual Property Organization (WIPO) treaties of 1996 - the WIPO Copyright Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT) - which came into force in early 2002. Canada has yet to ratify these treaties. Ratification will be possible only after legislative amendments have been made.

As issues are being examined during the review, it will be important to be mindful of the key concepts underlying the Copyright Act, including, for example, types of rights (e.g. economic, moral, exclusive, remuneration); limitations (e.g. fair dealing, compulsory licence) and exceptions (e.g. for non-profit institutions, broadcasters, persons with perceptual disabilities); and remedies (e.g. summary proceedings, statutory damages).

Provisions and Operation of the Copyright Act

This report sets out the Government of Canada's assessment of the operation of the Copyright Act, including a listing of key issues that may need to be addressed in the coming years. It comprises outstanding issues from previous rounds of amendments, new issues that have emerged primarily as a result of the development of the Internet and other digital technologies, and the key issues relating to specific international trends and challenges. These issues are organized under two themes: recognition and protection of works and other subject matter; and access to and use of works and other subject matter.

The public policy objectives of remuneration and control for rights holders, and the dissemination and access to their works are the fundamental principles underlying Canadian copyright policy. From such principles flow the economic and moral rights that benefit creators and rights holders and enrich the Canadian cultural fabric. Stakeholders have expressed concerns with respect to the scope and adequacy of existing rights and have emphasized the need for legislative amendments. This report sets out 31 key rights holder issues relating to the copyright and moral rights in the following: literary, dramatic, musical and artistic works; performers' performances, sound recordings and communications signals; and related issues.

Although the recognition and protection of rights provide the basis for copyright, works are generally created in order to be disseminated. The report also sets out 14 key issues relating to uses of copyright material, typically comprising three different types: individual use of copyright material for private consumption; use of copyright material for commercial exploitation (e.g. the use of music by broadcasters); and the use of copyright material by non-profit institutions (such as educational institutions). Also laid out in this report are many user issues relating to rights management, limitations and exceptions, and the private copying regime.

Agenda for Copyright Reform

The current statutory review builds on a process of reform and amendment initiated in the mid-1980s. The overarching objectives were to keep pace with international trends, to address the opportunities and challenges presented by emerging technologies, and to recognize the balance between the legitimate interests of creators to be paid for the use of their works and the needs of users to have access to those works.

The Government of Canada has already commenced the copyright reform process on a number of critical digital-related issues. It held consultations and proposed amendments to the Copyright Act regarding Internet retransmission of free over-the-air broadcast signals (Bill C-48). It also consulted on the four digital issues found in the Consultation Paper on Digital Copyright Issues, which relate to the two WIPO treaties (WCT and WPPT) and to ISP liability.

In the Framework for Copyright Reform document, the Government of Canada acknowledged the challenges ahead in further modernizing the Copyright Act and indicated that large-scale legislative amendments may no longer be the most effective approach to copyright reform. Consequently, it proposes in this report a copyright reform agenda that deals with issues packaged together according to a common thematic denominator for which policy work and legislative change could be reasonably and effectively achieved in a balanced, step-by-step manner. These thematic linkages are based on public policy needs, international developments, categories of works, or issues relevant to specific industry or cultural sectors. The Government of Canada proposes three groupings of issues to be addressed in the short, medium and long terms. These groupings were developed by using the broad principles and criteria laid out in the Framework document.

Conclusion

This report provides the basis for parliamentarians to engage in a dialogue on important and complex public policy issues that underpin the Copyright Act. The Government of Canada is seeking parliamentarians' views on the comprehensiveness of the list of major issues to be addressed, the grouping of certain issues and on the recommended copyright reform agenda. Over the coming year, the Government of Canada intends to continue to consult on and develop legislation to address the issues designated as requiring short-term attention. As the Government of Canada moves forward over the coming years to modernize Canada's copyright law, Parliament will have the opportunity to engage in public debate on specific pieces of legislation amending the Copyright Act.