Identifier
Created
Classification
Origin
06MONTREAL365
2006-03-28 21:07:00
UNCLASSIFIED
Consulate Montreal
Cable title:  

IPR in Montreal Part 1 - An International Hub for

Tags:  ECON ETRD KIPR CA 
pdf how-to read a cable
VZCZCXRO4847
RR RUEHGA RUEHHA RUEHQU RUEHVC
DE RUEHMT #0365/01 0871546
ZNR UUUUU ZZH ZDS
R 282107Z MAR 06
FM AMCONSUL MONTREAL
TO RUEHC/SECSTATE WASHDC 9505
INFO RUCNCAN/ALCAN COLLECTIVE
UNCLAS SECTION 01 OF 03 MONTREAL 000365 

SIPDIS

SIPDIS

C O R R E C T E D C O P Y (REMOVED COMMENT REMARK PARA 10)

Ref: Ottawa 406, 05 Ottawa 2970

SECSTATE FOR WHA/CAN, WHA/PD, DS/IP/WHA

E.O. 12958: N/A
TAGS: ECON ETRD KIPR CA
SUBJECT: IPR in Montreal Part 1 - An International Hub for
Movie Piracy


MONTREAL 00000365 001.2 OF 003


This message is Sensitive but Unclassified

UNCLAS SECTION 01 OF 03 MONTREAL 000365

SIPDIS

SIPDIS

C O R R E C T E D C O P Y (REMOVED COMMENT REMARK PARA 10)

Ref: Ottawa 406, 05 Ottawa 2970

SECSTATE FOR WHA/CAN, WHA/PD, DS/IP/WHA

E.O. 12958: N/A
TAGS: ECON ETRD KIPR CA
SUBJECT: IPR in Montreal Part 1 - An International Hub for
Movie Piracy


MONTREAL 00000365 001.2 OF 003


This message is Sensitive but Unclassified


1. (U) Summary. As of May 2005, nearly 50% of the world's
pirated movies, and 78% of illegal camcording in Canada,
could be traced back to seventeen Montreal theaters. The
combination of first-world release dates, simultaneous
bilingual release of movies, sophisticated camera
technology, and the lack of anti-camcording laws in the
criminal code make the city an appealing first step in the
pirating chain. Camcording and file sharing have had an
impact on the local film and music industries in Quebec,
prompting a growing awareness and political activism among
certain stakeholders of the importance of combating IPR
violations. The Canadian Motion Picture Distributors
Association (CMPDA) has undertaken efforts to combat illegal
camcording, and specifically noted to us the "big impact"
that Canada's placement on the 301 Watch List has had in
reaching Canadian Federal government officials. CMPDA and
other movie and music industry stakeholders continue to push
the Canadian federal government and the RCMP to make IPR
protection a priority. End summary.

-------------- --------------
Camcorded in Montreal, on Big City streets worldwide six
hours later
-------------- --------------


2. (U) Camcording in Montreal theaters provides material
for nearly half of pirated disks throughout the world.
Through the reliability and high speed of Montreal's
Internet services pirated materials reach potential viewers
fast: a film can be recorded for the first time in a
Montreal theater and be sold on another country's big city
streets within six hours that same day. Moreover, illegal
camcording thrives in Montreal because movies have "first
world" release dates, releases are available simultaneously
in French and English, and there are no anti-camcording laws
in Canada's criminal code.


3. (SBU) Serge Corriveau, Vice-President of Anti-Piracy
operations at the Canadian Motion Picture Association's
Montreal division, confirmed that as of May 2005,
approximately 40%-50% of the pirated movies available around

the world could be traced back to Montreal theaters. Each
movie released to theaters contains an identifying
"watermark" which can be used to trace pirated movies to the
theater where they first played. Illegal camcording began
in earnest in Montreal theaters in 2003 and has been
steadily growing in popularity. In 2003, there were only
three reported incidents of illegal camcording, whereas in
2005 there were 57 reported incidents. Despite this growth
trend, Corriveau explained that in recent months, there has
been a slight decrease in the overall percentage of Montreal-
born pirated films worldwide due to an increase in illegal
camcording activities in Europe which he attributed to
pirates' having access to sound technology that creates
better-quality DVDs. Corriveau believes this shift is not
indicative of an IPR victory and that illegal camcording in
Montreal will continue to be a problem.


4. (U) Movie pirates in Montreal have become increasingly
bold and adept at filming secretively because recording
devices have become smaller and harder to detect, and also
as a result of the absence of deterring provisions in the
criminal code. provisions The camcorders of choice in
Montreal theaters are extremely small and nearly invisible.
(They don't have a light that can be seen in the dark of the
movie house.) Especially in Quebec, theater owners are
reluctant to search moviegoers' bags, except during large-
scale premieres, for fear they will turn off potential
customers and be accused of violating privacy and civil
liberties. Even more frustrating for IPR proponents such as
Corriveau, while there are provisions against camcording in
movie theaters in Canada's copyright code, law enforcement
officials must prove "commercial intent" on the part of the
person filming the movie who may claim that he or she is
only filming for personal use.

-------------- --------------
Challenges: Small, well-organized groups / Jurisdiction
Issues
-------------- --------------


5. (SBU) The recording and distributing of camcorded movies
in Montreal consists of "small, well-organized" pirating
groups. These groups principally operate out of their
homes, which makes it even harder for law enforcement
officials to overcome privacy laws and gather enough

MONTREAL 00000365 002.2 OF 003


evidence to make a strong case against those making illegal
DVDs, software, and music. Because the protection of IPR
falls to the Department of Industry and the Department of
Canadian Heritage, and is therefore a federal jurisdiction,
the Royal Canadian Mounted Police (RCMP) alone has the
authority in Quebec to go after IPR violators. Local police
may be called onto the scene of a potential IPR violation,
but they do not have the mandate to pursue these cases.
Corriveau added that, with the exception of Toronto and
Vancouver, it had been difficult for the CMPDA to get local
police involved in IPR violations.


6. (SBU) There are no provisions against camcording in movie
theaters in Canada's criminal code, something that the CMPDA
would like to see changed. Canadian Customs officials also
lack the mandate to seize pirated goods if they discover
them on travelers or to inform the copyright holder of the
presence of pirated goods. The CMPDA also complained about
the problem of "ex officio" authority and is pressing the
Canadian federal government to give Customs officials the
mandate to seize pirated goods when they discover them.


7. (U) A recent case brought against a Montreal-based man
filming movies in a Chicoutimi (a small town north of
Montreal) theater will go to trial later this year. This
was an example of industry-law enforcement cooperation the
CMPDA is seeking. When the theater management was informed
about the camcorded movies emerging from their premises,
they conducted an internal investigation and tracked down
the culprit. Although the man had erased his hard drive of
all the movies he had recorded, the RCMP got involved and
was able to find evidence of movie pirating on his computer.

-------------- -
Deterring pirates- Rewards, Awareness, and 301
-------------- -


8. (SBU) In 2004, the CMPDA a program to train theater
employees to spot illegal camcorders. It provides cash
rewards for employees who report illegal filming activity.
In just the last seven months, theater employee efforts
resulted in the discovery of four persons, one of which in
Quebec, engaging in illegal camcording. Informational spots
to raise awareness about illegal camcording and IPR which
have played in US theaters and the rest of Canada have not
yet aired in Quebec because they are only available in
English. Although Canada has been on the Watch List from
1989-1992 and again from 1995-2005, Mr. Corriveau stated
that Canada's placement on the 301 "Watch List" in 2005 and
recommendation for an "out of cycle review" had a "big
impact" on his contacts in the Canadian government. "It was
as though they were hearing about the watch list for the
first time," he added.

--------------
Comment
--------------


9. (U) In 2005, Quebecois films occupied 18% of the
province's local box office market, a percentage that,
outside the United States, can only be rivaled by France.
Quebecois music has fared even better on the local market,
monopolizing some 38% of all CD sales. More than half of
the twenty largest musical successes between 2002 and 2004
were local creations. This economic reality and point of
Quebecois pride will continue to make Quebec's film industry
stakeholders concerned about pirated movies since Quebecois
films and CDs are being copied and sold at Montreal-area
flea markets just like the Hollywood movies and big-label
music artists.


10. (SBU) Those at the CMPDA's Montreal office and
the association representing producers of local films remain
hopeful that new Federal Minister of Industry Maxime Bernier
(who hails from Quebec) will be open to making IPR
amendments to the criminal code and giving Customs the
mandate to do more with pirated goods detected at ports of
entry. The CMPDA will continue to push for the
implementation of an anti-camcording law in the criminal
code with the Departments of Industry and Heritage. The
local popularity of Quebec's music and film industry place
it in a unique position to highlight the impacts of IPR
violations on smaller artists who are not internationally
recognized. The lack of anti-camcording provisions in
Canada's criminal code combined with the RCMP's reluctance
to make IPR violations a law enforcement priority will, for

MONTREAL 00000365 003.2 OF 003


the time being, hamper efforts to make real progress towards
increased IPR protection in Canada. In Quebec, at least,
the involvement of local stakeholders may serve as a wake up
call for the federal government as to the importance of the
issue for local talent.

Marshall