CANADA REPORTEDLY DRAFTING ANTI-COUNTERFEITING

C O N F I D E N T I A L SECTION 01 OF 02 OTTAWA 002230

SIPDIS

SIPDIS

STATE FOR WHA/CAN AND EEB/TPP/MTA/IPC
STATE PASS USTR FOR SULLIVAN, MELLE, AND GARDE

E.O. 12958: DECL: 12/05/2017
TAGS: ECON ETRD KIPR CA
SUBJECT: CANADA REPORTEDLY DRAFTING ANTI-COUNTERFEITING
LEGISLATION

REF: A. OTTAWA 1639

B. OTTAWA 1955

Classified By: Economic Minster Counselor Brian Mohler for Reasons 1.4
(d)


1. (U) Summary: The Government of Canada is reportedly
preparing two major pieces of legislation designed to better
protect intellectual property rights (IPR). The Government
of Canada has confirmed that the first bill, an update to
Canada's copyright law (see refs A and B),will be introduced
to Parliament on either December 11 or 12. The second piece
of legislation is tentatively scheduled for next spring, and
will provide new powers and resources to Canadian law
enforcement agencies to fight the manufacturing and
trafficking of counterfeit goods. End summary.

Copyright Legislation
--------------


2. (SBU) Government contacts have confirmed that Canada will
introduce new copyright legislation in Parliament on December
12 or 13. Although the text of the bill cannot be shared or
made public until it is introduced, we understand that the
legislation will likely implement the WIPO Internet Treaties,
propose a "notice and notice" system for Internet Service
Providers, and place some limits on the manufacture and sale
of anti-circumvention devices. Although the bill,s contents
are still secret, critics have disparagingly compared the
legislation to the U.S. Digital Millennium Copyright Act and
complained that the bill will contain strong
anti-circumvention provisions. Embassy Ottawa will provide
Washington with the text of the bill as soon as it is public.

New Enforcement Legislation
--------------


3. (C) On December 4, the Royal Canadian Mounted Police
(RCMP) National Coordinator for Intellectual Property Crime,
Andris Zarins (protect) told econoff that the Government of
Canada is drafting legislation to provide new financial and
manpower resources to combat IP crime. The bill would also
grant Canada Border Services Agency (CBSA) officers "ex
officio" powers to search for and seize counterfeit goods,
according to Zarins. He also stated that the legislation
will establish a national IPR crime coordination office. A
Privy Council Office analyst said that because this
enforcement legislation will contain funding provisions, it
cannot be introduced prior to next spring's budget. Zarins,
who had been privately critical of other Canadian agencies,
support for IPR protection, said that all agencies are
cooperating well on this bill, and that it should be
introduced in Parliament next February or March.


4. (C) Zarins stated that the enforcement legislation is
badly needed because CBSA officers now lack the authority to
search specifically for and seize counterfeit goods. If a
CBSA officer happens to find counterfeit goods while
searching for, say, smuggled contraband, the officer is only
able to refer the counterfeit case to the RCMP. Then, if the
RCMP wants to pursue a case and has available manpower, it
will seize the goods and start a formal investigation.
Otherwise, Zarins said, the counterfeit goods will enter
Canada. He stated that the RCMP will always seize the
counterfeit goods if they present health or safety hazard.
Zairns commented that the RCMP currently lacks the resources
to act if there is no clear public safety risk. (Comment:
Canadian privacy laws also prevent CBSA agents from alerting
a rights holder about shipments of counterfeit goods. End
comment)

Proceeds of Crime
--------------


5. (C) Zarins stated that the RCMP is currently working on a
Q5. (C) Zarins stated that the RCMP is currently working on a
regulatory change to include IP crime in Canada's "Proceeds
of Crime Program." Under the program, assets obtained from
certain types of criminal activity can be seized and used for
crime prevention efforts. Currently, assets stemming from IP
crime are excluded from the "Proceeds of Crime Program."

IP Crime Conference - June, 2008
--------------


6. (U) Last June, the RCMP and Interpol jointly hosted the
2007 International Law Enforcement IP Crime Conference in
Niagara Falls. Zarins said that both organizations will be
sponsoring the conference again next year in Halifax (June 24

OTTAWA 00002230 002 OF 002


- June 26) and he hopes to expand the number of USG speakers
and participants. More information about the conference can
be found at www.ul.com/ace.

Visit our shared North American Partnership blog (Canada & Mexico) at
http://www.intelink.gov/communities/state/nap

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