Question Period Note: Copyright outcome in CUSMA

On November 30, 2018, Canada, the United States and Mexico signed the Canada-United-States-Mexico Agreement (CUSMA). The CUSMA includes an extensive section on copyright that covers a number of items, notably: term of protection, notice-and-notice, national treatment and rights management information.

• In the CUSMA, Canada committed to making several changes to its copyright framework.
• As it pursues ratification of CUSMA, the Government will take appropriate steps to fulfill its commitments.
• We know that copyright is an important issue for Canadians, and key to our economic and social prosperity.

• On May 18, 2017, the United States (U.S.) administration notified Congress of its intention to initiate negotiations with Canada and Mexico to modernize the original 1994 North American Free Trade Agreement (NAFTA).
• On August 27, 2018, Mexico and the U.S. announced that they had reached a preliminary bilateral agreement in principle to update NAFTA. Canada re-entered into discussions with the U.S. on the basis of this preliminary agreement.
• On September 30, 2018, Canada, the U.S., and Mexico concluded a deal on the renegotiation of the NAFTA now renamed the “Canada-United-States-Mexico Agreement” (CUSMA). CUSMA was signed by all three countries on November 30, 2018.
• The majority of the copyright section of the CUSMA is consistent with Canadian law and policy. The agreement includes updated obligations on copyright and related rights, which reflects common North American approaches, while recognizing domestic realities and flexibilities. These obligations build on the World Intellectual Property Organization (WIPO) “Internet Treaties”, which Canada ratified in 2014, and which were negotiated after the NAFTA.
• In their submissions on NAFTA during public consultations, stakeholders in the cultural industries had mixed positions regarding copyright-related issues. Canadian creators and rights holders expressed support for longer copyright protection. On the other hand, academics and users of copyrighted material argued that these measures could increase costs for consumers and stifle access to content.
• The implementation of the CUSMA requires several changes to Canada’s copyright regime, notably the term of copyright protection; the national treatment obligation; and criminal remedies for altering or removing rights management information (e.g. watermarks). The Agreement also includes provisions on Internet service provider (ISP) liability to address online infringement, including flexibilities that allow Canada to maintain its "notice-and-notice" regime.
Full national treatment
• Full national treatment will require Canada to remunerate U.S. performers and producers for 1) the use of U.S. sound recordings played on the radio; 2) telecommunications of sound recordings made before 1972; and 3) telecommunications of sound recordings used by businesses as background music. In order to extend full national treatment to U.S. performers and producers, Canada will need to amend the 2014 Statement Limiting the Right to Equitable Remuneration of Certain Rome Convention of WPPT. The timelines to implement such a regulatory change will have to align with the entry into force of the CUSMA implementation bill.

Extension of copyright term of protection
• CUSMA requires that Canada make immediate changes to the Copyright Act upon ratification, notably that it extends the term of protection for sound recordings and performances in the sound recordings from 70 years to 75 years from the date of publication. CUSMA also requires that Canada changes its term of protection for works of authorship from 50 to 70 years after the life of the author. Canada would benefit from a 30-month implementation period from the date of ratification to implement the term of protection for works of authorship.

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