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). 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. Canada ratified CUSMA on March 13, 2020, and on July 1, 2020, the Agreement entered into force.

• In the Canada-United States-Mexico Agreement, Canada committed to making several changes to its copyright framework.
• We know that copyright is an important issue for Canadians, and key to our economic and social prosperity.
• The CUSMA updates minimum standards of copyright protection and enforcement for the North American market
• The CUSMA will help Canadians compete globally and prosper in a healthy, integrated North American economy.

• 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 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 NAFTA, now renamed the “Canada-United-States-Mexico Agreement” (CUSMA). CUSMA was signed by all three countries on November 30, 2018.
• Canada ratified CUSMA on March 13, 2020, and on July 1, 2020, the Agreement entered into force.
• 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 reflect 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 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 CUSMA required 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 included provisions on Internet service provider (ISP) liability to address online infringement, including flexibilities allowing Canada to maintain its "notice-and-notice" regime.
Full national treatment
• Full national treatment requires 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 meet this obligation, Canada needed to amend the 2014 Statement Limiting the Right to Equitable Remuneration of Certain Rome Convention or WPPT (WIPO Performances and Phonograms Treaty) Countries, which limited payments to U.S. performers and producers for these uses of sound recordings. This regulatory amendment was published in the Canada Gazette on April 29, 2020.
Extension of copyright term of protection
• CUSMA required that Canada make immediate changes to the Copyright Act upon ratification, notably that it extend the term of protection for sound recordings and performances in sound recordings from 70 years to 75 years from the date of publication.
• CUSMA also requires that Canada extend its general term of protection for works of authorship from 50 to 70 years after the life of the author. CUSMA provided Canada with a 30-month transition period from the date of entry into force to meet this obligation (i.e. until the end of 2022). This 30-month transition period will allow the Government to determine how best to implement the extension of the general term of protection.

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