Proposed amendments to Section 31 of the Copyright Act

OTTAWA, December 12, 2001 -- Minister of Industry Brian Tobin and Minister of Canadian Heritage Sheila Copps today proposed amendments to Section 31 of the Copyright Act. A Bill to that effect was tabled in the House of Commons by Minister Copps.

"This bill will strengthen Canada's already vibrant broadcasting system and protect the rights of Canadian content creators. It will provide much needed clarity," said Minister Copps.

The bill clarifies that existing distribution systems, such as cable and satellite, may continue to rebroadcast over-the-air radio and television signals by paying royalties set by the Copyright Board and respecting other conditions set out in the Copyright Act. The bill also establishes a new regulation making power that will allow new types of distribution systems, including the Internet, to be used to retransmit broadcast signals if they meet appropriate conditions set out in the regulations.

"The amendments to Section 31 will create a level playing field for current as well as future players in the broadcasting system," said Minister Tobin. "This will create new opportunities for Canadians in the knowledge-based economy and stimulate entrepreneurship and innovation."

The proposed amendments are part of the Government of Canada's overall commitment to modernize Canada's copyright framework. In June 2001, the departments of Industry and Canadian Heritage launched a process to reform the Copyright Act. In October 2001, the departments concluded a four-month online consultation, which sought input from Canadians on the retransmission issue and four other digital issues. The bill on retransmission is a result of that consultation process and an extensive year-long dialogue with stakeholders. Over the coming months, the departments will move forward on the four digital issues. A copy of the bill is available on the Parliamentary Web site at http://www.parl.gc.ca

Information:

Heidi Bonnell
Director of Communications
Office of the Minister of Industry
(613) 995-9001

Kerry Edmonds
Press Secretary
Office of the Minister of Canadian Heritage
(819) 997-7788

(Available on the Internet at: http://www.canadianheritage.gc.ca under News Room.)

BACKGROUNDER

Copyright Reform
Proposed amendments to Section 31 of the Copyright Act

What is Section 31?

Section 31 of the Copyright Act sets out the compulsory licence applicable to the retransmission of copyright protected works in signals broadcast over the air by television and radio stations. It allows cable, direct-to-home satellite companies and others to retransmit over-the-air television and radio signals to their subscribers without having to seek the permission of rights holders. However, they may do so only if they pay royalties set by the Copyright Board of Canada and comply with other statutory conditions. This ensures that the rights holders of the programming content of the signals are fairly treated while avoiding the need for separate negotiations between retransmitters and each and every affected copyright holder.

Consulting Canadians on Section 31

Following a year-long dialogue with stakeholders, the departments of Canadian Heritage and Industry released a discussion paper, entitled Consultation Paper on the Application of the Copyright Act's Compulsory Retransmission Licence to the Internet, in June. Canadians were invited to comment on the paper during a four-month public consultation. Approximately 40 submissions, including reply comments, were received on the retransmission issue. The paper and the submissions are available on the Web sites of both departments. The views of the public and of industry stakeholders played a key role in the policy-making process that led to the proposed amendments to the Act.

The proposed amendments

These amendments provide that existing distribution systems, such as cable and satellite, can continue to redistribute over-the-air television and radio signals. These amendments also create a regulation making power that will allow the Government to establish conditions under which new entrants, such as Internet-based retransmitters and any other currently unforseen technology-based retransmitters, can qualify for the compulsory license.

The proposed amendments to the Copyright Act will give the Government the flexibility to respond promptly to future questions surrounding retransmission. The regulations will be drafted according to principles which ensure that:

• Canadians continue to have access to a vibrant broadcasting system;
• equitable balance is maintained among current stakeholders and potential new entrants;
• technological neutrality is respected and innovation is enhanced; and
• there is certainty with respect to the rules of retransmission.

These principles will ensure a level playing field in the broadcasting system.

Work and consultation on the regulations are proceeding. The bill will not come into force until the first set of regulations is ready.

Copyright reform beyond Section 31

With the amendments to Section 31 the Government is moving forward on modernizing Canada's copyright law to ensure that it evolves as new technologies emerge. Other copyright issues will also be reviewed over the next few years as outlined in A Framework for Copyright Reform, which can be found on the Internet at http://strategis.ic.gc.ca/SSG/rp01100e.html

The reform will be characterized by ongoing revisions, each involving manageable packages of issues and clearly-focussed bills. This measured approach is consistent with the need to better respond to a fast-changing technological and business environment.