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Canada Business - Services for entrepreneurs Canadian Consumer Information Gateway Strategis

Satellite Piracy: Government of Canada to Propose Legislative Amendments

OTTAWA, September 5, 2003 — Allan Rock, Minister of Industry, and Sheila Copps, Minister of Canadian Heritage, today announced the Government of Canada's intention to propose amendments to the Radiocommunication Act with a view to better combat piracy of direct-to-home satellite televison services.

Amendments will be proposed to: better control the import of illegal radiocommunication equipment into Canada; increase penalties as a more effective deterrent to satellite piracy; and strengthen the existing right of the Canadian broadcasting industry to take civil action against those who sell illegal equipment and services.

"Satellite piracy is an illegal activity that strikes directly at the integrity and competitiveness of the Canadian broadcasting system and the industry's ability to offer new, innovative services to Canadians," said Minister Rock. "The Radiocommunication Act must be strengthened to better deter pirate dealers who view current penalties as merely an acceptable cost of doing business. We are drafting these changes in order to protect the jobs supported and investments made by the broadcasting industry, which have evolved to provide more competition and choice for consumers."

"With this action, the government is simply moving to prevent the erosion of our broadcasting system," said Minister Copps. "The illegal activities of satellite pirates take millions of dollars out of the broadcast industry each year, and that means less funding for Canadian producers, writers, artists, camerapersons, technicians and other tradespeople who work on sets. Satellite piracy is not a victimless crime. Jobs are at stake."

This action follows the April 2002 Supreme Court Decision in Bell ExpressVu versus Richard Rex, which confirmed that Section 9(1)(c) of the Radiocommunication Act protects both Canadian and foreign signals from unauthorized decoding. The government committed to work in cooperation with the Canadian broadcasting industry and law enforcement authorities to stop the sale and distribution of devices designed for the unauthorized decoding of satellite television programming.

In addition to strengthening the Radiocommunication Act, the government is providing information to protect consumers and public safety networks from satellite piracy's largely unseen dangers. The use of pirated receiver cards has been found to create signal interference with licensed radiocommunication systems, including those of police and search-and-rescue services.

As well, Canadians who purchase pirated equipment should be aware that they face a substantial financial loss as their service may be terminated without notice or recourse. Consumer protection laws do not apply to purchases of illegal goods.

A backgrounder on satellite broadcasting policy is attached.

For more information, please contact:

Mylène Dupéré
Press Secretary
Office of Allan Rock
Minister of Industry
(613) 995-9001

Sonya-Kim St-Julien
Press Secretary
Office of Sheila Copps
Minister of Canadian Heritage
(819) 997-7788

Industry Canada
Media Relations
(613) 943-2502


Backgrounder

Decoding Home Satellite Television Signals

It may be easy to imagine that there are hundreds of television signals floating around in space and that you should be able to receive them just like any television programming, but, in fact, it costs considerable sums of money to make encrypted signals available to satellite subscribers. If satellite (direct-to-home) services did not receive subscriber fees, or if the programming services companies were not compensated for making their signals available, then there would be no direct-to-home television. No company could afford to offer it.

The Law

On April 26, 2002, the Supreme Court of Canada ruled unanimously the Radiocommunication Act "prohibits the decoding in Canada of any encrypted subscription programming signal, regardless of the signal's origin, unless authorization is received from the person holding the necessary lawful rights under Canadian law." This means that only a lawful distributor in Canada may supply encrypted satellite programming via your satellite receiver. The only direct-to-home services holding the necessary lawful rights in Canada to decode these signals, at this time, are Star Choice and Bell ExpressVu.

The Property

Typically, television program copyright owners grant licences to television programming services companies, permitting them to air their programs in certain locations, at certain times. Direct-to-home companies must obey the terms of those licences in order to provide the programming to you, the viewer. Receiving encrypted television programming without paying is stealing. Companies within the broadcasting industry have launched civil action to enforce their rights and the law against those who benefit commercially from illegal decoding. According to industry figures, illegal decoding costs the Canadian broadcasting system as much as $400 million per year.

DirecTV and Dish Network (American services)

American direct-to-home services such as DirecTV and Dish Network may not, and do not knowingly, authorize subscriptions in Canada, as they have not acquired the distribution rights for Canada from programming service providers.

Your Legal Options

In Canada, the two companies licensed by the Canadian Radio-television and Telecommunications Commission to provide direct-to-home services are Star Choice, owned by Shaw Communications Inc., and Bell ExpressVu, owned by Bell Canada Enterprises Inc. Consumers have hundreds of channels to choose from, including dozens of pay-per-view channels, local signals, Canadian news, weather and sports, and dozens of Canadian, American, and foreign pay television and specialty channels. Canadians have lots of choice without having to steal.





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Date Modified: 2004-05-04 Top of Page Important Notices