Information and communication technologies are an important part of Canada's knowledge economy future, but its quickly-changing nature presents policy challenges for the government, says Canada's Industry Minister Tony Clement.

"Our government recognizes that both the supply and adoption of ICTs is part of a broader knowledge economy that is important to future prosperity," Mr. Clement (Parry Sound-Muskoka, Ont.) told The Hill Times in an email interview for this week's Communications and Intellectual Property Policy Briefing. "We need to keep in mind that whatever policy choice we make today cannot completely anticipate the capabilities or success of the smartphone of tomorrow, and it cannot predict how business models will change when the next Twitter comes around. We need to pay attention to the structural and ongoing challenges that industry faces, and understand how to build the right environment where Canada produces top quality ICTs and where individuals and firms continue to use ICTs to their advantage."

Since Canada signed onto the UN's World Intellectual Property Organization treaties in 1997, there has been a significant policy debate surrounding intellectual property rights in today's digital age. The ICTs are playing a role in challenging conventional IP rights, resulting in several governments' delay in reforming copyright laws. "Canada and its international trading partners each have distinct copyright policies, laws and approaches for addressing the challenges and opportunities of the internet. Canada's current framework provides strong intellectual property protections and our copyright laws apply in the digital context, including on the internet. Moreover, Canada's regime for the protection and enforcement of intellectual property rights is fully consistent with its international obligations," Mr. Clement said, adding that even though the government introduced a bill to address the reforms in the last Parliament, there were still concerns about the lack of consultation on the bill.

On July 20, the government announced a consultation process to engage Canadians and stakeholders on copyright reforms, which received 8,000 submissions and more than 2,500 posts for input on the consultation website. Mr. Clement said these consultations were successful, but could not say yet what the government has learned from them. "It's too early to tell what the most important policy lesson is. What is clear is that the government is committed to consulting Canadians, and that Canadians are extremely engaged in issues that matter to them," Mr. Clement said. "It is too early to say what aspects of the law will be changed based on these consultations. Amendments will be introduced as soon as possible, at which time the public will have full access to the details of what is being proposed."

How important are information and communications technologies issues to your government? Please elaborate.

"Our government recognizes that Canada's future depends on being a leader in the global digital economy and that includes information and communications technology. Canada has tremendous assets in terms of talent and technology. We have a well-educated workforce, outstanding educational institutions and research facilities, and some of the most savvy entrepreneurs in the world. These are the strengths upon which we can build.

"For years ICTs have been critical to Canadian society and to Canada's economy. With the fast pace of growth and innovation, and with ICTs' vast potential as enablers in the economy and society, we know that they will only increase in importance. Currently Canada's ICT industry represents a large portion of Canada's GDP, 4.8 per cent, and employs 570,000 employees, so ICTs are a critical part of Canada's economy. Our government has always acknowledged that ICTs are important to Canada's future. In May 2007 the Prime Minister launched the Science and Technology strategy, and the ICT sector is one of the four priority sectors under this strategy.

"By making ICT a priority, we have been able to focus on S&T investments allowing millions of dollars in new funding to flow, and continue to flow to ICT research activities. Our government recognizes that both the supply and adoption of ICTs is part of a broader knowledge economy that is important to future prosperity."

What is your biggest challenge when dealing with ICT issues?

"Part of the challenge in ICTs—and this is not just for Canada but is worldwide—is the fast pace of change in the field. ICTs have an incredible velocity of technological progression, and each new advancement holds within itself the DNA of another application, a new technology, or even a whole new business line. Of course, this presents challenges for policy, but also presents major economic opportunities. Innovation and change is what drives this industry and what drives sustainable economic growth. Canada's ICT industry is Canada's strongest industry in terms of commitments to research and development representing 38 per cent of Business Expenditures on Research and Development. Government needs to make sure its various initiatives can adapt to the change that takes place on an ongoing basis. We need to keep in mind that whatever policy choice we make today cannot completely anticipate the capabilities or success of the smartphone of tomorrow, and it cannot predict how business models will change when the next Twitter comes around. We need to pay attention to the structural and ongoing challenges that industry faces, and understand how to build the right environment where Canada produces top quality ICTs and where individuals and firms continue to use ICTs to their advantage."

Industry and the public have been calling for copyright reforms for several years. In addition, Canada signed the UN's World Intellectual Property Organization treaties in 1997, but the government has not ratified them yet. Why has it taken so long to proceed with reforms?

"Canada and its international trading partners each have distinct copyright policies, laws and approaches for addressing the challenges and opportunities of the internet. Canada's current framework provides strong intellectual property protections and our copyright laws apply in the digital context, including on the internet. Moreover, Canada's regime for the protection and enforcement of intellectual property rights is fully consistent with its international obligations.

"Canada wants to be sure that Canadian creators and consumers have the tools they need to keep Canada competitive internationally and our government is meeting that challenge. We want to ensure that Canada's copyright laws are modern and flexible and foster innovation and economic growth.

"To this end, the government recently concluded an extensive eight-week consultation process on copyright, which gave Canadians a chance to express their views on this very important issue."

Your government introduced Bill C-61 in the second session of the last Parliament but it was never brought forward for debate in the House and then died on the Order Paper when an election was called. Why don't you just reintroduce Bill C-61?

"On June 12, 2008, the Government introduced Bill C-61, An Act to Amend the Copyright Act. Concerns were expressed around the introduction of Bill C-61 over a lack of opportunities for average Canadians to contribute to the dialogue on this important policy area. That is why we are taking this opportunity to listen to Canadians about what is important to them on copyright reform. We wanted Canadians to tell us how they think the current system could be improved to better reflect Canadians' values."

How successful were the recent public copyright reform consultations you and Heritage Minister James Moore launched?

"The consultations, which began on July 20, 2009, allowed all Canadians to engage in a dialogue. In total, more than 2,500 comments were posted on the consultation's discussion forum and more than 8,000 submissions were received.

"In addition, nine round tables were held to canvass the views of experts and organizations on the kinds of amendments needed to ensure that Canada continues to be a world leader in the digital economy.

"Two town hall meetings in Montreal and Toronto were also held, giving Canadians a chance to engage face to face directly with the ministers. These events were web-streamed live, allowing online participants from across Canada to submit their thoughts, comments and concerns in real time.

"The round tables and town hall meetings were very well-attended, and the level of engagement exceeded expectations."

What is the most important policy lesson you learned from the consultations?

"Given that the government received over 8,000 submissions as part of this consultation process, which are still being reviewed, it's too early to tell what the most important policy lesson is. What is clear is that the government is committed to consulting Canadians, and that Canadians are extremely engaged in issues that matter to them. Listening to Canadians is a valuable part of the policy development process, which is apparent by the remarkable feedback from Canadians over the copyright consultation period.

"Throughout this process, the government was able to consult with a greater number of Canadians so that they can be a part of this important debate. This allowed us to reach a maximum number of citizens in the most transparent and efficient way possible.

"The consultations also demonstrated that Canadians have a wide range of views as to the best way to reform copyright."

When will you make amendments to Canada's Copyright Act and how will the amendments change the laws?

"Going forward, the government will be reviewing all submissions and comments, with the goal of articulating a comprehensive approach to copyright reform that reflects Canadians' values and interests. It is too early to say what aspects of the law will be changed based on these consultations. Amendments will be introduced as soon as possible, at which time the public will have full access to the details of what is being proposed."

The movie and television industry, book authors and publishers, music creators, software producers, universities and just about everyone that has a stake in copyright issues has a different opinion on how to protect creators but at the same time benefit users, especially in this hyper digital age. What do you think is a fair compromise?

"The government understands that its policy choices will have important implications for stakeholders. We want to ensure that Canada's copyright laws are modern and flexible, and that they foster innovation and economic growth. We are seeking to establish a framework for copyright that will best promote Canada's interests.

"Amendments will be introduced as soon as possible, at which time the public will have full access to the details of what is being proposed. At the moment, we continue to review the unprecedented number of submissions made by Canadians throughout the consultations."

Is the government rethinking its previous positions on legal protection for digital rights management?

"It is far too early to say what aspects of the law will be changed based on these consultations. Amendments will be introduced as soon as possible, at which time the public will have full access to the details of what is being proposed. At the moment, we continue to review the unprecedented number of submissions made by Canadians throughout the consultations."

Is the government considering expanding Canada's fair dealing provision? Do you support the Supreme Court's interpretation of fair dealing?

"It is too early to say what aspects of the law will be changed based on these consultations. Amendments will be introduced as soon as possible, at which time the public will have full access to the details of what is being proposed. At the moment, we continue to review the unprecedented number of submissions made by Canadians throughout the consultations."

Why did the Conservative government order new hearings on fee-for-carriage when the CRTC has considered and rejected it twice already?

"Although the CRTC has previously examined the issue, the views of Canadian consumers were not taken into account. As a fee-for-carriage will directly affect consumers, the Conservative Government felt that the review must continue, with a specific emphasis on Canadians' opinions."

In general, does the Conservative government support fee-for-carriage?

"Our main concern is that Canadian consumers' views be taken into account. What this directive does, is ensure the CRTC continues its review of fee-for-carriage, and provide us with a report. We will await the report."

Will your government support Bill C-398, An Act to Amend the Telecommunications Act (Internet Neutrality), or will you introduce your own?

"On Oct. 21, 2009, the CRTC issued a ruling on internet traffic management, viewed as Canada's first consideration of 'Net Neutrality' (Telecom Regulatory Policy CRTC 2009-657). Departmental officials are reviewing the CRTC's announcement. CRTC decisions can be appealed to the Governor in Council within 90 days, therefore it would not be appropriate to comment on the issue of Net Neutrality."

House Industry Committee chair Michael Chong wrote in The Hill Times recently that "Canada ranks as one of the top originating countries for spam and that this undermines confidence in the internet as a platform for personal and business use." There's been some criticism that Bill C-27, the Anti-spam Bill, could be watered down. What do you think? What kind of effect will this have on the economy and how will internet users benefit from it?

"The government is not watering down Bill C-27. The purpose of the amendments we proposed was to clarify some elements of the legislation and to address concerns brought forward during witness testimony before the Industry Committee. The amendments clarify the concept of legitimate online commercial messages while reinforcing the vigorous safeguards for business and consumers in this bill. Our goal is to ensure confidence in online commerce by addressing the privacy and personal security concerns that consumers associate with spam and related threats that deter consumers from participating in the online marketplace. The government is pleased that C-27 has now been passed at the committee stage and referred back to the House of Commons. We are one step closer to placing Canada at the head of the pack on this important issue."

What role do ICTs play in Canada's economy?

"On the supply-side, Canada's ICT sector represents 4.8 per cent of Canada's GDP, has over 570,000 employees, and is our largest employer of engineers and scientists in Canadian business. Because of its innovative capacity, and its ability to invigorate so many other economic sectors, we recognize it as a sector with tremendous potential for growth whose innovative effects spin off and resonate throughout the rest of the economy. So the ICT sector itself plays a big role in Canada's economy.

"We have two overall goals for ICTs in support of Canada's economy. First, to grow the ICT sector to be an even larger share of our economy as it is a source of high paying jobs and high R&D intensiveness. Secondly and more importantly, a goal to increase the smart use of ICTs in the other 95 per cent of the economy to make them more efficient and profitable, from public services through manufacturing, service industries and natural resources.

"ICTs contribute to positive social outcomes and a better of quality of life. They are also an important driver of productivity growth and business innovation across all sectors. By using ICTs, firms put to use innovations that increase the output of labour and therefore enhance their productivity and competitiveness. We have long heard about Canada's productivity gap with the U.S. Better use of ICTs in Canada is one of the ways we can address this gap. Increasing the use of ICTs in all parts of the economy can increase productivity, lead our businesses to more innovative solutions, and position Canada to continue to be competitive in the global marketplace."

What is your government doing to ensure Canada remains a leader when it comes to ICTs?

"Our government has taken several measures that range from funding and programs to legislation. Our Economic Action Plan provides companies with a 100 per cent tax allowance on their capital cost for computer hardware and systems until February, 2011 and $225-million for the Broadband Canada program, increasing access for rural and remote Canadians. These actions will encourage companies in all sectors of the economy to increase their adoption and use of ICTs. Canada also has new anti-spam legislation before Parliament in the form of Bill C-27, the Electronic Commerce Protection Act, and national public consultations on reformed copyright legislation have just concluded. Moving forward, I will continue to listen to the leaders in this field for their ideas and suggestions on how we can ensure Canada's success in today's knowledge economy."

bvongdou@hilltimes.com

The Hill Times