?lth Isa; ts at 0 six)? Li" 1:25:31} Patrimoine canadten Canadian Heritage Soos?ministre Deputy Minister Gatineau (Quebec) Gatineau, Quebec MAY 0 NOTE FOR THE HONOURABLE JULY 2016 UNITED STATES SPECIAL 301 REPQRT GN INTELLECTUAL Issue 0 C) Canada is on the ?Watch List? of the United States Trade Representative (USTR) annual Special 301 Report, issued on April 21, This report discusses the adequacy and effectiveness of United States (US) trading partners3 protection and enforcement of intellectual property The Government of Canada does not recognize the validity of the process as the ?ndings tend to rely predominantly on allegations from US. industry stakeholders rather than on objective analysis. Background A RJ The USTR provides advice on trade issues to the Executive Branch of the US, Government, which includes the President. The Special 30.] Report is an annual monitoring exercise led by the USTR to gauge the efforts of other countries in protecting American including patents? trademarks, and copyright. The annual Special 301 Report ranks countries in three categories: ?Watch List,? ?Priority Watch List? and ?Priority Foreign Country.? Countries at the "Watch List" level are said to "merit bilateral attention to address intellectual property rights problems." Countries on the ?Priority Watch List" are subject to particularly intense engagement through bilateral discussion Countries identi?ed as a "Priority Foreign Country" maybe subject to an investigation hy the which can lead to dispute settlement proceedings at the World Trade Organization (WTQ) or other relevant trade agreements and international fora. Canada remains this year again on the ?Watch List? (with 23 other countries), despite recent signi?cant achievements domestically in relation to 1P retomt on copyright, this includes the passage and coming into force of the Copyright Modernization Act, and Canada?s accession to the World intellectual Property Organization (WIPO) lnternet Treaties. in previous years, the absence of such m/Z 000001 2 - reforms was a central concern of the US, Amongst positive developments, the USTR welcomes the amendment made in 20l5 to the CopyrightAct extending the term of protection for sound recordings from St) to 70 years after publication. The Report repeats its broad recommendations also made last year, asking that Canada fully implement its lnternet Treaties commitments and to continue to address copyright piracy in the digital age. The Report concludes by stating that the LLS, will work closely with Canada on the implementation of the Trans~Pacific Partnership if ratified. 0 During the hearings leading to the preparation of the Report, the International intellectual Property Alliance, representing US. l? rights holders in the music, film, and publishing sectors, submitted complaints about Canada?s copyright framework. The organization raised concerns that the expansion of ?fair dealing? to include education has caused educational institutions to not renew collective licencing agreements, leading to the decimation of Canada?s educational publishing market, This issue was not raised however in the final Report. Current Status 0 As usual, the Report has not garnered significant attention in Canadian rnedia. Global Affairs Canada have prepared media lines and questions and answers on. the Report (see Annexes A and B) and will respond to any media inquiries, Canadian Heritage officials, and their counterparts at Innovation, Science and Economic Development Canada, have been consulted on these materials, 0 Canada continues to work with the US. and other countries to improve the protection of IF, including Via its participation in rele nt international forums, such as the and WTQ. Graha' Attachments Prepared by: Catherine Beaumont, Copyright and International Trade Policy Branch, 819~994~2356 2 000002 Global Affairs Atlaires mondiales Canada Canada 2016 USTR ?pecial 301 Report on intellectual Property Rights 0n April 27, 2016, the United States Trade Representative (USTR) published its annual Special 301 Report, which reviews the global state of intellectual property (IP) rights protection. in the 2016 Report, Canada remains on the Watch List. Canada was previously on the Report?s Watch List from 1995 to 2009, when it was elevated to the Priority Watch List from 2009 to 2013. Twenty~two countries appear alongside Canada on this year?s Watch List, including Brazil, Colombia, Greece. Mexico, Peru, Turkey and Vietnam. in the 2016 Report, US. industry stakeholders continue to raise concerns with Canada?s requirements for patent utility, citing industry allegations concerning the invalidation of patents on this basis by the Canadian courts. Other stated concerns related to pharmaceuticals include a lack of a right of appeal for innovative drug makers regarding decisions of generic drug marketing approvals, as well as concerns about the breadth of ministerial discretion to make available confidential business information about pharmaceutical medicines in Health Canada?s disclosure regime. The ?rightyof appeal? issue will be addressed through the CETA implementation bill. Since 2013, the US. has also noted disappointment that Canada?s enforcement reforms do not provide for ?ex officio? oradmhisllative powers for customs authorities to detain goods in~transit (Canada?s reforms under the 2014 Compelling Counterfeit Products Act provide suddex officio? authority in respect of imports and exports only). Canada considers the Special 301 process and the Report to be invalid and analytically flawed because the process relies primarily on US. industry allegations rather than empirical evidence and Objective analysis. Canada has a strong regime for the protection and enforcement of lP rights that is lolly consistent with its international obligations, including under the North American Free Trade Agreement (NAFTA) and the World Trade Organization?s Trade-?Related Aspects of intellectual Property Rights Agreement. Canada remains on the Watch List in 2016 despite recent significant achievements domestically in relation to reform namely, the passage and coming into force of the Copyright Modernization Act and the Combating Counterfeit Products Act. in previous years, the absence of such reforms was a central concern of the US. in relation to Canada?s regime. The Canadian Government also passed amendments to the Trade?marks Act, the Patent Act and the industrial Design Act to make Canada?s intellectual property regime consistent with key treaties (the Madrid Protocol, the Singapore Agreement, the Nice Agreement, the Patent Law Treaty and the Hague Agreement). in 2015, Canada also completed its ratification of the 1991 Act of the international Union for the Protection of New Varieties of Plants Convention (UPOV 91). in March 2016. the Government introduced Bill 011 which will amend the CopyrightAct and will enable Canada to implement and accede to the Wit?O Marrakesh Treaty to 5:2'ad 000003 i2?. assess to published works for visually impaired personal in spring 2915,. the Copyright Act was amended to extend the term of copyright protection for a published sound recording and a performers performance in these sound recordings from 50 years to 70 years after publication. Key Messages ?5 Canada does not recognize the validity oi the Specie! 3&7 and considers the process and tire Report to be ?awed. The Report tails to employ a Clear methodoiogy and the findings tend to rely on industry allegations rather than empirical evidence and objective analysis? Canada is of the View that a strong regime for the protection and enforoernent of property rights is central to economic growth in any knowledgeabased economy. Canada has a solid record of taking action to strengthen Canada?s intellectuai property system and continues to make significant advances domestically to modernize Canada?s intellectual property regime Canada continues to make significant achievements domestically in rotation to intellectual property rights reform; namely, the passage and coming into force of the Copyright Modernization Act and the Combating Counterfeit Products Act, the implementation of key World intellectual Property Organization treaties and recently announced initiatives regarding copyright exception for visually impaired persons" Canada?s current regime for the protection and enforcement of intellectual property rights is toily consistent with its international obiigationsi including under the North Amerisan Free Trade Agreement (NAFTA) and the World Trade ?rganization?s Trader Related Aspects of intellectual Property Rights (TREPS) Agreement and relevant treaties, 000004 Global Affairs Afiaires rnondiales Canada. Canada cs hens and Ai nan/feral Canada?s intellectual Property Regime General Lines Qt: What efforts has Canada made to strengthen its intellectual property regime? a The Government takes the protection and enforcement of intellectual property rights seriously and has taken significant steps in this regard. a The Government has a solid record of taking action to strengthen Canada?s intellectual property system and Canada continues to make significant advances domestically to modernize its intellectual property regime. in in 2010, the Government revised the proceeds of crime regulations to allow Canadian enforcement authorities to seize assets obtained through large scale copyright piracy, a in 2012, the Government passed and enacted the Copyright Modernization Act. Canada?s copyright regime is in line with international standards, including the World intellectual Property organization Copyright Treaty and the Performances and Phonograms Treaty which Canada ratified in 2014. in 2014, the Government passed the Combating Counterfeit Products Act, The Act updates Canada?s intellectual property rights enforcement regime by strengthening enforcement measures at the border, providing enhanced tools for rights holders to pursue civil enforcement and facilitating the criminal enforcement of trademark counterfeiting and copyright piracy. is: in March 2014, the Canadian Government announced the modernizing of Canada?s intellectual property administration framework to better align it with international practices. by joining five widely recognized treaties: the Madrid Protocol, the Singapore Treaty, the Nice Agreement, the Patent Law Treaty and the Hague Agreement, a Taken together, Canada?s joining these five Wit-30 treaties will out red tape and make trademark and industrial design registration and patent applications easier for businesses, while reducing costs over time and enabling our innovators to take their products global faster and easier, As a first step, the Government passed legislative amendments to the Trade?marks Act, the Patent Act and the Industria/ Design Act to make Canada?s intellectual property regime consistent with the five treaties, a? in March 2016, the Government introduced Bill C41 which will amend the Copyright Act and will enable Canada to implement and accede to the Marrakesh Treaty to facilitate access to published works for visually impaired persons, in spring 2015, the Copyright Act was amended to extend the term of copyright protection for a published sound recording and a performer?s performance in these sound recordings from 50 years to 7'0 years after publication. 000005 Q23 30% ?anada?s ?nte?legma? magma?y regime with gm Emernatimnag Wade @b??gat?ons?? Canada?s regime far the pretection and enforcement 0f iniai?ectuai pmper?ly r?ghig is M?y Consistent with off its ?ntema?mai obiiga?ons, inciuding under the Na?h American Free Trade Agreemem (NAFTA) and the Warm Trade Gigamza?on?s Trade~ Re?atad Aspects 0f EnteigeatuaE Pmperty Rights (KEEPS) Agreement and relevant WSW) ima?eS, 000006