Film distribution rights are an important problem in the film industry. Film distributors located in the United States have typically been allowed to obtain distribution rights for films in both the United States and Canada. This practice deprives Canadian distribution corporations of the opportunity to distribute significant films in the Canadian market, as well as the cash generated by those distribution rights, which may be reinvested in the development of new Canadian films. In 1987, Canada contemplated instituting an import license system that would restrict foreign companies to distributing their own films or films for which they had global rights. However, foreign corporations now operating in Canada opposed, and the Act was not implemented. Canada's film policy is currently under review. Until 1996, no company seeking to the CRTC for a broadcasting licence to operate in Canada may have more than 20% foreign investment. In 1996, the federal government directed the CRTC to increase the maximum allowable foreign investment. Foreign ownership can now account for up to 46.7% of a broadcasting firm (33.3% of the holding company and 20% at the licensee level), as well as 100% of its non-voting shares, as long as non-Canadians do not exercise de facto control. The new clause respects Canada's legal duty to "own and control" its broadcasting system, allowing the broadcasting industry to accept more foreign money in order to keep up with technological improvements and increased competition. The 1996 reforms also brought foreign investment rules for the broadcasting industry closer to those for telecoms.
Film Distribution Rights: 5. Measures to protect intellectual property
A video, sound recording, or book is more than just the tape, CD, or paper on which it is stored. It is the content or intellectual property used to create scripts, music, songs, publications, or performances. Canada, like other countries, has long provided copyright protection to authors, composers, and lyricists. Copyright is intended to ensure that artists obtain appropriate rights or recompense for their creativity, in accordance with international standards. The recent revisions to the Copyright Act (which got Royal Assent on April 25, 1997) include provisions for neighboring rights, which broadens copyright protection in the sound recording industry beyond authors (composers and lyricists) and producers to performers. Furthermore, when sound recordings are broadcast on radio or played in public (for example, at bars, restaurants, banquets, and sporting events), the author (composer and lyricist), producer, and performer will all get royalties. With the Copyright Act, Canada took additional steps to address parallel importation of books. These are books that are legally published in their home country but are imported into Canada without the permission of Canadian publishers or distributors who have exclusive rights to distribute the titles in Canada. Previously, copyright holders had the power to ban parallel imports. Canada has amended its legislation to provide equal protections to distributors.
Prior to the most recent modifications to the Copyright Act (1997)
authors (composers and lyricists) and producers of sound recordings had the sole right to approve the reproduction of their works, but they were unable to enforce it. Consumers have been creating unauthorized copies of sound recordings for nearly three decades. Every year, the Canadian sound recording industry loses a significant amount of money because people copy sound recordings and videotapes. Instead of attempting to prohibit private copying, which is extremely impossible, Canada imposed a private copying charge on blank audio recording material. The technique applies to both analog and digital recording media, as well as CD-ROMs. The proceeds from this private copying scheme will be used to reimburse Canadian authors (composers and lyricists), music publishers, performers, and producers for illicit copying of sound recordings. Under the Copyright Act, Canada will compensate foreign writers of musical works with copyright in Canada. However, the Minister of Industry may grant private copying benefits to foreign manufacturers and performers on a reciprocal basis.
The Effect of Canada's Cultural Policies Canada's cultural policies and tools have been crucial in building
a robust cultural infrastructure and attaining our cultural objectives. We continue to own and control our cultural industries, and we produce a large number of cultural items or Canadian content that appeal to all of us and support our national identity. Without these cultural policies, Canadian artists and cultural groups would struggle to create and present their work. At the same time, Canada is one of the world's most accessible cultural markets. We are among the world's top per-capita consumers of cultural commodities, both domestic and international. We were able to establish a position for Canadian products in our market without restricting access to cultural products from across the world. Among all of our cultural policy measures, restriction of Canadian content has had the greatest influence. The broadcasting industry's regulatory system has shown to be exceptionally effective in promoting Canadian cultural sectors while protecting foreign interests. The Canadian content restrictions, according to the industry, have increased viewing of Canadian English-speaking television programming and strengthened Canada's sound recording business.
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