2ND REPORT OF THE STANDING COMMITTEE ON CANADIAN HERITAGE

The Standing Committee on Canadian Heritage has the honour to present its

SECOND REPORT

In accordance with its Order of Reference of Tuesday, June 11, 1996, your Committee has considered Bill C-32, An Act to amend the Copyright Act, and has agreed to report it with the following amendments:

Clause 1

Strike out line 27, on page 1, and substitute the following therefor:

``matography, whether or not accompanied by a soundtrack;''

Strike out lines 4 and 5, on page 2, and substitute the following therefor:

``any colourable imitation, made or dealt with in contravention of this Act,''

Strike out line 9, on page 2, and substitute the following therefor:

``of it made or dealt with in contravention''

Strike out line 13, on page 2, and substitute the following therefor:

``copy of it made or dealt with in contraven-''

Strike out line 18, on page 2, and substitute the following therefor:

``made or dealt with in contravention of this

The definition includes a copy that is imported in the circumstances set out in paragraph 27(2)(e) and section 27.1 but does not otherwise include a copy made without the consent of the owner of the copyright in the country where the copy was made.''

Strike out line 45, on page 3, and substitute the following therefor:

``ried on, but excludes a body whose primary ac-''

Strike out line 4, on page 4, and substitute the following therefor:

``right or of the remuneration right conferred by section 19 or 81 for the benefit of those who, by assign-''

In the French version only, strike out lines 5 to 10, on page 4, and substitute the following therefor:

``(i) d'une part, n'est pas constitué ou administré pour réaliser des profits, ni ne fait partie d'un organisme constitué ou administré pour réaliser des profits, ni n'est administré ou contrôlé directement ou indirectement par un tel organisme,''

Strike out lines 24 to 28, on page 4, and substitute the following therefor:

````commercially available'' means, in relation to a work or other subject matter

(a) available on the Canadian market within a reasonable time and for a reasonable price and may be located with reasonable effort; or

(b) for which a licence to reproduce, perform in public or communicate to the public by telecommunication is available from a collective society within a reasonable time and for a reasonable price and may be located with reasonable effort.''

In the English version only, strike out line 13, on page 5, and substitute the following therefor:

``c) a department or agency of any order of''

Strike out line 14, on page 6, and substitute the following therefor:

``ing or hearing a literary, musical, dramatic or artistic work in''

Strike out line 18, on page 6, and substitute the following therefor:

``hearing or the inability to focus or move one's eyes,''

Strike out lines 37 and 38, on page 6, and substitute the following therefor:

````sound recording'' means a recording, fixed in any material form, consisting of''

Strike out lines 41 and 42, on page 6, and substitute the following therefor:

``cinematographic work where it accompanies the cinematographic work;''

Clause 2

Add immediately after line 44, on page 6, the following:

``2.11 For greater certainty, the arrangements referred to in paragraph (b) of the definition of ``maker'' as that term is used in section 19 and in the definition of ``eligible maker'' in section 79, include arrangements for entering into contracts with performers, financial arrangements and technical arrangements required for the first fixation of the sounds for a sound recording.''

Strike out lines 14 and 15, on page 7, and substitute the following therefor:

``munication, of a literary, dramatic, musical or artistic work or a sound recording, or''

Strike out line 20, on page 9, and substitute the following therefor:

``regulations establishing distribution criteria for the pur-''

Strike out lines 24 to 28, on page 9, and substitute the following therefor:

``exclusive licence is an authorization to do any act that is subject to copyright to the exclusion of all others including the copyright owner, whether the authorization is granted by the owner or an exclusive licensee claiming under the owner.''

Clause 3

Strike out lines 2 to 5, on page 10, and substitute the following therefor:

``musical work, to make any sound recording, cinematograph film or other contrivance by means of which the work may be mechanically reproduced or performed,''

Strike out lines 8 to 10, on page 10, and substitute the following therefor:

``and publicly present the work as a cinematographic work,''

Clause 6

Strike out lines 17 and 18, on page 12, and substitute the following therefor:

``tion (1) occurred during the period of fifty years immediately before the com-''

Strike out line 39, on page 12, and substitute the following therefor:

``tion (1) occurred more than fifty''

Clause 7

Strike out lines 5 to 7, on page 13, and substitute the following therefor:

``7. Section 10 of the Act is replaced by the following:

10. (1) Where the owner referred to in subsection (2) is a corporation, the term for which copyright subsists in a photograph shall be the remainder of the year of the making of the initial negative or plate from which the photograph was derived or, if there is no negative or plate, of the initial photograph, plus a period of fifty years.

(1.1) Where the owner is a corporation the majority of the voting shares of which are owned by a natural person who would have qualified as the author of the photograph except for subsection (2), the term of copyright is the term set out in section 6.

(2) The person who

(a) was the owner of the initial negative or other plate at the time when that negative or other plate was made, or

(b) was the owner of the initial photograph at the time when that photograph was made, where there was no negative or other plate,''

Clause 10

Strike out lines 39 and 40, on page 13, and substitute the following therefor:

``10. (1) Subsection 13(2) of the Act is replaced by the following:

(2) Where, in the case of an engraving, photograph or portrait, the plate or other original was ordered by some other person and was made for valuable consideration, and the consideration was paid, in pursuance of that order, in the absence of any agreement to the contrary, the person by whom the plate or other original was ordered shall be the first owner of the copyright.

(2) Subsection 13(4) of the Act is replaced by the following:''

Clause 14

Strike out lines 29 to 36, on page 16, and substitute the following therefor:

``16. Nothing in section 15 prevents the''

Strike out lines 44 and 45, on page 16, and substitute the following therefor:

``no longer exercise, in relation to the performance when embodied in that cinematographic work, the copyright referred to in''

In the English version only, strike out line 23, on page 17, and substitute the following therefor:

``(b) are jointly and severally liable to the per-''

Strike out lines 28 to 30, on page 17, and substitute the following therefor:

``prescribed cinematographic work.''

Strike out lines 38 to 42, on page 17, and substitute the following therefor:

``that country or another country that is a party to the Agreement or are Canadian citizens or permanent residents within the meaning of the Immigration Act and whose performer's performances are embodied in works other than the prescribed cinematographic works referred to in subsection (3).''

Strike out line 15, on page 19, and substitute the following therefor:

``authorized under Part VII to collect them; or''

Strike out line 34, on page 24, and substitute the following therefor:

``(b) if it has been fixed in a sound recording without the perform-''

Clause 15

Strike out lines 18 and 19, on page 28, and substitute the following therefor:

``the infringement occurred, notice has been given within the prescribed time and in the prescribed manner to the person referred to in''

Add immediately after line 21, on page 28, the following:

``(6) The Governor in Council may, by regulation, establish terms and conditions for the importation of certain categories of books, including remaindered books, books intended solely for re-export and books imported by special order.''

Clause 18

Strike out line 30, on page 28, and substitute the following therefor:

``18. (1) Section 29 of the Act and the heading''

Strike out line 14, on page 29, and substitute the following therefor:

``reporting does not infringe''

Add immediately after line 24, on page 29, the following:

``Acts Undertaken without Motive of Gain

29.3 (1) No action referred to in sections 29.4, 29.5, 30.2 or 30.21 may be carried out with the intention of making a gain.

(2) An educational institution, library, archive or museum, or person acting under its authority does not have a motive of gain where it or the person acting under its authority does anything referred to in sections 29.4, 29.5, 30.2 or 30.21 and recovers no more than the costs, including overhead costs, associated with doing that act.''

Strike out lines 25 to 28, on page 29.

Strike out lines 3 to 8, on page 30, and substitute the following therefor:

``person acting under its authority

(a) to make a manual reproduction of a work onto a dry-erase board, flip chart or other similar surface intended for displaying handwritten material, or

(b) to make a copy of a work to be used to project an image of that copy using an overhead''

Strike out lines 14 to 24, on page 30, and substitute the following therefor:

``under its authority to''

(a) reproduce, translate or perform in public on the premises of the educational institution, or

(b) communicate by telecommunication to the public situated on the premises of the educational institution

a work or other subject-matter as required for a test or examination.''

Strike out line 30, on page 30, and substitute the following therefor:

``medium that is appropriate for''

Strike out line 19, on page 31, and substitute the following therefor:

``commentary program, excluding documentaries, for the purposes of''

Strike out lines 12 to 20, on page 32, and substitute the following therefor:

``(2) An educational institution that has not destroyed the copy by the expiration of the thirty days infringes copyright in the work or other subject-matter unless it pays any royalties, and complies with any terms and conditions, fixed under this Act for the making of the copy.

(3) It is not an infringement of copyright for the''

Strike out lines 35 to 39, on page 33, and substitute the following therefor:

``(a) not more than two passages from works by the same author are published by the same publisher within five years;

(b) the source from which the passages are taken is acknowledged; and

Strike out line 7, on page 34, and substitute the following therefor:

``permanent collection or the permanent collection of''

Strike out lines 14 to 15, on page 35, and substitute the following therefor:

``publish in

(a) a scholarly, scientific or technical periodical; or

b) a newspaper or periodical, other than a scholarly, scientific or technical periodical, provided the article was not published within one year before the copy was made.''

Strike out lines 16 to 22, on page 35, and substitute the following therefor:

``(3) Paragraph (2)(b) does not apply in respect of a work of fiction or poetry or a dramatic or musical work.''

Strike out lines 3 to 5, on page 36, and substitute the following therefor:

``(a) defining the words ``newspaper or periodical''

(b) defining ``scholarly, scientific or technical periodicals'';

(d) prescribing the manner and form in''

In the English version only, strike out lines 24 to 29, on page 35, and substitute the following therefor:

``a copy under subsection (2) only on condition that

(a) the person for whom the copy will be made has satisfied the library, archive or museum that the person will not use the copy for a purpose other than research or''

Strike out line 40, on page 35, and substitute the following therefor:

``who is one of its patrons, if any copy given to the patron is not in digital form.''

(5.1) Where an intermediate copy is made in order to copy a work referred to in subsection (5), once the copy is given to the patron, the intermediate copy must be destroyed.''

Add immediately after line 7, on page 36, the following:

``30.21 (1) It is not an infringement of copyright for an archive to make a copy, in accordance with subsection (3), of an unpublished work that is deposited in the archive after the coming into force of this section.

(2) When a person deposits a work in an archive, the archive must give the person notice that it may copy the work in accordance with this section.

(3) The archive may only copy the work if

(a) the person who deposited the work, if a copyright owner, does not prohibit copying;

(b) copying has not been prohibited by any other owner of copyright in the work; and

(c) the archive is satisfied that the person for whom it is made will use the copy only for purposes of research or private study and makes only one copy for that person.

(4) The Governor in Council may prescribe the manner and form in which the conditions in subsection (3) may be met.

(5) The archive must obtain the permission of the copyright owner before copying any work deposited in the archive before the coming into force of this section, other than a work referred to in subsection (7).

(6) Where the owner of copyright in a work referred to in subsection (5) cannot be located, the archive

(a) may make a copy under subsections (1) and (3) and

(b) must give a notice of the reproduction to the Copyright Board, which notice will be kept available for public inspection.

(7) Subsections (1) and (3) apply to any work to which subsection 7(4) applies, if it was in the archive on the date of coming into force of this section.''

Strike out line 24, on page 36, and substitute the following therefor:

``(2) Subsection (1) only applies if, in respect of a reprographic reproduction,

(a) the educational institution, library, archive or museum has entered into an agreement with a collective society that is authorized by copyright owners to grant licences on their behalf;

(b) the Board has, in accordance with section 70.2, fixed the royalties and related terms and conditions in respect of a licence;

(d) a collective society has filed a proposed tariff in accordance with section 70.13.

(3) Where a collective society offers to negotiate or has begun to negotiate an agreement referred to in paragraph (2)(a), the Board may, at the request of either party, order that the educational institution, library, archive or museum be treated as an institution to which subsection (1) applies, during the period specified in the order.

(4) Where an educational institution, library, archive or museum has entered into an agreement with a copyright owner other than a collective society respecting reprographic reproduction, subsection (1) applies only in respect of the works of the copyright owner that are covered by the agreement.

(5) The Governor in Council may, for the''

Add immediately after line 4, on page 38, the following:

``Ephemeral Recordings

30.8 (1) It is not an infringement of copyright for a programming undertaking, within the meaning of the Broadcasting Act, to fix or reproduce in accordance with this section a performer's performance or work, other than a cinematographic work, that is performed live in pubic, or a sound recording that is performed in public at the same time as the fixation or reproduction, if the undertaking

(a) is authorized to communicate the performer's performance, work or sound recording to the public by telecommunication;

(b) makes the fixation or the reproduction itself, for its own broadcasts; and

(2) The programming undertaking must record the times and dates of the making and the destruction of all fixations and reproductions and keep the record current.

(3) The programming undertaking must make the record referred to in subsection (2) available to owners of copyright in the works, sound recordings or performer's performances, or their representatives, within twenty-four hours after receiving a request.

(4) The programming undertaking must destroy the fixation or reproduction within thirty days after making it, unless

(a) the copyright owner authorizes its retention; or

(b) it is deposited in an archive, in accordance with subsection (6).

(5) Where the copyright owner authorizes the fixation or reproduction to be retained after the thirty days, the programming undertaking must pay any applicable royalty.

(6) Where the programming undertaking considers a fixation or reproduction to be of an exceptional documentary character, the undertaking may, with the consent of an official archive, deposit it in the official archive and must notify the copyright owner, within thirty days, of the deposit of the fixation or reproduction.

(7) In subsection (6), ``official archive'' means the National Archives of Canada or any archive established under the law of a province for the preservation of the official archives of the province.

(8) This section does not apply where a licence is available from a collective society to make the fixation or reproduction of the performer's performance, work or sound recording.

(9) A broadcasting undertaking, as defined in the Broadcasting Act, may make a single reproduction of a fixation or reproduction made by a programming undertaking and communicate it to the public by telecommunication, within the period referred to in subsection (4), if the broadcasting undertaking meets the conditions set out in paragraphs (1)(a) to (c) and is part of the same network as the programming undertaking, as network is defined in that Act.

(10) The reproduction and communication to the public by telecommunication must be made

(a) in accordance with subsections (2) to (6); and

(b) within thirty days after the day on which the programming undertaking made the fixation or reproduction.''

Add immediately after line 4, on page 38, the following:

``(2) Section 30 of the Act, as enacted by subsection (1) of this section, does not apply in respect of collections referred to in section 30 that are published before the coming into force of section 30. Such collections continue to be governed by paragraph 27 (2)(d) of the Act as it read before the coming into force of section 15 of this Act.''

Clause 19

Strike out lines 7 to 12, on page 38, and substitute the following therefor:

``32. (1) It is not an infringement of copyright for a person at the request of a person with a perceptual disability, or for a non- profit organization acting for his or her benefit, to

(a) make a copy or sound recording of a literary, musical, artistic or dramatic work, other than a cinematographic work, in a format specially designed for persons with a perceptual disability;

(b) translate, adapt or reproduce in sigh language a literary or dramatic work, other than a cinematographic work, in a format specialy designed for persons with a perceptual disability; or

(c) perform in public a literary or dramatic work, other than a cinematographic work, in sign language, either live or in a format specially designed for persons with a perceptual disability.''

Strike out lines 15 to 35, on page 38, and substitute the following therefor:

``(3) Subsection (1) does not apply where the work or sound recording is commercially available in a format specially designed to meet the needs of any person referred to in that subsection, within the meaning of paragraph (a) of the definition of ``commercially available''.''

Add immediately after line 20, on page 42, the following:

``32.5 (1) Notwithstanding section 27, where a person has, before the later of the coming into force of Part II and the day on which a country becomes a Rome Convention country, incurred an expenditure or liability in connection with, or in preparation for, the doing of an act that would have infringed copyright under section 15 or 21 commencing on the later of those days, had Part II been in force or had that country been a Rome Convention country, any right or interest of that person that

(a) arises from or in connection with the doing of that act, and

(b) is subsisting and valuable on the later of those days

is not prejudiced or diminished by reason only that Part II has come into force or that the country has become a Rome Convention country, except as provided by an order of the Board made under subsection 78(3).

(2) Notwithstanding subsection (1), a person's right or interest that is protected by that subsection terminates if and when the owner of the copyright pays that person such compensation as is agreed to between the parties or, failing agreement, as is determined by the Board in accordance with section 78.

(3) Nothing in subsections (1) and (2) affects any right of a performer available in law or equity.''

Clause 20

Strike out lines 31 to 37, on page 43, and substitute the following therefor:

``(4) The following proceedings may be commenced or proceeded with by way of application or action and shall, in the case of an application, be heard and determined without delay and in a summary way:

(a) proceedings for infringement of copyright or moral rights;

(b) proceedings taken under section 44.1, 44.2 or 44.4; and

(i) a tariff certified by the Board under Part VII or VIII, or

(ii) agreements referred to in section 70.12.''

In the English version only, strike out lines 44 to 47, on page 45, and line 1, on page 46, and substitute the following therefor:

``ment or grant in writing from the owner, may individually for himself or herself, as a party to the proceedings in his or her own name, protect and enforce any right that he or she holds, and, to the extent of that right, title and interest, is''

In the English version only, strike out line 6, on page 48, and substitute the following therefor:

``infringements involved in the proceedings, with''

Strike out lines 34 to 37, on page 48, and substitute the following therefor:

``applicable royalties, a collective society referred to in subsection 67(1) may only make an election under this section to recover, in lieu of any other''

Strike out line 12, on page 49, and substitute the following therefor:

``(a) an educational institution or a person acting under its authority that has''

Strike out line 18, on page 49, and substitute the following therefor:

``(b) an educational institution, library, archive or museum that is sued in''

Strike out lines 29 to 40, on page 49, and lines 1 to 14, on page 50, and substitute the following therefor:

``38.2 (1) An owner of copyright in a work who has not authorized a collective society to authorize its reprographic reproduction may recover, in proceedings against an educational institution, library, archive or museum that has an agreement with the collective society and has reproduced the work, a maximum amount equal to the amount of royalties that would have been payable to the society in respect of the reprographic reproduction, if it were authorized, either

(a) under the agreement entered into with the collective society; or

(b) under a tariff certified by the Board pursuant to section 70.15.

(2) Where agreements respecting reprographic reproduction have been signed with more than one collective society or where more than one tariff applies or where both agreements and tariffs apply, the maximum amount that the copyright owner may recover is the largest amount of the royalties provided for in any of those agreements or tariffs.

(3) Subsections (1) and (2) apply only where

(a) the collective society is entitled to authorize or the tariff provides for the payment of royalties in respect of, the reprographic reproduction of that category of work; and

(b) copying of that general nature and extent is covered by the agreement or tariff.''

Strike out line 12, on page 51, and substitute the following therefor:

``(3) Section 38.1 of the Copyright Act, as enacted by subsection (1) of this section, only applies

(a) to proceedings commenced after the date of the coming into force of that subsection; and

(b) where the infringement to which those proceedings relate occurred after that date.

(4) Section 39.1 of the Copyright Act, as''

Clause 24

Strike out lines 2 to 8, on page 53, and substitute the following therefor:

``under this section are taken may, on conviction, order that all copies of the work or other subject-matter that appear to it to be infringing copies, or all plates in the possession of the offender predominantly used for making infringing''

Add immediately after line 16, on page 53, the following:

``(5) No person may be prosecuted under this section for importing a book or dealing with an imported book in the manner described in section 27.1.''

Clause 28

Strike out line 3, on page 57, and substitute the following therefor:

``where they were made, of any used books, except text books of a scientific, technical or scholarly nature for use within an educational institution in a course of instruction.''

Clause 40

Strike out lines 12 to 14, on page 62, and substitute the following therefor:

``in any sound recording, cinematographic film or other contrivance by means of which a work may be mechanically reproduced or performed.''

Clause 42

Strike out lines 22 and 23, on page 62, and substitute the following therefor:

``that is made under subsection 68(3), sections 68.1 or 70.15 or''

Clause 44

Strike out lines 7 to 11, on page 63, and substitute the following therefor:

``regulations issuing policy directions to the Board and establishing general criteria to be applied by the Board or to which the Board must have regard

(a) in establishing fair and equitable royalties to be paid''

Clause 45

Strike out line 18, on page 63, and substitute the following therefor:

``67. Each collective society that carries''

Strike out lines 35 to 43, on page 63, and lines 1 to 6, on page 64, and substitute the following therefor:

``must answer within a reasonable time all reasonable requests from the public for information about its repertoire of works, performer's performances or sound recordings, that are in current use.''

Strike out lines 42 and 43, on page 64, and substitute the following therefor:

``tariff, prospective users or their representatives may file written objections to the tariff''

Strike out lines 29 to 39, on page 65, and substitute the following therefor:

``single payment; and

(b) may take into account any factor''

Strike out line 29, on page 66, and substitute the following therefor:

``thirty-three and one third per cent of the royalties set out''

Strike out line 32, on page 66, and substitute the following therefor:

``coming into force of this section, sixty-six and two thirds''

Strike out line 34, on page 66, and substitute the following therefor:

``approved tariff for that year, and''

Strike out line 36, on page 66, and substitute the following therefor:

``coming into force of this section, one hundred''

Strike out lines 38 to 44, on page 66, and lines 1 and 2, on page 67, and substitute the following therefor:

``approved tariff for that year;''

Strike out line 10, on page 67, and substitute the following therefor:

``into force of this section, thirty-three and one third per cent''

Strike out line 14, on page 67, and substitute the following therefor:

``coming into force of this section, sixty-six and two thirds''

Strike out line 16, on page 67, and substitute the following therefor:

``approved tariff for that year, and''

Strike out line 18, on page 67, and substitute the following therefor:

``coming into force of this section, one hundred''

Strike out lines 20 to 28, on page 67, and substitute the following therefor:

``approved tariff for that year.''

Strike out lines 33 to 36, on page 67, and substitute the following therefor:

``(3) The Board may, by regulation, define ``advertising revenues'' for the purposes of subsection (1).''

Strike out line 7, on page 68, and substitute the following therefor:

``(2) No proceedings may''

Strike out line 17, on page 68, and substitute the following therefor:

``(3) Where a''

Strike out lines 31 to 34, on page 68.

Strike out lines 35 to 38, on page 68.

Strike out lines 1 to 6, on page 69.

Strike out lines 7 to 44, on page 69.

Clause 46

Add immediately after line 13, on page 70, the following:

``(a.1) a licensing scheme, applicable in relation to a repertoire of performer's performances of more than one performer, pursuant to which the society sets out the classes of uses for which and the royalties and terms and conditions on which it agrees to authorize the doing of an act mentioned in section 15 in respect of those performer's performances;''

Strike out lines 31 to 39, on page 70, and lines 1 to 4, on page 71, and substitute the following therefor:

``70.11 A collective society referred to in section 70.1 must answer within a reasonable time all reasonable requests from the public for information about its repertoire of works, performer's performances, sound recordings or communication signals.''

In the English version only, strike out line 16, on page 71, and substitute the following therefor:

``in both official languages, of royalties to be''

Strike out lines 38 and 39, on page 71, and substitute the following therefor:

``tion (1), subsections 68(4) and 68.2(1) apply, with such modifications as the''

In the English version only, strike out lines 5 to 8, on page 72, and substitute the following therefor:

``affected by a proposed tariff, by

(a) distributing or publishing a notice, or

(b) directing another person or body to distribute or publish a notice,

in such manner and on such terms and conditions as the Board sees fit.''

Strike out lines 9 to 13, on page 72, and substitute the following therefor:

``70.17 Subject to section 70.19, no proceedings may be brought for the infringement of a right referred to in section 3, 15, 18 or 21 against a person who has paid or offered to pay the royalties specified in an approved tariff.''

Strike out line 18, on page 72, and substitute the following therefor:

``society to do an act referred to in section 3, 15,''

Strike out line 34, on page 72, and substitute the following therefor:

``do an act mentioned in section 3, 15, 18 or 21, as''

Strike out line 3, on page 73, and substitute the following therefor:

``mentioned in section 3, 15, 18 or 21, as the case''

Clause 48

Strike out line 44, on page 73, and substitute the following therefor:

``person to do an act mentioned in section 3, 15, 18''

Clause 50

Strike out lines 25 to 32, on page 74, and substitute the following therefor:

``by the following:

ROYALTIES IN PARTICULAR CASES

71. (1) Each collective society that carries on the business of collecting royalties referred to in subsection 29.6(2), 29.7(2) or (3) or paragraph 31(2)(d)''

Strike out lines 29 to 31, on page 75, and substitute the following therefor:

``(a) establish''

Strike out line 4, on page 77, and substitute the following therefor:

``subsection 29.6(2) or 29.7(2) or (3) is,''

Strike out lines 41 to 47, on page 77, and substitute the following therefor:

``performance in public, or

(v) paragraph 31(2)(d), beginning on the communication to the public by telecommunication.''

Add immediately after line 24, on page 78, the following:

``(4) The Copyright Board may make regulations governing the issuance of licences under subsection (1).''

Strike out line 26, on page 78, and substitute the following therefor:

``purposes of subsections 32.4(2), 32.5(2) and 33(2), the''

Strike out line 35, on page 78, and substitute the following therefor:

``tion 32.4(3) or 32.5(3).''

Strike out line 8, on page 79, and substitute the following therefor:

``subsection 32.4(3) or 32.5(3), as the case may be, has been commenced,''

In the French version only, strike out lines 9 and 10, on page 80, and substitute the following therefor:

``« producteur admissible » Le producteur de l'enregistrement sonore d'une oeu-''

Strike out line 32, on page 81, and substitute the following therefor:

``81. (1) Subject to and in accordance with this''

Add immediately after line 5, on page 82, the following:

``(2) Subsections 13(4) to (7) apply, with such modifications as the circumstances require, in respect of the rights conferred by subsection (1) on eligible authors, performers and makers.''

In the French version only, strike out line 2, on page 84, and substitute the following therefor:

``responsabilités ou fonctions découlant des articles 82, 84''

Strike out lines 14 to 20, on page 84, and substitute the following therefor:

``levies are fair and equitable, having regard to any prescribed criteria.''

Strike out line 25, on page 88, and substitute the following therefor:

``(2) The court may order a person who fails to pay any levy due under this Part to pay an amount not exceeding five times the amount of the levy to the collecting body. The collecting body must distribute the payment in the manner set out in section 84.

(3) Where any obligation imposed by this''

Add immediately after line 30, on page 88, the following:

``(4) Before making an order under subsection (2), the court must take into account

(a) whether the person who failed to pay the levy acted in good faith or bad faith;

(b) the conduct of the parties before and during the proceedings; and

Strike out line 8, on page 89, and substitute the following therefor:

``conferred by Part I or, in and of itself, as prejudicing the amount of royalties that the Board may fix in respect of those rights.''

New Clause 53.1

Add immediately after line 20, on page 90, the following:

``53.1 Notwithstanding subsection 67.1 (2) and section 70.13, the date for the filing of the first proposed tariffs under those sections shall be on or before the September 1 of the year of the coming into force of this section.''

New Clause 54.1

Add immediately after line 26, on page 90, the following:

``54.1 Section 6 of the Copyright Act applies to a photograph in which copyright subsists on the date of the coming into force of this section, if the author is

(a) a natural person who is the author of the photograph referred to in subsection 10(2) of the Copyright Act, as enacted by section 7 of this Act; or

(b) the natural person referred to in subsection 10(1.1) of the Copyright Act, as enacted by section 7 of this Act.''

Clause 55

Add immediately after line 47, on page 90, the following:

``(3) Where an assignment of copyright or a grant of any interest therein

(a) was made before the coming into force of Part II of the Copyright Act, as enacted by section 14 of this Act, and

(b) was made by the maker of a sound recording who was a natural person,

subsections 14(1) and (2) of the Copyright Act continue to apply in respect of that assignment or grant, with such modifications as the circumstances require, as if the sound recording was the work referred to in those subsections and the maker of the sound recording was its author.''

New Clause 58.1

Add immediately after line 15, on page 91, the following:

``58.1 No agreement concluded before April 25, 1996 that assigns a right or grants an interest by licence in a right that would be a copyright or a right to remuneration under this Act, shall be construed as assigning or granting any rights conferred for the first time by this Act, unless the agreement specifically provides for the assignment or grant.''

Clause 62

Strike out line 31, on page 91, and substitute the following therefor:

``(a) the definitions ``exclusive distributor'', ``educational institution'' and ``library, archive or museum''''

Strike out lines 35 to 37, on page 91, and substitute the following therefor:

``enacted by section 2 of this Act;

(d) section 45 of the Copyright Act, as enacted by section 28 of this Act.''

Clause 63

Add immediately after line 5, on page 93, the following:

``(3) For greater certainty, the expiration of the period referred to in subsection 62(2) of this Act does not affect the right of an exclusive distributor to continue, after the expiration of that period, legal proceedings validly commenced during that period.''

Your Committee has ordered a reprint of Bill C-32, as amended, as a working copy for the use of the House of Commons, at the Report Stage.

A copy of the Minutes of Proceedings relative to this Bill (Issues Nos. 2, 3, 4 and 5 which includes this Report) is tabled.

Respectfully submitted,

Le président,

CLIFFORD LINCOLN,

Chair.