Viewing cable 06MONTREAL365, IPR in Montreal Part 1 - An International Hub for

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UNCLAS SECTION 01 OF 03 MONTREAL 000365 
 
SIPDIS 
 
SIPDIS 
 
C O R R E C T E D C O P Y (REMOVED COMMENT REMARK PARA 10) 
 
Ref: Ottawa 406, 05 Ottawa 2970 
 
SECSTATE FOR WHA/CAN, WHA/PD, DS/IP/WHA 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KIPR CA
SUBJECT: IPR in Montreal Part 1 - An International Hub for 
Movie Piracy 
 
 
MONTREAL 00000365 001.2 OF 003 
 
 
This message is Sensitive but Unclassified 
 
¶1. (U) Summary. As of May 2005, nearly 50% of the world's 
pirated movies, and 78% of illegal camcording in Canada, 
could be traced back to seventeen Montreal theaters. The 
combination of first-world release dates, simultaneous 
bilingual release of movies, sophisticated camera 
technology, and the lack of anti-camcording laws in the 
criminal code make the city an appealing first step in the 
pirating chain. Camcording and file sharing have had an 
impact on the local film and music industries in Quebec, 
prompting a growing awareness and political activism among 
certain stakeholders of the importance of combating IPR 
violations. The Canadian Motion Picture Distributors 
Association (CMPDA) has undertaken efforts to combat illegal 
camcording, and specifically noted to us the "big impact" 
that Canada's placement on the 301 Watch List has had in 
reaching Canadian Federal government officials. CMPDA and 
other movie and music industry stakeholders continue to push 
the Canadian federal government and the RCMP to make IPR 
protection a priority. End summary. 
 
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Camcorded in Montreal, on Big City streets worldwide six 
hours later 
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¶2. (U) Camcording in Montreal theaters provides material 
for nearly half of pirated disks throughout the world. 
Through the reliability and high speed of Montreal's 
Internet services pirated materials reach potential viewers 
fast: a film can be recorded for the first time in a 
Montreal theater and be sold on another country's big city 
streets within six hours that same day. Moreover, illegal 
camcording thrives in Montreal because movies have "first 
world" release dates, releases are available simultaneously 
in French and English, and there are no anti-camcording laws 
in Canada's criminal code. 
 
¶3. (SBU) Serge Corriveau, Vice-President of Anti-Piracy 
operations at the Canadian Motion Picture Association's 
Montreal division, confirmed that as of May 2005, 
approximately 40%-50% of the pirated movies available around 
the world could be traced back to Montreal theaters. Each 
movie released to theaters contains an identifying 
"watermark" which can be used to trace pirated movies to the 
theater where they first played. Illegal camcording began 
in earnest in Montreal theaters in 2003 and has been 
steadily growing in popularity. In 2003, there were only 
three reported incidents of illegal camcording, whereas in 
2005 there were 57 reported incidents. Despite this growth 
trend, Corriveau explained that in recent months, there has 
been a slight decrease in the overall percentage of Montreal- 
born pirated films worldwide due to an increase in illegal 
camcording activities in Europe which he attributed to 
pirates' having access to sound technology that creates 
better-quality DVDs. Corriveau believes this shift is not 
indicative of an IPR victory and that illegal camcording in 
Montreal will continue to be a problem. 
 
¶4. (U) Movie pirates in Montreal have become increasingly 
bold and adept at filming secretively because recording 
devices have become smaller and harder to detect, and also 
as a result of the absence of deterring provisions in the 
criminal code. provisions The camcorders of choice in 
Montreal theaters are extremely small and nearly invisible. 
(They don't have a light that can be seen in the dark of the 
movie house.) Especially in Quebec, theater owners are 
reluctant to search moviegoers' bags, except during large- 
scale premieres, for fear they will turn off potential 
customers and be accused of violating privacy and civil 
liberties. Even more frustrating for IPR proponents such as 
Corriveau, while there are provisions against camcording in 
movie theaters in Canada's copyright code, law enforcement 
officials must prove "commercial intent" on the part of the 
person filming the movie who may claim that he or she is 
only filming for personal use. 
 
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Challenges: Small, well-organized groups / Jurisdiction 
Issues 
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¶5. (SBU) The recording and distributing of camcorded movies 
in Montreal consists of "small, well-organized" pirating 
groups. These groups principally operate out of their 
homes, which makes it even harder for law enforcement 
officials to overcome privacy laws and gather enough 
 
MONTREAL 00000365 002.2 OF 003 
 
 
evidence to make a strong case against those making illegal 
DVDs, software, and music. Because the protection of IPR 
falls to the Department of Industry and the Department of 
Canadian Heritage, and is therefore a federal jurisdiction, 
the Royal Canadian Mounted Police (RCMP) alone has the 
authority in Quebec to go after IPR violators. Local police 
may be called onto the scene of a potential IPR violation, 
but they do not have the mandate to pursue these cases. 
Corriveau added that, with the exception of Toronto and 
Vancouver, it had been difficult for the CMPDA to get local 
police involved in IPR violations. 
 
¶6. (SBU) There are no provisions against camcording in movie 
theaters in Canada's criminal code, something that the CMPDA 
would like to see changed. Canadian Customs officials also 
lack the mandate to seize pirated goods if they discover 
them on travelers or to inform the copyright holder of the 
presence of pirated goods. The CMPDA also complained about 
the problem of "ex officio" authority and is pressing the 
Canadian federal government to give Customs officials the 
mandate to seize pirated goods when they discover them. 
 
¶7. (U) A recent case brought against a Montreal-based man 
filming movies in a Chicoutimi (a small town north of 
Montreal) theater will go to trial later this year. This 
was an example of industry-law enforcement cooperation the 
CMPDA is seeking. When the theater management was informed 
about the camcorded movies emerging from their premises, 
they conducted an internal investigation and tracked down 
the culprit. Although the man had erased his hard drive of 
all the movies he had recorded, the RCMP got involved and 
was able to find evidence of movie pirating on his computer. 
 
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Deterring pirates- Rewards, Awareness, and 301 
--------------------------------------------- - 
 
¶8. (SBU) In 2004, the CMPDA a program to train theater 
employees to spot illegal camcorders. It provides cash 
rewards for employees who report illegal filming activity. 
In just the last seven months, theater employee efforts 
resulted in the discovery of four persons, one of which in 
Quebec, engaging in illegal camcording. Informational spots 
to raise awareness about illegal camcording and IPR which 
have played in US theaters and the rest of Canada have not 
yet aired in Quebec because they are only available in 
English. Although Canada has been on the Watch List from 
1989-1992 and again from 1995-2005, Mr. Corriveau stated 
that Canada's placement on the 301 "Watch List" in 2005 and 
recommendation for an "out of cycle review" had a "big 
impact" on his contacts in the Canadian government. "It was 
as though they were hearing about the watch list for the 
first time," he added. 
 
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Comment 
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¶9. (U) In 2005, Quebecois films occupied 18% of the 
province's local box office market, a percentage that, 
outside the United States, can only be rivaled by France. 
Quebecois music has fared even better on the local market, 
monopolizing some 38% of all CD sales. More than half of 
the twenty largest musical successes between 2002 and 2004 
were local creations. This economic reality and point of 
Quebecois pride will continue to make Quebec's film industry 
stakeholders concerned about pirated movies since Quebecois 
films and CDs are being copied and sold at Montreal-area 
flea markets just like the Hollywood movies and big-label 
music artists. 
 
¶10. (SBU) Those at the CMPDA's Montreal office and 
the association representing producers of local films remain 
hopeful that new Federal Minister of Industry Maxime Bernier 
(who hails from Quebec) will be open to making IPR 
amendments to the criminal code and giving Customs the 
mandate to do more with pirated goods detected at ports of 
entry. The CMPDA will continue to push for the 
implementation of an anti-camcording law in the criminal 
code with the Departments of Industry and Heritage. The 
local popularity of Quebec's music and film industry place 
it in a unique position to highlight the impacts of IPR 
violations on smaller artists who are not internationally 
recognized. The lack of anti-camcording provisions in 
Canada's criminal code combined with the RCMP's reluctance 
to make IPR violations a law enforcement priority will, for 
 
MONTREAL 00000365 003.2 OF 003 
 
 
the time being, hamper efforts to make real progress towards 
increased IPR protection in Canada. In Quebec, at least, 
the involvement of local stakeholders may serve as a wake up 
call for the federal government as to the importance of the 
issue for local talent. 
 
Marshall