Ethnic groups call on standing committee to legalize satellite TV grey market

Some ethnic groups are calling on the government to legalize grey market television so that they can access third-language programming not currently available in Canada. Appearing April 29 before the Standing Committee on Industry, Science and Technology, Paul Fitzgerald, VP and legal counsel of the Congreso Ibero-Americano de Canada (CIAC), stressed the importance of distinguishing among the black, grey and legal satellite TV markets. "The grey market lets Canadians get news that is unavailable elsewhere," said Fitzgerald. He added that the grey market shouldn’t be illegal because in Canada it has never been illegal to subscribe to a foreign newspaper, import a book, listen to a foreign radio station or watch foreign channels via the Internet. The standing committee is examining Bill C-2, which proposes tougher penalties against grey and black market satellite TV dealers. The bill, formerly Bill C-52, calls for the maximum penalty for corporations decoding an encrypted signal and modifying equipment for that purpose to increase from the current $25,000 to $200,000. The bill would also up the fees for corporations that retransmit an encrypted subscription programming signal decoded without authorization from $200,000 to $500,000. Bill C-2 also prohibits the importation of satellite decoding equipment without a permit from the Canadian government (CCR, Oct. 31/03). But the ethnic groups say that the grey satellite TV market allows them to access programming currently not available in Canada. While the Supreme Court of Canada ruled in April 2002 that both the grey and black satellite TV markets were illegal under the Radiocommunication Act, Canada’s highest court did not address Charter of Rights and Freedoms issues related to the legislation (CCR Update, April 26/02). Some illegal satellite TV dealers argue that outlawing the receipt of foreign TV signals violates the Charter. Placing the choice argument front and centre, CIAC told the standing committee that any amendments to the Radiocommunication Act should distinguish between the grey and black satellite TV. The organization proposed that amendments to the Act should legalize the ethnic grey market and introduce a grey market tax of $1 per receiver per month to support the Canadian Television Fund. But to combat the black market, CIAC called for civil remedies against individuals and companies who sell and use black market radiocommunications equipment and the introduction of the new offence of "trafficking" in pirated receiver cards and modified receivers. The grey satellite TV market is different from the black market because grey market operators respect TV programming copyright by paying the satellite distributor, which is not authorized to operate in Canada, pointed out CIAC. Because the subscriber is billed, often to a U.S. address although the equipment is used in Canada, money still flows back to the TV network that produces the programming. Bahija Reghai, VP of the Coalition of Canadian Arab Professionals and Community Associations, added that she was "shocked upon discovering that Prime Minister Paul Martin’s first piece of legislation would be a bill that seeks to criminalize Canadians, particularly members of Canada’s ethno-cultural communities who are currently paying for cultural programming not made available on Bell ExpressVu or Star Choice, but available through brokers working openly in our communities." She called the increased penalties spelled out in Bill C-2 "Orwellian." She also complained that while the CRTC had granted licences to some Arabic channels, cable operators have refused to carry them because they believe they aren’t profitable. "We are painfully aware that the demands of the Coalition Against Satellite Signal Theft (CASST)…were met virtually word for word in this bill. This government is sending the wrong message to our communities if its only solution to the problem of lack of access to cultural programming is to criminalize those who wish to pay for such programming," she said. The Canadian Association of Broadcasters (CAB), a member of CASST, vehemently opposes the argument that more consumer choice would help reduce the grey and black markets. When the Canadian Cable Television Association (CCTA), another CASST member, argued that bringing 17 new U.S. channels into the country would give subscribers more choice and decrease their need to turn to illegal TV programming, the CAB accused the CCTA of abandoning the coalition. At the time, CAB president and CEO Glenn O’Farrell proclaimed it "preposterous that this would be a solution for theft of satellite signals" (CCR, June 30/03). Before the standing committee, however, CASST members stood united in their call for stricter penalties for prosecuting black and grey satellite TV market dealers. "Two years after the Supreme Court of Canada ruled that unauthorized satellite services are illegal, we have still not seen sufficient enforcement to deal with this problem," said Ken Stein, senior VP of corporate and regulatory affairs at Shaw Communications Inc. "Without having the proper legislation tools or the will of the government to act urgently (against illegal dealers) we are beginning to ask ourselves why we should continue to support a broadcasting system that is not supported by its own lawmakers." His comments echo those made two years ago by Janet Yale, who was then CCTA president and CEO. She called on the federal government to stand up for its own television and cultural policies by cracking down on the illegal black and grey market. She suggested that licensed Canadian distributors should not have to heed carriage rules or contribute to the CTF if the government didn’t take action against black and grey market dealers, which operate under no rules (CCR, Sept. 26/02). Stein said the amendments proposed under Bill C-2 are "essential to providing government and industry with the tools necessary to deal with the satellite TV black market." Shan Chandrasekar, president and CEO of the Asian Television Network, which is a CAB member, stressed the need for tougher penalties while noting that the industry’s intent was not to pursue individuals receiving illegal satellite TV signals, but "those involved in the commercial activity who are reaping millions of dollars." O’Farrell emphasized that the amendments would not make any new activity illegal but would simply provide for tougher enforcement measures. "The revisions being proposed in Bill C-2 would not change the law. What is currently illegal will remain illegal. What the amendments would do is update the existing inspection provisions, increase the penalties for breaking the law, provide a mechanism to control the entry into Canada of unauthorized equipment and provide for statutory damages in civil cases," he noted. While the majority of CASST’s presentation dealt with the need for stricter penalties, it touched briefly on the issue of choice. "Finally, although we are here today to address amendments to the Radiocommunication Act, we are aware that some committee members have concerns about the availability of foreign services in Canada. While the Canadian system offers an exceptional diversity of programming it is certainly true that many services originating outside our country have not yet been authorized for distribution in Canada," said Chandrasekar. "…In fact, the commission is currently considering applications for 15 new third-language services. The system does work if people are prepared to follow it. Once they start to operate outside the legal framework, the system begins to break down…Regardless of the reason people steal, theft cannot be tolerated and those who promote, aid and abet it must face the consequences of their actions." Again arguing for greater consumer choice, the CCTA has applied for CRTC approval to carry more foreign channels, including some foreign-language services (CCR, April 22/04; April 25/03). It is those applications that the CRTC is considering. - With files from Zoran Vidic

Ethnic groups call on standing committee to legalize satellite TV grey market

Broadcast | May 6, 2004

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