Beginning on January 2, Canadian ISPs are now required to send copyright infringement notices to their subscribers. The notification scheme provides a protection for ISPs while a rise of piracy settlement schemes is likely to occur. Also, the new Canadian copyright law also enforces that VPN providers are now required to log customers for six months, at minimum.

Following several years of public and private discussions, Canada is beginning to enforce a new copyright law recently.

According to this law, Canadian ISPs are now required to forward copyright notices they receive from rightsholders to their customers. ISPs, and even VPN services, who fail to comply will face fines and damages up to $10,000.

The important aspect of this law is that it protects Internet Service Providers from copyright holder lawsuits due to the Canadian copyright law. However, the Internet subscribers will experienced warnings rather than the “strikes”’ systems that other countries have used.

One of the most important concerning issues are that the “settlement schemes” where copyright holders ask pirating subscribers to pay a fee, which has become commonplace in the United States, is now expected to be implemented throughout Canada.

One particular company that helps rightsholders to collect settlements is CEG TEK as they prepare to utilize Canada as a capital opportunity by entering into that national market, especially with this law now in effect.

According to CEG TEK’s COO Kyle Reed, “We have been conducting tests in the Canada market and see positive results with ISPs. We look forward to a full-scale launch in the new year,”

However, Professor Geist states accordingly that these settlement notices are a “significant concern” because the law currently doesn’t prohibit copyright holders from sending them in, but the subscribers’ identities are hidden.

Canadian ISPs would however be required to send these notifications, but there is nothing new in the Canadian copyright law that would stop them from advising subscribers on the context of these notices”, he adds.

The new notice-and-notice system has also impacted VPN providers by requiring them to identify pirating customers so they can forward infringement notices with the goal of causing all VPN services to be financially unsustainable in Canada.