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FREQUENTLY ASKED QUESTIONS AND ANSWERS
Copyright of Digital Chart Data
Q1:
Why does NDI have an exclusive arrangement with CHS? Is the CHS-NDI relationship new? Q2:
Are the only CHS certified and officially released Canadian ENC’s and
Raster charts those originated by CHS and distributed through NDI and NDI’s
dealer network, or are there other companies who provide official Canadian
ENC and Raster charts? Q3: Why are CHS and NDI imposing excessive royalty fees on a product that is meant for public safety? Q4: Why will royalty rates charged by CHS and NDI result in retail prices of electronic products in Canada doubling or tripling? Q5:
If major manufacturers cease to produce and distribute Canadian data
products, is NDI capable of supplying chart cards for such manufacturers’
charting devices being sold in Canada? Q6: What
Added Value does NDI provide? Q7: Many waterways charts in electronic/digital format have yet to be created; will they ever be developed? Q8: How does the CHS-NDI relationship benefit me? Q9: Will any of the Canadian charts that we do have
to be discontinued? Q10: What are the consequences of copying a nautical chart without permission? Table
of Authorized Manufacturers and Products
Q1: Why
does NDI have an exclusive arrangement with CHS? Is the CHS-NDI
relationship new?
A1:
The CHS-NDI relationship began over ten years ago with CHS granting NDI
sole distribution rights in return for considerable electronic
chart development. As a result, Canada’s electronic chart inventory
now contains 100% raster coverage and over 50% S57 vector coverage in
southern Canadian waterways.
Q2:
Are the only CHS certified and officially released Canadian ENC’s and
Raster charts those originated by CHS and distributed through NDI and NDI’s
dealer network, or are there other companies who provide official Canadian
ENC and Raster charts?
A2:
The only CHS certified and officially released Canadian digital charts
are those distributed through NDI and NDI’s dealer network. However,
several companies have obtained a value-added development and
distribution license from NDI allowing them to access official charts
and data and legitimately sell their products within Canada and abroad
(see attached list of licensed value-added developers).
Q3:
Why are CHS and NDI imposing excessive royalty fees on a product that is
meant for public safety?
A3:
The royalty fees required to be paid by qualified value added developers in return for their licenses are not excessive. Royalty fees enable NDI
to maintain and improve upon existing data and charts as well as continue to further develop Canadian data products and better services all of which significantly contribute towards the public safety and boating pleasure. These royalty fees are within industry practices, which are accepted by private and public hydrographic industry stakeholders, taking into consideration the cost recovery of source data digitization, updating and distribution services as well as the viability of the business operation, and the level of value added development.
Q4:
Why will royalty rates charged by CHS and NDI result in retail prices of
electronic products in Canada doubling or tripling?
A4:
NDI has no control or authority on how and at what level manufacturers decide to price their products. Several authorized value added developers who have signed the same royalty agreement have not raised prices; in fact, one value added licensee has lowered its value added data product prices to drive up sales volume. However, given that the royalty rates are not applicable to any wholesale discount or to the blank cartridge price (with respect to cartridge-based data products), using the requirement to pay royalty in order to have a bona-fide license as an excuse to double or triple the retail price is unjustified practice.
Q5:
If major manufacturers cease to produce and distribute Canadian data
products, is NDI capable of supplying chart cards for such manufacturers’
charting devices being sold in Canada?
A5:
Yes, NDI strives to make Canadian charts data available to the boating community in all industry formats as well as in open, hardware and software independent format. Subject to obtaining appropriate licenses from interested
manufacturers NDI would be prepared to produce and distribute its Canadian data charts in such manufacturers' proprietary formats. NDI has proposed and continues to explore such potential with major proprietary navigation system manufacturers.
Q6:
What Added Value does NDI provide?
A6:
NDI made substantial investments to develop, upgrade and update Canada’s
electronic navigation chart and data inventory as it stands today. NDI
has released new versions of the raster charts that now include
pictures, more tidal information and more marinas on a whole new
platform – BSB Version 4. NDI is also developing the latest
version of S57 Vector charts (Version 3.1) and NDI is working hard to
complete the S57 ENC coverage for the whole country. In addition, NDI is
continuously developing new data products, features, applications,
better customer support services and overall navigation upgrades with
its industry partners.
Q7:
Many waterways charts in electronic/digital format have yet to be created;
will they ever be developed?
A7:
Currently all Canadian waterways are available in raster format and NDI is continuously improving and enhancing these charts. There is over 50% S57 ENC compatible vector coverage and NDI is working
with CHS to further develop this inventory as well.
Q8:
How does the CHS-NDI relationship benefit me?
A8:
The CHS–NDI relationship is an innovative private-public arrangement that has enabled the Government of Canada to develop the latest, most
up-to-date and safe electronic navigation charts and makes them
available to all Canadians in an affordable manner.
Q9:
Will any of the Canadian charts that we produce have to be discontinued?
A9:
No Canadian charts are planned to be discontinued. In fact, it is quite
the opposite; the Canadian chart portfolio continues to expand in
variety of open and proprietary formats. However, NDI will not support
any manufacturer's data product in any format (proprietary or
otherwise) without a legitimate value-added license agreement.
Q10:
What are the consequences of copying a nautical chart without permission?
A10: It
is a criminal offense under Sections 42(1)(a) and 42(1)(f) of the
Copyright Act to make, sell, rent, or distribute infringing copies or
works in which copyright subsists. Penalties for copyright infringement
can range from jail sentences to monetary fines, or both. Copying and
distributing copyright protected works without appropriate license
result in jobs loss, negative economic impact on licensed producers and
distributors, and potential hazard and financial and risk to the users.
Authorized
Manufacturers and Products
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