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The Canadian Hydrographic Service and Nautical Data International 4-Jan-2005
Since 1993, Canadian Hydrographic Services' digital charts have been distributed by Nautical Data International Inc. (NDI) and its value-added resellers. Over the past year, DFO has received over a hundred complaints about NDI. These complaints have come from a variety of sources, including recreational boaters, the navigational chart industry, and other levels of government. Complaints range from frustration with NDI's pricing practices, to boaters being unable to obtain the electronic chart products they need. In addition, DFO has had serious difficulties with NDI, including non-payment of royalties for DFO-owned products. Despite repeated efforts to remedy these problems, there has been little improvement in the situation. As a result, DFO has terminated its agreement with NDI. Effective immediately, and in the interim, Canadian Hydrographic Services' dealers will be distributing the digital certified products. CHS will be considering digital distribution options over the coming months. Terminating the contract with NDI is in the best interests of Canada's recreational boaters and navigational chart industry, DFO, other government departments and Canadian taxpayers, who rely on the best, most accurate charts possible for safe navigation.
FREQUENTLY ASKED QUESTIONS The Canadian Hydrographic Service and Nautical Data International 4-Jan-2005 What is the Canada/ Nautical Data International (NDI) Agreement? The Canada/NDI Agreement is a copyright licence agreement which was originally signed in 1993 between the Department of Fisheries and Oceans and Nautical Data International. The Agreement gives NDI the sole licence to reproduce and distribute digital nautical charts and other hydrographic data, and imposes restrictions on the Canadian Hydrographic Services' (CHS) ability to distribute the data.
What is happening with the Canada/NDI Agreement?
Minister Regan has decided to terminate the Canada/ (NDI) Agreement. NDI received the notice of termination today. The termination will come into effect in one month's time, on February 4, 2005.
Why did CHS terminate its agreement with NDI?
It is no longer in the public interest for DFO to have an agreement with NDI. Over the past year, DFO received more than 100 complaints from recreational boaters and the navigational chart industry about NDI's pricing practices and product availability.
The agreement is seriously hampering DFO's ability to partner with other federal departments and others to deliver on many programs.
Despite repeated efforts to remedy this situation, there was little improvement. This was a decision that was not taken lightly.
Why did it take so long for action to be taken?
Major difficulties with the Agreement started in 2000 and CHS wanted to make every effort to remedy the situation before taking such serious action. CHS spent considerable management time and resources in trying to resolve its differences with NDI. CHS also made every effort to resolve difference between NDI and other parties. In CHS' view, these efforts were necessary before taking the decision to terminate the Agreement.
Why did CHS have a sole arrangement with NDI?
When the CHS-NDI relationship began over ten years ago, the concept of electronic charting was in its infancy and CHS did not have the capacity to respond to demands from manufacturers and the public for electronic chart data. Because the market was in its infancy, it was determined that there was insufficient business to support multiple distributors and that a sole licence would make the business viable as well as provide a single point of contact for all electronic chart companies to obtain official CHS digital chart data products.
Will the taxpayer have to foot the bill if NDI sues CHS?
It is premature to comment on any subsequent legal action that may arise from the termination of the agreement.
Will there be job loss at NDI as a result of the legal action taken by CHS?
It is possible that this action could impact on employment at NDI. The Minister is committed to minimizing any negative effect on employment in St. John's, Newfoundland-Labrador in connection with replacing the work NDI had been contracted to perform.
Fisheries and Oceans Canada will make every effort to make use of the technical expertise in Newfoundland-Labrador as much as possible in service delivery.
How will this impact on the services and products previously available from NDI?
For the first year after the termination of the agreement, authorized CHS will distribute digital certified products to authorized CHS dealers, who will distribute the products to recreational boaters. CHS will also continue to distribute the data to licensed value-added resellers, who will continue to distribute other digital nautical data products to recreational boaters.
During this period, CHS will consider distribution options for these products for the 2006 boating season.
Will products be available for the upcoming boating season? Will they be the same price as last year?
Most digital certified products will be available immediately. A list will be posted on the CHS website. The prices will be set by dealers, however, the CHS suggested retail prices will not exceed those of the existing pricing structure.
How do I know if the products I am purchasing are safe?
CHS certified products are safe and meet the legal requirement for carrying charts.
Does this mean that I can legally purchase products from C-MAP and Navionics now?
You will be able to purchase products from C-Map and Navionics as soon as they obtain licences from CHS to distribute these products.
A list of CHS authorized manufacturers and products are available on the CHS website. This list is updated regularly.