💪 Elbows Up: Why Repealing Anti-Circumvention Laws Is a Smart, Strategic Move for Canada

I recently read a fascinating article in the Financial Times—The digital countermove to Trump tariffs—and while it framed the issue as a geopolitical trade tactic, it sparked a deeper thought: repealing anti-circumvention laws may be one of the most underrated economic levers Canada can pull.

In the face of escalating tariffs, trade weaponization, and U.S.-centric tech monopolies, it’s time for Canada to put its elbows up—not with more tariffs, but with smarter regulation.

Specifically: repealing anti-circumvention laws.

🔐 What Are Anti-Circumvention Laws?

Anti-circumvention laws make it illegal to bypass digital locks—also known as Digital Rights Management (DRM)—even when a consumer has legally purchased the product. These laws apply to devices and software ranging from smartphones and tractors to e-books, printers, and household appliances.

Here’s what that means in practice:

• You can’t legally unlock your phone to use it with another carrier.

• You can’t use third-party software or parts to repair your own equipment.

• You can’t develop tools or products that integrate with locked systems—no matter how legitimate the purpose.

These laws were introduced in the U.S. under the DMCA (Digital Millennium Copyright Act) in 1998. The DMCA was designed to prevent piracy in the early internet era—but it also introduced sweeping restrictions that favored copyright holders over users.

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🌍 How Did These Laws Come to Canada?

Countries like Canada adopted these laws largely to comply with U.S.-led trade agreements—most notably the USMCA (United States-Mexico-Canada Agreement), which replaced NAFTA in 2020.

To avoid trade barriers and ensure access to the U.S. market, Canada agreed to adopt DMCA-style provisions, including the protection of digital locks—even if those locks restrict fair use, repair, or innovation.

In doing so, Canada handed over an enormous amount of economic and technological control:

• Our consumers became dependent on U.S. tech ecosystems.

• Our innovators were legally restricted from building around those ecosystems.

• Our digital sovereignty eroded—not through data theft or hacking, but through copyright law.

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💸 The Real Cost: Underestimated, But Enormous

While it’s difficult to quantify precisely, the financial implications of these laws are far-reaching—and likely underestimated:

• Monopoly Pricing & Lock-In
  Anti-circumvention rules help big tech players lock consumers into proprietary systems. This business model protects billions in revenue annually for U.S. firms. Companies like Apple, Amazon, and Microsoft generated over $2 trillion in global revenues in 2023 alone, with a substantial portion linked to locked ecosystems and restricted third-party access.

• Suppressed Innovation
  Canadian startups, researchers, and repair shops are legally blocked from improving, modifying, or even accessing many systems. The result? Lost opportunities for homegrown IP, stalled competition, and barriers to commercialization in fast-growing tech sectors.

• Repair and Sustainability Losses
  The global repair economy exceeds $100 billion a year, and anti-circumvention laws effectively bar Canadians from fully participating. Consumers are forced to replace rather than repair, pushing unnecessary spending toward original manufacturers and away from local businesses. It’s a tax on functionality—and it’s bad for the environment, too.

• Strategic Dependence
  These laws entrench Canada’s reliance on U.S. tech platforms and digital infrastructure. The hidden cost? Diminished bargaining power in digital trade, weaker domestic alternatives, and a system that exports not just money—but influence.

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🧰 If You’ve Ever Tried to Fix Your AirPods Max…

Anyone who’s ever attempted to repair their Apple AirPods Max, washing machine, or car infotainment system knows exactly what this is about.

And don’t even get me started on planned obsolescence—that delightful design feature where your device mysteriously dies the week after your warranty expires.

The system isn’t broken. It’s working exactly as designed—and consumers, innovators, and the planet are paying the price.

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💪Elbows Up: A Canadian Way to Push Back

This isn’t about chaos or copyright theft—it’s about restoring balance.

Repealing anti-circumvention laws would allow Canada to:

• ✅ Empower consumers to repair and adapt their own devices

• ✅ Enable startups to build around existing technologies

• ✅ Grow a sustainable, competitive tech economy

• ✅ Reduce foreign monopoly rents and reclaim economic value

• ✅ Strengthen digital sovereignty in an era of rising protectionism

Rather than retaliate with tariffs—which often backfire—this is a calm, intelligent, and high-impact policy move. It reflects our values, protects our future, and levels the playing field without violating trade rules.

It’s what "elbows up" looks like when we lead with strategy, not slogans.

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🧠 Final Thought

In today’s economy, control doesn’t just happen at the border—it happens in code, contracts, and copyright clauses.

Repealing anti-circumvention laws may seem technical, but it’s deeply strategic. It’s about reclaiming the right to innovate, repair, compete—and thrive—on our own terms.

Peggy Van de Plassche is a seasoned advisor with over 20 years of experience in financial services, healthcare, and technology. She specializes in guiding boards and C-suite executives through transformational change, leveraging technology and capital allocation to drive growth and innovation. A founding board member of Invest in Canada, Peggy also brings unique expertise in navigating complex issues and fostering public-private partnerships—key elements in shaping the Future of Business. Her skill set includes strategic leadership, capital allocation, transaction advisory, technology integration, and governance. Notable clients include BMO, CI Financial, HOOPP, OMERS, GreenShield Canada, Nicola Wealth, and Power Financial. For more information, visit peggyvandeplassche.com.