Language rules give companies cost jitters

A proposed regulation on the language of commercial signs could lead to “the disappearance of popular products” in Quebec, says an international group of businesses.

The costs and irritants surrounding its application could force certain manufacturers to avoid Quebec, warns the head of the International Trademark Association (INTA), which represents 6,500 companies in 181 jurisdictions.

“Companies will have to ask themselves if it is really relevant to be in the Quebec market,” the president and chief executive of INTA, Etienne Sanz de Acedo, said in an interview. “As soon as a company asks itself these questions, it means a possible withdrawal of the product from the market, and therefore less choice for consumers.”

Consumers would lose out, Sanz de Acedo said.

“If there is less choice for consumers, that means that some companies will have more opportunity to increase prices since with less choice, prices are higher.”

The draft regulation specifies the application of certain provisions of An Act Respecting French, the Official and Common Language of Quebec, better known as Bill 96. Sanz de Acedo said he supports the principle of protecting the French language.

“I'm French,” he insisted. “I will always defend the interests of the French language.”

His association is, however, “concerned” about certain provisions of the draft regulation. One of the elements that concerns INTA is the translation of the words engraved on a product.

In its brief, the association gives the example of the interior drawer of a washing machine where the identification of the different compartments (such as detergents and softeners) would be engraved in English.

Translating these markings is much more complex than translating a user manual, Sanz de Acedo pointed out.

“That would mean that, for example, manufacturers would have to change their manufacturing moulds. If a manufacturer has to change its manufacturing method exclusively for the Quebec market, that would entail considerable costs for a company.”

The association is also concerned about the obligation to translate descriptions that are part of a registered trademark, and about the costs and deadlines related to the application of the rules on commercial signage.

Businesses with a storefront in Quebec have until June 1, 2025, for French to occupy a space “twice as large” on signs, according to a draft regulation published in the Gazette officielle du Québec on Jan. 10.

Sanz de Acedo said he believes the draft regulation could “not be consistent with Canadian intellectual property law and international treaties that have been signed by Canada.”

Asked to clarify, he cited as an example two World Trade Organization agreements: the Agreement on Technical Barriers to Trade and the Agreement on Trade-related Aspects of Intellectual Property Rights.

“Bill 96 raises very serious questions,” he said.

INTA is not alone in having expressed reservations regarding the draft regulation. In January, the Biden administration expressed its concerns about “the potential consequences on American businesses” as part of a meeting between senior officials from the United States and Canada.

The Legault government said it is still analyzing the comments on the draft regulation.