National Post

Publisher takes CSA battle to Parliament

- By Joseph Brean

In a last-ditch escalation of a legal battle that could bankrupt his family business, a calgary publisher of an electrical manual is taking his fight to Parliament this week, asking senior cabinet ministers and influentia­l committees to weigh in on the business practises of cSA Group, canada’s main producer of safety standards and certificat­ions.

Gordon Knight’s complaints range from the legalistic to the extreme, from claims about opaque financial statements and lavish travel expenses of $15-million a year, all the way up to the claim that cSA Group allows foreign entities to exert influence, via their system of paid membership, on the safety regulation­s that eventually become canadian law.

In response, cSA Group dismisses the complaints as false and misguided, and said they represent an effort to deflect attention from a straightfo­rward case of copyright infringeme­nt, in which cSA Group alleges Mr. Knight republishe­d sections of the electrical code without permission. They are also based on a misleading descriptio­n of what the cSA actually does, said Anthony Toderian, manager of corporate affairs for cSA Group.

“These allegation­s are baseless, for starters, and they’re simply untrue,” he said. cSA Group is not a regulator and never has been, he said, nor is it part of government, and Mr. Knight’s latest round of lobbying is “simply to deflect” from the copyright infringeme­nt lawsuit.

“we are documentin­g these allegation­s,” he said.

Mr. Knight has been involved in litigation with the cSA for several years, since it first tried to buy the company his father created in british columbia, P.S. Knight co. Ltd., which produces a plain-language guide to the electrical code, and which did good business in a constructi­on boom. but when cSA started producing a guide of its own, the Knights became competitor­s. They are now countersui­ng for breach of confidence, alleging they had the cSA’s permission all along.

Mr. Knight said he expects he would win in court, with his claim that no private entity should exert copyright control over canadian law, but that he will run out of money before the inevitable appeals are exhausted. Instead, he is taking the fight to Ottawa, pushing for legislativ­e reform. he has even asked Peter MacKay, the Justice Minister, for a legal opinion on the question of whether the sale of cSA Group membership­s and votes to foreign entities violates the criminal code section on treason.

he also urges Parliament to formally separate the cSA’s regulatory activity from its commercial activity, and to affirm that “any article passed into law … becomes sovereign (cannot be owned by foreign powers) and public (cannot be owned by private interests).”

regarding the treason claim, Mr. Toderian said: “It’s simply not possible for us to do that. There’s no way that we can give influence over the canadian electrical code to anybody because it’s [developed by] an open and transparen­t process that is accredited by the Standards council of canada. If the Standards council of canada thought that we were in any way allowing one party to influence … they would review that code or that standard and they would make us go back and revisit that. It’s simply not possible under the current canadian guidelines.”

founded nearly 100 years ago with a focus on railway and bridge safety, cSA Group, formerly the canadian Standards Associatio­n, is a nonprofit membership-based private company whose voluntary codes and standards on electrical work and other standards are frequently adopted as law in whole or in part, by municipal and provincial government­s. It is regulated by the Standards council of canada, a crown corporatio­n.

cSA has 8,000 members in canada and the U.S., most of whom are manufactur­ers. Mr. Toderian said it uses a “balanced matrix approach, which ensures that no single party can dominate.”

The group charges companies for testing and certificat­ion, and has a reported $150-million in the bank, and no debt.

“we are a not-for-profit business, but we are operating in a competitiv­e marketplac­e,” Mr. Toderian said. he said the key to success in that climate is that it be able to take in revenue from the sale of its copyrighte­d materials, which is then reinvested in the developmen­t of new standards.

 ?? MATThew SherwOOd fOr NATIONAL POST ?? Gordon Knight has been involved in litigation with CSA Group, formerly the Canadian Standards Associatio­n,
for several years, since it first tried to buy the company his father created in British Columbia.
MATThew SherwOOd fOr NATIONAL POST Gordon Knight has been involved in litigation with CSA Group, formerly the Canadian Standards Associatio­n, for several years, since it first tried to buy the company his father created in British Columbia.

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