A representative of the United States administration announced that Canada was being placed on the Priority Watch List, which is focused on those countries not doing enough to stop copyright infringements. It's the first time Canada has gone on the list, joining states like China, Russia, India, Thailand and Venezuela, where copyright infringements are numerous. The list hosts a total of 12 countries.

The Entertainment Software Association, which represents the rights of the videogame industry, quickly moved to praise the move of the new Obama administration, saying that "Canada’s weak laws and enforcement practices foster game piracy in the Canadian market and pave the way for unlawful imports into the U.S."

Michael Gallagher, who is the Chief Executive Officer of the ESA, stated that the organization had repeatedly warned about the losses that the current legal regime in Canada generated to the videogame industry of the United States.  

The United States Trade Representative recently released an annual publication, called the Special 301 Report, assessing the "adequacy and effectiveness" of the measures taken by U.S. trade partners against copyright infringements.

The report reveals that a "high level of cooperation" exists with Canada and that the country has promised to put together a new law regarding copyright but that "The Government of Canada has not delivered on these commitments by promptly and effectively implementing key copyright reforms."

The game industry is especially interested in Canada outlawing mod chips, which enable videogames to be played on modified consoles, in preventing online piracy and in introducing more border controls in order to stop the smuggling of pirated material.

At the moment, the listing carries no apparent penalty for Canada but the United States might reserve the right to enact measures restricting or reducing trade with Canada if the situation regarding the protection of copyright is not remedied.