More interesting was the ruling back in March by Federal Court that found that sharing copyrighted music via P2P networks is legal in Canada as well. While "distributing" copyrighted material without a permission is illegal in Canada, court decided that simply sharing a folder full of copyrighted material, such as music, via P2P networks such as Kazaa doesn't count as "distribution".
However, record labels' Canadian organization, Canadian Recording Industry Association, has lobbied heavily to change the existing legislation in the country and in May this year, a committee recommended to Canadian government to tighten its copyright laws to outlaw distribution of music via P2P networks and to allow record labels to introduce DRM schemes to audio recordings.
Source: CBC