Parliamentary passage of Bill C-11, Canada’s copyright reform legislation, can’t come too soon – and not before a few more committee revisions to satisfy Hollywood, evidently.

The major studios, U.S. recording labels and other American entertainment trade groups behind the International Intellectual Property Alliance on Friday called on Washington to keep Canada on its piracy black list.

“Canada merits continued placement on the Priority Watch List, standing virtually alone among developed economies in the OECD (and far behind many developing countries) in failing to bring its laws into compliance with the global minimum world standards embodied in the WIPO Internet Treaties and in legislative best practices worldwide,” the IIPA said in a report on global copyright piracy passed on to the U.S. Trade Representative (USTR) in Washington.

The trade group said Bill C-11, which was tabled in September 2011 and completed a second reading in Parliament this week, was “insufficient and deeply flawed” when it came to combating online piracy.

Bill C-11 is identical in legislation to Bill C-32, the last copyright reform bill proposed by the federal government, and which died on the Parliamentary order paper last year when the ruling Conservatives last called an federal election.

Despite reintroducing federal copyright reform legislation, the IIPA pointed to the shortcomings of Bill C-11.

“Canada should be encouraged to enact the Bill this year, but only after the Bill’s major flaws are corrected,” the report stated as Bill C-11 now returns to a parliamentary committee for possible revision before a third and final reading in the House of Commons.

“Canada’s enforcement record also falls far short of what should be expected of our neighbour and largest trading partner, with ineffective border controls, insufficient enforcement resources, inadequate enforcement policies, and a seeming inability to impose deterrent penalties on pirates,” a tut-tutting IIPA added.

The USTR in March will issue its latest annual Special 301 review, which has long had Canada on a watch-list for weak copyright protection laws while Ottawa has moved slowly to enact new legal protections for IP creators.

The IIPA report is adamant Canada should not easily leave the black list, even if Parliament passes Bill C-11.

“While we are encouraged by a few examples of improved enforcement responsiveness against physical piracy and by some improvements in the business software sector, overall the piracy picture in Canada is nearly as bleak as it was a year ago,” the report said.

The federal government two years ago passed legislation to combat illegal camcording in movie theatres, but has been slow to secure passage into law of an omnibus copyright reform bill due to a series of former minority governments in Ottawa.

“The country is cementing its reputation as a haven where technologically sophisticated international piracy organizations can operate with virtual impunity,” the report stated.