OBS_VALUE: Direct acquisition of an existing Canadian-controlled business distributing books and magazines is not permitted. Indirect acquisitions are reviewed to determine whether they are of net benefit to Canada and the Canadian-controlled sector.  Takeovers of Canadian owned and controlled film distribution businesses is not be allowed. The measure is a policy statement of the Government of Canada intended to provide guidance to investors in respect of the application of the Investment Canada Act to the periodical (magazine) publishing sector.The policy statement is “It is the policy of the Government of Canada to ensure a commitment to the production of majority Canadian editorial content in respect of foreign investments in the periodical publishing sector…. Further, it is the policy of the Government of Canada not to permit foreign acquisitions of Canadian-owned and Canadian-controlled periodical publishing businesses.” The Investment Canada Act requires that foreign investments in the production, distribution and exhibition sector of the film and video industries be compatible with national cultural policies.As part of the measures to support an indigenous Canadian distribution industry, the government also announced new Investment Canada policy on foreign investment in the Canadian film distribution sector:-takeovers of Canadian owned and controlled distribution businesses will not be allowed;-investments to establish new distribution businesses in Canada will only be allowed to importation and distribution activities related to proprietary products (the importer owns world rights or is a major investor);-indirect and direct takeovers of foreign distribution businesses operating in Canada will be allowed only if the investor undertakes to reinvest a portion of its Canadian earnings in accordance with national and cultural policies;-since the new policy was proclaimed in February 1987, all the applications subsequent to that date  are subject to the Investment Canada Act; The Investment Canada Act provides a basis for government review of prospective foreign investment transactions and aims to ensure that any such investments are of net benefit to Canada. Net benefit includes, among a number of factors, the compatibility of a prospective investment with national cultural policies, and in the particular case of investments in the book industry, with the government's policy objective of ensuring that Canadians have access to Canadian-authored titles.