The Supreme Court of Canada had long established that fair dealing was user’s right that operated in balance with creator’s rights. The concern with anti-circumvention rules – which played out over several bills in Canada – was that rights holders could effectively limit the exercise of user rights by using technology to lock down copyright works. The classic example was that a user might be entitled to copy a portion of a chapter in a book, but if the book became an e-book with a digital lock, the publisher could use technology to stop copying that was otherwise permitted under the law. If the user sought to circumvent or by-pass the technology to assert their rights, that act of circumvention would itself become an infringement even if the underlying copying itself was permitted.
It sounds like there was an attempted to establish password protected digital content as not available for fair use, because other types of digital locks do prevent fair use.