Internet Piracy Measures 'Nightmare For Consumers
The Digital Economy Bill, which requires internet service providers (ISPs) to disconnect users who are accused of illegal filesharing, will cost consumers up to £500 million, the Government has estimated.
The Bill, which is expected to become law next year, will add £25 a year to the cost of broadband, according to ISPs. The Government’s impact assessment document [available in PDF form], which examines the likely effects of the Bill, estimates that around 40,000 households will give up their broadband connections entirely to avoid the higher fees.
The impact assessment, written by Lord Young, of the Department for Business Innovation and Skills, and Lord Davies, of the Department of Culture Media and Sport, estimates that the measures in the Bill will result in an extra £1.7 billion for the entertainment industry over the next ten years. However, over the same period, it is estimated that consumers will pay between £290 and £500 million extra as ISPs pass their increased costs on to consumers.
Jeremy Hunt, the shadow culture secretary, told the Times newspaper: “It is grossly unfair that Labour expects millions of innocent customers to pay extra each month because of the actions of a minority. By their own admission this will make broadband unaffordable to tens of thousands of people, which flies in the face of Government policy to increase take-up in disadvantaged communities.”
ISPs have been vocally opposing the Bill for some time. BT described the measures as a “collective punishment”, while Carphone Warehouse called on the entertainment industry to pay for the measures, rather than consumers.
The Digital Economy Bill, championed by Lord Mandelson, requires ISPs to send warning letters to customers who are accused of illegally sharing files. If the letters are not effective, the Bill authorises further measures, including capping download speeds and disconnecting users entirely.
Mixed Reactions
New measures to tackle internet piracy that could cut illegal downloaders' web access, have been applauded by Moneysupermarket.com. The comparison website said that it believes the new initiative will educate web users who don't know file-sharing is illegal. "This is a timely move from the government. Many people may be unaware that the way they are downloading is illegal and this announcement should prompt people to think before they use an illegal site," said James Parker, broadband manager at Moneysupermarket.com.
The government's Digital Britain report originally suggested ISPs should send warning letters to web users suspected of illegal downloading. If those efforts failed to reduce piracy by at least 70 percent, Ofcom would, in 2012, have the power to slow down users' connections.
However, an amendment to the Digital Britain report, which was released today, sees Ofcom removed from the loop. Instead those regularly downloading copyright content will have their internet connection blocked completely should they continue file-sharing after receiving the warning letters.
Furthermore, such a move would not be instigated by a failure to reduce by piracy by 70 percent, but would up to the discretion of ministers. The secretary of state, rather than Ofcom, would hold the power to introduce the technical measures.
"Although there are many illegal sites, there are also plenty of legitimate places to download from such as iTunes or Spotify - which allow users to legally stream music from a vast library - and these kinds of services should also help to stop illegal downloaders. The sooner people are wise to which sites are legitimate places to use the better," Parker added.
However, UK ISP TalkTalk believes the new proposals "will sidestep proper scrutiny, likely breach fundamental human rights and result in innocent people being disconnected or, worse, prosecuted". The ISP also says the measures are unlikely to work.
"Disconnecting alleged offenders will be futile given that it is relatively easy for determined filesharers to mask their identity or their activity to avoid detection. The evidence that is used to identify offenders is unreliable due to the prevalence of multi-users per account and Wi-Fi-hijacking and so will result in innocent customers being cut-off from broadband," said the ISP.
The ISP said it will "strongly resist any attempts to introduce laws that would put obligations on ISPs to act as 'internet police' and implement technical measures against their consumers".
The CEO of Fox Filmed Entertainment says the U.S. should join France in cutting off the Internet connection of users who repeatedly download copyright-protected films.
Jim Gianopulos says punishing repeat offenders would help create "a level playing field" for filmmakers. He said Monday that piracy is the single biggest threat to the film industry worldwide, and that independent films are the hardest hit.
France has already created what it says is the first government agency to track and punish online pirates. A European Parliament ruling in May prohibited European Union governments from cutting off a user's Internet connection without a court order.
The Digital Economy Bill, which requires internet service providers (ISPs) to disconnect users who are accused of illegal filesharing, will cost consumers up to £500 million, the Government has estimated.
The Bill, which is expected to become law next year, will add £25 a year to the cost of broadband, according to ISPs. The Government’s impact assessment document [available in PDF form], which examines the likely effects of the Bill, estimates that around 40,000 households will give up their broadband connections entirely to avoid the higher fees.
The impact assessment, written by Lord Young, of the Department for Business Innovation and Skills, and Lord Davies, of the Department of Culture Media and Sport, estimates that the measures in the Bill will result in an extra £1.7 billion for the entertainment industry over the next ten years. However, over the same period, it is estimated that consumers will pay between £290 and £500 million extra as ISPs pass their increased costs on to consumers.
Jeremy Hunt, the shadow culture secretary, told the Times newspaper: “It is grossly unfair that Labour expects millions of innocent customers to pay extra each month because of the actions of a minority. By their own admission this will make broadband unaffordable to tens of thousands of people, which flies in the face of Government policy to increase take-up in disadvantaged communities.”
ISPs have been vocally opposing the Bill for some time. BT described the measures as a “collective punishment”, while Carphone Warehouse called on the entertainment industry to pay for the measures, rather than consumers.
The Digital Economy Bill, championed by Lord Mandelson, requires ISPs to send warning letters to customers who are accused of illegally sharing files. If the letters are not effective, the Bill authorises further measures, including capping download speeds and disconnecting users entirely.
Mixed Reactions
New measures to tackle internet piracy that could cut illegal downloaders' web access, have been applauded by Moneysupermarket.com. The comparison website said that it believes the new initiative will educate web users who don't know file-sharing is illegal. "This is a timely move from the government. Many people may be unaware that the way they are downloading is illegal and this announcement should prompt people to think before they use an illegal site," said James Parker, broadband manager at Moneysupermarket.com.
The government's Digital Britain report originally suggested ISPs should send warning letters to web users suspected of illegal downloading. If those efforts failed to reduce piracy by at least 70 percent, Ofcom would, in 2012, have the power to slow down users' connections.
However, an amendment to the Digital Britain report, which was released today, sees Ofcom removed from the loop. Instead those regularly downloading copyright content will have their internet connection blocked completely should they continue file-sharing after receiving the warning letters.
Furthermore, such a move would not be instigated by a failure to reduce by piracy by 70 percent, but would up to the discretion of ministers. The secretary of state, rather than Ofcom, would hold the power to introduce the technical measures.
"Although there are many illegal sites, there are also plenty of legitimate places to download from such as iTunes or Spotify - which allow users to legally stream music from a vast library - and these kinds of services should also help to stop illegal downloaders. The sooner people are wise to which sites are legitimate places to use the better," Parker added.
However, UK ISP TalkTalk believes the new proposals "will sidestep proper scrutiny, likely breach fundamental human rights and result in innocent people being disconnected or, worse, prosecuted". The ISP also says the measures are unlikely to work.
"Disconnecting alleged offenders will be futile given that it is relatively easy for determined filesharers to mask their identity or their activity to avoid detection. The evidence that is used to identify offenders is unreliable due to the prevalence of multi-users per account and Wi-Fi-hijacking and so will result in innocent customers being cut-off from broadband," said the ISP.
The ISP said it will "strongly resist any attempts to introduce laws that would put obligations on ISPs to act as 'internet police' and implement technical measures against their consumers".
The CEO of Fox Filmed Entertainment says the U.S. should join France in cutting off the Internet connection of users who repeatedly download copyright-protected films.
Jim Gianopulos says punishing repeat offenders would help create "a level playing field" for filmmakers. He said Monday that piracy is the single biggest threat to the film industry worldwide, and that independent films are the hardest hit.
France has already created what it says is the first government agency to track and punish online pirates. A European Parliament ruling in May prohibited European Union governments from cutting off a user's Internet connection without a court order.
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