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Mandelson: ISPs and rights holders will share cost of '3 strikes and out'
28 Oct 2009 | 19.43 Europe/London
Lord Mandelson confirmed today in Cabinet that the controversial ‘three strikes and out’ policy to tackle internet piracy is to go ahead with the new revelations that ISPs and rights holders will share the cost of enforcement.
TalkTalk has been so incensed by the announcement that it has commissioned a ‘bright dancing’ video featuring a pair of scissors cutting a computer cable which it is considering featuring during an advertising break during this weekend’s X Factor. The ISP uses its sponsorship of the show to showcase people ‘bright dancing’ with torches or their mobile phone to create unusual, artistic effects.
Costs will be shared
In a speech which praised the UK’s creative industries - with the example of Midsomer Murders being available around the globe – Lord Mandelson confirmed the process he hopes to put in place through legislation that will be put before parliament soon (with no date yet confirmed).
Transgressors will be warned twice, by letter, that someone on their connection is illegally downloading material. Then a notification of disconnection will be sent. Before disconnection occurs, the accused will always have a right of appeal, Mandelson assured.
In a statement that will have some ISPs scratching their heads, the Business Secretary referred to asking ISPs to equally share the cost of protect copyright, with rights holders, as “our (the Government’s) side of the bargain”.
He insisted that it was the Government’s hope that the warning letters would work and disconnection would only be a last resort but reiterated his firm belief piracy can only be tackled if there is a final punishment at the end of the warning process.
How will costs be shared?
While some ISPs will almost certainly come out fighting before the weekend claiming it is unfair for them to pay for the cost of protecting material which the rights holders have not taken steps to protect themselves, James Alexander, Media Partner at Deloitte believes the issue of splitting costs will raise some difficult issues.
“The suggestion of a flat fee being levied is new but it is unclear how this will be allocated given the complexity of the costs, including potential damage to an ISP's brand if they get this wrong and send warning letters to customers downloading for legitimate means,” he said.
"Making this detection process efficient and effective may well be a challenge, and while direct costs may be measurable and therefore split with content owners, indirect costs such as managing calls from customers, may be harder to capture. This may be easier to swallow if the ISP is also a content owner but may still be a burden for ISPs generally.”
So, while the news today that Lord Mandelson will continue with the three strikes and out policy (which finally became law in France this week) the real news today was the announcement that ISPs will be expect to share the bill.
As Deloitte’s Alexander points out, this will likely see a split in reaction between ISPs which own or sell significant amount of copyrighted content (most notably Sky) and those which do not (most notably, and most audibly, TalkTalk).
TalkTalk has been so incensed by the announcement that it has commissioned a ‘bright dancing’ video featuring a pair of scissors cutting a computer cable which it is considering featuring during an advertising break during this weekend’s X Factor. The ISP uses its sponsorship of the show to showcase people ‘bright dancing’ with torches or their mobile phone to create unusual, artistic effects.
Costs will be shared
In a speech which praised the UK’s creative industries - with the example of Midsomer Murders being available around the globe – Lord Mandelson confirmed the process he hopes to put in place through legislation that will be put before parliament soon (with no date yet confirmed).
Transgressors will be warned twice, by letter, that someone on their connection is illegally downloading material. Then a notification of disconnection will be sent. Before disconnection occurs, the accused will always have a right of appeal, Mandelson assured.
In a statement that will have some ISPs scratching their heads, the Business Secretary referred to asking ISPs to equally share the cost of protect copyright, with rights holders, as “our (the Government’s) side of the bargain”.
He insisted that it was the Government’s hope that the warning letters would work and disconnection would only be a last resort but reiterated his firm belief piracy can only be tackled if there is a final punishment at the end of the warning process.
How will costs be shared?
While some ISPs will almost certainly come out fighting before the weekend claiming it is unfair for them to pay for the cost of protecting material which the rights holders have not taken steps to protect themselves, James Alexander, Media Partner at Deloitte believes the issue of splitting costs will raise some difficult issues.
“The suggestion of a flat fee being levied is new but it is unclear how this will be allocated given the complexity of the costs, including potential damage to an ISP's brand if they get this wrong and send warning letters to customers downloading for legitimate means,” he said.
"Making this detection process efficient and effective may well be a challenge, and while direct costs may be measurable and therefore split with content owners, indirect costs such as managing calls from customers, may be harder to capture. This may be easier to swallow if the ISP is also a content owner but may still be a burden for ISPs generally.”
So, while the news today that Lord Mandelson will continue with the three strikes and out policy (which finally became law in France this week) the real news today was the announcement that ISPs will be expect to share the bill.
As Deloitte’s Alexander points out, this will likely see a split in reaction between ISPs which own or sell significant amount of copyrighted content (most notably Sky) and those which do not (most notably, and most audibly, TalkTalk).