UK Copyright Act Could Put Up Broadband Costs

Consumer groups have warned that the Digital Economy Act could put up home broadband prices, after the UK government confirmed that the implimentation costs of the Act will be divided between copyright owners and ISPs.

Copyright holders will bear the bulk (75 percent) of the costs associated with the Act but ISPs will be lumbered with the rs emaining 25 percent. Home broadband costs will go up with ISPs offload the costs to their customers, consumer groups have warned..

Costs to copyright owners and ISPs

Outlining how the cost of tackling online copyright infringement, as laid out in the Digital Economy Act, will be met, Digital Minister Ed Vaizey confirmed that rights holders would absorb 75 percent of the cost of sending warning letters to web users suspected of online copyright infringement, while internet service providers would be responsible for covering the remaining 25 percent.

Vaizey described the costs of policing the Digital Economy Act as “proportionate”.

“Protecting our valuable creative industries, which have already suffered significant losses as a result of people sharing digital content without paying for it, is at the heart of these measures,” said Vaizey in a statement.

“The Digital Economy Act serves to reduce online copyright infringement through a fair and robust process and at the same time provides breathing space to develop better business models for consumers who buy music, films and books online,” he added.

“We expect the measures will benefit our creative economy by some £200m per year and as rights holders are the main beneficiaries of the system, we believe our decision on costs is proportionate to everyone involved,” Vaizey said.

The government also said that consumers who wish to appeal a so-called “notification of copyright infringement” (i.e. a letter sent through the post) will not have to pay a fee in order to have their case heard.

Consumer Reaction

But the decision to lumber the ISP industry with a quarter of the costs associated with the Act has not gone down well amongst industry and consumer groups.

“Consumers should not be picking up the tab for the enforcement of copyright laws that will benefit the music industry to the tune of millions,” said Robert Hammond, head of Post and Digital Communications at the consumer champion group, Consumer Focus.

“These laws needed closer scrutiny before they were passed so extra time for Ofcom to reconsider how they can be implemented is welcome,” Hammond said in an emailed statement to eWEEK Europe. “This is an opportunity for the Coalition to review the impact of these new regulations on both consumers and the wider UK economy.”

This sentiment was echoed by Open Rights Group, who warned that using the internet will become more expensive as a result of the Government’s announcement today.

“Is it right to take up to £500 million out of the economy in the middle of a recession and waste it on a scheme that is unlikely to bring any benefits?” asked Florian Leppla, campaigner at the Open Rights Group. “It would be much better if rightholders spent that money on finding new online content services.”

“Rightholders wanted the Digital Economy Act. It benefits them so they should pay the full costs for its implementation,” Leppia added.

ISP Reaction

Meanwhile ISPA, which represents UK ISPs, said it was “disappointed” that ISPs are required to pay part of the costs of protecting the business model of rights holders.

“ISPA is disappointed with the Government’s announcement of a 75:25 rights holder to ISP split for costs of both notification and the appeals process,” it said in an emailed statement to eWEEK Europe UK. “ISPA has argued consistently that to maintain consistency with the established principle of beneficiary pays, rights holders should be responsible for all actual costs associated with this.”

“ISPA strongly believes that the Internet offers excellent opportunities for rights holders to access their target market with relevant lawful content without the significant costs associated with a non-digital environment and views today’s announcement as contrary to the promotion of the digital economy,” it added.

“ISPA has consistently argued for the beneficiary pays principle and is disappointed with today’s announcement,” said Nicholas Lansman, ISPA Secretary General. “Full cost recovery for serious law enforcement cases is an established rule and ISPA sees no reason why it should not be the case here.”

Ofcom will be responsible for sending out the letters when it comes in to effect in 2011.