File-share ban 'to push up broadband prices'

Published on Wednesday 28 October 2009 21:19

INTERNET users accused of downloading files illegally will face having their accounts suspended, Lord Mandelson confirmed yesterday.

After a consultation that has divided the telecoms and media industries, the Business Secretary indicated he was ready to push forward with the proposal.

He said people would be cut off from the internet only after two prior warnings had been given and there would be an appeal process for those accused. Lord Mandelson said the power, to be introduced under the Digital Economy Bill, would be used as a "very last resort" and would only affect "persistent rule-breakers".

Speaking at a creative industries conference in Hertfordshire, Lord Mandelson said: "It's clear that while unlawful file-sharing excites a strong response from all sides, it is not a victimless act.

"It is a genuine threat to our creative industries. The creative sector has faced challenges to protected formats before.

"But the threat faced today from online infringement, particularly unlawful file-sharing, is of a different scale altogether. We cannot sit back and do nothing."

Under the proposals, there would be reserve powers to instruct internet service providers (ISPs) to take "technical measures" against those accused of illegally sharing files such as music tracks and films. Measures might include slowing down internet connections as an alternative to cutting off users altogether.

Ministers also indicated they wanted to modernise copyright laws so they reflected "reasonable" behaviour not damaging to creative industries. That would include allowing people to copy a CD on to their iPod or share it with family members – both of which are at present illegal.

The move follows a review by intellectual property minister David Lammy, who said: "This is not an excuse to infringe copyright through unlawful file-sharing, but is about being able to do more with legally obtained content, such as remixing music and mashing-up content to create grime and hip-hop tracks.

"I don't want to see a regime based on arbitrary rules, but a system that recognises how consumers behave at a time when we rely increasingly on technology in our everyday lives."

BT warned that the disconnection proposals, under which some costs will fall to ISPs, could cause the price of broadband to increase.

The company said it was "concerned" about aspects of the proposals, but that it was "good to hear" account suspension would be used only as a last resort.

"We were also pleased that he confirmed that the government supports a regime of warnings, education, prosecutions by rights holders and new business models as a necessary element before any action is taken against customers by ISPs," the company said in a statement.

"However, we are disappointed that ISPs will have to bear some of the costs.

"We are also interested to hear whether or not customers will have some form of fair legal hearing before their broadband supplier is required to take any action against them."