Online copyright infringement will cost the UK music sector an estimated £200m in 2009, with some 7.3 million people engaged in unlawful filesharing. Between the years 2007 and 2012 – according to research conducted by Jupiter Research – the cumulative cost to music companies will be £1.2bn. Losses of this order are clearly unsustainable, but the music community cannot tackle the issue alone. We need the support of internet service providers and the government.
ISPs are the gatekeepers of the internet and are therefore in a key position to help unlock the huge potential of UK music in the digital age, by helping the music business reduce illegal file-sharing and, in turn, allowing legitimate music services –those which pay artists and musicians – to flourish. With the help of ISPs we can stop the online infringement of copyright simply, fairly and effectively.
The BPI welcomed the government facilitated Memorandum of Understanding (MOU) between rights holders, ISPs and government which was signed in July 2008. The MOU is based upon the objective of bringing about a significant reduction in unlawful file-sharing over the next 2 – 3 years. It is based on the belief that this can only be achieved through improving consumer awareness of the importance of copyright, ensuring that attractive legal services are available, and there being effective measures to deal with repeat offenders.
The MOU provided a robust framework in which to conduct discussions with ISPs about developing ways to reduce infringement online and some of its work will be taken forward within the Department for Business’s Digital Britain programme. The most important outcome from the MOU process was a firm commitment by government to legislate to require ISPs to write to subscribers it is informed are infringing copyright. They will also be required to keep records of repeat infringers and pass these on to rightsholders.
Whilst the BPI does not believe that this legislative solution will, in its current form, be sufficient to meet the commitment government has set itself to reduce filesharing, it forms a good basis for the continued discussion with government about effective enforcement measures.
The BPI believes that a graduated response system – whereby infringing subscribers are given an escalated notifications, warnings and deterrent measures – is a fair and proportionate way to effect a change in behaviour. We also note that in other countries, such as New Zealand, France, the Republic of Ireland, Hong Kong and South Korea, consideration is being given to disconnecting the accounts of subscribers who repeatedly infringe and ignore warnings. Such a policy – if implemented with due regard to routes of appeal and robust evidence – is shown by consumer research to provide an effective deterrent to unlawful filesharing.