ISPs take on the Digital Economy Act

BT and TalkTalk bosses call for judicial review of Digital Economy Act in High Court.

BT and TalkTalk, two of the leading UK Internet Service Providers (ISPs) stated that they will be “seeking clarity" from the High Court on the legality of the Digital Economy Bill’s provisions before spending tens of millions on implementing the system.

The current code of practice set out in the Digital Economy Act only applies to the larger ISPs, i.e. those with more than 400,000 subscribers, putting larger ISP’s at a disadvantage according to Andrew Heaney, the Executive Director at TalkTalk. Mr. Heaney stated

“It means we could have huge swathes of customers moving to smaller ISPs to avoid detection”.

TalkTalk chairman Charles Dunstone says

"The Digital Economy Act's measures will cost the UK hundreds of millions and many people believe they are unfair, unwarranted and won't work," "It’s no surprise that in Nick Clegg’s call for laws to repeal, this Act is top of the public’s ‘wish list’."

Digital Economy Act vs EU Law


BT and TalkTalk’s main argument lies with the European e-commerce directive, which states that ISPs are “mere conduits” of content and shouldn’t be held responsible for the traffic on their networks. The two companies will seek clarification if this European law conflicts with the newly introduced Act. In a statement to the BBC, the Coalition Government said

"We believe measures are consistent with EU legislation and that there are enough safeguards in place to protect the rights of consumers and ISPs and will continue to work on implementing them."

Privacy Rights Infringed?


Mr. Heaney (TalkTalk) also expressed concerns over users privacy rights claiming that the act may also be in contravention of the privacy and electronic communications directive. Charles Dunstone, TalkTalk Chariman, told the Times

'The Digital Economy Act's measures will cost the UK hundreds of millions, and many believe they are unfair, unwarranted and won't work'

he said.

"That’s why we need a judicial review by the High Court as quickly as possible before lots of money is spent on implementation."

ISPs vs the Creative Industries


The Digital Economy Bill has already been subjected to much criticism after being “rushed through” parliament earlier on in the year. Among its most controversial measures were proposals to disconnect persistent illegal file-sharers from the web and give copyright holders the power to block access to websites hosting illegal content. The BPI, which represents the UK's recorded music industry, has campaigned hard for the Digital Economy Act to act against file sharers. The Coalition Government have stated

"The Digital Economy Act sets out to protect our creative economy from the continued threat of online copyright infringement, which industry estimates costs the creative industries, including creators, £400m per year,".

Mr Heaney says

"It is outrageous that they are coming begging at our door but are not helping themselves,".

Ofcom have said that plans to disconnect users would not be implemented until 2011 at the earliest.

More Reading:

BBC News
The Times
The Guardian


Watch this space for updates.

OFCOM Publishes Consultation Paper on Dealing with Online Copyright Infringement

by Rory Campbell

The Digital Economy Act 2010 gave Ofcom the responsibility of managing the controversial process of tackling copyright infringement via the internet.


The Act envisaged Ofcom having power to require ISPs to send warnings to subscribers infringing copyright. Failure to comply with a specific number of warnings would result in the identity of an infringing user being made available to copyright owners, who would then be able to take legal action against the infringing user.


The Act required Ofcom to draw up and enforce a code of practice describing how the system would operate, with the code being published by 8th January 2011. Ofcom published a draft code as a consultation on 1st June 2010, inviting responses by 30th July 2010. A copy of the code can be found here.


The consultation proposals include the following:

• Ofcom proposes that the code only covers larger ISPs, which Ofcom defines as fixed ISPs with more than 400,000 subscribers. This would include BT, Talk Talk, Virgin Media, Sky, Orange, O2 and Post Office. Small and medium sized ISPs would escape the remit of the code unless Ofcom receives evidence that subscribers to any such ISP are persistently infringing copyright.

• Ofcom acknowledges that it needs to create a proper system to check that any allegation against an alleged infringer is based on “credible evidence, gathered in a robust manner”. Any person accused of infringement will be able to appeal to an independent body, and Ofcom’s consultation proposes that any such person should be granted anonymity.

• The consultation proposes that once an ISP receives a copyright infringement report from a copyright owner, the ISP notifies the alleged infringer. The alleged infringer is given an easy to understand explanation of the allegations, and of the steps the subscriber can take to challenge the allegation – and to protect their network from being hijacked for the purposes of infringement.

• If an alleged infringer receives three notifications, their identity may be included in a copyright infringement list requested by the copyright owner. The copyright owner can then commence legal action against the alleged infringer.


Ofcom is clearly aware of the high temperature of the debate over the fairness of the Digital Economy Act: and it creates a future breathing space for itself by pointing out that enforcement under the Act needs to be one component in a broader approach to digital copyright infringement: “we note that [enforcement measures under the Act] were always expected to be complemented by a wider set of activity…including consumer education, the promotion of lawful alternative services and targeted legal action against serious offenders” (Ofcom consultation paragraph 1.9).


If you want legal advice on how the Digital Economy Act may affect you or your business, feel free to contact us at rory@fordelaw.com or on 028 44 33 00 23.

Forde Campbell LLP is a Northern Irish commercial law firm specializing in Media, IP and IT.