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Business News Legal
BIS expected to stick with 75/25 cost split for three-strikes
By CMU Editorial | Published on Thursday 2 September 2010
The government’s Department Of Business Innovation & Skills will shortly publish the conclusions of its consultation on who should pick up the tab for running any three-strikes system for combating online piracy.
BIS has been looking into the cost element of the so-called ‘graduated response’ system as outlined in the Digital Economy Act. When the Act was being discussed earlier this year it was proposed content owners employing the three-strikes system should pick up 75% of the costs while the internet service provider whose customers were being accused of file-sharing should pay the other 25%. Needless to say, both sides wanted their share to be less.
But, according to Music Week, insiders say the BIS’s conclusion will be that the 75/25 split, with the content owner picking up the bigger tab, should remain.
The BIS’s consultation on the cost issue has run in tandem with the work being done by media regulator OfCom with regards the specifics of how the three-strikes system set up by the DEA should work. It was originally thought OfCom would publish its next report on three-strikes at the same time as the BIS document on costs, though it seems likely the former will now not be ready until later this month.
