As expected, the government set out its current thinking on the role internet service providers should take in battling online piracy in a report published on Friday. The document, called 'Creative Britain: New Talents For The New Economy', set out 26 government commitments regarding the creative industries, and among them was a pledge that if the content industries and ISPs can't reach a voluntary agreement regarding policing illegal file sharing by this time next year then political types will legislate.
As much previously reported, the content owners, and the record labels and movie studios in particular, have long argued that the ISPs should take a more proactive role in policing the sharing of unlicensed content online, most commonly via P2P systems. One proposal has included making the ISPs monitor file sharing, and to issue warnings to any customers who share illegal content, with the threat of cutting off their internet access if they continue to file share. The ISPs, however, have been very resistant to taking on such a role, normally citing privacy concerns, and arguing that current privacy laws prevent them from monitoring customer activity in non-criminal cases.
Talks have been ongoing between the content owners and the ISPs for some time, with the former lobbying politicians for support in making the latter take more responsibility for online content piracy. Government has indicated in the past that they would prefer a voluntary solution, but that they might legislate if one couldn't be reached. Friday's report was a formalisation of that intent which, the record companies will hope, may persuade the ISPs to shift on the issue on the basis self-regulation is better than legislation. If no voluntary agreement is reached (and assuming the ISP lobby doesn't get to them in the meantime) the government could begin the legislation process as soon as April 2009.
Needless to say, the report, though expected, was welcomed by the record industry. The boss of UK record label trade body the BPI, Geoff Taylor, told CMU: "It's great to see the government taking an holistic view of the creative economy and recognising its importance to Britain's future global success. Specifically, the prospect of legislation to ensure ISPs deal with illegal filesharing, and the proposals to beef up IP enforcement show that the government fully understands the importance of copyright to creators. The clear timetable of legislation means that it is now or never for ISPs to negotiate effective and viable agreements with us. We still believe that co-operating with ISPs to educate their consumers on the impact of copyright infringement and to develop new commercial partnerships is the best way to address the problem".
The boss of global record label body the IFPI John Kennedy added: "I welcome the UK government's change of tone and serious legislative intent. Within the space of only four months, two governments, in France and Britain, have now embraced the simple idea that internet service providers are uniquely positioned to help in the fight against digital piracy. This is a sea-change in attitude and I believe it is now up to governments elsewhere in Europe and further afield to follow their example. Today's UK proposals show there is a growing acceptance that ISP cooperation, and specifically a system of disconnection of repeat infringers, is the most practical, proportionate and efficient way of tackling [the illegal file sharing] problem. ISPs are in a unique position to make a difference, and in doing so to reverse a culture of creation-without-reward that has proved so damaging to the whole music community over the last few years".
On the music publishing side of the equation, the recently appointed boss of that only slighty strange British Music Rights thing, Feargal Sharkey, welcomed the government report in general, but aired caution over rushing in legislation regarding the ISPs. He said: "There is no doubt that illegal file sharing has caused huge damage to the music industry, and it is heartening that government recognises this. However, from personal experience as a regulator, both the music industry and ISPs need to understand that regulatory intervention does not always provide a sound commercial solution. We should all think on that very carefully. For our community, legislative measures against ISPs would be an option of last resort. We look forward to working with internet service providers - and any other users of music - to build viable, mutually-beneficial businesses that pay back revenues to those songwriters, composers and artists who can provide them with such a valuable commodity".