Print 102 comment(s) - last by Aloonatic.. on Jan 4 at 4:14 AM

Movie and record labels are overjoyed at the support they're receiving from the British government

Late in October DailyTech reported on the new three strikes piracy legislation proposed in the United Kingdom by Britain's majority Labour Party.  Under the legislation those caught pirating would receive two warnings, then would be cut off from the internet.  The real headache, though, is how to police the traffic and enforce the provisions on ISPs and consumers.

Despite mass objections from telecoms, citizens, electronics experts, law enforcement officials, and members of the minority conservative and socialist parties, Labour Party officials have blazed ahead with a framework to allow the legislation to be enforced.

According to Labour Party leaders, the government is planning on handing the expense of the Digital Economy Bill down to taxpayers.  That expense is estimated to be approximately £500M (approximately $800M USD).  On average, that works out to more than £25 more a year ($40 USD/year) per internet connection.

And that's considering that the government is counting on the bill reducing piracy enough to increase media revenues by £1.7B ($2.72B USD), leading to £350M ($560M USD) extra in VAT tax revenue.  If that increase isn't realized, British taxpayers could find themselves on the hook for over $1B USD in enforcement expenses.

The initial letter writing campaign is predicted to cut off 40,000 citizens from the internet and cost £1.40 ($2.20 USD) per subscription.  The government appears to have purposefully neglects to include possible economic losses based on citizens being taken offline in its estimates.

Charles Dunstone, chief executive of Carphone Warehouse, whose subsidiary TalkTalk is the biggest consumer provider of broadband in UK, is flabbergasted at how the punitive bill is gaining so much traction.  He states, "Broadband consumers shouldn’t have to bail out the music industry. If they really think it’s worth spending vast sums of money on these measures then they should be footing the bill; not the consumer."

Still the media industry is cheering the British government's decision to obey their commands, despite the taxpayer expenses and objections.  Writes the Department for Business, Innovation and Skills, an industry trade group, "The overall benefits to the country far outweigh the costs."

They argue that movies like X-Men Origins: Wolverine and Star Trek have been pirated millions of times, amounting to millions in lost revenues.

And it certainly helps their argument that in the UK, like in the U.S., the media industry spends enormous sums on legal representation and government lobbying efforts.  As the growing conflict in Britain is proving, if there's one lobbyist power in the UK and U.S. that's perhaps greater than telecommunication firms, it's the media industry trade groups.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: I'm glad
By Inkjammer on 12/29/2009 2:02:56 PM , Rating: 5
That sad thing? If the Beatles were just starting up in today's society they'd never have had a chance with the way RIAA and the rest of the industry works.

This isn't so much an anti-piracy fine as much as it is a $800,000,000 tax to ensure that we're stuck with the same crap flooding the top 40 charts.

RE: I'm glad
By PrinceGaz on 12/29/2009 2:22:14 PM , Rating: 2
Whilst some of the stuff in the Top 40 is cr@p, there is some really great stuff in the charts here, like Simon Cowell's single from Joe McElderry which made no.1 this week.

RE: I'm glad
By Inkjammer on 12/29/2009 2:22:23 PM , Rating: 2
The Top 40's never been completely bad, the problem is nearly every radio station out there dedicates themselves to the Top 40 of their genre, and other songs and new artists pretty much never get air time unless they happen to make that 40.

RE: I'm glad
By jonmcc33 on 12/29/2009 2:33:32 PM , Rating: 2
Then don't listen to those radio stations.

RE: I'm glad
By messyunkempt on 12/29/2009 11:54:10 PM , Rating: 2
The only thing I know about Joe McElderry is that I had a great one after my christmas dinner.

Sorry, did I say Joe McElderry? I meant Christmas number two..;)

"Folks that want porn can buy an Android phone." -- Steve Jobs

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki