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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.

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RE: I'm glad
By omnicronx on 12/29/2009 7:20:29 PM , Rating: 2
I have a lot of family in the states as my father was born American. I can cousins, aunts, uncles, and grandparents, In fact the vast majority of my family lives in the US. So please don't come across and say I have no stake in the matter.

I read a study a while back by Harvard that estimated as many as 45000 deaths per year can be accounted for by links to insurance companies. This is just DEATHS alone! Now what about those who must live subpar lives (like my diabetic uncle for example that was denied coverage and ended up having his leg amputated). And what about those without insurance that go to an emergency room, get the needed care, and are shoved out the door with a giant bill in which there is no way they could ever pay it back? Compound all these we are talking hundred of thousands of affected people PER YEAR, compound that over the next 20 years and your little calculation starts to make less and less sense.

Anyway you put it your healthcare system is flawed, you've just compounded new problems over old ones (see medicare in which you spend almost as much money yearly than Canada does for its entire healthcare system.). The reset button needs to be switched, and there is no better time than the present.

You've obviously been one of the lucky people as to not know a family member or friend that has had these issues, but I assure you many people have, far more so than just the drop in the bucket you are trying to present here.

RE: I'm glad
By Reclaimer77 on 12/30/2009 1:29:18 AM , Rating: 1
You've obviously been one of the lucky people as to not know a family member or friend that has had these issues

Well of course we haven't. Everyone in my family is super rich so naturally we have good healthcare.


RE: I'm glad
By Reclaimer77 on 12/30/2009 11:36:45 AM , Rating: 1
Another thing Omni, do you realize how it feels as an American that while our Congressmen are ramming through this "reform" they wrote specific clauses in the bill that would exempt them from being a part of it ??

So THEY will still have the best care in the world, private, but the rest of us will go to jail if we don't go with the government plan.

"Intel is investing heavily (think gazillions of dollars and bazillions of engineering man hours) in resources to create an Intel host controllers spec in order to speed time to market of the USB 3.0 technology." -- Intel blogger Nick Knupffer

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