The Digital Economy Bill

There has been considerable concern expressed as to the impact of the Digital Economy Act on businesses that provide internet access for their customers. The main concern has been that the Act makes the supplier of internet services responsible if customers illegally download copyright material. Under the provisions of the Act, there is the possibility that businesses that receive three warnings that material has been illegally downloaded will have their internet connection terminated.

Unsurprisingly, accommodation operators have been alarmed at the prospect that they could have their service withdrawn on the basis of their customers’ actions. This is especially problematic as it is almost impossible for these operators to monitor the activities of their customers.

However, many of the comments in the media about the imminent demise of accommodation operators being able to provide internet access are somewhat premature. Ofcom, the body that oversees the Act, has recently held a consultation on the development of a Code of Practice that will regulate how the warning system will operate. In the consultation document it states that, at least initially, the monitoring and warning process will only apply to Internet Service Providers with more than 400,000 subscribers.

In the consultation document Ofcom proposes that businesses that operate a Wi-Fi service for their customers are deemed to be Internet Service Providers. Their intention being that if the Wi-Fi service is provided in conjunction with another service (eg a hotel room, a cup of coffee in a café or a pint in a pub) then the business is deemed to be an Internet Service Provider. However, providing that the business does not have more than 400,000 customers subscribing to the service, they will not be subject to the Code of Practice (at least not at this stage).

So, provided that the Code that is developed as a result of this consultation mirrors the intention of the consultation document, accommodation providers with less than 400,000 customers should not have to worry about having their internet connection severed as a result of their customers’ actions.

There will, however, be a review of the code in 2012 to determine whether the Code of Practice has been successful in reducing copyright theft. On the basis of that review, a decision will be made as to what, if any, additional measures need to be taken.