Digital Economy Act 2010

D.E.A is an act of parliment in the UK regulating the digital media (radio, web, etc), it was introduced by Peter Mandelson (Lord Mandelson). The act received royal assessment on 8th April 2008 and came into force 8th June 2010

10th November 2010 the higher Court of Justice granted permission for judicial review of section 3 to 18 of the act.

Section 3-16

-the act provisions against the act of copyright infringement proved controversial (establish a system of law by which it aims to increase the ease of tracking and suing persistent infringer's. Warning of blocking and reducing quality of users internet through IP address

Section 17 +18

(Blocking internet locations)

this Act allows the secretery of State- with consent of Lord Chancellors (upper and lower) houses of parliment and a court of law- to block access to a location on the internet.

"From which a substantial amount of material has been, is being or is likely to be made available in infringement of copyright"

The Act includes an amendment to the copyright Designs and Parents Act 1988

Ed Vaizey questions challenges to the D.E.A- July 2011 (Dan Worth- The Inquirer)

"The UK media and creative industries will suffer if the D.E.A is not enforced in the consumer hating way it has been written"

Ed Vaizey in the UK internet Minister

He questions the recent legal challenges to the D.E.A which have come from ISP's (BT, Talktalk argue the enforcement of the D.E.A is vital to stop the creative industries from being ripped off). Vaizey said that fact that the challenges were over turned showed how well the D.E.A was written in the first place.

"The attitude of the ISP is quite odd. BT has spent so much time litigating against an Act of Parliment and fallen at every hurdle"

The D.E.A has come in for strong criticism form several quarters, most noteably in a report delivered to the United Nation (U.N) which argued that it will infringe the rights of citizens by cutting off their internet access.

We must stop illegal downloads - Geoff Taylor

guardian-2009

"Praise the music industry or bury it?"

• music labels didnt invent iTunes or "comes with music" they are independent
• music sales held up and kept a steady constant despite the recession,- excellent health, and creativity along with releasing some great music- however, more and more people are downloading online illegally
• BPI- by Jupiter Research shows the recording businesses will loose £200 million in revenue due to illegal downloading in 2009
• 2007-2012, cumulated effect will be £1.2 billion- no evidence to support this however.
• industry revenue fell by 5.3% in 2008
• Billy Bragg- "do we want ISP's to penalise our fans?" record companies are trying to pass responsibility for tracking illegal filesharing on the internet on to ISP's
• ISP's are trying to detect illegal downloaders
• 50 legal ways to obtain music- helped labels get 14% of revenue back (2008)
• This has a graduated response- the goal is not to sue or suspend or disconnect fans but the objective is to encourage legal sites

How to stop illegal music downloads?

Johnny Dee- Feb 2011

Dee reckons that by charging 1p for a song could be the solution. Here are notes from his article:

• Two of Britains biggest music conglomerates- Sony and Universal say that charging a much lower price would be the "most sensible idea"
• When a song is played on the radio people automatically want it, and turn to sites where they can rip the song off for free or download it illegally, to add to their collection.
• Chief Executive of Universal (David Joseph) "Wait is not a word in the vocabulary of the current generation"
• long before the internet people were taking songs off of the radio
• by making downloads cheaper it would help the revenue of the music industry possibly, there is no evidence as of yet as it has not been trialled or even considered formally. Yet the threat still poses that, why even pay 1p when the internet offers it for free
• Using concerts and merchandise could be another way of obtaining some form of income if the music was being downloaded illegally
• turn the tide of free downloading back to a "pay model"
• artists would not find it easy to agree on a price that would be suitable and would actually work. -prefer to overcharge and complain about the result salary. Ideally they want to reconnnect fans
• same price for an MP3 and a CD is stupid. Buying an MP3 is quick easy and cheap. There is no distribution cost and no print or making costs, therefore charging an MP3 the same price as a CD is silly as the profit made is just greedy.
• the biggest positive of digital downloading is the larger audience. Yet there is a lack of imagination in technology
• music industry is now totally disconnected from audience

BBC Radio 4 Report on Illegal Downloading

Simon Cox reports on how illegal downloading is affecting the music industry and how it is happening. He also reports on what the government are doing to try and stop this from happening along with the pros and cons of the act that was set into place in 2010.

Here are the notes:

What are the figures?

• millions are illegally downloading every day, there has been an estimate that there are 7,000,000 illegal downloaders in the UK. yet there is no "hard data" to suggest this figure is accurate, this is simply an estimate

Criminal?

• These downloaders are making an illegal offence not a criminal offence. The process of sueing is one that is extremely long, expensive and hard to prove that the accused is guilty.
• The accused could be sued for copyright infringement
• yet, individually it is not easy to persecute, filesharers are easier to find and clamp down upon.

Teenagers

• The main concern is teenagers, biggest users of iPod's. Also, it seems that music is important to them, but they do not believe they should pay for it (compensated in buying concert tickets and merchandise) it is also quicker to download on the internet and much easier than going into a store finding a CD and then importing it onto the computer, when downloading the entire album off of the internet takes about 15 minutes max.

Digital Economy Act

• The D.E.A (Digital Economy Act) was bought into place by the government as part of a legislation programme in where they would send out a letter informing the user of the crimes committed and to warn them of possibly removing internet access if they are to continue. However, it has been argued that this legislation was not scrutinised properly. IN so it would take a couple of years in which to amend this. They are able to find the users by the IP addresses as it is exposed, this then leads to a letter of warning and then potentially cutting the user off from internet use.
• Introduced by Labour in 2010 "constitutional propriety"- the filesize gives away what you download (movies, songs, albums)
• Can take a lengthy amount of time to take people to court

Illegal Filesharing

• Once tidied up, those behind the act want to prevent and reduce illegal downloads- "remedy is the issue" (william Dutton)
• an atmosphere of surveillience will reduce illegal downloading which will help drive up LEGAL downloads (there is no evidence to support this though)
• However, now seen as not a serious problem- it is to the music industry but not to the economy
• The illegal downloading of users costs music record companies around £200 million a year, much more conservative fate vs. the amount of money NOT spent buy illegal downloaders.
• spending much less than 10 years ago- the loss through filesharing is vast.

Behaviour?

• Whole generation with music as a paid commodity
• illegal downloaders spend more money on legal sources than those who only buy legal content- data on the other side was robust
• figures werent enough for politicians, they needed evidence from other countries that illegal downloading was in fact a problem (Sweden, Scandinavia)
• In Sweden they clamped down on illegal downloads and although this was reduced for a while when it began to rise again, it got worse and showed that more people ended up illegally downloading than before.
• Protests in France, and the act in sweden have been compared to prohibition in the USA, still find a way to download despite the law (violence?)
• encripted- cant obtain or tell any information about the user- yet only a small amount will try to encript, and this also means you cannot be stopped by the law (whack-a-mole game)

Can it get worse?

• BECOMES A FRAGMENTED MARKET (more ways to download- counter measures) becomes even more sophisticated "slow cumbison beasts compared to a 19-year-old in his bedroom"
• will take months possibly years - law cant stop whats happening.
• Survival depends on content and creativity

BPI

• Geoff Taylor, is the chief executive of the BPI (British Phonographic Industry, deals with anti-piracy and is in charge of 90% of music that is sold in the UK) "Sheer number of people illegally downloading are affecting the music industry" A billion illegal downloads a year. Despite this the BPI do not put they're losses at £1billion because the downloads are based on a single song rate- it doesn't account for album sales.
• Minority will buy more but this is outweighed by the those who will download.

CDs

• Illegal downloading has also caused CD sales to drop dramatically- the industry has seen a drop form £1.2 billion to just £800 million. They are seen as a dying format- 40% of sales are at xmas along with other occasions such as mothers day, fathers day, birthdays etc.
• HMV is now the only highstreet store that still sells CDs and have accounted that it is a dying format and have adapted to this, by introducing merchandise (T-shirts, posters etc.)
• Less teens are buying CDs and now the market is aimed at a older generation of music such as those that were available on vinyl.
• RESILIENT MARKET ("holding out")

Music Industry's aid

• There has been intensive lobbying by the music industry to crack down on the illegal downloading- directed at Peter Mandelson
• They say that there is not enough detail to the act, and as music is the fastest growing area of the economy due to new music being produced that is good- the economy and music industries are losing out on money due to illegal downloaders.
• not access of favourists- seeing the evidence- damage to the creative industries
• is it worth the expenditure for a little gain?

Music Industries are finished

• Never think you'll get caught and so carry on regardless
• and if you do- find other sources of obtaining illegal downloads (other sites, friends, rip off of other hard drives)
• some people believe you shouldnt pay for music- and in so the music industries should adapt to this new generation.
• THE MUSIC INDUSTRY HAS CHANGED FOREVER
• Forrester- music industry has had its hay day
• record labels have been too slow to adapt
• music revenues are declining because of the change in behaviour of the new generation, and filesharing has fed this. It wont go back
• fighting with a "big stick" wont work.
• A new and radically different business models are needed to get round it.