[Infowarrior] - Music industry threatens ISPs over piracy

[Richard Forno]

 Music industry threatens ISPs over piracy
By Nic Fildes
Published: 18 January 2007
http://news.independent.co.uk/business/news/article2162919.ece

The music industry opened up a new front in the war on online music piracy
yesterday, threatening to sue internet service providers that allow
customers to illegally share copyrighted tracks over their networks.

The International Federation of the Phonographic Industry, or IFPI, said it
would take action against internet companies that carry vast amounts of
illegally shared files over their networks. It stressed that it would prefer
not to pursue such a strategy and is keen to work in partnership with
internet providers.

John Kennedy, the chairman of the IFPI, said he had been frustrated by
internet companies that have not acted against customers involved in illegal
activity. He warned that litigation against ISPs would be instigated "in
weeks rather than months". Barney Wragg, the head of EMI's digital music
division, said the industry had been left "with no other option" but to
pursue ISPs in the courts.

The IFPI wants ISPs to disconnect users who refuse to stop exchanging music
files illegally. Mr Kennedy said such activity is in breach of a customer's
contract with the ISP and disconnecting offenders the IFPI had identified
would significantly reduce illegal file sharing.

Mr Kennedy said talks with internet companies have been ongoing over the
past year, but no action has been taken. "I realised I was being
filibustered ... if they still want to filibuster, their time will run out,"
he said.

The IFPI took legal action against 10,000 individuals in 18 countries during
2006. It won a spate of significant legal victories against peer-to-peer
platforms such as Kazaa that was forced to pay a $115m (£58m) settlement.

A spokesman for the Internet Service Providers Association said ISPs are
"mere conduits of information" that can not be held liable for offences
committed by customers. "ISPs cannot inspect every packet of data
transmitted over their networks," he said.

Geoff Taylor, the executive vice-president and general counsel of IFPI, said
that ISPs are in the best position to stop copyright infringements. "While
it might be possible to argue that an ISP is exempt from liability for
damages, that does not mean rights holders can't obtain an injunction to
stop infringements of their copyright," he said.

A spokeswoman for Tiscali, a UK ISP, said the onus is on the IFPI to prove
that the user is engaged in illegal activity and that the music organisation
should share the cost of resolving disputes. Last year, due to a lack of
evidence, Tiscali refused to close the accounts or hand over the details of
17 customers who the British Phonographic Industry claimed were involved in
illegal file sharing.

During 2006, global digital music sales doubled to about $2bn on the back of
an 89 per cent surge in music downloads to 795 million. The success of the
digital music market has been underlined by bands like Koopa which is
expected to score a Top-40 hit this week despite having no record label or
any physical copies of their CD on sale.