The Department for Business, Innovation and Skills (BIS) have announced today that the costs of the Copyright Infringement Notice process which is being brought in following the passing of the Digital Economy Act will be borne mostly by the rights holders.
Broadband service providers will be expected to meet 25% of the cost of notification and appeals processes whilst rights holders will pay for 75%. Consumers who appeal against a notification will not be charged a fee to do so.
"Protecting our valuable creative industries, which have already suffered significant losses as a result of people sharing digital content without paying for it, is at the heart of these measures. The Digital Economy Act serves to reduce online copyright infringement through a fair and robust process and at the same time provides breathing space to develop better business models for consumers who buy music, films and books online.
We expect the measures will benefit our creative economy by some £200m per year and as rights holders are the main beneficiaries of the system, we believe our decision on costs is proportionate to everyone involved."Ed Vaizey, Minister for Communications
The government has indicated that it may introduce a small appeal fee if the free appeals process result in frivolous appeals. The process is excepted to come into force in the first half of 2011.