UK anti-piracy costs outweigh losses

23 Sep 09 03:31 by Jared Newman in category Piracy To news archive

A British Internet service provider has warned of astronomical costs to fight media piracy, to the point that the piracy itself is less costly.

Speaking with The Mirror, BT’s consumer division head,  John Petter, said government plans to force piracy monitoring on ISPs could cost £1 million a day. That’s £365 million per year, compared to music industry claims that piracy accounts for £200 million per year in lost revenue.

Granted, the policing efforts that may be thrust upon ISPs would also cover software and movie downloads. That’d theoretically bring the overall piracy savings up, but only assuming that the BSI’s claim of £200 million lost is accurate. And we all know that the industry tends to inflate its figures, assuming that every illegal download is a lost sale.

digitalbritain

The government’s plans were revealed late last month in an amendment to its Digital Britain report. It recommended the termination of Internet service for repeat illegal downloaders, relying on ISPs to do the legwork of finding and punishing offenders. The report suggests that rights holders and ISPs split the cost of hunting down pirates.

BT’s not the only ISP opposed to the plan. TalkTalk and Orange UK joined with BT to publish an open letter to the government, calling the proposed anti-piracy measures a “‘kangaroo court’ process where evidence is not properly tested and accused broadband users are denied the right to defend themselves against false accusations.”

It’s tempting to laugh at the government and Big Content for pursuing such a foolish endeavor, but the tragedy is that these piracy costs could be passed on to Internet subscribers, regardless of whether they’re engaged in illegal downloads. BT says broadband bills could increase by £24 per year to pay for enforcement.

Petter alleges that the entertainment industry wants to pass enforcement onto ISPs in order to avoid lawsuits that tarnish the industry’s public image. But if all consumers are forced to pay for the actions of illegal downloaders, Big Content will only come out looking worse than ever.

8 Comments

DrageMester
Posts: 19308
Posted on: 23 Sep 09 10:32
Why would content providers care that fighting piracy is more costly than the piracy itself? The content providers are not the ones having to pay that cost!
Axel_Pressbutton
Posts: 27
Posted on: 23 Sep 09 15:43
Piracy is a very grey area. Content providers who are worried about their 'property' should re-price their products towards a 'global market'. Charge less money, and have MORE people buy your product.

You have different types of piracy - and for the people who would download something without ever paying for it, well, you haven't lost any money because they do not value the product enough to pay for it.

You could compare it to another business such as Antique dealing. The Antique is only worth something to the person who 'values' that item. Although in this case as the antiques are unique objects, they cannot be 'cloned' like digital media.

It's a very complicated subject - and I enjoy reading different opinions about it.
Icy Mt.
Posts: 622
Posted on: 23 Sep 09 22:24
So, there are 61M people in the UK and BSI claims they lose 200M on "piracy". Some quick math, 200M/61M, and they could just charge every internet subscriber in the UK 3 pounds 28 per year in exchange for not suing individuals for filesharing. Proceeds to go directly to the artists with a share based on their sales. Or, if you really want to be fair, BT could set up a bittorrent index and tracker and pay the artists based on downloads. These clowns are not going to give up until they run out of money to pay lawyers. Plenty of people would pay into an "immunity" bank for this kind of service. Look at all the people paying monthly fees for proxies and VPN to avoid this kind of snooping on your information transfer habits.
Chuckwagon
Posts: 163
Posted on: 23 Sep 09 23:33
DrageMester,

It says "...BT’s consumer division head, John Petter, said government plans to force piracy monitoring on ISPs could cost £1 million a day."

That would mean the stupid government is going to FORCE the ISPs to implement monitoring that would cost the PROVIDERS. Not the weenies who cry about the supposed losses.

And even with monitoring, there is no way they will stop "piracy." It's purely a waste of money to force the ISPs to do anything about it. Stupid content makers (music, movies, software, etc.) should learn to make products at a price people will pay and then they can stop pretending that they lose money to "piracy."
Crabbyappleton
Posts: 5757
Posted on: 24 Sep 09 00:10
Don't they already have a tax on media that is supposed to go to the artists? Where did all that money go?
BradWright
Posts: 108
Posted on: 24 Sep 09 00:24
Quote:
Originally Posted by Axel_Pressbutton View Post
Piracy is a very grey area. Content providers who are worried about their 'property' should re-price their products towards a 'global market'. Charge less money, and have MORE people buy your product.

You have different types of piracy - and for the people who would download something without ever paying for it, well, you haven't lost any money because they do not value the product enough to pay for it.

You could compare it to another business such as Antique dealing. The Antique is only worth something to the person who 'values' that item. Although in this case as the antiques are unique objects, they cannot be 'cloned' like digital media.

It's a very complicated subject - and I enjoy reading different opinions about it.
How exactly is piracy a grey area? If you have software that is not free ware or share ware, and you didn't pay for it, it's pirated. Seems pretty clear.
DrageMester
Posts: 19308
Posted on: 24 Sep 09 00:50
Quote:
Originally Posted by Chuckwagon View Post
DrageMester,

It says "...BT’s consumer division head, John Petter, said government plans to force piracy monitoring on ISPs could cost £1 million a day."
Yes.

The companies complaining about revenue loss due to "piracy" are the Content Providers, but the companies having to implement anti-piracy measures are the Internet Service Providers.

So why would the Content Providers care that some other companies have to pay costs that are greater than the Content Providers' estimated loss? They wouldn't.

So comparing the costs with the losses is irrelevant, since losses and costs are not incurred by the same companies.

Company "B" (ISP) is forced to pay anti-piracy costs to potentially reduce lost profit for company "A" (content provider). This isn't fair regardless of whether the cost is higher than the reduction in lost profit or not!
AmiWolf
Posts: 75
Posted on: 25 Sep 09 23:14
Maybe I'm off kilter on this thought, but, bear with me. If the content providers want to have the ISPs to charge extra for anti-piracy measures, then this means that the consumer, whether doing something illegal or not, will have to pay for what others may be doing? A form of taxation without representation? Am I on the right track with this thought?

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