"BT and TalkTalk lose internet piracy appeal"

BT and TalkTalk have lost their High Court appeal against legislation designed to curb online piracy, preparing the ground for unlawful downloaders to be cut off from the internet.

The film industry lobbied for the Digital Economy Act

The broadband providers challenged an earlier ruling on the Digital Economy Act that said the legislation’s enforcement regime was in line with European law.

The Act was passed in the final days of the Labour government but its complicated system of warning

letters and sanctions for unlawful downloaders has not yet been introduced. After repeated warnings, infringers will be subject to a range of restrictions on their broadband account, including suspension of access.

"We’re disappointed that our appeal was unsuccessful though we welcome the additional legal clarity that has been provided for all parties," a spokesman for TalkTalk said.

"We are reviewing this long and complex judgement and considering our options. Though we have lost this appeal we will continue fighting to defend our customers’ rights against this ill-judged legislation.”

BT said it hed "been seeking clarification from the courts that the DEA is consistent with European law, and legally robust in the UK, so that everyone can be confident in how it is implemented". A spokesman said the firm would consider today's judgment carefully before deciding its next steps.

Copyright holders lobbied for the Digital Economy Act to be introduced and welcomed today’s ruling, which is the latest in a series of victories that have included the closure of Megaupload.com and a High Court ruling that makes it very likely that broadband providers will be forced to block access to the Pirate Bay.

The British Video Association said its members and film makers were greatly damaged by online piracy.

“The British Video Association is delighted that the Government can now press on with implementation of notice-sending under the 2010 Digital Economy Act,” a spokesman said.

“The DEA offers a fair, proportionate and entirely reasonable way to help promote a change in behaviour to support our industry's public awareness campaigns which are designed to signpost the many legal options for accessing video entertainment.”

Lord Puttnam, president of the Film Distributors Association, said the Act will help change consumer behaviour.

“Hopefully this brings to an end a long chapter of uncertainty, and the DEA can now help in implementing a mass consumer education programme so that people, especially young people, can come to appreciate the damage piracy inflicts on the whole of the creative community,” he said.

Geoff Taylor, chief executive of the record industry body BPI, criticised BT and TalkTalk for causing “another year of harm to British musicians and creators from illegal filesharing” by their appeal.

The Open Rights Group, which campaigned against the Digital Economy Act, called on the government to review the legislation.

“The Department for Culture, Media and Sport had no evidence when they wrote this Act, except for the numbers they were given by a couple of industry trade bodies,” said campaigner Peter Bradwell.

“This is a policy made on hearsay and assumptions, not proper facts or analysis.”

Under the enforcement regime, copyright holders will be responsible for monitoring filesharing networks and informing broadband providers of IP addresses that are observed infringing copyright.

The providers will then be obliged to check the IP addresses against their customer records and send warning letters and information about lawful alternatives. After repeated warnings unlawful downloaders will be subject to sanctions, with the chance to appeal to an independent tribunal.

An earlier High Court ruling said broadband providers will have to pay 25 per cent of the costs of the system.