According to the MOU, the ISPs will have to comply with the demands made by music and other rightsholders so that all the signatories will work together to reduce illegal filesharing on the internet. During the first year of implementing the new regulations, the broadband customers who are identified as sharing files illegally will receive informative letters from their ISPs while other while effective mechanisms to deal with repeat offenders will be implemented gradually.

BPI Chief Executive Geoff Taylor has commented:

“BPI has always believed that a partnership approach is the best way forward, as we showed with our education campaign with Virgin Media, launched in May. This has demonstrated that ISPs and the music business can work together positively to raise awareness about illegal filesharing. And, working with government, we have been able to build on that progress and encourage other major ISPs to start taking a responsible approach.

In addition, the music business is constantly innovating to offer new, safe and legal ways to enjoy music online, and to create a future for digital music where creativity and copyright are respected. This MOU will help to create an environment in which such new digital services models can flourish.

However, the trade association of ISPs, ISPA (Internet Service Providers Association) has commented that such a move from the government could complicate affairs as the ISPs were just conduits of information so they do not have legal liability for content on their servers.

The voluntary agreement that the government expects from ISPs to prevent illegal file sharing might be too ambitious, in the words of Malcolm Wicks, the Enterprise and regulatory reform minister.

He further said:
“It would be very disappointing if we have to legislate — but nobody should doubt our willingness to do so if an agreement cannot be reached.”

Meanwhile ISPA commented on this issue:

“It is ISPA’s preference to agree a non-legislative solution which carefully considers the complex legal framework – as recognised by the Culture Secretary – in which ISPs operate. This includes the Electronic Commerce Directive Regulations 2002 and the Data Protection Act 1998 which can limit what action ISPs can lawfully take against users’ private communications.”

Earlier, BPI suggested three strikes method to prevent illegal downloading, which was rejected by most ISPs. However, the cable broadband provider, Virgin Media, in association with BPI, has voluntarily started to send letters to its customers who are found to be downloading illegal music or video.

The Telegraph reported the statement made by the CEO of the Carphone Warehouse, Charles Dunstone that clearly points out the ISP’s unwillingness to introduce the method that would threaten the rights of their customers as well as jeopardize the ISP’s own business interests.

“We are the conduit that gives users access to the Internet, we do not control the internet nor do we control what our users do on the internet. I cannot foresee any circumstances in which we would voluntarily disconnect a customer’s account on the basis of a third party alleging a wrong doing. We believe that a fundamental part of our role as an internet service provider (ISP) is to protect the rights of our users to use the internet as they choose.”

However, Dunstone’s statement seems to suggest that the music industry should find alternative course of action that would curb the roots of this issues instead of implementing a system that would punish the end users. As social networking sites and many other downloading sites are the real source of illegal file sharing, it is yet to be seen how the role of an ISP can help preventing their users from such activities.

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Over the development Tiscali commented:
“The BPI led us to believe we had concluded an agreement to implement their preferred process in October last year, which not only demonstrated joint leadership in this area but also that both of our industries could work together to tackle this issue.”

On the other hand, theregister reports the following statement from BPI:
“We are pleased that Tiscali agrees that our three step proposal is an appropriate way to begin dealing with the problem. While there have been discussions between BPI and Tiscali, we have not been able to reach agreement on a long term solution. That’s because Tiscali is trying to force us to pay a substantial levy to enforce its own terms and conditions.”

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