LSE Report Criticises Digital Economy Act Ahead Of Judicial Review

The London School of Economics has published a report in which it has criticised the Digital Economy Act for being too favourable towards copyright holders.

The Creative Destruction and Copyright Protection report penned by the LSE has slammed the DEA for being based on unsubstantiated information by copyright holders who have exaggerated the extent of their losses from file sharing.

“Claims about piracy and revenue losses are often based on the wishful thinking of rights holders. They assume that most unauthorised copies would be replaced by the sale of a legitimate product if file-sharing was effectively controlled,” the report said.

The LSE said that the current DEA laws had failed to address the copyright issues plaguing the industry and had instead allowed copyright holders to treat file sharers as criminals. The LSE report comes a day before the government plans to hold a judicial review of the DEA which was prompted by a lawsuit filed by BT and TalkTalk.

The report argues that the Digital Economy Act fails to grasp the balance of copyright enforcement and added that the act will prohibit innovation and creativity in the media industry.

Bingchun Meng of the LSE said in a statement, “The DEA has given too much consideration to the interests of copyright holders, while ignoring other stakeholders such as users, ISPs [internet service providers], and new players in the creative industry.”