The UK government has confirmed today that internet service providers and copyright holders will have to shoulder the costs associated with the Digital Economy Act.
Ed Vaizey, the minister for communications, said that the costs, mostly in terms of sending warning letters to suspected digital pirates and the subsequent follow-up (appeals process), be shared in a ratio of 3:! with Internet Service Providers.
He said in a statement that "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" and that such anti piracy measures could mean an extra £200 million revenue per year for the content creation market.
It is estimated that around six million people in the UK, roughly a tenth of the population, download or share copyrighted content without the permission of the rights holder.
Already, there are concerns that any rise in expenses will be passed on to the customer with the price of broadband being raised to generate revenues to pay for the cost of tackling piracy.
BT, Talktalk, Virgin Media, Sky Broadband, Orange and O2 are the ISPs with more than 400,000 users that are expected to be the ones affected by the decision.