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Companies liable for copyright abuse

Businesses face prosecution and hefty fines if illegal file sharing is allowed to take place within the workplace, following the passage of the Digital Economy Act earlier this year.

 
 

Organisations that turn a blind eye to the ways in which employees use and abuse their broadband connections may soon need to reconsider Internet Usage Policies. Read the report below and contact us on 0844 412 8102 if you wish to discuss web filtering for your own network.
 

 

Under the Digital Economy Act, the issue of online copyright infringement has gained new precedence. For years industry bodies have claimed they are losing millions from illegal file sharing and have lobbied the government to introduce new legislation to penalise and prosecute users sharing and accessing content without purchasing their license to access.

For example, the UK Film Council has long claimed that an estimated £459 million is lost due to illegal file sharing each year, whilst the BPI - the trade association for the UK recording and music industry - claimed that their sector lost an estimated £200m in 2009.

Illegal file sharing and distribution is far from exclusive to personal IP addresses. Many employees are likely to take advantage of the high speed upload and download speeds offered by corporate networks, as well as the anonymity of an organisational IP to break the law.


New responsibilities on ISPs will implicate businesses that offend

Since the passage of the Digital Economy Act, ISPs have been given new responsibilities to provide copyright infringement bodies with the IP address of those found infringing digital copyright laws. Under a proposed code of practice set to be introduced by Ofcom by spring 2011, copyright holders will then have the ability to contact serial infringers and take legal action against them.

However illegal file sharing and distribution is far from exclusive to personal IP addresses. Many employees are likely to take advantage of the high speed upload and download speeds offered by corporate networks, as well as the anonymity of an organisational IP to break the law.

This places companies at risk of both prosecution and fines of up to £250,000 under the new law, meaning that enterprises must take a more active in policing internet traffic on their servers and IP addresses. Already the worldwide recording industry association, the IFPI, has warned on its website that companies must take more responsibility for how their employees use the internet at work.

Whilst to date many companies have had neither the inclination or the means to effectively discern what kinds of traffic are taking place on their company’s bandwidth, with the passage of the Digital Economy Act adopting this kind of policy and technology will become vital.
 

Delta Comtech’s standard monitoring of our clients' networks tends to show up flagrant abuses of company resources (such as peer-to-peer file sharing). Businesses should be explaining clearly to staff what is and isn’t acceptable (possibly through a written Acceptable Internet Usage Policy) and enforcing it. There are also technical solutions to control staff access to the Internet and if you need any help or advise then please give us a ring.

It should also be noted that there are a number of companies (notably ACS Law) sending out letters attempting to intimidate individuals into paying fines for allegedly downloading copyright material. As far as we know these companies have not been targeting businesses. To date these letters to individuals have apparently raised over £500,000 in fines but there have been no prosecutions (successful or otherwise).

 

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Delta Comtech Ltd
Artillery House, Heapy Street
Macclesfield, Cheshire, SK11 7JB

Tel: 0844 412 8102
info@delta-comtech.co.uk