Categories
Business ofcom Regs surveillance & privacy

#DEAct continues to cause problems as Parliamentary joint committee highlights concerns with cost sharing mechanisms

The Digital Economy Act, which you may recall was rushed through by the last government with inadequate consultation in the desperate dying days of its tenure continues to create a stir. This time the joint committee on Statutory Instruments has strongly criticised the Draft Online Infringement (Initial Obligations) (Sharing of Costs) Order 2012 which Ofcom is also currently consulting on.

The Order has been brought by the Department of Culture Media and Sport (DCMS) no doubt trying to clear the decks before they all shoot off to watch the London 2012 perform official duties at the olympics. In its report the joint committee says:

This instrument is drawn to the special attention of the House on the grounds that it gives rise to issues of public policy likely to be of interest to the House and it may imperfectly achieve its policy objective

Criticisms include:

  • Concern that the Order had been laid in the House whilst consultation was still ongoing and is not based on full information
  • Lack of detail from rights holders or a commitment that they would actually use the notification system to its fullest (what’s that all about? why would they go to so much effort to get a law passed to support their private business interest and then not use its powers?)
  • Insufficient evidence is provided to judge whether £20 “appeal fee” is the appropriate amount given that significant parts of the structure of the scheme and the appeal mechanism are still undecided.

The whole sad, sorry story continues.

PS thanks to ISPA for being around to constantly monitor this stuff. Someone has to read through and interpret the detailed legal blurb that comes out of Parliament.

Categories
Business ofcom piracy Regs surveillance & privacy

Ofcom update on Digital Economy Act implementation timescales – slipped to Q1 2014 #DEAct

It seems a long time ago now, the passing of the Digital Economy Act. It’s easy to remember how long because it was rushed through just before the last general election and I’m sure that global historical events such as the re-emergence of a Liberal government (only joking) are amongst the list of dates you remember exactly what you were doing when “it” happened.

The assassination of JFK and 9/11 are the other two that spring to mind although others may well have other memorable dates – outbreak of WW2 etc. Note I don’t actually remember the JFK assassination, I was too young, but it is always one of the ones quoted.

Ofcom has updated ISPA and have said that the code of practice still has to go through various stages:

Categories
Business internet

The Cost of Sending Stuff by Post & Boston Consulting Group Report on UK Internet Economy

web front end for plumbersI sent my mum a mother’s day card. Posted it Thursday and she got it today. Actually I didn’t really send it, my wife did so I don’t know if a second class stamp is to blame for it not getting there for the weekend.

Last night I bought a book from Amazon.co.uk. I had the choice of delivery by 1pm on Tuesday for a fiver or 5 day delivery included in the price of the book. The book itself was only £9 so I went for the free option. It will be here by the end of the week I imagine. If I wanted to fork out a one year subscription for Amazon Prime (£49) I could get all my purchases delivered free of charge next day.

I also ordered a new part for my car on Friday. They have promised it will be here on Wednesday. The part was

Categories
Business ofcom piracy Regs surveillance & privacy

A look at Hargreaves from the #DEAct perspective – a year too late #DEAPPG

Hargreaves report as applied to the Digital Economy Act

The Hargreaves Report, entitled Digital Opportunity, A Review of Intellectual Property and Growth, has already been extensively covered in a land rush of people wanting to get an early comment out there. The feedback has generally been good though not from all quarters as this response from the Business Software Alliance shows.

It is difficult to provide objective comment on the report without simply been seen to be replicating parts of it as its 130 pages are well written and provide their own concise summary. Also the document took 5 months to compile and a 30 minute read is not going to result in an analysis that would not be bettered by reading the report itself.

It was however interesting to note that the first point brought out by Prof Hargreaves was something I wrote about yesterday following the Nominet Policy Forum which is the need to base policy on evidence:

“Government should ensure that development of the IP System is driven as far as possible by objective evidence.”

“The frequency of major reviews of IP (four in the last six years) indicates the shortcomings of the UK system. In the 1970s, the Banks Review deplored the lack of evidence to support policy judgments, as did the Gowers Review five years ago. Of the 54 recommendations advanced by Gowers, only 25 have been implemented. On copyright issues, lobbying on behalf of rights owners has been more persuasive to Ministers than economic impact assessments”

He specifically highlights the lack of evidence when addressing the problem of online copyright infringement:

“The uncertain and disputed nature of the prevalence data makes it difficult to reach confident conclusions about the impact of copyright piracy on growth. This assessment is complicated further by a number of other relevant points:

  • not all illegal downloads are lost sales – the user may not have paid a higher price for a legal copy absent cheap or free illegal versions;
  • money not spent on legal copies is not lost to the economy – it may be spent on other purchases. This is of no comfort to the sector suffering losses, but the effects across the economy will not necessarily be problematic;
  • even within the industry affected, purchases prompted by experience from an illegal copy (for example, concert tickets or other merchandise) can offset losses; “

“Most experts we spoke with and the literature we reviewed observed that despite significant efforts, it is difficult, if not impossible, to quantify the net effect of counterfeiting and piracy on the economy as a whole.”

Hargreaves concluded that the government should not “do nothing” re this particular problem but that Ofcom should urgently go about building an evidence mechanism that will be useful in determining the efficacy of the measures proposed in the Digital Economy Act – because it plainly is not there yet.

To a large extent Hargreaves has performed the due diligence that was not done during the passing of the Digital Economy Act. It is a shame it is a year too late.

You can download the report here – as government sponsored studies go it is one of the better reads.

I have cherry picked more of the report as pertains to the Digital Economy Act here if you want to save yourself the trouble: