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BT and TalkTalk are both leading internet service providers, and the legislation might force them to send warning letters to those suspected of illegal file sharing, or in some cases cut their access completely.
Piracy
The creative industry insists that piracy costs around £400 million a year in lost revenue, but the ISPs lawyers say that the strict measures that could be implemented under the act could result in an invasion of privacy, as well as running up disproportionate costs for both ISPs and their customers.
The ruling brings an end to the two year war that the ISP’s have waged over the legislation, and some in the sector are angry that ISP’s had been wasting valuable time.
The chief executive of the British Phonographic Industry, Geoff Taylor, said: ‘The ISPs' failed legal challenge has meant yet another year of harm to British musicians and creators from illegal file sharing.’
The appeal judges -- Lady Justice Arden, Lord Justice Richards and Lord Justice Patten – also confirmed that ISPs will pay 25 per cent of the qualifying costs incurred by media regulator Ofcom in setting up and running an appeals body, as well as 25 per cent of the costs for identifying illegal file sharers.
Case fees
In a small victory for ISPs, the judges overturned a previous ruling that they would have to pay 25 per cent of case fees that are charged by the proposed appeals mechanism. Rights holders will stump up 75 per cent of the costs in each of the three fees.
In a final blow to the ISPs, they were ordered to pay 93 per cent of the costs for their prolonged legal challenge, a figure that is reported to have run into six figures.
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