Internet Regulation and Management from Peter Milford Associates
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  • Amendment 138 falls out into the Grand Place…….

    Posted on October 29th, 2009 pmilford No comments

    For some time the European Commission and the European Parliament have been in discussion in relation to the development of a new Telecoms Package, a raft of new laws with the intention of revising and updating the regulatory control of the telecoms industry. Included within the package were updates to the Privacy and Electronic Communications Directive that would impact on the receipt of cookies (commonly used by advertisers and others) by a web browser.

    But, the passage of the Telecoms Package was held up by the introduction of an amendment, Amendment 138 which aimed to control the move towards the ‘3 strikes and you’re out’ approach to the regulation of peer to peer file sharing.

    The rights industry has been pushing hard for national governments to adopt the ‘3 strikes’ approach as a way of trying to contol the use of file sharing and unlawful copying of rights protected materials. The idea is that users identified as engaged in unlawful filesharing will receive a letter from their ISP to advise that the sharing is unlawful and (in pretty much most cases) in contravention of the ISP acceptable use policy. Experience suggests that the first letter had some effect in about 50% of cases. Many of those responded to confirm deletion of infringing materials and that they would not engage in any further file sharing. For those that continue, a second, stronger letter would be sent before a third letter and then disconnection of internet service.

    It is the disconnection that is the problem. Many now consider access to broadband as a basic human right - alongside access to water, power etc. There was political support for the view, including from Mdme Reding, European Commissioner for Information Society. The problem was (is) that disconnection would take place without judicial review and potentially without the option for the accused user to defend their position and argue their innocence. When the Telecoms Package came before the European Parliament it was amended by Amendment 138 to require judicial intervention and oversight before disconnection.

    The Amendment provided the clear requirement for a judicial role and in so doing acted as a brake on the proposals by certain European governments to press ahead with legislation to enable ‘3 strikes’. Before any disconnection could take place a rights owner would have to go before a judge and plead a case for disconnection of the user. And, of course, the user would have the opportunity to defend his position. In France, President Sarkozy promoted the ‘Hadopi’ legislation and in the UK, the Digital Britain report and the Business Secretary, Peter Mandelson, engaged in discussions to push ahead with a ‘3 strikes’ approach. It is notable that Peter Mandelson appears to have come out strongly in favour of ‘3 strikes’ since a weekend meeting with a leading producer.

    For the European bureaucrats and politicians the groundswell of public support for Amendment 138 provided a problem. Whilst the Amendment was debated it held up progress on the whole Telecoms Package and with the imminent arrival of the Lisbon Treaty conference there was a political need for progression.

    Now, at the last minute and just before the conference, there has been agreement in Brussels to accept a watered down version of the amendment Pressure from national governments that will allow them to introduce disconnection for persistent file sharers (and who else the Crusher wonders?).

    Jérémie Zimmermann, spokesperson for La Quadrature du Net,(quoted on ISPreview) said: “Amendment 138 was in haste dissolved into useless legalese and soft consensus. The Parliament hurried to get rid of the safeguards of citizens’ freedoms because it knew that with the imminent coming into effect of the Lisbon treaty, both institutions will soon share the legislative power in the field of judicial affairs. And the bad excuses we have heard these past few days to justify to abandon amendment 138 will then be totally obsolete. In the end, the Parliament was not brave enough to stand against the Council to defend citizens’ freedoms.

    Ministers of Member States, who want to be able to regulate the Net without interference from the judiciary, were rushing to kill amendment 138 and put an end to the negotiations. It is a shame that the Parliament’s delegation, and especially rapporteur Catherine Trautmann, was not determined enough to use the political context to assert its authority in the European lawmaking process in order to protect European citizens. Even though it has been an interesting and constructive discussion, amendment 138 has turned, by the lack of courage of the delegation, into the emblem of the powerlessness of the Parliament.”

    So, in the face of political pressure to reach agreement before the meeting of Heads of State/Prime Ministers to conclude ratification of the Lisbon Treaty and the appointment of a new President of Europe, the Council has over-ridden the European Parliament (which had previously voted substantially in favour of Amendement 138) which has now accepted the reduced version limiting the rights of the citizen.

    The way is now clear for those member states who wanted to introduce ‘3-strikes’ to do so. In the UK, Lord Mandelson has now announced actions to be taken against repeat piracy offenders and procedures will be included in the Digital Economy Bill expected to be included in the Queen’s Speech (18th November) with passage through Parliament before the end of the current session.

    Lord Mandelson met with Internet industry representatives before the announcement was made. Mandelson asked the Internet industry to consider the proposed ‘3-strikes’ process in the context of the wider business economy (in iother words, consider the impact of filesharing on the revenues of the music industry) and to realise the importance of creativity. The Crusher understands that Lord Mandelson was fairly combative in his approach to the Internet industry but that the industry did make him aware of their concerns about proportionality, cost, options for alternative modes of contents delivery, due process etc.

    The devil, as they say, will always be in the detail so it remains now to see how the Digital Economy Bill is drafted in order to see exactly how the ‘3-strikes’ approach will work in the UK. It would seem likely that the rights industry will contribute to the costs of the ISP in communicating with users and that there will be a likely lengthy process before any disconnection take place. It is likely that Ofcom will set up a dispute panel procedure to hear appeals from consumers targetted for disconnection and that Ofcom will collate information relating to the issue of notifications.

    But - time is now running out for this Government. A full General Election must be held before June 2010 at the latest. As we are now clearly in the run up to the election and campaigning has been going on for some time, The Crusher wonders whether the Govt. will actually be able to progress the Digital Economy Bill to the Statute Book before dissolution.

    The other matter, of course, is in Brussels. The actions there point to the ineffectiveness of the European Parliament. The elected representatives of the European citizenry are over-ruled and kicked into touch by member states acting in the European Council. The European Parliament has no ability to initiate legislation and can only comment and amend - it seems now that their ability to amend has been curtailed in the face of opposition from member states.

  • Joined up thinking?

    Posted on October 17th, 2009 pmilford 1 comment

    The Parliamentary Internet Conference held at Portcullis House, House of Commons, on 15th October was an interesting day - not just an opportunity to hear Ed. Richards (CEO Ofcom), Martha Lane Fox, Stephen Timms and others but also the opportunity for the All Party Communications Group (apComms) to release its report into its inquiry, ‘Can we keep our hands off the net?’

    apComms called for evidence and submissions over the summer (during the Parliamentary recess - a period that most people link with lack of work and extra long foreign holidays for our elected servants) and has now put together a report and a series of key recommendations. There are 11 recommendations on a wide range of topics, from Privacy to dealing with illegal (or ‘unlawful’ as the noble Lord, the Earl of Erroll corrected) file sharing, from behavioural advertising to eSafety tuition in schools.

    But, The Crusher was rather taken with two recommendations that appear to be at opposite ends of an argument.

    There has been much discussion about the likelihood of Government mandating the filtering of child abuse sexual imagery at the network level by ISPs. In 2007, Ministers set a target of 100% consumer broadband circuits to be filtered - so far that target has not been reached although there is suggestion that the proportion of consumer circuits that are now subject to filtering is in the mid to high 90s% range.

    Recommendation 7 is that the Government does not legislate to enforce the deployment of blocking systems based on the IWF lists. This has the potential to damage future attempts to fix problems through self-regulation and will thus, in the long term be counterproductive.

    The thinking here is that all major ISPs already block access to child abuse images and that any action to force others to take action will be counterproductive as it militates against attempts to find self-regulatory solutions to other problems.

    OK, that is fairly clear although there may be some issue with the perception of the extent of current filtering practice. Whilst the number of consumer circuits with filtering in place may be in the mid to high 90% range, these may well be as a result of the actions of fewer than 10 large ISPs. The Crusher understands that the number of ISPs currently implementing child abuse filtering may well only be in the order of 20 to 30 - with some 270 plus mainly medium to small ISPs not currently implementing any form of network level filtering.

    The report then goes on to consider the problem of malware infected machines. Now machines that are infected with malware makes them likely to become part of a large scale ‘botnet’ and potential distributed sources of junk email and denial of service attacks. The problem is that the infected machines are not on the ISP network and are machines owned and used by end users who may have greater or lesser understanding of the security implications or needs of always on broadband Internet connectivity.

    Recommendation 10 is that there should be a voluntary code for ISPs relating to the detection of and effective dealing with, malware infected machines in the UK. If this voluntary approach fails to yield results in a timely manner, then Ofcom should unilaterally create and impose sich a code on the UK ISP industry.

    The report notes that ISPs have systems in place to proactively filter incoming junk mail but do not take actions to filter outgoing junk. The report continues, ‘a reduction in compromised end user machines is essential to make the Internet a dafer place, so the ISPs need to act voluntarily as a group to improve the situation ….. if the ISPs cannot voluntarily agree to act, the report sees Ofcom as the appropriate regulator to impose a compulsory regime.

    Interesting stuff. Filtering out material from infected machines will not be easy and will not be cheap - so additional development and application costs for the ISP (and, ultimately the end user). But, note the sting in the tail here - if self-regulation does not work then a compulsory regime should be imposed.

    The Crusher sees some lack of joined up thinking here. On the one hand the report suggests that mandatory child sexual abuse imagery filtering should not be applied as it militates against self-regulation in other areas - and then recommends a compulsory regime for filtering the output of malware infected machines, albeit in the event of a failure of self-regulatory approaches.

    The Crusher is intrigued: a self regulatory approach has seen pretty well all ISPs implement filtering to identify and remove incoming junk mail and virus infected items. For most that has been a commercial decision but there is undoubtedly a cost for the ISP. Self regulation is now being proposed to require ISPs to filter and remove outgoing junk and infected items. There may also be actions in relation to unlawful (thank you Merlin!) file sharing. But, the one thing that is illegal is to view child sexual abuse imagery (it is a Criminal offence under the Sexual Offences Act to view obscene images of children) - there is self-regulation but mandatory filtering is not recommended. Yet it is for dealing with malware - and as far as I am aware it is not yet a criminal offence to leave one’s Internet connected computer unsecured, without anti-virus or firewall protection.

    The apComms group seems to have have worked on elements individually and with application of specific evidence - but the linkage of items from one part to another seems to have failed. Joined up thinking in the final output would have been helpful.

    The full copy of the apComms report can be found here