Peter Mandelson ‘hoodwinked by music industry’ on internet blitz

Oct 29 2009 by Jonathan Walker, Birmingham Post

Business Secretary Lord Mandelson has been “hoodwinked” by the music industry into supporting tough measures against internet users who persistently download files illegally, according to a West Midlands MP.

Tom Watson (Lab West Bromwich East), who has emerged as a high-profile opponent of Government plans to crack down on internet “pirates”, said there was no evidence to show the plans would help the creative industries make money.

Lord Mandelson confirmed in a Parliamentary statement that downloaders would face having their accounts suspended, following a consultation process that has divided the telecoms and media industries.

People will be cut off from the internet after ignoring two warnings, although they will have a chance to appeal.

Lord Mandelson said the power, to be introduced under the Digital Economy Bill, would be used as a “very last resort” and would only affect “persistent rule breakers”.

Unlawful file-sharing is said to cost the music, film and other creative industries millions of pounds a year.

Speaking at a creative industries conference in Hertfordshire, Lord Mandelson said: “It’s clear that whilst unlawful file-sharing excites a strong response from all sides, it is not a victimless act. It is a genuine threat to our creative industries.

“The creative sector has faced challenges to protected formats before. But the threat faced today from online infringement, particularly unlawful file-sharing, is of a different scale. We cannot sit back and do nothing.”

Under the proposed legislation, there would be reserve powers to instruct internet service providers to take “technical measures” against illegal file-sharers.

Measures could also include slowing down internet connections as an alternative to cutting off users altogether.

BT warned that the proposals on file-sharing, under which some costs will fall to ISPs, could cause the price of broadband to increase.

A spokesman said: “This could place a huge burden on the industry and force up broadband prices for customers.”

But the BPI, which represents the recorded music industry in Britain, backed Lord Mandelson’s proposals.

Chief executive Geoff Taylor said: “The measures are a proportionate way of encouraging illegal file-sharers to embrace the new services, and will drive further innovation that will benefit online consumers.”

Mr Watson said: “I have not seen any evidence that shows these measures will decrease piracy. I don’t think they will bring income in to the music industry.

“I admire Peter Mandelson’s attempt to support the creative industries but I am afraid he has been hoodwinked by the music industry lobby.”