Sharing of Costs – Draft Order Published

January 27, 2011

The draft Order detailing the provisions that must be included in the initial obligations code (the Code) about payment by copyright owners and ISPs of contributions towards costs incurred under the copyright infringement provisions in the Communications Act 2003 (as inserted by the Digital Economy Act 2010) has now been published. You can see the full text here.  

In art 3 the Secretary of State specifies that the Code must include the provisions set out in the Schedule. Article 4 provides that OFCOM and the person appointed to determine subscriber appeals (the appeals body) may recover as a civil debt any amount outstanding to them under provisions in the Code included by virtue of the Order.

Paragraph 1 of the Schedule deals with the notification fees. OFCOM must set the amount payable by a qualifying copyright owner for copyright infringement reports made by it to a qualifying ISP under the Code; para 1 sets out how OFCOM should calculate the amount.

Paragraph 2 deals with the payment of the notification fees.

Paragraph 3 deals with the qualifying costs incurred by OFCOM and the appeals body under the Code. It sets out how fees to cover the qualifying costs are to be apportioned between qualifying copyright owners and qualifying internet service providers.

Paragraph 4 makes provision about the payment by qualifying copyright owners and qualifying internet service providers of amounts to cover the costs incurred prior to the first notification period.

Paragraph 5 makes provision for the appeals body to charge a case fee for each subscriber appeal.