Rights holders to fund 75% of web crackdown

Record labels and film studios will have to bear most of the cost of tackling online piracy, the UK government said on Thursday.

Stephen Timms, Treasury minister, told media executives gathered at the Oxford Media Convention that rights holders should pay 75 per cent of charges arising from the government's plans to clamp down on Internet file-sharing, as they would be the "primary beneficiaries" of the scheme, which ministers estimate will cost £500m over 10 years. Internet service providers will pay the remaining 25 per cent. Under the Digital Economy Bill being debated in the House of Lords, broadband subscribers spotted by rights holders swapping songs or films online without the consent of copyright owners will be sent letters by their ISPs. Persistent offenders could face temporary suspension of their Internet access. The music industry had argued for costs to be split evenly between ISPs and rights holders. The BPI, which represents record labels, said 75 per cent was not a "fair or proportionate allocation" for rights holders.