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Music Industry Fails In High Court Bid To Force 3 Strikes on ISP

An Internet service provider has won its “3 strikes” legal battle with the music industry. The Irish Recorded Music Association – Warner, Universal, Sony and EMI – had tried to force UPC to disconnect subscribers who they claim had been caught illegally sharing files. UPC refused and today it was announced that the ISP has won its fight.

In February 2009, IRMA – representing EMI, Sony, Universal and Warner – reached an out of court settlement with Ireland’s largest ISP, Eircom.

The deal would see the ISP introduce a 3 strikes system for dealing with subscribers who share songs to which the labels own the copyright. The implementation of the agreement was held up over legal argument, but in April this year the High Court in Dublin gave it the green light.

Part of the private agreement between IRMA and Eircom required that the ISP should not be put at a competitive disadvantage through this 3 strikes set up. That meant that IRMA would have to go after other ISPs to force them to do the same.

Among others, IRMA sought agreement from UPC, but the ISP refused to play ball and the case went to the Irish High Court. Today the result of that action was announced and for the record labels and Eircom, the result was bad news.

In a judgment published today, Mr Justice Peter Charleton acknowledged that recording companies were being harmed by Internet piracy but that laws to cut off file-sharers were not enforceable in Ireland.

“It is not surprising that the legislative response laid down in our country in the Copyright and Related Rights Act 2000, at a time when this problem was not perceived to be as threatening to the creative and retail economy as it has become in 2010, has made no proper provision for the blocking, diverting or interrupting of internet communications intent on breaching copyright,” began the judgment.

Justice Charleton noted that by not having this legislative mechanism in place, Ireland is not in compliance with its obligations under European law. He added that the only thing the courts can force an Internet host to carry out is the removal of infringing material.

“UPC has repeatedly stressed that it does not condone piracy and has always taken a strong stance against illegal activity on its network,” the company said in a statement.

“It takes all steps required by the law to combat specific infringements which are brought to its attention and will continue to co-operate with rights holders where they have obtained the necessary court orders for alleged copyright infringements.”

“Our whole premise and defence focused on the mere conduit principle which provides that an internet service provider cannot be held liable for content transmitted across its network and today’s decision supports the principle that ISPs are not liable for the actions of internet subscribers.”

The ruling leaves the music industry high and dry in Ireland and Eircom in the unfortunate position of being left at a commercial disadvantage. It will be interesting to see how the record labels and ISP handle this development.

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  • BAz

    FTA: “‘We reserve the right to seek compensation for the past and continuing losses from the State,’”

    State = The Irish people. Great now they are going to try and sue everyone because the government had the nerve not to have favorable laws in place to allow them to start their “citizen denial of service” letter writing campaign.

    And f**k Eircom for rolling over without a fight and signing up with the labels. Now they are contractually bound to harass their customers at the behest of the record labels. Well done lads.

  • Ancalimar

    Fine outcome :)

  • johnson

    this will soon change. the entertainment industries will be doing even more lobbying and bribing to make sure there is a change in the law to suit their demands. then it will be another case of ‘f**k the people’!

  • meowmeowmeowmeow

    is anyone clear where vodafone stand on all this? have they made a deal like eircom or have they sat back and waited for this ruling? Thanks.

  • ffgold

    “at a time when this problem was not perceived to be as threatening to the creative and retail economy as it has become in 2010″

    Says who proven by which numbers/evidence?

  • the.dwarfer

    “Part of the private agreement between IRMA and Eircom required that the ISP should not be put at a competitive disadvantage through this 3 strikes set up.”

    well now that IRMA has failed to keep it’s end of the agreement, doesn’t that mean Eircom can stop the three-strikes?

  • anon

    You see eircom are in debt, they were bought out earlier this year by STT (Singapore Technologies Telemedia).

    They couldn’t afford to get mixed up in all this legal court bullshit, expenses, publicity and they just complied.

    Eircon as people call them are without doubt the worst company to have ever traded business in the telecoms area. Pathetic service and internet speeds, damaged the country for so many years. UPC are the only company making a name for themselves and this latest news will surely boost their market share.

  • Dia

    Was Eircom really stupid enough to sign a contract that requires them to keep up the 3 strikes policy even if the courts fail to force other ISPs to do the same?

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  • Teef

    No Dia, the ruling and the inability to force ISPs to implement a 3 strike rule clearly puts Eircom in a disadvantaged market position. They should be able to withdraw from their agreement because of this. Whether or not they choose to is an entirely different matter.

    @ffgold: It’s common knowledge that even in the last 10 years the internet has grown substantially. It’s only logical to assume that with that rise in use comes a rise in piracy using the internet as a medium. I guess the general thinking is back in 2000 nobody considered there might be reason to try to force ISPs to cut off customers intent on copyright infringement. Compared to today, piracy was a minor issue back then.

  • ahh

    @Teef, where’s the proof that piracy is such a big issue today? All we have is the inflated numbers from the industry, which have time and time again been shown to be bogus. Artists earn more nowadays, there are more moviegoers today than in previous years, it’s the people who download the most that also buy the most, etc.

  • Truther

    Example of suing the gun maker for a shooting.

  • Blarney O Gill.

    now lets sue the National Roads Authority when Drug Traffickers make their deals on laybys on the n7!

    Oh and we can sue the NRA for drink drivers too while we’re at it. After all, its THE ROAD’s fault.

    Shower of eegits.

  • Tomas

    @teef
    Your logic is flawed.

    If you assume that more internet users in 2010 than 2000 means more pirates then by the same logic it also means more digital sales. So the increase in digital sales would offset the increase in piracy.

    That was not the stated position though, which is why we would like to see the study done that proves piracy is the sole cause of the claimed loss of revenue, as claimed by the industry.

  • jovialau

    This is by no means the end of it!It will just be appealed endlessly “AND OR LOBBYING FOR A LAW CHANGE”MONEY DOESN`T SLEEP!

  • jovialau

    BY THE WAY.WHERE DOES A JUDGE GET OFF MAKING ASININE AND UNFOUNDED COMMENTS ON EFFECTS OF PIRACY.iS IT NOT HIS BRIEF TO MAKE ASSESSMENTS BASED SOLELY OF FACTS,NOT MISINFORMATION SUPPLIED BY THOSE WITH VESTED INTERESTS AND DEEP POCKETS!

  • nuker01

    ff will pass any law that irma wants passed. there as corrupt as the UK labour gov was

  • Dub

    Fianna Fáil are on their way out. IRMA would want to move fast and have deep pockets to distract them from their fight for survival. They don’t need something like this right now, so IRMA should retreat and rethink their strategy.
    Or just give up.

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  • doom

    @thomas

    actually, its not flawed logic. greatly fewer numbers of people using the internet in 2000 combined with high costs, technologies not yet even dreamed of at that point. 10 years later we have a good number of people on 10mb or greater pipes, the introduction of p2p and increasing compression schemes combined with increasing quality at the same time. its only natural that there would be an increase in piracy.

    the flaw you are making (and its the EXACT same flaw major media outlets are making) is that you are assuming that you should see an equal amount of increase in legitimate digital sales which hasnt happened.

    its not really fair to point out the lack in digital sales when its the major media outlets that have hampered sales all along to begin within all areas of digital media. they do it all the time and they are going to continue to do it which creates a situation where the piracy has no reason to stop since there are not any realistic/affordable options that are not actually based on 10-20 year old technology. think about it, itunes and netflix are the biggest legit digital options out there and look at the deals major studios like WB are forcing on netflix with their waiting periods and not allowing some titles to be streamed at all.
    The sad part is that they actually do think this is going to foster sales in some mythical market.

  • Whatever

    “Part of the private agreement between IRMA and Eircom required that the ISP should not be put at a competitive disadvantage through this 3 strikes set up.”

    Nobody forced this in Eircom, doing this was their own choice and now they are at a “competitive disadvantage”. They wanted this themselves.

    Also a bit strange idea that there is competition involved. They want to disconnect pirates meaning they don’t want them as clients but if they go somewhere else then they have a problem with it. They seem to fit right into the MAFIAA ranks of being hypocritical.

  • johnsmith

    oh sea!an-mhaith ar fad, tóg é sin agus cur suas do thóin é, Eircom agus Irma! (that’s Irish gaeilc for OH, yeas, take that eircom and stick it where the sun don’t shine (google translate it to be sure) It should be posted because it’s in the national language of Ireland, and this is about Ireland

  • ahem

    Keep telling ya..ISP’s are just tubes. They’re not responsible either way, just like smith/wesson and ginsu arent murderers. Jeez, you’d think people would learn by now. The last I heard about the irish is that the only thing they’re good at is drinking and domestic violence.

  • www.Searchr.Us

    Very nice post

    http://www.Searchr.Us

  • man-o-tor

    Amending Thomas’ and doom’s comments:

    There is no “loss of revenue”,they just can’t get enough.

    Greed without borders!

    The sad thing is that the industry seems too stupid to realize that there would be a lot more money to make if they’d adapt to new technologies instead of loosing money fighting these technologies and the people who use them.

  • the worls smallest violin

    So eircon made a deal with the devil, the devil failed to uphold its side of the bargain and now eircon is at a “competitive disadvantage”…

    Companies selling out their paying customers shouldn’t be at a competitive disadvantage, they should be out of business period.

  • Michael

    “. . . at a time when this problem was not perceived to be as threatening to the creative and retail economy as it has become in 2010, . . ”

    A judge who justifies decisions citing perception rather than facts should be replaced.

  • http://www.ruanzhuangshi.cn/design/ ???

    ????????~??????~??? ????

  • Pirate and proud!

    Mwahahaha.

    Strike one! Next one will be Talk Talk and BT winning back the digital act.

    Armed with our hard drives and discs we will lay siege to No 10.

    Onwards and upwards men……..

  • TerribleTony

    @doom: “10 years later we have a good number of people on 10mb or greater pipes, the introduction of p2p and increasing compression schemes combined with increasing quality at the same time. its only natural that there would be an increase in piracy.”

    You should stop talking now before you embarrass yourself further. You clearly have no concept of P2P if you think it started within the last ten years. You are clearly misguided and I can only recommend that you do some research before you continue to make your unsubstantiated claims.

  • Tony

    Cheers!

  • Anonymous

    I just wonder why there is a need for an ISP? Who provides the infrastructure to the ISP’s? Who do they pay? At some point ISP’s ought to be eliminated. We are all basically paying big money for the last 50′. And in addition if the MPAA and RIAA get their way we are paying for the right to have big brother spy on us.

    I think what the digital format has brought to light is the fact that what we are being sold is not worth that much. We have been fooled for so long that we were actually getting something tangible, ie a fancy disk and case that we did not really think about the real value of what we were getting.

    Outside of the entertainment value a digital file has no value. It is not collectible nor resalable. In addition a digital file is may have a limited life. Unless a back up is made if the disk goes the file is gone and the copyright holder is under no obligation to replace it. Although it would be nice if they were forced to replace it a reasonable amount of times with in a reasonable period. No need to make game or movie back-ups if a scratched disk was happily replaced.

    Bottom line piracy would cease to exist if digital files were cheap enough. Who would bother to pirate if mp3′s professionally ripped in good quality were $.05 each or the same goes for movies and tv shows at $.50 to $1.00. Why would you bother to have a bunch of Hd’s full of crap if it were always online for next to nothing.

    By the way if the RIAA and MPAA want to this ISP’s to do anything why aren’t they offering to pay? What if they had to start paying for all the costs .44 per letter would add up quickly.

  • If only

    Serves Eircom right for selling out!

    I hope Eircom looses loads of customers to other ISP’s then they’ll start to realise the mistake they’ve made. :D

  • The United Hackers Association

    @1 thats when we lower term rates 10 years every time they start a lawsuit, they will get the hint pretty darn quick….

  • Ninja

    Awesome. Yet another failure to MAFIAA’s account. Hopefully they won’t be able to bend the law in Ireland with bribes and corruption. It would be expected from entities that use whatever they can to get money.

  • lol

    so many drug lords are untouchable i suggest they run there own network and share for us :) in the end there untouchable :P

  • Johnny

    “Justice Charleton noted that by not having this legislative mechanism in place, Ireland is not in compliance with its obligations under European law.”

    What’s this judge been smoking? There is no EU law requiring to disconnect copyright infringers. Except for a few like France most EU countries don’t have such laws.

    Further more, who is this judge to state as fact that the music industry is loosing money *because* of “illegal” downloads.

  • Kurby

    What are Sony and their affiliates thinking with this anyway? If tens of thousands victims had been effected by this law, that would have been that many less potential clients for internet add revenue sales. Come on Sony, quit thinking of yourselves and remember that other businesses rely on these accused victims for their success and want them online. The judge did the right thing.

  • Irma O’faily

    SEEEEEEEEEEEEEEEEEEEEED!!!!!!!!!

  • rob8urcakes

    @30 Oct 11, 2010 at 22:34 by Anonymous, who said so beautifully -
    ” …
    I think what the digital format has brought to light is the fact that what we are being sold is not worth that much. We have been fooled for so long that we were actually getting something tangible, ie a fancy disk and case that we did not really think about the real value of what we were getting.

    Outside of the entertainment value a digital file has no value. It is not collectible nor resalable. In addition a digital file is may have a limited life. Unless a back up is made if the disk goes the file is gone and the copyright holder is under no obligation to replace it. Although it would be nice if they were forced to replace it a reasonable amount of times with in a reasonable period. No need to make game or movie back-ups if a scratched disk was happily replaced.
    …”

    I too have wondered why copyright holders have no obligation to replace what we buy when we can’t play it again.

    For example, I simply adore Jeff Wayne’s War of the Worlds, but back in the 1970′s and 80′s I must have bought it at least 4 times because one of the two cassettes stopped playback properly with sticking or jumping.

    If want a refund or complain there’s no return address or contact info on the product the copyright holder sells to us. So even if we wanted to ask their permission to make a backup copy, they don’t tell us where we can contact them.

    It’s all been a rip-off of the consumer for decades. It’s time our politicians wised-up and started protecting their electorate from these frelling vultures, GGGRRRRRRR.

  • powerless consumer

    Go to the pirate bay, and search for Eircom.
    Enigmax and Ernesto don’t be scared, publish a story on Eircoms failures, I have hacked about 300 to 400 networks and its all Eircoms fault.
    Sellout government service, also the most expensive provider in Ireland.
    Here is a rare example, of how a consumer is not powerless.

  • steve mcqueen

    well for things that mess up i mean it does suck that we cant get them replaced. but some things we can.

    although not the same, i recently purchased a book and halfway in it skipped about 50 pages. and then when it got back on track it did so for one page and then on the next restarted the book from the beginning. needless to say i was pissed.

    i fired off an email to the store where i got the book and they said they would not replace it. that if i liked i could purchase another copy and check it beforehand in store. but the thing is i bought a pack. it was like 4 books in one box, and they didnt have the one book i needed by itself. so id have to spend another 50 bucks for the box set.

    i said screw them they just lost a customer. so i wrote to the publisher and mentioned my dilemma. i offered to send them the book i had so they could see the defect and asked if theyd replace it at that point. i got a response within an hour saying they were gonna mail me the complete book at no cost. and they were sorry about the problem. and hoped i continued reading their books.

    so i mean sometimes things work out. but the music industry isnt the same as the publishing one. and the truth is sales have not declined, if anything theyve just leveled off. they dont see that itunes and amazon are cannibalizing cd sales because people dont buy whole cds. people just want the one or two good songs off an album and thats it. but they wont dare say anything to apple or whoever. its easier to blame it on pirating.

    the movie industry did the same thing. and this in spite of the fact that i believe for the last three years profits have been record breaking to all years before that. and have increased consecutively each year. and the movie industry although still combating pirating, has chilled out. they know theyre making cash.

    only the music industry, and lets be honest, the labels, not the artist, are pissed. artists get screwed anyway. they make money off concert tickets and merchandise. the record labels get all the cash from album sales. and theyre pissed that they arent making more and more. thus they have to blame someone. and why blame themselves and theyre outdated practices when they can blame the internet. and the consumers and/or pirates.

  • Randy Seifer

    I just LOVE this opera!
    I’m in total agreement with Irma O’faily (#37?).
    So I’ll simply echo that wise comment: SSEEEEEEEEEEEEEDDD!!!!
    & thankyou, in advance!
    (did i say i love this?)

    ?

  • MR mE

    Tá athas an Domhaín ORM!!

    Póg me thoin MAFIAA!!

  • Reaper

    Eircom, a collaborator, will suffer the most from this, and so should it too, for complicity with the MAFIAA will always be accompanied by financial ruin. Now perhaps Eircom will learn from their mistake and rescind their agreement with the MAFIAA.

  • Paolo

    There is no EU Directive which forces Member States to legislate about extra-judicial 3-strikes regime. Either the judge has been misinterpreted, or he was awfully in error (while McGuinness’ opinion is just another ranting & raving fantasy of his own).

    ON THE CONTRARY, reform of the regulatory framework on telecommunications (“Telecoms Package”), says quite the opposite and FORBIDS that laws by Member States force a 3-strikes regime outside strict criteria and procedural safeguards.

    The reform must be implemented by Member States within June 2011. See art. 1.3a (Framework Directive 2002/21/EC as amended by 2009/140/EC http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:337:0037:0069:EN:PDF):

    3a.
    Measures taken by Member States regarding end-users access’ to, or use of, services and applications through electronic communications networks shall respect the fundamental rights and freedoms of natural persons, as guaranteed by the European Convention for the Protection of Human Rights and Fundamental Freedoms and general principles of Community law.

    Any of these measures regarding end-users’ access to, or use of, services and applications through electronic communications networks liable to restrict those fundamental rights or freedoms may only be imposed if they are appropriate, proportionate and necessary within a democratic society, and their implementation shall be subject to adequate procedural safeguards in conformity with the European Convention for the Protection of Human Rights and Fundamental Freedoms and with general principles of Community law, including effective judicial protection and due process. Accordingly, these measures may only be taken with due respect for the principle of the presumption of innocence and the right to privacy. A prior, fair and impartial procedure shall be guaranteed, including the right to be heard of the person or persons concerned, subject to the need for appropriate conditions and procedural arrangements in duly substantiated cases of urgency in conformity with the European Convention for the Protection of Human Rights and Fundamental Freedoms. The right to effective and timely judicial review shall be guaranteed.’;

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