In an attempt to fulfill this need and to convert illegal file-sharers into paying customers, the UK ISP Virgin Media recently announced that it will offer an unlimited music download service to all their subscribers. Such a service would allow customers to download all the music they want and keep it permanently.

Universal and several smaller labels are backing Virgin’s plan, but not all the major labels are as happy. NMA reports that insiders at EMI and Sony Music don’t think that Virgin’s unlimited download service will convert illegal music downloaders into legitimate customers. They say that the model is flawed and will hurt existing digital sales.

“We want to work with Virgin Media as a partner but any deal has to sit comfortably with how we value our assets against how it values its customers,” an EMI insider said. “We have to evaluate each deal as it comes in and make sure we’re happy with the overall value of the proposition.”

An insider at Universal doesn’t think that the worries expressed by EMI and Sony Music are justified, as customers with unlimited access will only download a few dozen tracks per month. On the other hand he stressed that it is vital for the labels to innovate and compete with piracy.

Virgin Media meanwhile is undeterred by the rift between the different labels and will go full steam ahead. They hope to release their unlimited music download service by the end of the year. “We’re forging new ground and want to provide a truly compelling offering for consumers and industry,” a Virgin Media spokeswoman said.

Source: Record Labels Fear Virgin’s Piracy Solution

To its credit, one ISP, Carphone Warehouse, has refused to comply. Others are working with the music industry and at the forefront of that group is Virgin Media.

Virgin has been receiving quite a lot of bad publicity recently after it was revealed that it agreed to work with the music industry to send out so-called ‘educational warnings‘ to its customers the BPI accuse of file-sharing. Virgin has sent out hundreds of these at the behest of the music industry and they have been dropping through mail boxes up and down the country. The letters come in an envelope and printed on the outside are the words: “Important: If you don’t read this, your broadband could be disconnected” so recipients could be forgiven for coming to the conclusion that, frankly, if they don’t read it, their broadband could be disconnected.

However, Virgin Media told has told Jim over at Newsbeat that the printing on the envelope was “a mistake” and there is “absolutely no possibility” of legal action or disconnection for any recipient of these letters. Nice to know.

Furthermore, Asam Ahmad from Virgin notes that they cannot be 100% sure that the person they send the letters to has actually committed any offense at all. “It is important to let our customers know that their accounts have been used in a certain way but we are happy to accept it may not be the account holder that’s involved.”

He goes on to highlight the problematic issue of incorrectly accusing someone due to a lack of solid evidence: “It could be someone else in the family or someone living in a shared house. It could even be someone stealing wi-fi. We are not making any form of accusation.”

Virgin Media has also stated that it will not hand over the personal details of anyone accused by the BPI “under any circumstances”. This is a good start by Virgin and all credit to them for taking this stance but the reality is that Virgin hands over its subscriber’s details in the blink of an eye when faced with a court order to do so. We know for a fact that they hand over the details of petty file-sharers to the likes of lawyers Davenport Lyons for the alleged sharing of one cheap game costing little more than a single album. However, the BPI has said in the past that it doesn’t want to start taking legal action against individuals.

Source: Virgin Media: ‘Absolutely No Possibility’ of Disconnecting File-Sharers

In the UK and at the forefront of this controversy has been Virgin Media. Various reports suggested that Virgin would implement the 3-strikes policy with the BPI but this proved very unpopular and it took just a few days for Virgin to deny any such deal had been struck.

Undeterred, the BPI has carried on working with Virgin who, according to a Music Week report, have now agreed to some sort of halfway-house. Virgin will not (yet) disconnect persistent uploaders, but after receiving information from the BPI about users making unauthorized uploads, Virgin Media will start sending out warning letters along with ‘educational’ advice about how to ensure that the customer’s account isn’t ‘misused’. Included in the advice will be links to authorized music sources, along with the usual fear mongering about viruses and spyware.

In this 10-week trial, along with the letter from Virgin, the subscriber will also receive a warning letter from the BPI. It will state that persistent offenders will be disconnected and/or taken to court, despite the fact that Virgin appears to be refusing to disconnect users so far.

BPI chief executive Geoff Taylor said: “Virgin Media is the first ISP to publicly address the problem. It is a socially responsible ISP and I think other ISPs will look at this and see progress. I am very encouraged they have engaged with us. They understand the rights of musicians.”

A Virgin Media spokesman added: “We want people to enjoy music online without infringing the rights of musicians and music companies. This campaign is about helping our customers understand how they can do this.”

It’s unclear what the BPI strategy will be on this but to really put Virgin under pressure, it will probably decide to put IP-addresses it collects into a database. This way it would be easy to flag IP-addresses that had already been ‘caught’ before, and put these IPs forward to Virgin as persistent users – prime candidates for disconnection. Virgin Media (unlike comparable ADSL ISPs in the UK) hand out static IP addresses, so most users will be an easy target as they display the same IP address all the time. But for those Virgin customers with a router, simply changing the MAC address of the unit will force Virgin to hand over a new IP, which then offers the user the same perceived ‘protection’ as a dynamic IP ISP.

So at the end of it all lies a very large inconsistency. If a casual uploader simply gets a warning from the BPI/Virgin and only persistent, regularly-caught users MIGHT be disconnected or MIGHT get taken to court (in a civil action, of course), why has the BPI ignored all of these things while effectively directing the police that the recently arrested uploaders from OiNK should be treated as serious criminals?

TorrentFreak knows that at least two of those accused uploaded just a single album. Persistent? Hardly. Conspiring to Defraud? Give us a break.

Where were their friendly, education-based warnings from the ISP?

Update:The Register ran a piece and are also hosting copies of the letters that will be sent out to users. You can find the Virgin letter here and the BPI letter here.

Source: BPI and Virgin Media Agree to Start Warning Uploaders

A Virgin Media spokesperson said: “There is no pilot in place. There are no details to confirm as we haven’t come to any sort of agreement with the BPI. The BPI wants the Government and ISPs to adopt the three-strikes system, we don’t want to go down to that level as it raises questions about privacy and funding.”

Under the suggested proposals, those caught sharing unauthorized files would be disconnected from the internet, should they fail to heed warnings to stop. Virgin is right to be cautious about privacy issues. Anti-piracy outfit Logistep ran headlong into operating illegally in Italy recently, when it was ruled that they illegally spied on P2P users.

When quizzed, the BPI said it was unable to talk about its discussions with ISPs: “We can’t talk about the pilot and can’t give out details but we have outlined plans with Virgin and do have a dialogue with them. But there is no confirmation of a pilot.”

Source: Virgin Media Denies Doing a Deal to Disconnect Pirates

Their ‘Best Things in Life Are Free’ TV campaign, complete with eye-catching computer graphics, with movie and musical themes throughout left the viewer with a clear message: if you want to download music and movies quickly (for free), join us. Now, in 2008, the situation has changed dramatically. Kind of.

According to a report, the ISP has had a change of heart and will be working in collaboration with the British Phonographic Industry (BPI). Starting with a pilot scheme, the BPI will deviate from its stated policy of not going after individual file-sharers by targeting Virgin Media customers on P2P networks and reporting them to the ISP.

Set to go live during the next few months, and at the behest of the UK music industry, Virgin’s scheme will see them send warning letters out to customers flagged as file-sharers by the BPI. Those who do not heed warnings to stop will see Virgin disconnect them from the internet. The scheme will also be available to movie and TV studios who wish to punish Virgin’s customers.

Earlier this year the government said that ISPs should find a way to curb unauthorized downloading. By stepping up with its own plan, Virgin is hoping to side-step government enforced legislation.

A Virgin Media spokesman said: “We have been in discussions with rights holders organizations about how a voluntary scheme could work. We are taking this problem seriously and would favor a sensible voluntary solution.”

So as Virgin Media constantly upgrades its broadband customers to faster and faster connections over the last couple of years (4Mbit connections became 10Mbit, 10Mbit then became 20Mbit, 20Mbit due to become 40mb), it now agrees to punish the very people it targets when offering these super-fast connections.

However, all might not be lost for the file-sharer at Virgin Media, especially those who want to max-out their new bandwidth offering. The ISP will be rolling out a new newsgroup service for its subscribers which should be ready in the next couple of months. Using the Highwinds server banks, the service will offer 7 days retention on the all important binary newsgroups. A Virgin spokesman said: “We’re delighted to be working with Highwinds to build out our newsgroup service. Our expanded access to newsgroups will give our customers a free news feed to newsgroups with exceptional retention, providing one of the best free newsgroup services in the UK.”

Not to mention super high speed access to all the movies, music and software anyone could ever need, with no fear that the BPI, RIAA or IFPI can snoop on the transfers.

The Lord does indeed work in mysterious ways.

Source: ISP To Voluntarily Disconnect File-Sharers, Offers Free Usenet

‘OiNK’ himself participated in a short Q&A and the truth is that this is not the case. Here is a rundown of the salient points:

The raid was completely unexpected and came with no warning at all but steps had already been taken to protect the users. Although there was no ‘self-destruct’ or encryption according to OiNK, “the logs we store aren’t enough to incriminate users.” This will come as a huge relief to ex-members of OiNK.

A Cleveland Police spokesman told The Telegraph: “It is too early to tell if we will go after individuals, it all depends on what we find.”

OiNK is accused of conspiracy to defraud and copyright infringements with police questioning OiNK for hours after which he was eventually released. It became apparent that the police had limited technical knowledge which, according to OiNK “made the interview quite amusing.”

OiNK’s father – who was also dragged into this, is fine – although the police took his laptop.

There was an implication that a backup of the site may exist, although this is unconfirmed and there is no news yet that the forums will be restored for the purposes of music discussion. Additionally, it’s unclear if OiNK remains the owner of the OiNK.CD domain.

Sites have been cropping up claiming to collect donations for legal defense but according to OiNK there aren’t any that potential donators should feel comfortable donating to right now.

Certain changes had been made to the OiNK site and IRC channel in recent weeks security-wise and there was a suggestion that this may have been because a raid was expected. OiNK has denied this and confirmed these changes were a coincidence.

In echoes of what happened to Alexander Hanff (admin of the BitTorrent tracker DVDR-Core) Alan Ellis aka OiNK has been fired from his IT Consultant job following the raid but has refused to elaborate on what grounds his employer – Virgin Media in Stockton-on-Tees – chose to dismiss him.

It’s hugely commendable that OiNK has taken the time to come out and give the community timely facts. Alan told The Daily Telegraph: “I haven’t done anything wrong. I don’t believe my website breaks the law. They don’t understand how it works.”

Stay Tuned

Update: Seems like someone involved in the takedown left an administrative message on the OiNK site (thanks for the tips DaanRiver and R10T):

Source: OiNK Database Didn’t ‘Self Destruct’, Wasn’t Encrypted But Users Safe?