U.S. ISPs Agree to Copyright Alerts

WASHINGTON, D.C.: The leading U.S. Internet service providers (ISPs) have agreed to a new system of "Copyright Alerts" that will electronically notify subscribers if an account is being used to download pirated content, in an initiative backed by the Hollywood studios and the Independent Film & Television Alliance (IFTA).

The companies collaborating on the new “Copyright Alerts” framework announced today are the MPAA and members Disney, Paramount, Sony Pictures, Twentieth Century Fox, Universal and Warner Bros.; ISPs AT&T, Cablevision Systems Corp., Comcast Corp., Time Warner Cable and Verizon; IFTA; plus the Recording Industry Association of America (RIAA) and its members (Universal Music Group Recordings, Warner Music Group, Sony Music Entertainment, and EMI Music North America) and A2IM, representing independent labels.

The backers of the new initiative maintain that content theft costs the U.S. economy 373,000 jobs, $16 billion in lost earnings and $3 billion in lost tax revenue every year. In an effort to stem these losses, ISPs will deliver a series of early alerts—up to six—notifying the subscriber that his or her account may have been misused for online content theft of film, TV shows or music. Those accounts that persist will be subject to a system of “mitigation measures” intended to stop online content theft, such as slowed connections. Subscribers will also be given the opportunity for an independent review if they assert that the online activity in question is lawful or if their account was identified in error. Termination of a subscriber’s account is not part of this agreement and ISPs will not provide their subscribers’ names to rights’ holders. ISPs will begin enforcing the alerts in 2011 and 2012.

The anti-piracy campaign also calls for the creation of a Center for Copyright Information to support implementation of the system and educate consumers about the importance of copyright.

“Many people don’t realize that content theft puts jobs—and future productions of films, TV shows, music, and other content—at risk,” said Michael O’Leary, executive VP for government relations at the Motion Picture Association of America. “Today, there are more ways to enjoy content legitimately online than ever before. This agreement will help direct consumers to legal platforms rather than illicit sites, which often funnel profits to criminals rather than the artists and technicians whose hard work makes movies, television and music possible.”

Jean Prewitt, the president and CEO of the Independent Film & Television Alliance (IFTA), noted, “Frequently, independent producers and distributors are hit the hardest by content theft. This agreement is a textbook example of the private sector working cooperatively to help solve a glaring economic problem while protecting consumers.”