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Deloitte comments following Peter Mandelson's speech at the c&binet Forum on illegal downloading

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James Alexander, Media Partner said: "The suggestion of a flat fee being levied is new but it is unclear how this will be allocated given the complexity of the costs, including potential damage to an ISP's brand if they get this wrong and send warning letters to customers downloading for legitimate means.

"ISPs will be aware of upsetting legitimate and loyal customers in a fiercely competitive market. ISPs will use the twelve-month monitoring period to not only measure the effectiveness of deterrents but also to hone their own detection processes. Detection is reliant on a combination of technologies and supporting processes to analyse the huge volume of data generated by all the broadband connections in the UK.

"Making this detection process efficient and effective may well be a challenge, and while direct costs may be measurable and therefore split with content owners, indirect costs such as managing calls from customers, may be harder to capture. This may be easier to swallow if the ISP is also a content owner but may still be a burden for ISPs generally"

ENDS

About Deloitte
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms. Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu ("DTT"), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other's acts or omissions. Services are provided by member firms or their subsidiaries and not by DTT. Deloitte LLP is authorised and regulated by the Financial Services Authority.

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Laura Parsons
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Deloitte LLP
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