Break out your tin foil hats.  Yesterday, the blogosphere got wind of New Zealand’s “controversial” Section 92 amendment that requires ISPs to disconnect repeat infringers.  A number of sites of varying degrees of blogitude have reposted their own version of the story.  For instance:

  • Julian Sanchez at Arstechnica claims the legislation “requires ISPs to act on a principle of ‘guilt upon accusation,’ cutting off the Internet connections of users merely alleged to be violating copyright.”
  • User enigmax at Torrentfreak claims “the act assumes that any individual simply accused of sharing copyright works on the Internet, is guilty. The punishment for ‘guilty’ is summary disconnection from the Internet.”

In a case of “you’re reporting the most unreasonable possible interpretation of the text as the actual text”, here’s the actual and full text of section 92:

92A Internet service provider must have policy for terminating accounts of repeat infringers

(1) An Internet service provider must adopt and reasonably implement a policy that provides for termination, in appropriate circumstances, of the account with that Internet service provider of a repeat infringer.

(2) In subsection (1), repeat infringer means a person who repeatedly infringes the copyright in a work by using 1 or more of the Internet services of the Internet service provider to do a restricted act without the consent of the copyright owner.

92B Internet service provider liability if user infringes copyright

(1) This section applies if a person (A) infringes the copyright in a work by using 1 or more of the Internet services of an Internet service provider to do a restricted act without the consent of the copyright owner.

(2) Merely because A uses the Internet services of the Internet service provider in infringing the copyright, the Internet service provider, without more,—

(a) does not infringe the copyright in the work:
(b) must not be taken to have authorised A’s infringement of copyright in the work:
(c) subject to subsection (3), must not be subject to any civil remedy or criminal sanction.

(3) However, nothing in this section limits the right of the copyright owner to injunctive relief in relation to A’s infringement or any infringement by the Internet service provider.

(4) In subsections (1) and (2), Internet services means the services referred to in the definition of Internet service provider in section 2(1).

92C Internet service provider liability for storing infringing material

(1) This section applies if—

(a) an Internet service provider stores material provided by a user of the service; and
(b) the material infringes copyright in a work (other than as a result of any modification by the Internet service provider).

(2) The Internet service provider does not infringe copyright in the work by storing the material unless—

(a) the Internet service provider—

(i) knows or has reason to believe that the material infringes copyright in the work; and
(ii) does not, as soon as possible after becoming aware of the infringing material, delete the material or prevent access to it; or

(b) the user of the service who provided the material is acting on behalf of, or at the direction of, the Internet service provider.

(3) A court, in determining whether, for the purposes of subsection (2), an Internet service provider knows or has reason to believe that material infringes copyright in a work, must take account of all relevant matters, including whether the Internet service provider has received a notice of infringement in relation to the infringement.

(4) An Internet service provider who deletes a user’s material or prevents access to it because the Internet service provider knows or has reason to believe that it infringes copyright in a work must, as soon as possible, give notice to the user that the material has been deleted or access to it prevented.

(5) Nothing in this section limits the right of the copyright owner to injunctive relief in relation to a user’s infringement or any infringement by the Internet service provider.

92D Requirements for notice of infringement

A notice referred to in section 92C(3) must—

(a) contain the information prescribed by regulations made under this Act; and
(b) be signed by the copyright owner or the copyright owner’s duly authorised agent.

92E Internet service provider does not infringe copyright by caching infringing material

(1) An Internet service provider does not infringe copyright in a work by caching material if the Internet service provider—

(a) does not modify the material; and
(b) complies with any conditions imposed by the copyright owner of the material for access to that material; and
(c) does not interfere with the lawful use of technology to obtain data on the use of the material; and
(d) updates the material in accordance with reasonable industry practice.

(2) However, an Internet service provider does infringe copyright in a work by caching material if the Internet service provider does not delete the material or prevent access to it by users as soon as possible after the Internet service provider became aware that—

(a) the material has been deleted from its original source; or
(b) access to the material at its original source has been prevented; or
(c) a court has ordered that the material be deleted from its original source or that access to the material at its original source be prevented.

(3) Nothing in this section limits the right of the copyright owner to injunctive relief in relation to a user’s infringement or any infringement by the Internet service provider.

(4) In this section,—

“cache” means the storage of material by an Internet service provider that is—

(a) controlled through an automated process; and
(b) temporary; and
(c) for the sole purpose of enabling the Internet service provider to transmit the material more efficiently to other users of the service on their request

“original” source means the source from which the Internet service provider copied the material that is cached.”

I don’t dispute the inaccuracy of the methods used to label people as infringers.  And I don’t dispute the fact that 25% of PC users are infected with malware, some of which is hosting content without the user’s knowledge.  But the fearmongering over this amendment is severely misplaced.

Repeat Infringers

First off, some of the commentary has turned this into a one-strike law.  That’s just wrong. 92A clearly and unequivocally states that the infringer must violate copyrights “repeatedly.”

ISP’s Point of View

Sanchez writes:

While this does not literally require disconnection on the basis of mere accusation, neither [sic] does the statute establish any process for those charged with infringement to seek redress. It seems likely that many ISPs, unwilling to risk legal penalties or bear the costs of investigating the validity of copyright claims, will err on the side of disconnection.

If I run an ISP and a record label passes me an infringement accusation that the customer contests, which of these two actions do you think I’m going to do:

  • Inform the record label that the customer contests the accusation, and continue to charge that customer $30-60 per month for net access throughout the years that it takes to litigate the case.
  • Disconnect the user immediately (so they’re no longer paying me anything), and possibly subject myself to antitrust and breach of contract liability.

ISPs are only required to “reasonably implement a policy that provides for termination, in appropriate circumstances, of the account with that Internet service provider of a repeat infringer.”  When I receive an infringement accusation for a particular customer, I’m going to set that user’s browser to redirect to a page that has an “I contest this” button, so they can still keep paying me.  Is it reasonable for me as an ISP to require more proof than a mere accusation, especially in light of the inaccurate methodologies that these “investigation” companies use? Do you really think I want the content industry summarily cutting off all my customers with no proof?  Oh, wait! The ISPs are already taking up the fight.

Sensationalism

The law clearly does not require termination by mere accusation, and the ISPs are clearly willing to fight to prevent that.  These commenters are claiming that the notion of termination by mere accusation is unreasonable, but then they’re criticizing the Act, even though it only requires ISPs to make a reasonable infringement policy. It might be entertaining to read about some controversy, but don’t believe everything you read on the internet, especially if it’s an opinion written by an American, non-lawyer, non-engineer journalist on the meaning of a New Zealand ISP law.

And if you’re really concerned about “accusation = termination” coming to the US, think about it this way.  The entire entertainment industry (movies, television, music) is only $40 billion in revenues per year.  The telecoms are a $400 billion industry.  The labels lost [miserably] in 1998 with OCILLA.  I have little doubt that the ISPs lobbyists will continue to make it so you continue to pay them obscene markups on service that costs them virtually nothing.  With US ISPs agreeing to work with labels voluntarily, they’re only opening themselves up to antitrust liability if they step too far.