Taking something for nothing is wrong . . .

. . . that’s why we must stop illegal file sharing and give the creative industries a breathing space

Peter Mandelson

It was said this week by a former colleague of mine (anonymously, of course) that I do not “get the internet”. While I am still something of a novice when it comes to streaming and downloads, I have been around long enough to know that piracy is wrong. That is why my department decided to consider strengthening proposals to tackle illegal file sharing and downloading.

The thinking behind this is clear and has nothing to do with dinners in Corfu. The Government decided to reopen the issue of suspending internet connections as a sanction of last resort against the most egregious offenders for two simple reasons.

First, taking something for nothing, without permission, and with no compensation for the person who created and owns it, is wrong. Simple as that. I was shocked to hear that as much as half of all internet traffic in the UK is for the carriage of unlawful content. If technical solutions can discourage piracy, then as a Government we are obliged to consider them.

Second, our creative businesses drive much of our economy. They provide not only tax revenues and jobs but also ensure that Britain punches above its weight on the global cultural stage. We are a creative people and we do these things well. These businesses will get no favours from government, but we should create a regulatory environment where they can operate without having to deal with illegal competition.

Crucially, if these changes can give the creative businesses and their partners the space to develop new business models that support more new artists, acts and films, then surely we are duty bound to consider them.

Let me emphasise that nothing has been predetermined. And I understand why internet service providers (ISPs), consumer groups and digital rights activists are disappointed that we have decided to consider a range of tougher and faster measures. But let me try, if I can, to reassure them.

It is essential that film, music and other content companies do more to build joint services with ISPs, such as the deal between Virgin Media and Universal Music to allow unlimited music downloads for a monthly fee. Surely it is self-evident — a no-brainer, if you like — that they need to build a win-win position with ISPs, so that they compete by developing new services for consumers rather than competing solely for market share. It’s that which will effect the sea change that we are looking for.

To those who have raised their voices about the proposed changes this week, let me say that I hear their concerns. I have read their blogs and can live with the abuse (I’ve had worse).

I made clear to the content industry that we would consider legislation that includes temporary account suspension only if it was seen as the sanction of last resort. It would only follow a well-established series of warnings and clear evidence that they were taking action to defend their own rights. This will not turn your ISP into Big Brother. The process is driven by rights holders reporting activity on public file-sharing websites rather than service providers monitoring individuals’ internet traffic.

I want to know more from digital rights groups and consumers about other steps that should be taken to protect people who may feel that they are at risk of being accused without good cause. This could perhaps be because of legitimate file sharing, or because of others hijacking their connection. Having a fair, fast and effective appeals process will obviously be essential.

We are fast approaching the tenth anniversary of the trial in which Napster.com, the site that enabled the first real boom in file sharing, was shut down after legal action by record labels. This legal action was hugely expensive, time-consuming and ultimately did little for consumers. Why? Because it failed to encourage rights holders to develop new business models and did nothing to seek to change consumer behaviour. A decade on, we have another opportunity, and for some in the content industries, perhaps the last.

Ultimately the answer to combating digital piracy lies in the hands of those who own content and those who control access to the internet. Rights holders already have to take risks, and will have to take more — for example, by developing new online services such as Spotify that make much more of their back catalogue available in a way and at a price that makes sense to today’s consumers. The age of flogging a CD in HMV for £20 is well and truly over. Ask me what I think will finish off piracy as a real threat to our creators and creative businesses and the answer is obvious — it is the market.

Provide customers with a good quality, cheap, safe and efficient experience, and they will ditch illegal downloading. If the threat of temporary account suspension and its implementation in a small number of cases helps to build a market to make this happen, then I believe it is worth our serious consideration.

Lord Mandelson is Secretary of State for Business, Innovation and Skills