The Court of Appeal today rejected BT and TalkTalk's appeal over the legislation to tackle online piracy following two previous unsuccessful appeals by them.
On the back of this latest court decision, the creative industries are now extending out a hand to the two companies to cast aside litigation and instead join them in helping the Government to implement the DEA.
PACT chief executive John McVay, who has acted as a spokesman for the creative industries in this case, said: "We always believed that the Judicial Review was misconceived. Rather than needlessly spending more time and money on further legal challenges, BT and TalkTalk now need to focus on working with rights holders and the Government in implementing the DEA with immediate effect."
BPI chief executive Geoff Taylor said the courts had once again confirmed the DEA was legal, proportionate and fair and could now be implemented.
"The ISPs' failed legal challenge has meant another year of harm to British musicians and creators from illegal filesharing," he added. "The ISPs now need to work constructively with Government and rights holders to implement the Act."
Equity general secretary Christine Payne said the court was once again on the side of almost two million workers in the creative industries whose livelihoods were put at risk because creative content was being stolen on a daily basis.
"Once again a judge has made it extremely clear that the Digital Economy Act is a fair, focused, proportionate and efficient system for consumers and the creative industry," she added. "Rather than individuals being hauled into court, the DEA makes it possible to conduct a mass consumer education programme. BT and TalkTalk need to stop fighting and start obeying the law."
The Film Distributors' Association president Lord Puttnam CBE hoped the court decision would put an end to "a long chapter of uncertainty, and the DEA can now help in implementing a mass consumer education programme so that people, especially young people, can come to appreciate the damage piracy inflicts on the whole of the creative community".
The British Video Association's director general Lavinia Carey added: "Several other countries are adopting this measure and it would be bad for Britain's creative industries to be left behind more forward thinking nations who are supporting their creative economies at this difficult time of transition towards increased digital consumption during this period of recession."