Ofcom to regulate P2P, Burnham tells MW conference

12:12 | Thursday June 4, 2009

Speaking at Music Week’s Making Online Music Pay conference today, the minister said that it was "highly likely" that Digital Britain will ensure there will be a basic requirement for ISPs to notify infringing customers. But Burnham also told nearly 200 delegates at the May Fair Hotel in central London that "some people in the room might not think notifications are enough and some might think they go too far."

He added that he and Digital Britain author Communications Minister Stephen Carter "intend to give Ofcom powers to apply technical measures and we think that is the right option".

Carter recently indicated that the Rights Agency, mooted in the interim Digital Britain report from January, was not gaining traction and Burnham's comments suggest Ofcom is now the preferred option for regulating between rights holders and ISPs and also helping to stamp out digital piracy. "The idea is for measures to be applied against individuals who are serial infringers,” Burnham said. “That is the proposal."

However, he added there is still detail to be worked out about issues such as what constitutes a "serial infringer" and who should sit in judgement on those decisions.

Burnham also urged the music industry and ISPs to continue their dialogue to arrive at new legal models for the market, suggesting that Government intervention should always be a last option. "Both sides must find a point of balance. Don't wait for the heavy hand of Government, do it now. If you wait for Government then that might be worse," he said.

Burnham was introduced by UK Music chief executive Feargal Sharkey, who was chairing the event. Sharkey said there has been a seismic shift in the industry over the last 10 years and that it has also seen major changes over the past 12 months with DRM-free tracks and the recent PRS decision to reduce minimum rates for streaming. “Music is in an interesting place,” he said.

The conference, which is intended to give practical solution as to how the music industry can make money out of digital, also featured a panel discussion entitled “How can the ISPs help the music industry?”, as well as a three different sessions outlining the different models of established online music channels – audio, video and mobile.

The inaugural MOMP continues this afternoon, with a case study on selling direct to consumers, as well as panel discussion on how other industries are making money online.