File sharing infringement notice fee to stay at $25
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The Ministry of Business, Innovation and Employment (MBIE) has decided that the fee paid to ISPs for issuing notices to suspected copyright infringers will remain at $25 for the time being.
In a cabinet paper released today, Commerce Minister Craig Foss says that submissions from the music and film industry, which wanted the fee to be lowered, and from ISPs, which wanted the fee to be increased, were taken into account.
However Foss says he considers there is “currently no case for either increasing or decreasing the fee.”
Foss says the current $25 fee is appropriate firstly because, according to submissions, there has been “a significant reduction in the volume of illegal file sharing” in the first six months since the Copyright Amendment (Infringing File Sharing) Act came into force. Secondly, lowering the fee at this time would “impose an inappropriate level of costs” on ISPs.
Several submissions to MBIE cited a Waikato University study which found that traffic downloaded using P2P applications decreased to less than half the volume it had been prior to the Act coming into force, and that this decline had persisted at least until January 2012
However the Recording Industry Association of New Zealand (RIANZ) had submitted that “since August 2011 overall P2P use in New Zealand is down 18 percent but still remains at a very high level with over 700,000 people still engaging in P2P on a monthly basis.”
Meanwhile the MBIE says that a submission by the New Zealand Federation Against Copyright Theft (NZFACT had “provided evidence showing there had been around 110,000 infringing downloads of major US movies in August 2011, but from that date downloads had plateaued at between 40,000 and 60,000 per month.”
The cabinet paper also reveals that a total of 2168 infringement notices were sent out in the first six months of the current anti file-sharing regime. Of these notices, the largest number were issued by Telecom (1238) followed by Vodafone (417), TelstraClear (398) and Orcon (115).
Rianz piracy-accused Telecom customers
The numbers above suggest around 2170 notices have been issued, at $25 a pop, about $54,000 in notice fees.
Now if piracy has dropped 18%, as they claim, then presumably the cost of piracy has been reduced by $12.6 million.
That is a staggeringly good return on investment for the industry, at the expense of ISPs who had to bear the costs of setting up a regime to punish their customers. They should easily be able to afford to issue more notices.
Unless they have been lying to the public about the cost of piracy, but whose fault is that now?
Posted by Anonymous at 22:37:01 on September 5, 2012
Posted by Anonymous at 16:19:19 on September 6, 2012