Ofcom has published a draft code of practice that internet service providers (ISPs) will have to adhere to in order to meet new anti-copyright requirements under the Digital Economy Act.
Under the draft proposals only ISPs with over 400,000 subscribers will be subject to the new code, which means that BT, Talk Talk, Virgin Media, Sky, Orange, O2 and the Post Office will be affected.
However, Ofcom stated that, should levels of copyright infringement on other networks, including mobile, increase, those ISPs will also have to comply with the obligations.
Under the proposals, ISPs will have to keep an anonymised list of alleged serial copyright infringers and notify subscribers that their account has been cited for allegations of copyright infringement.
Ofcom said that copyright owners will be able to request the lists that contain information on subscribers who had been contacted three times, and pursue a court order to identify them and take legal action.
Companies will have eight months to implement the code once it is accepted, and Ofcom said that, subject to any consultation and approval processes, it will be officially implemented by 2011.
Ofcom added that it will establish an "independent, robust subscriber appeals mechanism" for those who believe they have been unfairly accused.
Digital rights body the Open Rights Group (ORG) was quick to dismiss the code, arguing that the process was rushed and has left huge unanswered questions.
"Government needs to draw a clear line between the notifications and potential disconnection regimes. Otherwise, Ofcom can't tell people what these accusations mean, which is absurd," argued ORG executive director Jim Killock.
"Both Jeremy Hunt, the Culture Secretary, and the Liberal Democrats recognised the likely flaws of the Act during the debates. It is Mandelson's Act and they should not feel obliged to do his dirty work."
The consultation on the draft, which can be viewed on Ofcom's web site, closes on 30 July.
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