Digital Economy Act 2010

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Main benefits

• Promoting a competitive digital communications infrastructure, through proposals on radio licensing, changes to Ofcom's duties and spectrum modernisation.

• Providing essential support for creative industries in a digital world, through proposals on online copyright infringement and changes t o copyright licensing.

• Improving digital security and safety, by putting in place a classification system for boxed video games that meets the needs of parents and children.

• Securing public service content in a rapidly changing broadcasting landscape, through action on the provision of news in the nations, regionally and locally, updating Channel 4 Corporation's functions and future-proofing the Channel 3 and 5 licenses.

Main elements

• Online infringement of copyright – tackling widespread copyright infringement via a two-stage process. First by making a legal action more effective and educating consumers about copyright on-line. Second through reserve powers, if needed, to introduce technical measures, such as disconnection.

• Support the plurality of independent and highly quality news in the Nations, locally and in the regions – giving Ofcom powers to appoint and fund Independently Funded News Consortia.

• Digital infrastructure and content – giving Ofcom new duties to promote investment in infrastructure and public service media content,, and to carry out an assessment of the UK's communications infrastructure every two years.

• Mobile and wireless broadband – enabling investment in next generation technologies through spectrum modernisation.

• Digital radio-updating the regulatory framework to make moves to digital switchover for radio possible by 2015.

• Channel 4 Corporation – updating its functions to encompass public service content on all media platforms – online as well as television.

• Video games- protecting children by making age ratings compulsory for all boxed games designed for those aged 12 or above.

Dods commentary

The Digital Economy Bill implements the conclusions of the Digital Britain white paper, outlining the vision for how the UK can sustain its position as a leading digital economy.

Its aim is to ensure a world-class digital future, setting out the UK government's ambition to secure the UK's position as one of the world's leading digital economies and to take forward a new, more active industrial policy to maximize the benefits from the digital revolution.

A key point is the Universal Service Commitment to deliver broadband to every home in the UK by 2012.

The controversial broadband tax, announced by Digital Britain minister Stephen Timms earlier this year, was omitted. It is expected instead to be launched as part of the Finance Bill next year.

Regulator Ofcom will be given new powers to encourage investment so services for consumers improve, reporting regularly on what areas of the UK are being left behind as networks are modernised.

The government is tackling widespread copyright infringement through a two stage process, to combat the piracy of intellectual property for profit.

Business secretary Peter Mandelson hardened the government’s position on online piracy following concerns from the music and film industries that the Bill had provided an insufficient deterrent to piracy.

Internet pirates who offend repeatedly will face a series of sanctions that may lead to being disconnected from their online provider.

Liberal Democrat spokesman Don Foster said the proposals could put the government in danger of "ignoring fundamental legal rights", suggesting the presumption of innocent until proven guilty must apply.

Future funding of Channel 4 is to come under scrutiny, as well as establishing necessary enabling powers for new commissioning bodies to provide strong news coverage across the regions.

Radio regulator Ofcom issued a report recommending the rules on the ownership of local media and cross-media ownership should be relaxed, proposing to remove rules which prevent one company owning all local radio stations in one area.

The Bill aims to implement the recommendations of the Byron Review, published in June 2008, placing age ratings of computer games on a statutory footing for ratings of 12 years and above.

This would be achieved through the adoption of a new and strengthened system of classification for boxed video games with a strong UK based statutory layer of regulation, ensuring protection for children.

In an interview with The Financial Times, the shadow culture secretary said the Conservatives would reverse proposals in the Bill and may even "tear up" the BBC's royal charter.

Favouring deregulation of commercial broadcasters, the Tories would decrease the corporation's dominance as it is "out of touch" with the license fee payer and replace its governing body, the BBC Trust.

“The controversial broadband tax, announced by Digital Britain minister Stephen Timms earlier this year, was omitted. It is expected instead to be launched as part of the Finance Bill next year.”

Progress

House of Lords1st reading:19 November 2009
2nd reading: 2 December 2009
Committee stage:

• 1st sitting: 6 January 2010
  
• 2nd sitting: 12 January 2010
  
• 3rd sitting: 18 January 2010
  
• 4th sitting: 20 January 2010
• 5th sitting: 26 January 2010
• 6th sitting: 3 February 2010
• 7th sitting: 8 February 2010

Report stage - 1st sitting: 1 March 2010
Report stage - 2nd sitting: 3 March 2010
Report stage: 8 March 2010
3rd reading: 15 March 2010

House of Commons

1st reading: 16 March 2010 (no debate)
2nd reading: 6 April 2010
Committee stage: 7 April 2010
3rd reading: 7 April 2010

Royal Assent: 8 April 2010