Stakeholders' dialogue on illegal uploading and downloading: Technical measures which can be used to identify and prevent IPR infringement Brussels, 2 June 2010 Jeremy Banks Director of Anti-Piracy jeremy.banks@ifpi.org

Contents Overview Technical Options Choosing The Best Option Conclusion Strictly Privileged and Confidential

Overview IFPI estimates 19 out of 20 music files downloaded online are illegal; 65 % (approx 49 billion) relate to P2P Most ISPs do not take any steps to address music piracy by their customers on P2P networks Whatever the structure of the specific piracy problem, every person that accesses the Internet must do so through an ISP, and each ISP has the capability to exercise certain technical and commercial controls over the traffic that is generated by its own customers Strictly Privileged and Confidential

Technical Options Main Options: URL Blocking/Filtering IP Address Blocking/Filtering Protocol Blocking/Filtering Bandwidth Capping/Shaping Content Blocking/Filtering (Hash or Payload) User Segregation Solutions can be applied at: Network level (all subscribers) Segment level (some subscribers) User level (a subscriber) Strictly Privileged and Confidential

Technical Options Discussions as part of the UK OFCOM MOU; most Options are technically feasible Protocol and Hash filtering independently tested and implemented as part of HADOPI URL / IP Address filtering successfully implemented as part of the UK Internet Watch Foundation process and a number of legal rulings against The Pirate Bay A number of the Options already used by ISPs as part of their day to day traffic and security management Strictly Privileged and Confidential

Technical Options Must not lose site of remaining 35% i.e. non-P2P of the illegal music download problem Most of the same technical Options can be applied to www, news, e-mail, trackers and mobile network traffic to prevent the illegal downloading of music files In addition, non-P2P is ideally suited to the use of site blocking (URL and IP address) as seen with The Pirate Bay Strictly Privileged and Confidential

Choosing The Best Option In the UK - the threat of a sanction is potentially twice as effective than a deterrent notice alone (Harris Interactive, 2009) - whilst receiving a letter concerns 3 out of 4 file sharers, without follow up action its deterrent effect is substantially weakened (Harris Interactive, 2009) - 45% of UK consumers who have pirated online content would definitely stop their activity if a ‘3 strikes’ model was introduced (EMR, 2009) In New Zealand 62% of youths would probably stop accessing illegal movies online if they thought their connection could be terminated (Synovate, 2009) In Hong Kong 82% of respondents said they would be likely to stop downloading unauthorised copies if risk that internet access would be suspended after the implementation of a notice, warning and consequence scenario (APCO Asia, 2009) In France 90% of consumers would stop downloading music from the internet if they received two warnings from their ISP. Among illegal downloaders, 88% would stop (IPSOS, 2008) Strictly Privileged and Confidential

Choosing The Best Option Infringing users receive warning notices followed by an effective deterrent sanction for those who do not stop Research demonstrates that the threat of a sanction is potentially significantly more effective than a deterrent notice alone Sanction needs to go beyond simply blocking P2P infringing activity otherwise users have no incentive to stop. There are several ways to do this, for example a combination of protocol filtering and bandwidth restriction for a predefined period of time Combinations of proven technology allow granulated approach to continue to allow ‘core’ e.g. VoIP, TV services to function but ultimately the simplest/most proportionate course of action is account suspension Strictly Privileged and Confidential

Conclusion Proven technologies exist which allow ISPs to prevent the illegal downloading of music files whilst at the same time allowing their customers to continue to access ‘core’ services Many are already in use by ISPs as part of their day to day traffic and security management Range of Options proven to be technically feasible Strictly Privileged and Confidential

THANK YOU Jeremy Banks Director of Anti-Piracy jeremy.banks@ifpi.org +44-20-7878-6804