Digital-Music-Report-2014

Website blocking proves effectiveActions by ISPs have become a widely-accepted and effectiveway of curbing piracy online. Increasingly common is the blockingof websites that make available infringing content. In recentyears, courts in 10 EU countries have ordered ISPs to block users’access to specific services that structurally infringe copyrightlaw. Courts and authorities in other countries including India,Indonesia, Malaysia, Mexico, Norway, South Korea and Turkeyhave made similar orders. On the legislative front, in 2013, Norwayadopted new website blocking legislation and Italy became thefirst country in Europe where an administrative body — the Italiancommunications authority AGCOM — is empowered to authorisewebsite blocking.bit torrent use-11%in eu countries withwebsite blocking+15%in eu countrieswithout blocksvKontakte: Stifling a licensedbusiness in RussiaRussia is a vast potential market stifled by rampantcopyright infringement. At the centre of the Russianmusic scene is vKontakte, the country’s dominantonline social network and its largest distributorof music. vKontatke operates an unlicensed musicservice allows users to upload and store music andvideo files, which then become available for all otherusers of the service to search and stream.vKontakte is providing access to tens ofthousands of the most popular songs by local andinterntional artists. This is damaging the licensedbusiness and preventing investment in Russia’smusic sector. Searches for the Top 20 Billboardsingles, the Top 20 UK singles and the Top 20Russian singles generates thousands of results formost tracks.In February 2014, the scale and harmful impactof vKontakte’s music service was illuminated by theUS Trade Representative (USTR) in its “NotoriousMarkets list”, a respected barometer of respectfor copyright in countries around the world. Forthe fourth year in a row, the Russian internetgiant was included for its record on copyrightinfringement. The US government report says:vKontakte’s business model “appears to includeenabling the unauthorized reproduction anddistribution, including streaming, of music and othercontent through the site and associated softwareapplications.”Despite misrepresentation by some anti-copyrightcampaigners, courts have consistently found that the blockingof sites providing illegal content achieves an appropriate balanceof fundamental rights. In November 2013, the Advocate Generalat the Court of Justice of the European Union said that websiteblocking is available under EU law.Website blocking measures implemented by ISPs have beeneffective. Between January 2012 and July 2013, Europeancountries where blocking orders are in place saw BitTorrent usedecline by 11 per cent, while European countries without suchorders saw BitTorrent use increase by 15 per cent (comScore/Nielsen). The effect was especially pronounced in two countries,Italy and the UK, where the highest number of illegal services havebeen blocked. In Italy, BitTorrent traffic declined by 13 per cent in2013 and in the UK BitTorrent traffic declined by 20 per cent overthe same period. The industry believes that website blocking is aneffective tool to help tackle digital piracy and should be availablein more countries worldwide. It also needs to be extended tocover mobile networks.Additionally, rights holders work with ISPs on notificationprogrammes aimed at educating users about the value ofcopyright. Such schemes exist in Chile, France, Ireland, NewZealand, South Korea and the US. Account holders are notifiedthat their account is being used unlawfully, with the possibility ofdeterrent consequences such as fines if warnings are repeatedlyignored. These programmes have proven effective where55Maverage daily usersOF VKONTAKTE41