UPDATE: BT, TalkTalk Seek Digital Economy Act Review

8th Jul 2010 10:13

(Adds BIS comments, details) By Lilly Vitorovich Of DOW JONES NEWSWIRES LONDON (Dow Jones)--U.K. internet service providers BT Group PLC (BT.A.LN) and TalkTalk Telecom Group PLC (TALK.LN) are seeking a judicial review of the Digital Economy Act, which was rushed through parliament by the previous Labour government before the general election. The parties, which filed legal papers with the High Court in the U.K. on Tuesday, believe that provisions in the Act, aimed at the prevention of online copyright infringement, received "insufficient scrutiny before being rushed through into law at the tail end of the last Parliament." As well as having procedural concerns, BT and TalkTalk believe the measures proposed to try to prevent online copyright infringement could harm citizens as well as impact both companies. As a result, they are seeking clarity from the High Court before they, and others, are asked to implement the Act. "It's disappointing that we feel the need to take action but we feel we have no choice. We have to do this for our customers who otherwise run the risk of being treated unfairly," BT Retail Chief Executive Gavin Patterson said in a statement. "Our dispute is not with the current government but with the previous administration which pushed this through without due process. We need clarity about whether this legislation is compatible with important EU laws," he added. TalkTalk Chairman Charles Dunstone described the Act as "flawed", and said it will cost the nation a lot of money. But the new coalition government, which was formed by the Conservative and Liberal Democrat parties in May, has no plans to change the Act. "The Digital Economy Act sets out to protect our creative economy from the continued threat of online copyright infringement, which industry estimates costs the creative industries, including creators, GBP400 million per year. "We believe measures are consistent with EU (European Union) legislation and that there are enough safeguards in place to protect the rights of consumers and ISPs and will continue to work on implementing them," a Department of Business, Innovation and Skills spokesperson said in a statement. At 0901 GMT, BT shares were up 2 pence at 137 pence, while TalkTalk shares were up a penny at 122 pence in a higher London market. -By Lilly Vitorovich, Dow Jones Newswires; 44-0-207 842 9290; [email protected] (END) Dow Jones Newswires July 08, 2010 05:13 ET (09:13 GMT)