Ofcom's draft code of practice is a valiant attempt to implement the hospital pass it was given in the Digital Economy Act, but we think it has the potential to turn into a bureaucratic dog's breakfast. As the code stands, millions of customers would be at risk of being falsely accused of copyright infringement, being falsely put onto an 'offenders' register' and so potentially taken to court. Also, the draft code exempts smaller ISPs and mobile operators, which seems arbitrary and could lead to market distortion.
The government is separately consulting on whether copyright owners should reimburse the significant costs that ISPs will incur to operate this letter-writing process. Copyright owners are the only ones that will benefit from this system, so unless the government decides that these companies should fully reimburse ISPs' costs, broadband customers will in effect be forced to subsidise the profits of large music and film companies.