Ofcom to spend £6m implementing Digital Economy Act by 2012

Watcgdog expects to recoup costs from copyright holders, but only if Act is upheld

Ofcom is set to spend £6m implementing the controversial Digital Economy Act over the next year, a Freedom of Information request has revealed.

The request, made by Slightly Right of Centre, also revealed that Ofcom has spent £100,000 investigating the practicality of web-blocking provisions at the behest of the Department for Culture, Media and Sport.

"In 2010/11 Ofcom spent £1.8m and in 2011/12 plans to spend £4m. This includes work across all activities in relation to the copyright infringement prevention measures of the Digital Economy Act 2010," the watchdog said.

"Ofcom has spent £0.1m on the report to review the potential efficacy of
the site-blocking provisions of the Digital Economy Act."

Ofcom added that it expects to recoup much of the cost from copyright holders once the legislation is in place.

"The apportionment of costs for the online copyright infringement provisions ... including Ofcom's costs and those of an appeals body, will be borne by copyright holders and internet service providers on an ongoing basis," Ofcom said.

"Copyright owners and internet service providers would also be liable to pay Ofcom costs incurred prior to the commencement of the scheme."

However, TalkTalk and BT are currently taking their legal challenge against the Act to the Court of Appeal after the initial judgement found in favour of the government.

If that were to occur, it seems that Ofcom would be out of pocket to the tune of £1.9m.

V3.co.uk contacted Ofcom for further information on this issue but had received no reply at the time of publication.

The Digital Economy Act was recently criticised by a UN report which claimed that it falls foul of basic human rights and should be repealed.