Employment law: Pub piracy

Related tags Internet Wi-fi

The Digital Economy Act came into force in July, introducing a stricter approach to online infringement of copyright. The Act seeks to crack down on...

The Digital Economy Act came into force in July, introducing a stricter approach to online infringement of copyright.

The Act seeks to crack down on internet users who illegally download copyrighted material, such as films and music. The Act allows the copyright owner to target the owner of the IP address that was used to download illegally.

Many hospitality businesses allow employees and customers to use their internet connection.

As a result of the Act, if it is found that illegal download activity has occurred in relation to a particular IP address, the copyright owners could bring legal proceedings against the IP address owner, which could result in that owner's broadband use being restricted or blocked altogether.

Given our reliance on conducting business online these days, this could seriously disrupt a business.

We do not intend to advise you on the Digital Economy Act itself, but instead wish to point out how the Act may encroach on the employment relationship.

Notification process
If one of your employees uses your broadband to illegally download copyrighted material, under the Act, the copyright owner can send a 'copyright infringement report' to your internet service provider, who will, in turn, notify you of the potential infringement via your IP address.

If you receive such a report, you should immediately investigate who illegally downloaded the copyright material. If you have a reasonable belief that it was one of your employees, you may want to consider disciplinary action under your internet use policy, if you have one.

If your IP address continues to breach copyright laws, your service provider will be under a statutory obligation to add you to an anonymous infringement list, which is then sent to the copyright owners who request it. You will be added to the list if three notifications have been sent to you within a year. Therefore, it is in your interests to act quickly if you receive an infringement report.

Consequences

As the list is initially anonymous, the copyright owner may subsequently apply to the court to obtain the names and addresses of the perpetrators.

If action against you is successful, you may have your broadband connection blocked or you may be fined up to £250,000. The Act also contains a measure to block websites that may give access to copyrighted material. This could extend to search engines or websites that contain obscure links to other websites. A right to challenge actions by service providers and copyright owners will be available, although the relevant code governing this is yet to be finalised.

Practical tips for employers

• Ensure that all wi-fi connections are securely encrypted, with a password key for people to connect to your broadband. To further protect your connection, change the password regularly.

• Introduce or modify your internet use policy to include wording stating that inappropriate use of the internet (including downloading copyrighted material) will be dealt with under your disciplinary procedure and could lead to summary dismissal for gross misconduct.

• Ensure that the new or amended policy is distributed to each employee and that they sign to show their agreement to it.

• If you are a business that allows customers to use a wi-fi connection, only divulge the password key once they too have signed their agreement to an internet use policy for customers.

• Put up clear warnings around the building notifying customers that any misuse of the connection could result in them being excluded from the premises.

• Routinely monitor employees' internet use, provided you have permission to do so (for example, via your internet use policy).

Kimbells is well versed in the legal issues facing the drinks, hospitality and leisure industry, having specialised for many years in advising companies in this sector.

Legal updates and commentary on topical industry issues can be found at www.kimbells.com

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