MUMBAI: The Internet Service Providers Assocation, which represents British ISPs announced its disappointment that its members will be expected to pay for a quarter of the cost of implementing the Digital Economy Act.

The costs involved with contacting people picked out for warning letters have been a thorny discussion, with ISPs not keen on the added expense.

But the government has now outlined its decision, which will see the rights-holders paying 75 per cent of costs and the ISPs the rest, but does make the important decision that appeals, for now at least, will be free to those accused.

The Act is designed to help rights holders clamp down on illegal file sharing and the British coalition Government announced that, although rights holders will bear three quarters of the associated costs, ISPs will be required to pay for the remaining quarter.

"The notification costs of ISPs and Ofcom as regulator are to be split 75:25 between copyright owners and ISPs on the basis of the costs of an ISP which is an "efficient operator" as verified by Ofcom (as proposed in the consultation document)," explained the pdf report from the Department for Business, Innovation and Skills.

"The regulator costs also include the costs related to the appeals system." "There should be no fee for subscribers to appeal against a notification letter. However the Government retains the power to introduce one at a later date should it become clear that a large number of vexatious appeals result."

ISPA believes its member ISPs should not be expected to pay the cost of protecting a third party's digital assets. It's Secretary General, Nicholas Lansman, commented, "ISPA has consistently argued for the beneficiary pays principle and is disappointed with today's announcement. Full cost recovery for serious law enforcement cases is an established rule and ISPA sees no reason why it should not be the case here....

The ruling will come in to force during the first half of next year.