ISP Copyright Alert System Costs $2 Million to Run Annually
The entertainment industry's "Copyright Alert System" (aka "six strikes) was launched back in February
with the cooperation of major ISPs including AT&T, Verizon, Comcast and Time Warner Cable. While the program integrates "educational" material and a variety of short-lived punishments ranging from throttling to click through warnings, early indications are the program hasn't had much if any impact on BitTorrent piracy traffic
for a variety of reasons (users hiding behind VPNs or proxies, no punishment after the sixth "strike").
New tax records for the Center for Copyright Information
, which runs CAS, indicate that the program costs somewhere around $2 million annually to run. Those costs are shared by the RIAA, MPAA and cooperating ISPs Verizon, AT&T, Cablevision, Comcast and Time Warner Cable (read: you). Actual costs when it's all said and done are likely higher:
It’s not known whether the $2 million in membership dues for the first year is a fixed amount, so it may fluctuate from year to year. Also, it’s worth noting that the costs above only apply to the CCI organization. The copyright holders and ISPs incur extra costs when they track down infringers and process the notices. In other words, copyright holders and ISPs are likely to spend double or triple the previously mentioned $2 million on the entire six-strikes system.
Also keep in mind that as copyright holders realize the system isn't working, it will likely be expanded -- as will the costs passed on to broadband subscribers.