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Small ISPs, Facing Recession, Don't Want To Be RIAA Cops
Despite new systems that promise to share copyright revenues with ISPs

One of the many questions surrounding the RIAA's new plan to make ISPs piracy nannies is how smaller operators are supposed to afford not only implementing the system, but the lost revenue from booting heavy users. The RIAA's plan, which no ISP wants to admit participation in -- involves tracking P2P pirates, then terminating the connections of repeat offenders. Carriers like Cox have been quick to implement the system -- in part because it gives them the ability to crack down on congestion-causing P2P activity. Cox tells users the DMCA requires they do this (it doesn't).

Smaller operators, like Louisiana broadband ISP Bayou Internet and Communications, aren't so excited. Bayou CEO Jerry Scroggin recently said that if the RIAA wanted him to play content cop, they'd better pay him for his troubles. A company called Nexicon, who we've previously discussed, is developing a tool they claim will do the work for those ISPs, by tracking ISP customers who trade pirated P2P files, then demanding payment to the copyright holder.
quote:
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It begins with Nexicon sending the downloader’s ISP a DMCA notice which is auto-generated by MARC. The ISP is then legally obligated to forward this notice to the infringer. The user clicks a link within the email taking them to the GetAmnesty website, and in less than three clicks, the user can settle with the copyright holder for a nominal fee.
CNET explores how Nexicon is marketing its services to smaller ISPs like Bayou as a way to generate money, but Scroggin still isn't impressed:
quote:
"I would still wind up losing customers," Scroggin said. "I would also have to pay Nexicon for this...I have to survive in this economy but I don't have the big marketing dollars that bigger ISPs have. I have to fund 401(K)s and find ways not to lay off people. Giving free reign to the RIAA is not part of my business model."
CNET fails to mention the company used to be an online cigarette seller named Cyco.net, that was sued for selling their product to minors, and for failing to report cigarette sales and taxes. That was before they changed their name in 2005 after realizing there might be money to be made in copyright enforcement. Nexicon has already struck one major deal with YouTube and a major recording label, and is supposedly in talks with at least one film studio.

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