UK ISPs British Telecom and Talk Talk have lost their appeal and are now being forced to send users warning letters and potentially terminate the connections of users who exchange copyrighted files. Both ISPs had tried to argue that the UK's Digital Economy Act, passed largely in secret without public input like any good piece of Hollywood-written protectionist legislation -- was incompatible with EU law. "Though we have lost this appeal, we will continue fighting to defend our customers' rights against this ill-judged legislation," says Talk Talk -- which has argued the requirements will raise costs on consumers and ISPs while creating entirely new privacy problems.