ISPA - October 2007 Copyright Phillip Davies Head of Investigations B Sky B

Very brief overview of Sky Piracy on line : Perceptions - shift in criminality? - economic impact – IP crime strategy Sky’s approach to online Piracy - pre & post Easynet – differences? ISPs and brand owners / rights holders – going forward.

British Sky Broadcasting group.

38% News Corp Italia

Sky’s content is broadcast on a variety of platforms including satellite – 8.5m viewers, Cable 500,000 Ireland, 3.4m UK – Residential ISP – 900,000 (UK), Ireland to follow.

Combating piracy and protecting the Sky brand are key business areas for the Group Security function at Sky. The team are represented at a European level with membership (Deputy Chair) of AEPOC - and in the United Kingdom with membership (Deputy Chair) of F.A.C.T. The Internet Crime Forum The Internet Enforcement Group

Copyright - Piracy on line From a broadcast and ISP perspective many of the Copyright issues include unauthorised or fraudulent viewing increased in effectiveness through the use of internet. Public perception – file sharing / streaming Shift in criminality – Experiences in other industries, and ours? National Intellectual Property Crime strategy – role of business (including ISP’s?)

Are criminals diversifying from traditional areas of crime into new areas such as piracy? "Protecting Intellectual Property: Pirates, Fakes and Organised Crime" Lord Sainsbury of Turville, Former Parliamentary Under Secretary of State for Science and Innovation Excel, London, 22 June 2006 Said: Enforcement has become an increasingly challenging area as we continue to fight the importation of fake goods but equally challenging is the rise of the digital environment. Its impact on both production and distribution of fakes is a new challenge for us. Fake CD’s and DVD’s no longer need to be produced elsewhere and smuggled into the country as new technology means they can be produced in a small flat anywhere in the UK. Digitisation also means that illegal distribution and theft can occur computer to computer without a physical copy ever being produced. Unfortunately we are not the only ones to have recognised the increased value of IP in today’s world. Historically, crime has always followed the economy and as the knowledge based economy provides more opportunities, that is where criminal elements have moved. ‘The clear view from the private sector is that the answer to tackling IP crime is the continuing cooperation between government, industry and enforcement agencies. You do not have to work in isolation on this problem. There is strength in working in partnership.’

Auction houses – 24/7 access to sell illegal equipment & services. With auction houses effective brand protection. Top sellers of illegal equipment often indicate linked criminality – profile & work with law enforcement. Websites offering illegal content – streaming (live and historic) Often hosted abroad, one current case with top 5 UK ISP. Infiltrate & investigate. Resolution includes, negotiation, Cease & Desist, disruption, information sharing with other affected party abroad, UK – Law Enforcement Forums – hacking tips for other platforms & circumvention tips In partnership with other platforms –work with law enforcement. Ours and other rights our platforms Consistent approach – same staff enforce internally and externally. Some key areas Acquisition of Easynet and growth of residential ISP leads to rights holders request. No changes in approach.

Closing On line criminality affects all – brand to bandwidth. UK ISPs are now successful home brands. With divergence into other areas, such as broadcast comes rights holders and content responsibility. On line crime – lone pirate to organised crime – need for members to work together before piracy encroaches further – currently some Trade Organisations see a lost generation, we can help to change this. Digital Piracy - Global problem and growing. Importance of ISPA – consistent approach learning from experiences of others.