Digital Economy Act 2010
CHAPTER 24
CONTENTS
OFCOM reports
1 OFCOM reports on infrastructur e, internet domain names etc
2 OFCOM reports on media content
Online infringement of copyright
3 Obligation to notify subscribers of reported infringements
4 Obligation to provide infringement lists to copyright owners5 Approval of code about the initial obligations6 Initial obligations code by OFCOM in the absence of an approved code7 Contents of initial obligations code8 Progress reports9 Obligations to limit internet access: assessment and preparation
10 Obligations to limit internet access11 Code by OFCOM about obligations to limit internet access12 Contents of code about obligations to limit internet access13 Subscriber appeals14 Enforcement of obligations15 Sharing of costs16 Interpretation and consequential provision17 Power to make provision about injuncti ons preventing acce ss to locations on
the internet
18 Consultation and Parliamentary scrutiny
Powers in relation to internet domain registries
19 Powers in relation to internet domain registries
20 Appointment of manager of internet domain registry21 Application to court to alter constitution of internet domain registry
Channel Four Television Corporation
22 Functions of C4C in relation to media contentDigital Economy Act 2010 (c. 24) ii
23 Monitoring and enforcing C4C’s me dia content duties
Independent television services
24 Determination of Channel 3 licence areas
25 Initial expiry date for Channel 3 and 5 and public teletext licences
26 Initial expiry date: consequential provision27 Report by OFCOM on public teletext service28 Power to remove OFCOM’s duty to secure provision of public teletext service29 Broadcasting of programmes in Gaelic
Independent radio services
30 Digital switchover
31 Renewal of national radio licences32 Renewal and variation of local radio licences33 Variation of licence period following renewal34 Content and character of local sound broadcasting services35 Radio multiplex services: frequency and licensed area36 Renewal of radio multiplex licences
Regulation of television and radio services
37 Application of regulatory regimes to broadcasters
Access to electromagnetic spectrum
38 Payment for licences
39 Enforcement of licence terms etc
Video recordings
40 Classification of video games etc
41 Designated authority for video games etc
Copyright and performers’ property rights: penalties
42 Increase of penalties relating to infringing articles or illicit recordings
Public lending right
43 Public lending right
General
44 Power to make consequential provision etc
45 Repeals46 Extent47 Commencement48 Short titleDigital Economy Act 2010 (c. 24) iii
Schedule 1 — Classification of video games etc: supplementary provision
Schedule 2 — RepealsELIZABETH II c. 24
Digital Economy Act 2010
2010 CHAPTER 24
An Act to make provision about the functions of the Office of
Communications; to make provision about the online infringement of
copyright and about penalties for infringement of copyright and performers’rights; to make provision about internet  domain registries; to make provision
about the functions of the Channel Four Television Corporation; to make
provision about the regulation of television and radio services; to makeprovision about the regulation of the use of the electromagnetic spectrum; to
amend the Video Recordings Act 1984; to make provision about public
lending right in relation to electronic publications; and for connectedpurposes. [8th April 2010]
E IT ENACTED  by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the  authority of the same, as follows:— 
OFCOM reports
1 OFCOM reports on infrastructure, internet domain names etc
(1) In Chapter 1 of Part 2 of the Communications Act 2003 (electronic
communications networks and se rvices), after section 134 insert—
“Reports on infrastructure etc
134A OFCOM reports on infrastructure etc
(1) OFCOM must prepare reports in accordance with subsections (2) and
(3) and each report must deal with—
(a) the electronic communications networks matters listed in
section 134B(1), and
(b) the electronic communications services matters listed in section
134B(2).BDigital Economy Act 2010 (c. 24) 2
(2) The first report must—
(a) relate to the position on a day specified in the report which falls
within the period of 12 months beginning with the day onwhich this section comes into force, and
(b) be sent to the Secretary of State by OFCOM not more than 2
months after the specified day.
(3) A further report must—
(a) be prepared for each relevant period, and
(b) be sent to the Secretary of State by OFCOM as soon as
practicable after the end of the relevant period.
(4) “Relevant period” means—
(a) the period of 3 years beginning with the day specified in the first
report, and
(b) each subsequent period of 3 years beginning with the end of the
previous period.
(5) Where there is a significant chan ge in connection with a matter listed in
section 134B(1) or (2) and OFCOM consider that the change should be
brought to the attention of the Secretary of State, OFCOM must— 
(a) prepare a report on the change, and
(b) send it to the Secretary of State as soon as practicable.
(6) For the purposes of subsection (5), a change is si gnificant if OFCOM
consider that it has, or is likely to have, a significant adverse impact
on—
(a) persons carrying on business in  the United Kingdom or a part
of the United Kingdom, or
(b) the general public in the United Kingdom or a part of the United
Kingdom.
(7) OFCOM must publish every report under this section—
(a) as soon as practicable after they send it to the Secretary of State,
and
(b) in such manner as they  consider appropriate for bringing it to
the attention of persons who, in their opinion, are likely to havean interest in it.
(8) OFCOM may exclude information from a report when it is published
under subsection (7) if they consider that it is information that theycould refuse to disclose in response to a request under the Freedom ofInformation Act 2000.
134B Networks and services matters
(1) For the purposes of section 134A, the electronic communications
networks matters are—
(a) the different types of electronic communications network
provided in the United Kingdom (“UK networks”),
(b) the geographic coverage of the different UK networks,
(c) the proportion of the population covered by the different UK
networks,
(d) the extent to which UK networks share infrastructure,
(e) the capacity of the different UK networks,Digital Economy Act 2010 (c. 24) 3
(f) the extent to which the providers  of the different UK networks
allow other communications providers to use their networks toprovide services,
(g) the amount of time for which the different UK networks are and
are not available, including the steps that have been or are to betaken to maintain or improve the level of availability,
(h) the preparations made by providers of UK networks for
responding to an emergency, including preparations forrestoring normal operation of UK networks disrupted by theemergency, and
(i) the standard of the different UK networks in comparison with
electronic communications networks provided in a range ofother countries, having regard , in particular, to their coverage
and capacity.
(2) For the purposes of section 134A, the electronic communications
services matters are—
(a) the use of the electromagnetic spectrum for wireless telegraphy
in the United Kingdom,
(b) the different types of electronic communications service
provided in the United Kingdom (“UK services”),
(c) the geographic coverage of the different UK services,
(d) the proportion of the population covered by the different UK
services,
(e) the amount of time for which the different UK services are and
are not available, including the steps that have been or are to betaken to maintain or improve the level of availability,
(f) the preparations made by providers of UK services for
responding to an emergency, including preparations forrestoring normal operation of UK services disrupted by theemergency, and
(g) the standard of the different UK services in comparison with
electronic communications services provided in a range of othercountries.
(3) The preparations referred to in subsections (1)(h) and (2)(f) include—
(a) the steps taken to assess  the risks of different types of
emergency occurring,
(b) the steps taken to reduce or remove those risks, and
(c) the testing of proposed responses to different types of
emergency.
(4) In a report under section 134A, OFCOM are required to include only
information about, and analysis of, such networks, services and
providers as they consider appropriate.
(5) In this section “emergency” means an event or situation that seriously
disrupts a UK network or UK service.
Reports on internet domain names
134C OFCOM reports on internet domain names
(1) OFCOM must, if requested to do so by the Secretary of State—Digital Economy Act 2010 (c. 24) 4
(a) prepare a report on matters specified by the Secretary of State
relating to internet domain names, and
(b) send the report to the Secre tary of State as soon as practicable.
(2) The specified matters may, in  particular, include matters relating to— 
(a) the allocation and registration of internet domain names, and
(b) the misuse of intern et domain names.
(3) OFCOM must publish every report under this section—
(a) as soon as practicable after they send it to the Secretary of State,
and
(b) in such manner as they  consider appropriate for bringing it to
the attention of persons who, in their opinion, are likely to havean interest in it.
(4) OFCOM may exclude information from a report when it is published
under subsection (3) if they consider that it is information that theycould refuse to disclose in response to a request under the Freedom ofInformation Act 2000.”
(2) In section 135(3) of that Act (information required for purposes of Chapter 1
functions), after paragraph (ib) insert—
“(ic) preparing a report under section 134A;
(id) preparing a report under section 134C;”.
2 OFCOM reports on media content
After section 264 of the Communications  Act 2003 insert—
“264A OFCOM reports: wider review and reporting obligations
(1) When carrying out a review under section 264 for a period, OFCOM
must also carry out a review of the extent to which material included inmedia services during that period (taken together over the period as awhole) contributed towards the fulfilment of the public serviceobjectives.
(2) Every report under section 264 must—
(a) include a report on the ma tters found on the review under this
section,
(b) specify, and comment on, whatever changes appear to OFCOM
to have occurred, during the pe riod to which the report relates,
in the extent to which the public service objectives have been
fulfilled,
(c) specify, and comment on, whatever changes appear to OFCOM
to have occurred, during th at period, in the manner in which
those objectives are fulfilled, and
(d) set out OFCOM’s conclusions on the current state of material
included in media services.
(3) “The public service objectives” ar e the objectives set out in paragraphs
(b) to (j) of section 264(6) (as modified by subsection (4)).
(4) Paragraphs (b) to (j) of section 264(6) have effect for the purposes of
subsection (3) as if—Digital Economy Act 2010 (c. 24) 5
(a) references to the relevant television services were to media
services, and
(b) references to programmes were to material included in such
services.
(5) In this section— 
“material” does not include advertisements;
“media services” means any of the follow ing services that are
available to members of the public in all or part of the UnitedKingdom—
(a) television and radio services, 
(b) on-demand programme services, and
(c) other services provided by means of the internet where
there is a person who exercises editorial control over thematerial included in the service.
(6) The services that are to be taken for the purposes of th is section to be
available to members of the public include any service which— 
(a) is available for reception by members of the public (within the
meaning of section 361); or
(b) is available for use by members of the public (within the
meaning of section 368R(4)).”
Online infringement of copyright
3 Obligation to notify subscribers of reported infringements
After section 124 of the Communications  Act 2003 insert—
“Online infringement of copyright: obligations of internet service providers
124A Obligation to notify subscribers of copyright infringement reports
(1) This section applies if it appears to a copyright owner that—
(a) a subscriber to an internet access service has infringed the
owner’s copyright by means of the service; or
(b) a subscriber to an internet access serv ice has allowed another
person to use the service, and that other person has infringed
the owner’s copyright by means of the service.
(2) The owner may make a copyright infringement report to the internet
service provider who provided the internet access service if a code inforce under section 124C or 124D (an “initial obligation s code”) allows
the owner to do so.
(3) A “copyright infringement report” is a report that—
(a) states that there appears to have been an infringement of the
owner’s copyright;
(b) includes a description of the apparent infringement;
(c) includes evidence of the apparent infringement that shows the
subscriber’s IP address and the time at which the evidence wasgathered; Digital Economy Act 2010 (c. 24) 6
(d) is sent to the interne t service provider within the period of 1
month beginning with the day on  which the evidence was
gathered; and
(e) complies with any other requirement of th e initial obligations
code.
(4) An internet service provider who receives a copyright infringement
report must notify the subscriber of the report if the initial obligations
code requires the provider to do so.
(5) A notification under subsection (4) must be sent to the subscriber
within the period of 1 month beginning  with the day on which the
provider receives the report.
(6) A notification under subsection (4) must include—
(a) a statement that the notification is sent  under this section in
response to a copyright infringement report;
(b) the name of the copyright owner who made the report;
(c) a description of the apparent infringement;
(d) evidence of the apparent in fringement that shows the
subscriber’s IP address and the time at which the evidence was
gathered;
(e) information about subscriber appeals and the grounds on
which they may be made;
(f) information about copyr ight and its purpose;
(g) advice, or information enabling the subscriber to obtain advice,
about how to obtain lawful access to copyright works;
(h) advice, or information enabling the subscriber to obtain advice,
about steps that a subscriber can take to protect an internetaccess service from un authorised use; and
(i) anything else that the initial obligations code requires the
notification to include.
(7) For the purposes of subsection (6)(h) the internet service provider must
take into account the suitability of different protection for subscribers
in different circumstances.
(8) The things that may be required under subsection (6)(i), whether in
general or in a particular case, include in particular—
(a) a statement that inform ation about the apparent infringement
may be kept by the internet service provider;
(b) a statement that the copyright owner may require the provider
to disclose which copyright infringement reports made by theowner to the provider relate to the subscriber;
(c) a statement that, followin g such a disclosure, the copyright
owner may apply to a court to learn the subscriber’s identityand may bring proceedings against the subscriber for copyrightinfringement; and
(d) where the requirement for the provider to send the notification
arises partly because of a report  that has already been the
subject of a notification under subsection (4), a statement thatthe number of copyright infringement reports relating to thesubscriber may be taken into account for the purposes of any
technical measures.Digital Economy Act 2010 (c. 24) 7
(9) In this section “notify”, in rela tion to a subscriber, means send a
notification to the electronic or postal address held by the internetservice provider for the subscriber (and sections 394 to 396 do notapply).”
4 Obligation to provide infringement lists to copyright owners
After section 124A of the Commu nications Act 2003 insert—
“124B Obligation to provide copyright infringement lists to copyright 
owners
(1) An internet service provider must provide a copyright owner with a
copyright infringement list for a period if—
(a) the owner requests the list for that period; and
(b) an initial obligations code requires the internet service provider
to provide it.
(2) A “copyright infringement list” is a list that—
(a) sets out, in relation to each relevant subscriber, which of the
copyright infringement reports made by the owner to theprovider relate to the subscriber, but
(b) does not enable any subscriber to be identified.
(3) A subscriber is a “relevant subscr iber” in relation to a copyright owner
and an internet service provider if copyright infringement reportsmade by the owner to the provider in re lation to the subscriber have
reached the threshold set in the initial obligations code.”
5 Approval of code about the initial obligations
After section 124B of the Co mmunications Act 20 03 insert—
“124C Approval of code about the initial obligations
(1) The obligations of internet service providers under sections 124A and
124B are the “initial obligations”.
(2) If it appears to OFCOM—
(a) that a code has be en made by any person for the purpose of
regulating the initial obligations; and
(b) that it would be appropriate for them to approve the code for
that purpose,
they may by order approve it, with effect from the date given in the
order.
(3) The provision that may be contained in a code and approved under this
section includes provision that—
(a) specifies conditions that must be met for rights and obligations
under the copyright infringement provisions or the code toapply in a particular case;
(b) requires copyright owners or internet service providers to
provide any information or assista nce that is reasonably
required to determine whether a condition under paragraph (a)
is met.Digital Economy Act 2010 (c. 24) 8
(4) The provision mentioned in subsection (3)(a) may, in particular, specify
that a right or obligation does not apply in relation to a copyright ownerunless the owner has made arrangements with an internet service
provider regarding—
(a) the number of copyright infringeme nt reports that the owner
may make to the provider within a particular period; and
(b) payment in advance of a contribution towards meeting costs
incurred by the provider.
(5) The provision mentioned in subsection (3)(a) may also, in particular,
provide that—
(a) except as provided by the code, rights and obligations do not
apply in relation to an internet service provider unless thenumber of copyright infringement reports the provider receiveswithin a particular period reaches a threshold set in the code;and
(b) if the threshold is reached, rights or obligations apply with
effect from the date when it is reached or from a later time.
(6) OFCOM must not approve a code unde r this section unless satisfied
that it meets the criteria  set out in section 124E.
(7) Not more than one approved code may have effect at a time.
(8) OFCOM must keep an approved code under review.
(9) OFCOM may by order, at any time, for the purpose mentioned in
subsection (2)—
(a) approve modifications that have been made to an approved
code; or
(b) withdraw their approval from an approved code,
with effect from the date given in the order, and must do so if the code
ceases to meet the criteria set out in section 124E.
(10) The consent of the Secretary of State is required for the approval of a
code or the modification of an approved code.
(11) An order made by OFCOM under this section approving a code or
modification must set out the code or modification.
(12) Section 403 applies to the power of OFCOM to make an order under
this section.
(13) A statutory instrument conta ining an order made by OFCOM under
this section is subject to annulm ent in pursuance of a resolution of
either House of Parliament.”
6 Initial obligations code by OFCOM in the absence of an approved code
After section 124C of the Co mmunications Act 20 03 insert—
“124D Initial obligations code by OFCOM in the absence of an approved 
code
(1) For any period when sections 124A and 124B are in force but for which
there is no approved initial obligations code under section 124C,Digital Economy Act 2010 (c. 24) 9
OFCOM must by order make a code for the purpose of regulating the
initial obligations.
(2) OFCOM may but need not make a code under subsection (1) for a time
before the end of—
(a) the period of six months beginning with the day on which
sections 124A and 124B come into force, or
(b) such longer period as the Secretary of State may specify by
notice to OFCOM.
(3) The Secretary of State may give a notice under subsection (2)(b) only if
it appears to the Secretary of State that it is not practicable for OFCOMto make a code with effect from the end of the period mentioned insubsection (2)(a) or any longer period for the time being specifiedunder subsection (2)(b).
(4) A code under this section may do any of the things mentioned in
section 124C(3) to (5).
(5) A code under this section may also—
(a) confer jurisdiction with respect to any matter (other than
jurisdiction to determine appeals  by subscribers) on OFCOM
themselves;
( b ) p r o v i d e  f o r  O F C O M ,  i n  e x e r c i s i n g  s u c h  j u r i s d i c t i o n ,  t o  m a k e
awards of compensation, to direct the reimbursement of costs,or to do both;
(c) provide for OFCOM to enforce, or to participate in the
enforcement of, any awards or directions made under the code;
(d) make other provision for the enforcement of such awards and
directions;
(e) establish a body corporate, with the capacity to make its own
rules and establish its own procedures, for the purpose ofdetermining subscriber appeals;
(f) provide for a person with the function of determining
subscriber appeals to enforce, or to participate in theenforcement of, any awards or directions made by the person;
(g) make other provision for the enforcement of such awards and
directions; and
(h) make other provision for the purpose of regulating the initial
obligations.
(6) OFCOM must not make a code under this section unless they are
satisfied that it meets the criteria set out in section 124E.
(7) OFCOM must—
(a) keep a code under this section under review; and
(b) by order make any amendment of it that  is necessary to ensure
that while it is in force it continues to meet the criteria set out in
section 124E.
(8) The consent of the Secretary of State is required for the making or
amendment by OFCOM of a code under this section.
(9) Section 403 applies to the power of OFCOM to make an order under
this section.Digital Economy Act 2010 (c. 24) 10
(10) A statutory instrument conta ining an order made by OFCOM under
this section is subject to annulm ent in pursuance of a resolution of
either House of Parliament.”
7 Contents of initial obligations code
After section 124D of the Communications Act 2003 insert—“124E Contents of initial obligations code
(1) The criteria referred to in sections 124C(6) and 124D(6) are—
(a) that the code makes the required provision about copyright
infringement reports (see subsection (2));
(b) that it makes the required provision about the notification of
subscribers (see subsections (3) and (4));
(c) that it sets the thresho ld applying for the purposes of
determining who is a relevant subscriber within the meaning ofsection 124B(3) (see subsections (5) and (6));
(d) that it makes provision about how internet service providers are
to keep information ab out subscribers;
(e) that it limits the time for which they may keep that information;
(f) that it makes an y provision about contributions towards
meeting costs that is required to be included by an order under
section 124M;
(g) that the requirements conc erning administration and
enforcement are met in relation to the code (see subsections (7)
and (8));
(h) that the requirements concerning subs criber appeals are met in
relation to the code  (see section 124K);
(i) that the provisions of the code are objectively justifiable in
relation to the matters to which it relates;
(j) that those provisions are not such as to discriminate unduly
against particular persons or against a particular description of
persons;
(k) that those provisions  are proportionate to what they are
intended to achieve; and
(l) that, in relation to what those provisions are intended to
achieve, they are transparent.
(2) The required provision about copyright infringement reports is
provision that specifies—
(a) requirements as to the means of obtaining evidence of
infringement of copyright for inclusion in a report;
(b) the standard of evidence that must be included; and
(c) the required form of the report.
(3) The required provision about the notification of subscribers is
provision that specifies, in relation to a subscr iber in relation to whom
an internet service provider receives one or more copyrightinfringement reports—
(a) requirements as to the means by which the provider identifies
the subscriber;Digital Economy Act 2010 (c. 24) 11
(b) which of the reports the provider must  notify the subscriber of;
and
(c) requirements as to the form, contents and means of the
notification in each case.
(4) The provision mentioned in subsection (3) must not permit any
copyright infringement report received by an internet service providermore than 12 months before the date of a notification of a subscriber tobe taken into account for the purposes of the notification.
(5) The threshold applying in accordance with subsection (1)(c) may,
subject to subsection (6), be set by reference to any matter, including inparticular one or more of—
(a) the number of copyr ight infringement reports;
(b) the time within  which the reports are made; and
(c) the time of the apparen t infringements to which they relate.
(6) The threshold applying in accordance with subsection (1)(c) must
operate in such a way that a copyright infringement report received byan internet service provider more than 12 months before a particulardate does not affect whether the threshold is met on that date; and acopyright infringement list provided under section 124B must not take
into account any such report.
(7) The requirements conc erning administration and enforcement are—
(a) that OFCOM have, under the code, the functions of
administering and enforcing it, including the function ofresolving owner-provider disputes;
(b) that there are adequate arrangeme nts under the code for
OFCOM to obtain any information or assistance fr om internet
service providers or copyri ght owners that OFCOM reasonably
require for the purposes of administering and enforcing thecode; and
(c) that there are adequate arrangements under the code for the
costs incurred by OFCOM in administering and enforcing thecode to be met by internet service providers and copyrightowners.
(8) The provision mentioned in subsection (7) may include, in particular—
(a) provision for the payment, to a person specified in the code, of
a penalty not exceeding the maxi mum penalty for the time
being specified in section 124L(2);
(b) provision requiring a copyright owner to indemnify an internet
service provider for any los s or damage resulting from the
owner’s failure to comply with the code or the copyrightinfringement provisions.
(9) In this section “owner-provider dispute” means a dispute that—
(a) is between pers ons who are copyright owners or internet
service providers; and
(b) relates to an act or omissi on in relation to an in itial obligation or
an initial obligations code.”Digital Economy Act 2010 (c. 24) 12
8 Progress reports
After section 124E of the Co mmunications Act 20 03 insert—
“124F Progress reports
(1) OFCOM must prepare the following reports for the Secretary of State
about the infringement of copyright by subscribers to internet accessservices.
(2) OFCOM must prepare a full report for—
(a) the period of 12 months beginning with  the first day on which
there is an initial obligations code in force; and
(b) each successive period of 12 months.
(3) OFCOM must prepare an interim report for—
(a) the period of 3 months beginning with the first day on which
there is an initial obligations code in force; and
(b) each successive period of 3 months, other than one ending at the
same time as a period of 12 months under subsection (2).
But this is subject to any direction by the Secretary of State under
subsection (4).
(4) The Secretary of State may direct that  subsection (3) no longer applies,
with effect from the date  given in the direction.
(5) A full report under this section must include—
(a) an assessment of the current level of subscribers’ use of internet
access services to infringe copyright;
(b) a description of the steps take n by copyright owners to enable
subscribers to obtain lawful access to copyright works;
(c) a description of the steps taken by copyright owners to inform,
and change the attitude of, members of the public in relation tothe infringement of copyright;
(d) an assessment of the extent of the steps mentioned in
paragraphs (b) and (c);
(e) an assessment of the extent to which copyright owners have
made copyright infringement reports;
(f) an assessment of the extent to which they have brought legal
proceedings against subscribers  in relation to whom such
reports have been made;
(g) an assessment of the extent to which any such proceedings have
been against subscribers in relation to whom a substantial
number of reports have been made; and
(h) anything else that the Secretary of State directs OFCOM to
include in the report.
(6) An interim report under this section must include—
(a) the assessments mentioned in subsection (5)(a), (e) and (f); and
(b) anything else that the Secretary of State directs OFCOM to
include in the report.
( 7 ) O F C O M  m u s t  s e n d  a  r e p o r t  p r e p a r e d  u n d e r  t h i s  s e c t i o n  t o  t h e
Secretary of State as soon as practicable  after the end of the period for
which it is prepared.Digital Economy Act 2010 (c. 24) 13
(8) OFCOM must publish every full re port under th is section—
(a) as soon as practicable after they send it to the Secretary of State,
and
(b) in such manner as they  consider appropriate for bringing it to
the attention of persons who, in their opinion, are likely to havean interest in it.
(9) OFCOM may exclude information from a report when it is published
under subsection (8) if they consider that it is information that theycould refuse to disclose in response to a request under the Freedom ofInformation Act 2000.”
9 Obligations to limit internet access: assessment and preparation
After section 124F of the Communications Act 2003 insert—
“124G Obligations to limit internet access: assessment and preparation
(1) The Secretary of State may direct OFCOM to—
(a) assess whether one or more  technical obligations should be
imposed on internet service providers;
(b) take steps to prepare for the obligations;
(c) provide a report on the assessmen t or steps to the Secretary of
State.
(2) A “technical obligation”, in relation to an internet service provider, is an
obligation for the provider to take a technical measure against some orall relevant subscribers to its service for the purpose of preventing orreducing infringement of copyright by means of the internet.
(3) A “technical measure” is a measure that—
(a) limits the speed or other capacity of the service provided to a
subscriber;
(b) prevents a subscriber from using the service to gain access to
particular material, or limits such use;
(c) suspends the service provided to a subscriber; or
(d) limits the service provided to a subscriber in another way.
(4) A subscriber to an internet access service is “relevant” if the subscriber
is a relevant subscriber, within the meanin g of section 124B(3), in
relation to the provider of the service and one or more copyrightowners.
(5) The assessment and steps that the Secretary of State may direct
OFCOM to carry out or take under subsection (1) include, inparticular—
(a) consultation of copyright owners, internet service providers,
subscribers or any other person;
(b) an assessment of the like ly efficacy of a technical measure in
relation to a particular type of internet access service; and
(c) steps to prepare a proposed tech nical obligations code.
(6) Internet service providers and copyright owners must give OFCOM
any assistance that OFCOM re asonably require for the purposes of
complying with any direction under this section.Digital Economy Act 2010 (c. 24) 14
(7) The Secretary of State must lay before Parliament any direction under
this section.
(8) OFCOM must publish every report under this section—
(a) as soon as practicable after they send it to the Secretary of State,
and
(b) in such manner as they  consider appropriate for bringing it to
the attention of persons who, in their opinion, are likely to havean interest in it.
(9) OFCOM may exclude information from a report when it is published
under subsection (8) if they consider that it is information that theycould refuse to disclose in response to a request under the Freedom ofInformation Act 2000.”
10 Obligations to limit internet access
After section 124G of the Communications Act 2003 insert—
“124H Obligations to limit internet access
(1) The Secretary of State may by order impose a technical obligation on
internet service providers if—
(a) OFCOM have assessed whether one or more technical
obligations should be imposed on internet service providers;
and
(b) taking into account that assess ment, reports prepared by
OFCOM under section 124F, an d any other matter that appears
to the Secretary of State to  be relevant, the Secretary of State
considers it appropriate to make the order.
(2) No order may be made under this section within the period of 12
months beginning with the first day on which there is an initialobligations code in force.
(3) An order under this section must specify the date from which the
technical obligation is to have effect, or provide for it to be specified.
(4) The order may also specify—
(a) the criteria for ta king the technical meas ure concerned against a
subscriber;
(b) the steps to be taken as part of the measure and when they are
to be taken.
(5) No order is to be made under this section  unless—
(a) the Secretary of State has complied with subsections (6) to (10),
and
(b) a draft of the order has been laid before Parliament and
approved by a resolution of each House.
(6) If the Secretary of State proposes to make an order under this section,
the Secretary of State must lay before Parliament a document that—
(a) explains the proposal, and
(b) sets it out in the form of a draft order.
(7) During the period of 60 days beginning with the day on which the
document was laid under subsection (6) (“the 60-day period”), theDigital Economy Act 2010 (c. 24) 15
Secretary of State may not lay before Parliament a draft order to give
effect to the proposal (with or without modifications).
(8) In preparing a draft order under this section to give effect to the
proposal, the Secretary of State must  have regard to any of the
following that are made with regard to the draft order during the 60-day period—
(a) any representations, and
(b) any recommendations of a committee of either House of
Parliament charged with reporting on the draft order.
(9) When laying before Parliament a draft order to give effect to the
proposal (with or without modifications), the Secretary of State mustalso lay a document that explains an y changes made to the proposal
contained in the document laid before Pa rliament under su bsection (6).
(10) In calculating the 60-day period, no account is to be taken of any time
during which Parliament is dissolved or prorogued or during whicheither House is adjourned for more than 4 days.”
11 Code by OFCOM about obligations to limit internet access
After section 124H of the Communi cations Act 2003 insert—
“124I Code by OFCOM about obligations to limit internet access
(1) For any period during which there are one or more technical
obligations in force under section 124H, OFCOM must by order makea technical obligations code for the purpose of regulating those
obligations.
(2) The code may be made separately from , or in combination with, any
initial obligations code under section 124D.
(3) A code under this section may—
(a) do any of the things mentioned in section 124C(3) to (5) or
section 124D(5)(a) to (g); and
(b) make other provision for the purpose of regulating the technical
obligations.
(4) OFCOM must not make a code under this section unless they are
satisfied that it meets the criteria set out in section 124J.
(5) OFCOM must—
(a) keep a code under this section under review; and
(b) by order make any amendment of it that  is necessary to ensure
that while it is in force it continues to meet the criteria set out in
section 124J.
(6) The consent of the Secretary of State is required for the making or
amendment by OFCOM of a code under this section.
(7) Section 403 applies to the power of OFCOM to make an order under
this section.
(8) A statutory instrument conta ining an order made by OFCOM under
this section is subject to annulm ent in pursuance of a resolution of
either House of Parliament.”Digital Economy Act 2010 (c. 24) 16
12 Contents of code about obligations to limit internet access
After section 124I of the Communications Act 2003 insert—“124J Contents of code about obligations to limit internet access
(1) The criteria referred to in section 124I(4) are—
(a) that the requirements concerning enforcement and related
matters are met in relation to the code (see subsections (2) and(3));
(b) that the requirements concerning subs criber appeals are met in
relation to the code  (see section 124K);
(c) that it makes an y provision about contributions towards
meeting costs that is required to be included by an order under
section 124M;
(d) that it makes any other provision that the Secretary of State
requires it to make;
(e) that the provisions of the code are objectively justifiable in
relation to the matters to which it relates;
(f) that those provisions are not such as to discriminate unduly
against particular persons or against a particular description of
persons;
(g) that those provisions  are proportionate to what they are
intended to achieve; and
(h) that, in relation to what those provisions are intended to
achieve, they are transparent.
(2) The requirements concerning en forcement and related matters are—
(a) that OFCOM have, under the code, the functions of
administering and enforcing it, including the function ofresolving owner-provider disputes; 
(b) that there are adequate arrangeme nts under the code for
OFCOM to obtain any information or assistance fr om internet
service providers or copyri ght owners that OFCOM reasonably
require for the purposes of administering and enforcing thecode; and
(c) that there are adequate arrangements under the code for the
costs incurred by OFCOM in administering and enforcing thecode to be met by internet service providers and copyrightowners.
(3) The provision made concerning enforce ment and related matters may
also (unless the Secretar y of State requires otherwise) include, in
particular—
(a) provision for the payment, to a person specified in the code, of
a penalty not exceeding the maxi mum penalty for the time
being specified in section 124L(2);
(b) provision requiring a copyright owner to indemnify an internet
service provider for any los s or damage resulting from the
owner’s infringement or error in relation to the code or thecopyright infringement provisions.
(4) In this section “owner-provider dispute” means a dispute that—
(a) is between pers ons who are copyright owners or internet
service providers; andDigital Economy Act 2010 (c. 24) 17
(b) relates to an act or omission in relation to a technical obligation
or a technical obligations code.”
13 Subscriber appeals
After section 124J of the Co mmunications Act 20 03 insert—
“124K Subscriber appeals
(1) The requirements concer ning subscriber appeals are—
(a) for the purposes of section 124E(1)(h), the requirements of
subsections (2) to (8); and
(b) for the purposes of section 124J(1)(b), the requirements of
subsections (2) to (11).
(2) The requirements of this subsection are—
(a) that the code confers on subscribers the right to bring a
s u b s c r i b e r  a p p e a l  a n d ,  i n  t h e  c a s e  o f  a  t e c h n i c a l  o b l i g a t i o n scode, a further right of appeal to the First-tier Tribunal;
(b) that there is a person who, under the code, has the function of
determining subscriber appeals;
(c) that that person is for practical purposes independent (so far as
determining subscriber appeals is co ncerned) of internet service
providers, copyright owners and OFCOM; and
(d) that there are adequate arrangements under the code for the
costs incurred by that person in determining subscriber appeals
to be met by internet service providers, copyright owners andthe subscriber concerned.
(3) The code must provide for the grounds of appeal (so far as an appeal
relates to, or to anything done by reference to, a copyright infringementreport) to include the following—
(a) that the apparent infrin gement to which the report relates was
not an infringement of copyright;
(b) that the report does not relate to the subscriber’s IP address at
the time of the apparent infringement.
( 4 ) T h e  c o d e  m u s t  p r o v i d e  f o r  t h e  g r o u n d s  o f  a p p e a l  t o  i n c l u d e
contravention by the copyright owne r or internet service provider of
the code or of an obligation regulated by the code.
(5) The code must provide that an appeal on any grounds must be
determined in favour of the subscriber unless the copyright owner orinternet service provider shows th at, as respects any copyright
infringement report to which the appeal relates or by reference towhich anything to which the appeal relates was done (or, if there ismore than one such report, as respects each of them)—
(a) the apparent infringement was an infringement of copyright,
and
(b) the report relates to the subscrib er’s IP address at the time of
that infringement.
(6) The code must provide that, where a ground mentioned in subsection
( 3 )  i s  r e l i e d  o n ,  t h e  a p p e a l  m u s t  b e  d e t e r m i n e d  i n  f a v o u r  o f  t h esubscriber if the subs criber shows that—Digital Economy Act 2010 (c. 24) 18
(a) the act constituting the apparent infringement to which the
report relates was not done by the subscriber, and
(b) the subscriber took reasonable steps to prevent other persons
infringing copyright by means of the internet access service.
(7) The powers of the person determining subscriber appeals must include
power—
(a) to secure so far as practi cable that a subscriber is not prejudiced
for the purposes of the copyright infr ingement provisions by an
act or omission in respect of which an appeal is determined infavour of the subscriber;
(b) to make an award of compensat ion to be paid by a copyright
owner or internet service provider to a subscriber affected bysuch an act or omission; and
(c) where the appeal is determined in favour of the subscriber, to
direct the copyright owner or internet service provider toreimburse the reasonable costs of the subscriber.
(8) The code must provide that the power to direct the reimbursement of
costs under subsection (7)(c) is to be exercised to award reasonablecosts to a subscriber whose appeal is successful, unless the person
deciding the appeal is satisfied that it would be unjust to give such adirection having regard to all the circumstances including the conductof the parties before and during the proceedings.
(9) In the case of a technical obligations code, the powers of the person
determining subscriber appeals must include power—
(a) on an appeal in relation to a technical measure or proposed
technical measure—
(i) to confirm the measure;
(ii) to require the measure not to be taken or to be
withdrawn;
(iii) to substitute any other technical measure that the
internet service provider has power to take;
(b) to exercise the power mentioned in paragraph (a)(ii) or (iii)
where an appeal is not upheld but the person determining it issatisfied that there are exceptional circumstances that justify the
exercise of the power;
(c) to take any steps that OFCOM could take in relation to the act
or omission giving rise to the technical measure; and
(d) to remit the decision whether to confirm the technical measure,
or any matter relating to that decision, to OFCOM.
(10) In the case of a technical obligation s code, the code must make
provision—
(a) enabling a determination of a subscriber appeal to be appealed
to the First-tier Tribunal, including on grounds that it was based
on an error of fact, wrong in law or unreasonable;
(b) giving the First-tier Tribunal, in relation to an appeal to it, the
powers mentioned in subsections (7) and (9); and
(c) in relation to recovery of costs awarded by the Tribunal.Digital Economy Act 2010 (c. 24) 19
(11) In the case of a te chnical obligations code, the code must include
provision to secure that a technical measure is not taken against a
subscriber until—
(a) the period for bringing a subs criber appeal, or any further
appeal to the First-tier Tribunal, in relation to the proposedmeasure has ended (or the subscriber has waived the right to
appeal); and
(b) any such subscriber appea l or further appeal has been
determined, abandoned or otherwise disposed of.”
14 Enforcement of obligations
After section 124K of the Co mmunications Act 20 03 insert—
“124L Enforcement of obligations
(1) Sections 94 to 96 apply in relation to a contravention of an initial
obligation or a technical obligation, or a contravention of an obligationunder section 124G(6), as they apply in relation to a contravention of acondition set out under section 45.
(2) The amount of the penalty imposed under section 96 as applied by this
section is to be such amount not exceeding £250,000 as OFCOM
determine to be—
(a) appropriate; and
(b) proportionate to the contravention in respect of which it is
imposed.
(3) In making that determination OFCOM must have regard to—
(a) any representations made to them by the internet service
provider or copyright owner on whom the penalty is imposed;
(b) any steps taken by the provide r or owner towards complying
with the obligations contraventions of which have been notified
to the provider or owner under section 94 (as applied); and
(c) any steps taken by the provider or owner for remedying the
consequences of thos e contraventions.
(4) The Secretary of State may by order amend this section so as to
substitute a different maximum penalt y for the maximum penalty for
the time being specified in subsection (2).
(5) No order is to be ma de containing provision authorised by subsection
(4) unless a draft of the order has been laid before Parliament and
approved by a resolution of each House.”
15 Sharing of costs
After section 124L of the Co mmunications Act 20 03 insert—
“124M Sharing of costs
(1) The Secretary of State may by order specify provision that must be
included in an initial obligations code or a technical obligations codeabout payment of contributions towards costs incurred under thecopyright infringement provisions.Digital Economy Act 2010 (c. 24) 20
(2) Any provision specified under subsection (1) must relate to payment of
contributions by one or more of the following only—
(a) copyright owners;
(b) internet service providers;
(c) in relation to a subscriber appeal or a further appeal by a
subscriber to the First-tier Tribunal, the subscriber.
(3) Provision specified under su bsection (1) may relate to, in particular—
(a) payment by a copyright owner of a contribution towards the
costs that an internet service provider incurs;
(b) payment by a copyright owner  or internet service provider of a
contribution towards the costs that OFCOM incur.
(4) Provision specified under subsection (1) may include, in particular—
(a) provision about costs incurred before the provision is included
in an initial obligations code or  a technical obligations code;
(b) provision for payment in advance of expected costs (and for
reimbursement of overpayments where the costs incurred are
less than expected);
(c) provision about how costs, expected costs or contributions must
be calculated;
(d) other provision about when and how contributions must be
paid.
(5) No order is to be made under this section unless a draft of the order has
b e e n  l a i d  b e f o r e  P a r l i a m e n t  a n d  a p p r o v e d  b y  a  r e s o l u t i o n  o f  e a c hHouse.”
16 Interpretation and consequential provision
(1) After section 124M of the Com munications Act 2003 insert—
“124N Interpretation
In sections 124A to 124M and this section—
“apparent infringement”, in relation to a copyright infringement
report, means the infringement of copyright that the reportstates appears to have taken place;
“copyright infringement list” has the meaning given in section
124B(2);
“copyright infringement provisions” mean s sections 124A to 124M
and this section;
“copyright infringement report” has th e meaning given in section
124A(3);
“copyright owner” means—
(a) a copyright owner within the meaning of Part 1 of the
Copyright, Designs and Patents Act 1988 (see section173 of that Act); or
(b) someone authorised by th at person to act on the
person’s behalf;
“copyright work” has the same me aning as in Part 1 of the
Copyright, Designs and Patents Act 1988 (see section 1(2) of that
Act);
“initial obligations” has the meaning gi ven in section 124C(1);Digital Economy Act 2010 (c. 24) 21
“initial obligations code” has the meaning given in section
124A(2);
“internet access service” means an electronic communications
service that—
(a) is provided to a subscriber;
(b) consists entirely or mainly of the provision of access to
the internet; and
(c) includes the allocation of an IP address or IP addresses
to the subscriber to enable that access;
“internet service provider” mean s a person who provides an
internet access service;
“IP address” means an internet protocol address;“subscriber”, in relation to an internet access service, means a
person who—
(a) receives the service under an agreement between the
person and the provider of the service; and
(b) does not receive it as a communications provider;
“subscriber appeal” means—
(a) in relation to an initial obligations code, an appeal by a
subscriber on grounds specified in  the code in relation
to—
(i) the making of a copyright infringement report;
(ii) notification under section 124A(4);
(iii) the inclusion or proposed inclusion of an entry
in a copyright infringement list; or
(iv) any other act or omission in relation to an initial
obligation or an init ial obligations code;
(b) in relation to a technical obligations code, an appeal by
a subscriber on grounds specified in the code in relationto—
(i) the proposed taking of a technical measure; or
(ii) any other act or omission in relation to a
technical obligation or a technical obligationscode;
“technical measure” has the mean ing given in section 124G(3);
“technical obligation” has the meaning given in section 124G(2);
“technical obligations code” means a code in force under section
124I.”
(2) In section 135(3) of that Act (information required for purposes of Chapter 1
functions), after paragraph (i) insert—
“(ia) preparing a report under section 124F;
(ib) carrying out an assessment, taking steps or providing a report
under section 124G;”.
(3) In Schedule 8 to that Act (decisions not  subject to appeal to the Competition
Appeal Tribunal), after paragraph 9 insert—
“9A A decision relating to any of sections 124A to 124N or to anything
done under them.”Digital Economy Act 2010 (c. 24) 22
17 Power to make provision about injunctions preventing access to locations on 
the internet
(1) The Secretary of State may by regulations make provision about the granting
by a court of a blocking injunction in respect of a location on the internet whichthe court is satisfied has been, is being or is likely to be used for or in connectionwith an activity that infringes copyright.
(2) “Blocking injunction” means an  injunction that requires a service provider to
prevent its service being used to gain access to the location.
(3) The Secretary of State may not make regulations under this section unless
satisfied that—
(a) the use of the internet for activitie s that infringe copyright is having a
serious adverse effect on businesses or consumers,
(b) making the regulations is a proportionate wa y to address that effect,
and
(c) making the regulations would not pr ejudice national security or the
prevention or detection of crime.
(4) The regulations must provide that a court may not grant an injunction unless
satisfied that the location is—
(a) a location from which a substantial amount of material has been, is
being or is likely to be obtained in infringement of copyright,
(b) a location at which a substantial amount of material has been, is being
or is likely to be made available in infringement of copyright, or
(c) a location which has been, is being or is likely to be used to facilitate
access to a location within paragraph (a) or (b).
(5) The regulations must provide that, in determining whether to grant an
injunction, the court must take account of—
(a) any evidence presented of steps taken by the service provider, or by an
operator of the location, to prevent infringement of copyright in thequalifying material,
(b) any evidence presented of steps taken by the copyright owner, or by a
licensee of copyright in the qualifying material, to facilitate lawfulaccess to the qualifying material,
(c) any representations made by a Minister of the Crown,
(d) whether the injunction would be likely to have a disproportionate
effect on any person’s legitimate interests, and
(e) the importance of freedom of expression.
(6) The regulations must provide that a court may not grant an injunction unless
notice of the application for the injunction has been given, in such form and by
such means as is specified in the regulations, to—
(a) the service provider, and
(b) operators of the location.
(7) The regulations may, in particular—
(a) make provision about when a location is , or is not, to be treated as being
used to facilitate access to another location,
(b) provide that notice of an application for an injunction may be given to
operators of a location by being published in accordance with theregulations,Digital Economy Act 2010 (c. 24) 23
(c) provide that a court may not make an  order for costs against the service
provider,
(d) make different provision for different purposes, and
(e) make incidental, supplementary, consequential, transitional, transitory
or saving provision.
(8) The regulations may—
(a) modify Chapter 6 of Part 1 of the Copyright, Designs and Patents Act
1988, and
(b) make consequential provision modifying Acts and subordinate
legislation. 
(9) Regulations under this section may not include provision in respect of
proceedings before a court in England and Wales without the consent of theLord Chancellor.
(10) Regulations under this section mus t be made by statutory instrument.
(11) A statutory instrument containing regulati ons under this section may not be
made unless—
(a) the Secretary of State ha s complied with section 18, and
( b ) a  d r a f t  o f  t h e  i n s t r u m e n t  h a s  b e e n  l a i d  b e f o r e  a n d  a p p r o v e d  b y  a
resolution of each House of Parliament.
(12) In this section—
“copyright owner” has the sam e meaning as in Part 1 of the Copyright,
Designs and Patents Act 1988;
“Minister of the Crown” has the same me aning as in the Ministers of the
Crown Act 1975;
“modify” includes amend, repeal or revoke;
“operator”, in relation to a location on the int ernet, means a person who
has editorial control over material available at the location;
“qualifying material”, in relation to an injunction, means the material
taken into account by the court for the purposes of provision madeunder subsection (4);
“service provider” has the same meaning as in section 97A of the
Copyright, Designs and Patents Act 1988;
“subordinate legislation” has the same meaning as in the Interpretation
Act 1978.
(13) In the application of this section to Scotland—
“costs” means expenses;
“injunction” means interdict.
18 Consultation and Parliamentary scrutiny
(1) Before making regulations under section 17 the Secretary of State must
consult—
(a) the Lord President of the Court of Session and the Lord Chief Justice of
Northern Ireland,
(b) the persons that the Secretary of State thinks likely to be affected by the
regulations (or persons who represent such persons), and
(c) such other persons as the Secretary of State thinks fit.Digital Economy Act 2010 (c. 24) 24
(2) If, following the consultation under subsection (1), the Secretary of State
proposes to make regulations under sect ion 17, the Secretary of State must lay
before Parliament a document that—
(a) explains the proposal and sets it out in the form of draft regulations,
(b) explains the reasons why the Secretary of State is satisfied in relation to
the matters listed in section 17(3)(a) to (c), and
(c) contains a summary of an y representations made during the
consultation under subsection (1).
(3) During the period of 60 days beginning with the day on which the document
was laid under subsection (2) (“the 60-day period”), th e Secretary of State may
not lay before Parliament a draft st atutory instrument containing regulations
to give effect to the proposal (with or without modifications).
(4) In preparing draft regulations under section 17 to gi ve effect to the proposal,
the Secretary of State must have regard to any of the following that are madewith regard to the draft regulations during the 60-day period—
(a) any representations, and
(b) any recommendations of a committee of either House of Parliament
charged with reporting on the draft regulations.
(5) When laying before Parliament a draft  statutory instrument containing
regulations to give effect to the proposal (with or without modifications), theSecretary of State must also lay a documen t that explains any changes made to
the proposal contained in the document laid before Parliament under
subsection (2).
(6) In calculating the 60-day period, no account  is to be taken of any time during
which Parliament is dissolv ed or prorogued or during which either House is
adjourned for more than 4 days.
Powers in relation to internet domain registries
19 Powers in relation to internet domain registries
After section 124N of the Com munications Act 2003 insert—
“Powers in relation to internet domain registries
124O  Notification of failure in relation to internet domain registry
(1) This section applies where the Secretary of State—
(a) is satisfied that a serious relevant  failure in relation to a
qualifying internet domain registry is taking place or has takenplace, and
(b) wishes to exercise the powers under section 124P or 124R.
(2) The Secretary of State must notify the internet domain registry,
specifying the failure and a period during which the registry has theopportunity to make representations to the Secretary of State.
(3) There is a relevant failure in relation to a qualifying internet domain
registry if—Digital Economy Act 2010 (c. 24) 25
(a) the registry, or any of its regi strars or end-users, engages in
prescribed practices that are unfa ir or involve the misuse of
internet domain names, or
(b) the arrangements made by the registry for dealing with
complaints in connection with internet domain names do notcomply with prescribed requirements.
(4) A relevant failure is serious, for the purposes of this section, if it has
adversely affected or is likely adversely to affect—
(a) the reputation or availabilit y of electronic communications
networks or electronic communicatio ns services provided in
the United Kingdom or a part of the United Kingdom, or
(b) the interests of consumers or members of the public in the
United Kingdom or a part of the United Kingdom.
(5) In subsection (3) “prescribed” means pres cribed by regulations made
by the Secretary of State.
(6) Before making regulations under subsection (3) the Secretary of State
must consult such persons as the Secretary of State considersappropriate.
(7) In this section and sections 124P to 124R—
“end-user”, in relation to a qualifying internet domain registry,
means a person who has been or wants to be allocated aninternet domain name that is or would be included in theregister maintained by the registry;
“qualifying internet domain registry” means a relevant body
that—
(a) maintains a relevant register of internet domain names,
and
(b) operates a computer program or server that forms part
of the system that enables the names included in theregister to be used to access internet protocol addresses
or other information by means of the internet;
“registrar”, in relation to a qualifying internet domain registry,
means a person authorised by the registry to act on behalf ofend-users in connection with the  registration of internet domain
names;
“relevant body” means a company formed and registered under
the Companies Act 2006 or a limited liability partnership;
“relevant register of internet doma in names” mean s a register of—
(a) the names of second level internet domains that form
part of the same UK-related top level internet domain,or 
(b) the names of third level internet domains that form part
of the same UK-related second level internet domain;
“second level internet domain” means an internet domain
indicated by the last two elements of an  internet domain name;
“third level internet domain” means an internet domain indicated
by the last three elements of an internet domain name;
“top level internet domain” means an internet domain indicated
by the last element of an internet domain name.Digital Economy Act 2010 (c. 24) 26
(8) An internet domain is “UK-related” if, in the opinion of the Secretary of
State, the last element of its name is likely to cause users of the internet,
or a class of such users, to believe t hat the domain and its sub-domains
are connected with the United Kingdom or a part of the UnitedKingdom.”
20 Appointment of manager of internet domain registry
(1) After section 124O of the Communications Act 2003 insert—
“124P Appointment of manager of internet domain registry
(1) This section applies where—
(a) the Secretary of State has  given a notification under section
124O to a qualifying inte rnet domain registry specifying a
failure,
(b) the period allowed for making representations has expired, and
(c) the Secretary of State is satisfied that the registry has not taken
the steps that the Secretary of State considers appropriate forremedying the failure.
(2) The Secretary of State may by order appoint a manager in respect of the
property and affairs of the internet domain registry for the purpose ofsecuring that the registry takes the  steps described in subsection (1)(c).
(3) The person appointed may be anyone  whom the Secretary of State
thinks appropriate.
(4) The appointment of the manager does not affect—
(a) a right of a person to appoint a receiver of the registry’s
property, or
(b) the rights of a receiver appointed by a person other than the
Secretary of State.
(5) The Secretary of State must—
(a) keep the order under review, and
(b) if appropriate, discharge  all or part of the order.
(6) The Secretary of State must discharge the order on the appointment of
a person to act as administrative receiver, administrator, provisionalliquidator or liquidator of the registry.
(7) The Secretary of State must discha rge the order before the end of the
period of 2 years beginning with the day on which it was made (but thisdoes not prevent the Secretary of State from making a further order inthe same or similar terms).
(8) When discharging an order under this section, the Secretary of State
may make savings and transitional provision.
(9) The Secretary of State must send a copy of an order made under this
section to the registry as soon as pra cticable after it is made.
(10) In subsection (4), “receiver” includes a manager (other than a manager
appointed by the registry) and a person who is appointed as bothreceiver and manager.
(11) In subsection (6)—Digital Economy Act 2010 (c. 24) 27
“administrative receiver” means an  administrative receiver within
the meaning of section 251 of the Insolvency Act 1986 or Article
5(1) of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19));
“administrator” means a pe rson appointed to ma nage the affairs,
business and property of the registry under Schedule B1 to thatAct or Schedule B1 to that Order.
124Q Functions of manager etc
(1) An order under section 124P may make provision about the functions
to be exercised by, and the powers of, the manager.
(2) The order may, in particular—
(a) provide for the manager to have such of the functions of the
registry’s directors as are specified in  the order (including
functions exercisable only by a particular director or class of
directors), and
(b) provide for one or more of the registry’s directors to be
prevented from exercising any of those functions.
(3) The order may make provision about the remuneration of the manager,
including in particular—
(a) provision for the amount of the remuneration to be determined
by the Secretary of State, and
(b) provision for the remuneration to be payable from the property
of the registry.
(4) In carrying out the functions conferred by the order, the manager acts
as the registry’s agent.
(5) The Secretary of State may apply to the court for directions in relation
to any matter arising in connection with the functions or powers of themanager (and the costs of the application are to be paid by the registry).
(6) On an application under subsection (5) the court may give such
directions or make such orders as  it thinks fit.
(7) In this section “the court” means—
(a) in England and Wales, the High Court or a county court,
(b) in Scotland, the Court of Session or the sheriff, and
(c) in Northern Irel and, the High Court.
(8) Where the registry is a limited liability partnership, this section applies
as if references to a director of the registry were references to a memberof the limited liability partnership.”
(2) In section 192(1)(d) of that Act (appea ls against decisions of the Secretary of
State), after sub-paragraph (ii) insert—
“(iia) an order under section 124P;”.
(3) In section 402(1) of that Act (powers of the Secretary of State to make orders
and regulations), after  “conferred by” ins ert “section 124P and”.Digital Economy Act 2010 (c. 24) 28
21 Application to court to alter constitution of internet domain registry
After section 124Q of the Co mmunications Act 20 03 insert—
“124R Application to court to alter constitution of internet domain registry
(1) This section applies where—
(a) the Secretary of State has  given a notification under section
124O to a qualifying inte rnet domain registry specifying a
failure,
(b) the period allowed for making representations has expired, and
(c) the Secretary of State is satisfied that the registry has not taken
the steps that the Secretary of State considers appropriate forremedying the failure.
(2) The Secretary of State may apply to the court (as defined in section
124Q) for an order under this section.
(3) The court may make an order—
(a) making alterations of the registry’s constitution, and
(b) requiring the registry not to make any alterations, or any
specified alterations, of its constit ution without the leave of the
court.
(4) An order under this section may  contain only such provision as the
court considers appropriate for securing that the registry remedies thefailure specified in the notification under section 124O.
(5) In this section—
“constitution” means, in the case of a company, the articles of
association and, in the case of a limited liability partnership, thelimited liability partnership agreement;
“limited liability partnership agreement” means the agreement or
agreements, whether express or implied, between the members
of a limited liability partnership, and  between the partnership
and the members of the partnership, determining—
(a) the mutual rights and duties of the members, and
(b) their rights and duties in relation to the partnership.”
Channel Four Television Corporation
22 Functions of C4C in relation to media content
(1) Before section 199 of the Commu nications Act 2003 insert— 
“198A C4C’s functions in relation to media content
(1) C4C must participate in—
(a) the making of a broad range of relevant media content of high
quality that, taken as a whole, appeals to the tastes and interests
of a culturally diverse society,
(b) the making of high quality films intended to be shown to the
general public at the cinem a in the United Kingdom, and 
(c) the broadcasting and distribution of such content and films.
(2) C4C must, in particular, participate in—Digital Economy Act 2010 (c. 24) 29
(a) the making of relevant media content  that consists of news and
current affairs,
(b) the making of relevant media content  that appeals to the tastes
and interests of older children and young adults,
(c) the broadcasting or distribution by means of electronic
communications networks of feature films that reflect culturalactivity in the United Kingdom (including third party films),and
(d) the broadcasting or distribution of relevant media content by
means of a range of different types of electronic
communications networks.
(3) In performing their duties under subsections (1) and (2) C4C must—
(a) promote measures intended to secure that people are well-
informed and motivated to participate in society in a variety ofways, and
(b) contribute towards the fulfilment of the public service
objectives (as defined in se ction 264A).
(4) In performing their duties under subsections (1) to (3) C4C must—
(a) support the development of people with creative talent, in
particular—
(i) people at the beginning of their careers in relevant
media content or films, and
(ii) people involved in the making of innovative content
and films,
(b) support and stimulate well-informed debate on a wide range of
issues, including by providing access to  information  and views
from around the world and by challenging es tablished views, 
(c) promote alternative views and new perspectives, and
(d) provide access to material that is inten ded to inspire people to
make changes in their lives.
(5) In performing those duties C4C must have re gard to the desirability
of—
(a) working with cultural organisations,
(b) encouraging innovation in th e means by which relevant media
content is broadcast or distributed, and
(c) promoting access to and aw areness of services provided in
digital form.
(6) In this section—
“participate in” includes inve st in or otherwise procure;
“relevant media content” means material, other than
advertisements, which is included in any of the followingservices that are available to member s of the public in all or part
of the United Kingdom—
(a) television progra mme services, additional television
services or digital additional television services, 
(b) on-demand programme services, or
(c) other services provided by means of the internet where
there is a person who exercises editorial control over thematerial included in the service;Digital Economy Act 2010 (c. 24) 30
and a film is a “third party film”  if C4C did not participate in making it.
(7) The services that are to be taken for the purposes of th is section to be
available to members of the public include any service which— 
(a) is available for reception by members of the public (within the
meaning of section 361); or
(b) is available for use by members of the public (within the
meaning of section 368R(4)).”
(2) In section 199(2) of that Act  (functions of C4C), for “C4C’s primary functions
are” substitute “In subsection (1) “primary functions” means—
(za) the performance of C4C’s duties under section 198A;”
and in the heading for that se ction, at the beginning insert “Other”.
(3) In Schedule 9 to that Act (arrangements about carrying on C4C’s activities)—
(a) in paragraph 1(1), after paragraph (a) (but before “and”) insert—
“(aa) as soon as practicable after th e day on which section
198A comes into force,”,
(b) in paragraph 10, in the definition of “relevant licence period”, after
paragraph (a) (but before “and”) insert—
“(aa) in relation to the notification under paragraph
1(1)(aa), the period begi nning on the day on
which section 198A comes into force and endingon the last day of the firs t licence period to expire
after that day;”, and
(c) in that definition, in paragraph (b), for “any other such notification”
substitute “any other not ification under paragraph 1”.
(4) Accordingly, in the heading for Part 3 of that Act (television and radio
services), at the end insert “ETC”.
(5) In section 24(1) of the Broadcasting Act 1990  (Channel 4 to be provided by
C4C), for “The function of the Corporat ion shall be to” substitute “The
Corporation must”.
(6) In paragraph 1 of Schedule 3 to that Act (status an d capacity of C4C)—
(a) in sub-paragraph (4)(b), for “primary functions” substitute “Channel 4
functions”, and
(b) after that sub-paragraph insert—
 “(5) In sub-paragraph (4) “Channel 4 functions” means—
(a) securing the continued provision of Channel 4, and
(b) the fulfilment of the public service remit for that
Channel under section 265 of the CommunicationsAct 2003.”
23 Monitoring and enforcing C4C’s media content duties
(1) After section 198A of the Com munications Act 2003 insert—
“198B Statement of media content policy
(1) C4C must prepare a statement of media content policy—
(a) at the same time as they prepare the first statement of
programme policy that is prepared under section 266 after this
section comes into force, and Digital Economy Act 2010 (c. 24) 31
(b) subsequently at annual intervals.
(2) C4C must monitor their performance in carrying out the proposals
contained in their statemen ts of media content policy.
(3) A statement of media content policy must—
(a) set out C4C’s proposals for securing that, during the following
year, they will discharge their duties under section 198A, and
(b) include a report on their performance in carrying out the
proposals contained in the previous statement.
(4) In preparing the statement, C4C must—
(a) have regard to guidance given by OFCOM, and
(b) consult OFCOM.
(5) C4C must publish each statement of media content policy—
(a) as soon as practicable after its preparation is complete, and
(b) in such manner as they consider appropriate, having regard to
any guidance given by OFCOM.
(6) OFCOM must—
(a) from time to time review the  guidance for the time being in
force for the purposes of this section, and
(b) revise that guidance as they think fit.
198C  OFCOM reports on C4C’s media content duties
(1) For each relevant period, OFCOM must—
(a) carry out a review of the extent  to which C4C have discharged
their duties under section 198A, and
(b) prepare a report on the matters found on the review.
(2) OFCOM must publish each report under this section—
(a) as soon as practicable after its preparation is complete, and
(b) in such manner as they consider appropriate.
(3) “Relevant period” means each period selected by OFCOM for the
purposes of section 264(1)(b) that end s after this section comes into
force.
198D  Directions in relation to C4C’s media content duties
(1) This section applies if OFCOM—
(a) are of the opinion that C4C have failed to perform one or more
of their duties under section 198A or section 198B(1), (3) or (5),
(b) are of the opinion that the failure is serious and is not excused
by economic or market conditions, and
(c) determine that the situation requires the exercise of their
functions under this section.
(2) In making a determination under subsection (1)(c), OFCOM must have
regard, in particular, to—
(a) C4C’s statements of media content policy,
(b) C4C’s effectiveness and efficiency in monitoring their own
performance, andDigital Economy Act 2010 (c. 24) 32
(c) general economic and ma rket conditions affecting the provision
of relevant media content (as defined in section 198A).
(3) OFCOM may give directions to C4C to do one or both of the
following—
(a) to revise the latest statement of media content policy in
accordance with the direction;
(b) to take such steps for remedying the failure as OFCOM specify
in the direction.
(4) A direction given under this section must set out—
(a) a reasonable timetable for complying with it, and
(b) the factors that OFCOM will take into account in determining
whether or not a failure has been remedied.
(5) OFCOM must consult C4C  before giving a direction under this
section.”
(2) After section 271 of that Act insert—
“271A Remedying failure by C4C to perform media content duties
(1) This section applies if OFCOM are satisfied—
(a) that C4C have failed to comply with a direction under section
198D in respect of a failure to perform one or more of theirduties under section 198A,
(b) that C4C are still failing to perform that duty or those duties,
and
(c) that it would be both reasonable and proportionate to the
seriousness of the failure to vary the licence under whichChannel 4 is licensed (“the Channel 4 licence ”) in accordance
with this section.
(2) OFCOM may, by notice to C4C, vary the Channel 4 licence by adding
such conditions, or making such modifications of conditions, as
OFCOM consider appropriate for reme dying (entirely or partly) C4C’s
failure to perform the duty or duties under section 198A.
(3) If, at any time following such a va riation, OFCOM consider that any of
the additional conditions or modifica tions is no longer ne cessary, they
m a y  a g a i n  v a r y  t h e  l i c e n c e  w i t h  e f f e c t  f r o m  s u c h  t i m e  a s  t h e y  m a ydetermine.
(4) OFCOM must consult C4C before exercising their power under this
section to vary the Channel 4 licence.”
Independent television services
24 Determination of Channel 3 licence areas
(1) In section 14 of the Broadcasting Act 19 90 (establishment of Channel 3)—
(a) omit subsection (7) (restriction on providing a single Channel 3 service
for the whole of England or the whole of Scotland), andDigital Economy Act 2010 (c. 24) 33
(b) after that subsection insert—
“(7A) The areas mentioned in subs ection (2) must at all times include
at least one area that comprises, or falls entirely within,
Scotland.”
(2) Section 216 of the Communications Act 2003 (renewal of Channel 3 and 5
licences) is amended as follows.
(3) For subsection (4) substitute—
“(4) Where OFCOM receive an application under this section for the
renewal of a licence they must—
(a) decide whether to renew the licence; and
(b) notify the applicant of their decision.
(4A) If OFCOM decide to renew the licence they must—
(a) in the case of a licence to provide a Channel 3 service, determine
in accordance with section 216A the ar ea for which the licence
will be renewed;
(b) in every case, determine in accordance with section 217 the
financial terms on which the licence will be renewed; and
(c) notify the applicant of their determinations.”
(4) After subsection (6) insert—
“(6A) OFCOM may also decide not to renew a licence to provide a Channel 3
service if, for the licensing period in question, they have renewed orpropose to renew one or more other licences to provide a Channel 3service for all of the area to which the licence relates.”
(5) In subsection (8)(a) for “subsection (4)(c)” substitute “subsection (4A)(c)”.
(6) In subsection (10) for the words from “, in accordance” to the end substitute “—
(a) to any determination under subsection (4A)(a);
(b) in accordance with the determination under subsection (4A)(b), to the
requirements imposed by section 217(4).”
(7) After section 216 of that Act insert—
“216A Renewal of Channel 3 licences: determination of licence areas
(1) This section applies if OFCOM decide under section 216(4) to renew a
licence to provide a Channel 3 service.
(2) The area determined under section 216(4A)(a) for the licence—
(a) must include all or part of the area to which the licence being
renewed currently relates, and
(b) may include all or part of another area if the holder of the
licence to provide a Channel 3 service for the other area gives(and does not withdraw) consent before the determination ismade.”
(8) In section 217(1) of that Act, in the opening words, for “section 216(4)(b)”
substitute “section 216(4A)(b)”.Digital Economy Act 2010 (c. 24) 34
25 Initial expiry date for Channel 3 and 5 and public teletext licences
(1) Section 224 of the Communications Act 2003 (ini tial expiry date for licences) is
amended as follows.
(2) For subsection (1) (meaning of “initial expiry date”) substitute—
“(1) Subject to any postponement under th is section, for the purposes of this
Part the initial expiry date for the following types of licence is 31December 2014—
(a) a licence to provide a Channel 3 service;
(b) a licence to provide Channel 5;
(c) the licence to provide the public teletext service.”
(3) In subsection (2) (power to postpone initial expiry date), at the end insert “for
one or more of the types of licence mentioned in subsection (1)”.
(4) Omit subsection (3) (no postponement if digital switchover is to occur before 1
July 2013).
26 Initial expiry date: consequential provision
(1) Chapter 2 of Part 3 of the Communications Act 2003 (regulatory structure for
independent television services) is amended as follows.
(2) In each of sections 214(6) and 216(12) (defin ition of “licensing period” for
Channels 3 and 5)—
(a) in the opening words, after “licensing peri od” insert “, in relation to a
licence,”,
(b) in paragraph (a), at the end (but before “or”) insert “for that type of
licence”, and
(c) in paragraph (b), at the end insert “for that type of licence”.
(3) In each of sections 219(3) and 222(12) (defin ition of “licensing period” for
public teletext service)—
(a) in paragraph (a), at the end (but before “or”) insert “for the licence to
provide the public teletext service”, and
(b) in paragraph (b), at the end insert “for that type of licence”.
(4) In section 225(3) (period for review of fina ncial terms of replacement Channel
3 and 5 and public teletex t licences), after “initial expiry date” insert “for that
type of licence”.
(5) In section 228(8) (giving effect to revie w of financial terms of replacement
licence), in the definition of “licensing period”—
(a) after ““licensing period”” insert “, in relation to a licence,”,
(b) in paragraph (a), at the end (but before “or”) insert “for that type of
licence”, and
(c) in paragraph (b), at the end insert “for that type of licence”.
(6) Section 229 (report in anticipation of new lice nsing round) is amended as
follows.
(7) In subsection (1), after “licensing period” insert “for a type of relevant licence”.
(8) In subsection (2)—Digital Economy Act 2010 (c. 24) 35
(a) for “holders of relevant licences” substitute “holder or holders of that
type of licence”, and
(b) for “licence holders” substit ute “licence holder or holders”.
(9) In subsection (3)(a) and (b), for “relevant licences” substitute “that type of
licence”.
(10) After subsection (4) insert—
“(4A) Subsection (5) applies where the Secretary of State—
(a) receives a report under this section in  anticipation of the end of
a licensing period for a type of relevant licence, and
(b) subsequently makes an order under section 224 extending the
licensing period for that type of licence.”
(11) In subsection (5)—
(a) for the words from the beginning to “the order—” substitute “Where
this subsection applies—”, and
(b) in paragraph (a), for “he” substitute “the Secretary of State” and at the
end (but before “and”) insert “for that type of licence”.
(12) In subsection (6), in the definition of “licensing period”—
(a) in the opening words, after ““licensing period ”” insert “, in relation to a
licence,”,
(b) in paragraph (a), at the end (but before “or”) insert “for that type of
licence”, and
(c) in paragraph (b), at the end insert “for that type of licence”.
(13) Section 230 (orders suspending rights of renewal) is amended as follows.
(14) In subsection (2), for “licences for the time being in force that are of a
description specified in the order are” substitute “a licence for the time beingin force that is of a description specified in the order is”.
(15) In that subsection, at  the end insert “(but see subsection (7))”.
(16) In each of subsections (3), (4), (5) and (8)(b), for “licences” substitute “a licence”.
(17) In subsection (7), for “Channel 3 licen ces” substitute “a Channel 3 licence”.
(18) In subsection (11), in the definition of “initial licensing period”—
(a) after ““initial licensing period”” insert “, in relation to a licence,”, and
(b) at the end (but before “and”) insert “for that type of licence”.
27 Report by OFCOM on public teletext service
After section 218 of the Communications  Act 2003 insert—
“218A Duty to report on public teletext service
(1) OFCOM must—
(a) prepare a report on the public teletext service, and
(b) send it to the Secretary of Stat e as soon as practicable after this
section comes into force.
(2) OFCOM must prepare and send to the Secretary of State further reports
on the public teletext service when asked to do so by the Secretary ofState.Digital Economy Act 2010 (c. 24) 36
(3) Each report must include, in particular—
(a) an assessment of the ad vantages and disadvantages for
members of the public of the public teletext service being
provided, and
(b) an assessment of whether the public teletext service can be
provided at a cost to the licence holder that is commerciallysustainable.
(4) An assessment under subsection (3)(a) must take account of alternative
uses for the capacity that would be availa ble if the public teletext
service were not provided.
(5) OFCOM must publish every report under this section—
(a) as soon as practicable after they send it to the Secretary of State,
and
(b) in such manner as they consider appropriate.
(6) “Capacity” means capacity on th e frequencies on which Channel 3
services, Channel 4, S4C and television multiplex services arebroadcast.”
28 Power to remove OFCOM’s duty to secure provision of public teletext service
(1) Section 218 of the Communications Act 2003 (provisio n of public teletext
service) is amended as follows.
(2) In subsection (1)—
(a) for “must do all that they can to” substitute “may”, and
(b) at the end insert “and complies with this section”.
(3) In subsection (7)—
(a) for “OFCOM must exercise their powers” substitute “If there is a public
teletext provider, OFCOM must take account of the requirements of the
public teletext service when exercising their powers”, and
(b) omit the words after paragraph (b).
(4) Accordingly, in the heading of the section, for “Duty” substitute “Power”.
(5) Omit section 221 of that Act (replacement of existing public teletext provider’s
licence).
(6) In section 276(1 ) of that Act (co-operation with the public teletext provider), for
“the provider of the service or channel” substitute “, if there is a public teletextprovider, the provider of the Channel 3 service or Channel 4”.
(7) In section 362 of that Act (i nterpretation of Part 3), in the definition of “the
public teletext service”, for “is re quired to be” substitute “is or may be”.
(8) The amendments made by this section and the entries in Schedule 2 relating to
sections 218(7) and 221 of the Communication s Act 2003 (and section 45 so far
as relating to those entries) come into force on such day as the Secretary of Statemay by order made by statutory instrument appoint.
(9) An order may not be made under subsection (8) unless—
(a) condition A or B is met,
(b) the Secretary of State is satisfied that making the order is in the public
interest, andDigital Economy Act 2010 (c. 24) 37
(c) a draft of the instrument containing the order has been laid before, and
approved by a resolution of, each House of Parliament.
(10) Condition A is that the Secretary of State has laid before Parliament a report by
the Office of Communications (“OFCOM”) under section 218A of theCommunications Act 2003 (report on public teletext service).
(11) Condition B is that OFCOM have invited applications for the licence to provide
the public teletext service (within the me aning of Part 3 of the Communications
Act 2003) and—
(a) no applications were made by the closing date, or
(b) OFCOM considered that they could not award the licence to any of the
applicants.
29 Broadcasting of programmes in Gaelic
(1) Omit section 184 of the Broadcasting Act 1990 (broadcasting of programmes in
Gaelic on Channel 3 in Scotland).
(2) Accordingly, omit section 183A(7)(a) and (b) of that Act (representation in
Gaelic Media Service of interests of holders of certain licences).
Independent radio services
30 Digital switchover
(1) In section 86(6) of the Broadcasting Act 1990 (varying licences under Part 3), for
“section 110(1)(b)” substitute “section 97B or 110(1)(b)”.
(2) After section 97 of that Act insert—
“Digital switchover
97A Date for digital switchover
(1) The Secretary of State may give notice to OFCOM nominating a date for
digital switchover for the post-commen cement services specified or
described in the notice.
(2) When nominating a date, or co nsidering whether to nominate a date,
the Secretary of State must have regard to any report submitted byOFCOM or the BBC under section 67(1)(b) of the Broadcasting Act 1996(review of digital radio broadcasting).
(3) The Secretary of State—
(a) may nominate different dates for different services, and
(b) may give notice to OFCOM withdrawing a nomination under
this section.
(4) In this section and section 97B—
“date for digital switchover”, in relation to a post-commencement
service, means a date after which it will cease to be appropriate
for the service to continue to be provided in analogue form;
“post-commencement service” means a local service, national
service or additional se rvice that is provided under a licence
that—Digital Economy Act 2010 (c. 24) 38
(a) was granted on or after the da y on which this section
comes into force, or
(b) has been renewed under section 103B or 104AA.
97B Variation of licence period after date for digital switchover nominated
(1) This section applies if the Secretary of State has nominated a date for
digital switchover for a post-commen cement service (and has not
withdrawn the nomination).
(2) If the period for which the licence to provide the post-commencement
service is to continue in force ends after the date for digital switchover,
OFCOM must by notice vary the licence so that the period ends on orbefore that date, subject to subsection (3).
(3) OFCOM may not reduce the period so that it ends less than 2 years after
the day on which they issue the notice, unless the licence holderconsents to such a reduction.
(4) If the period for which the licence to provide the post-commencement
service is to continue in force ends on or before the date for digitalswitchover, OFCOM may not vary the licence so that the period endsafter that date.”
(3) In section 199(5) of that Act (publication of notices by OFCOM), after “55,”
insert “97B,”.
31 Renewal of national radio licences
(1) In section 103A of the Broadcasting Act 1990 (renewal of national licences), in
subsection (1), after “renewed” insert “under this section”.
(2) After that section insert—
“103B Further renewal of national licences
(1) A national licence may be renewed under this section on one occasion
for a period of not more than 7 years beginning with the date of renewal(“the renewal period”) (subject to the following provisions of thissection).
(2) Subsections (2) to (9), (11) and (12) of section 103A apply in relation to
the renewal of a licence under this section as they apply in relation to
the renewal of a licence under section 1 03A, subject to su bsection (3).
(3) Those provisions apply in relation to the renewal of a licence under this
section as if the following were omitted—
(a) subsection (4)(b),
(b) in subsection (4)(c), the words from “or OFCOM” to the end,
(c) subsection (6)(a),
(d) subsection (8)(a), and
(e) subsection (9)(c).
(4) Where OFCOM renew a licence under this  section they must include in
the licence as renewed a condition requiring the licence holder to do allthat the licence holder can to  secure the broadcasting of a simulcast
radio service in digital form throughout the renewal period.”Digital Economy Act 2010 (c. 24) 39
(3) Section 103A(12) of the Broadcasting Act 1990  (as applied by section 103B of
that Act) does not prevent the determination of a date falling less than one yearafter the making of the determination where—
(a) the Office of Communications conside r that the relevant date for the
purposes of that section (as applied) is a date which is not more than 15months after the day on which this se ction comes into force, and
(b) the determination is made as so on as practicable after that day.
32 Renewal and variation of local radio licences
(1) In section 104A of the Broadcasting Act 1990 (renewal  of local licences)—
(a) in subsection (1), after “renewed” insert “under this section”, and
(b) after that subsection insert—
“(1A) A local licence may be re newed under this section only if it is
granted before the day on which section 104AA comes intoforce.”
(2) After that section insert—
“104AA Further renewal of local licences
(1) A local licence may be renewed under this section on one occasion for
a period of not more than 7 years beginning with the date of renewal
(subject to the following provisions of this sect ion and section 104AB).
(2) A local licence may be renewed under this section only if—
(a) it has been renewed under section 104A, or
(b) it is granted on or after the day on which this section comes into
force.
(3) Subsections (3) to (12), (13) and (14 ) of section 104A apply in relation to
the renewal of a licence under this section as they apply in relation to
the renewal of a licence under section 104A, subject to subsections (4)
and (5).
(4) Section 104A(3) (as applied) has e ffect as if the words “Subject to
subsection (2)” were omitted.
(5) In the case of an approved licence, if an applicant for renewal of the
licence under this section makes  a national nomination in accordance
with section 104AB, section 104 A (as applied) has effect as if— 
(a) subsections (4) and (13)(b) were omitted,
(b) references to the nominated local  digital sound programme
service were references to the national digital sound
programme service nominated under section 104AB, and
(c) references to the nominated lo cal radio multiplex service were
references to the national radio multiplex service nominatedunder section 104AB.
(6) In this section and sections 104AB and 104AC—
“approved licence” means a local licence approved by OFCOM for
the purposes of this section;
“local digital sound programme service”, “local radio multiplex
service”, “national digital sound programme service” andDigital Economy Act 2010 (c. 24) 40
“national radio multiplex service” have the same meanings as in
Part 2 of the Broadcasting Act 1996.
(7) Before approving a licence for the purposes of this section, OFCOM
must publish a document specifying—
(a) the licence proposed to be approved, and
(b) a period in which representations may be made to OFCOM.
104AB Renewal under section 104AA: nomination of national services
(1) For the purposes of section 104AA, a “national nomination” by an
applicant for the renewal of an a pproved licence is the nomination of—
(a) a national digital sound programme service provided or to be
provided by the applicant, and
(b) a national radio multiplex service.
(2) A national nomination must be ma de in the application for the renewal
of the approved licence or before OFCOM consider the application.
(3) The applicant may not nominate a national digital sound programme
service unless OFCOM are satisfied that, if th e application in question
were granted, the programmes included in that service in each calendarmonth would include at least 80% of the programmes included in theservice provided under the approved licence.
(4) A national nomination must specify the other approved licences (if
any) in relation to which, in reli ance on the nomination, an application
may be made under section 104AC.
104AC Variation of conditions relating to digital services
(1) This section applies where—
(a) a licence that is an approved licence has been renewed under
section 104A and includes a local digital services condition,
(b) an application has been mad e under section 104AA for the
renewal of another approved licence  and the applicant has
made a national nominatio n under section 104AB, and
(c) the nomination specifies the licence mentioned in paragraph (a)
in accordance with section 104AB(4).
(2) OFCOM may, if the requirements  of subsections (3) and (4) are met,
vary the licence mentioned in subsection (1)(a) by—
(a) removing the local digital services condition, and
(b) adding a national digital services condition.
(3) OFCOM must have received an applicat ion for the variation from the
licence holder.
(4) OFCOM must be satisfied that,  if they varied the licence, the
programmes included in  the nominated national digital sound
programme service in each calendar mon th would include at least 80%
of the programmes included in the service provided under that licence.
(5) In this section—
“local digital services condition” mean s a condition requiring the
licence holder to do all that the licenc e holder can to ensure thatDigital Economy Act 2010 (c. 24) 41
a local digital sound programme service is broadcast by means
of a local radio multiplex service;
“national digital services condition” means a condition requiring
the licence holder to do all that  the licence holder can to ensure
that the nominated national digital sound programme service isbroadcast by means of the no minated national radio multiplex
service until the day on which the licence (as renewed undersection 104A) is to expire;
“nominated” means nominated in the nomination referred to in
subsection (1)(b).”
(3) Section 104A(14) of th e Broadcasting Act 1990 (as applied by section 104AA of
that Act) does not prevent the determination of a date falling less than one yearafter the making of the determination where—
(a) the Office of Communications conside r that the relevant date for the
purposes of that section (as applied) is a date which is not more than 15months after the day on which this se ction comes into force, and
(b) the determination is made as so on as practicable after that day.
(4) The requirement under section 104A A(7) of the Broadcasting Act 1990 may be
satisfied by the publication of a document before this section comes into force.
33 Variation of licence period following renewal
(1) In section 86(6) of the Broadcasting Act 1990 (variation of licence period etc),
after “section 97B” (inserted by section 30) insert “, 105A”.
(2) Before section 106 (but after th e heading preceding that section) insert—
“105A Variation of licence period following renewal
(1) This section applies if the Secretary of State—
(a) has not nominated a date for digital switchover under section
97A for one or more relevant renewed services, or
(b) has withdrawn the nomination of such a date and has not
nominated another such date under that section.
(2) The Secretary of State may give notice to OFCOM fixing a date (the
“termination date”) in relation to that service or such of those servicesas are specified or descr ibed in the notice.
(3) The Secretary of State may fix different dates for different services but
may not fix a date falling before 31 December 2015.
(4) If the period for which a licence to provide a relevant renewed service
is to continue in force ends after the termination date fixed for theservice, OFCOM must by notice vary the licence so that the period ends
on or before that date, subject to subsection (5).
(5) OFCOM may not reduce the period so that it ends on a day falling less
than 2 years after the date on which they issue the notice, unless the
licence holder consents to such a reduction.
(6) If the period for which a licence to provide a relevant renewed service
is to continue in force ends on or before the termination date fixed forthe service, OFCOM may not vary the licence so that the period ends
after that date.Digital Economy Act 2010 (c. 24) 42
(7) “Relevant renewed service ” means a national service provided under a
licence that has been renewed under section 103B or a local serviceprovided under a licence that has been  renewed under section 104AA.”
(3) In section 199(5) of that Act  (publication of notices by OFCOM), after “103,”
insert “105A,”.
(4) If on 31 December 2012, in relation to a relevant renewed se rvice (as defined in
section 105A(7) of the Broadcasting Act 1990)—
(a) section 105A of that Act applies, but
(b) the Secretary of State has not given a notice under that section,
the Secretary of State must, before 31 December 2013, consider whether to give
a notice under that section in  relation to that service.
34 Content and character of local sound broadcasting services
(1) In section 106(1A) of the Broad casting Act 1990 (conditions relating to
departures from character of licensed service), after paragraph (d) insert “; or
(e) that, in the case of a local licence—
(i) the departure would result  from programmes included
in the licensed service ceasing to be made at premises inthe area or locality for which the  service is provided, but
(ii) those programmes would continue to be made wholly
or partly at premises within the approved area (asdefined in section 31 4 of the Communications Act 2003
(local content and charact er of services)).”
(2) Section 314 of the Communications Ac t 2003 (local content and character of
local sound broadcasting services) is amended as follows.
(3) In subsection (1), in paragraph (a), omit the words from “but” to “that case”.
(4) After that subsection insert—
“(1A) Paragraphs (a) and (b) of subsection (1) apply in the case of each local
sound broadcasting service only if and to the extent (if any) that
OFCOM consider it appropriate in that case.”
(5) In subsection (7)—
(a) before the definition of “local material” insert—
““approved area”, in relation to programmes included in a
local sound broadcasting service, means an areaapproved by OFCOM for the purposes of this sectionthat includes the area or locality for which the service isprovided;”, and
(b) in the definition of “locally-made”, at the end insert “or, if there is an
approved area for the programmes, that area”.
(6) After subsection (8) insert—
“(9) Before approving an area for the purposes of this section, OFCOM must
publish a document specifying—
(a) the area that they propose to approve, and
(b) a period in which representations may be made to OFCOM
about the proposals.Digital Economy Act 2010 (c. 24) 43
(10) OFCOM may withdraw their approval of all or part of an area at any
time if the holder of the licence to provide the local sound broadcastingservice concerned consents.
(11) Where OFCOM approve an area or withdraw their approval of an area,
t h e y  m u s t  p u b l i s h ,  i n  s u c h  m a n n e r  a s  t h e y  c o n s i d e r  a p p r o p r i a t e ,  anotice giving details of the area.”
(7) The requirement under section 31 4(9) of the Communications Act 2003 may be
satisfied by the publication of a document before this section comes into force.
35 Radio multiplex services: frequency and licensed area
After section 54 of the Broadcasting Act 1996 insert—“54A Variation of radio multiplex licences: frequency or licensed area
(1) OFCOM may, if the requirements of subsections (3) to (5) are met, vary
a national radio multiplex li cence by extending the area in which the
licensed service is required to be available.
(2) OFCOM may, if the requirements of subsections (3) to (6) are met, vary
a local radio mul tiplex licence by—
(a) varying the frequency on which the licensed service is required
to be provided,
(b) reducing the area or locali ty in which the licensed service is
required to be available, or
(c) extending that area or locality to include an adjoining area or
locality.
(3) OFCOM must have received an applicat ion for the variation from the
licence holder.
(4) The application must include a techn ical plan relating to the service
proposed to be provided under the licence indicating, in particular—
(a) the area or locality which would be within the coverage area of
the service,
(b) the timetable in accordance with which that coverage would be
achieved, and
(c) the technical means by which it would be achieved.
(5) Before deciding whether to grant the application, OFCOM must
publish a notice specifying—
(a) the proposed variation of the licence, and
(b) a period in which representations may be made to OFCOM
about the proposal.
(6) In the case of a local radio multiplex licence, OFCOM may vary the
licence in accordance with the application on ly if they are satisfied that
doing so would not unacceptably narrow the range of programmesavailable by way of local digital sound programme services to personsliving in the area or locality for wh ich, before the proposed variation,
the local radio multiplex service is required to be available.”Digital Economy Act 2010 (c. 24) 44
36 Renewal of radio multiplex licences
(1) After section 58 of the Broadcasting Act 1996 insert—
“58A Renewal of radio multiplex licences: supplementary
(1) The Secretary of State may by regulations—
(a) amend section 58, and
(b) make further provision about the renewal of radio multiplex
licences.
(2) The regulations may, in particular, make provision about—
(a) the circumstances in wh ich OFCOM may renew a radio
multiplex licence,
(b) the period for which a licence may be renewed,
(c) the information t hat OFCOM may require an applicant for
renewal of a licence to provide,
(d) the requirements that must be met by such an applicant,
(e) the grounds on which OFCOM may refuse an application for
renewal of a licence,
( f ) p a y m e n t s  t o  b e  m a d e  i n  r e s p e c t  o f  a  l i c e n c e  f o l l o w i n g  i t s
renewal, and
(g) further conditions to be included in a licence following its
renewal.
(3) The regulations may, in particular, amend or modify this Part of this
Act.
(4) A statutory instrument containing th e regulations may not be made
unless a draft of the instrument has been laid before, and approved by
a resolution of, each House of Parliament.
(5) The power to make regulations unde r this section may not be exercised
after 31 December 2015 (but this does  not affect the continuation in
force of any regulations made under this section before that date).”
(2) In section 72(1) of that Act (interpretation of Part 2), before the definition of
“radio multiplex service” insert—
““radio multiplex licence” means a licence to provide a radio
multiplex service;”.
Regulation of television and radio services
37 Application of regulatory regimes to broadcasters
In section 263 of th e Communications Act 2003 (application of regulatory
regimes to broadcasters), for subsection (4) substitute—
“(4) The Secretary of State may by order provide for—
(a) a condition included by virtue of this Act in a regulatory regime
to be excluded from the regime;
(b) a condition excluded from a regulatory regime by an order
under this subsection to be included in the regime again.Digital Economy Act 2010 (c. 24) 45
(4A) An order under subsection (4) may, in particular, provide for a
condition to be included or excluded for a period specified in theorder.”
Access to electromagnetic spectrum
38 Payment for licences
(1) Section 12 of the Wireless Telegraphy Act 2006 (charges for grant of licence) is
amended as follows.
(2) In subsection (5) at the end insert “, but this is subject to subsection (6).”
(3) After subsection (5) insert—
“(6) Regulations under or for the purposes of subsection (1)(b), so far as it
relates to payments duri ng the term of a licence, may be made so as to
apply in relation to a licence granted in accordance with regulationsunder section 14, but only in the following cases—
(a) where provision included in the licence with the consent of the
holder of the licence provides for the regulations to apply;
(b) where the licence includes te rms restricting the exercise by
OFCOM of their power to revoke the licence before the end of aperiod and that period has expired;
(c) where the licence would, but for a variation, have ceased to
have effect at the end of a peri od and that period has expired;
(d) where the licence is a surrendered-spectrum licence.
(7) Provision may not be made by virtue of subsection (6)(c) or (d) without
the consent of the Secretary of State.
(8) A wireless telegraphy licence is a “surre ndered-spectrum licence” if —
(a) it is granted under arrangements involving (before the grant or
later) the variation, revocation or expiry of another wirelesstelegraphy licence;
(b) the arrangements are with a view to enabling the holder of that
other licence to comply with a limit applying to frequencies in
respect of which a person may hold licences; and
(c) it authorises the use after th at variation, revocation or expiry of
a frequency whose use until then was or is authorised by thatother licence.
(9) In relation to a surrendered-spectrum licence there may be more than
one such other licence (“predecessor li cence”) and a licence may be a
predecessor licence to more than one surr endered-spectru m licence.”
(4) Section 14 of the Wireless Telegraphy Act 2006 (bidding for licences) is
amended as follows.
(5) In subsection (5) after “those sums must” insert “, subject to subsection (5A),”.
(6) After subsection (5) insert—
“(5A) The regulations may, with the consent of the Secretary of State, make
provision permitting or requiring a surrendered-spectrum licence towhich the regulations apply to include—Digital Economy Act 2010 (c. 24) 46
(a) provision requiring all or part of a sum that would otherwise be
payable to OFCOM under subsection (5) to be paid to a personwho was or is the holder of a predecessor licence;
(b) provision requiring a sum in addition to that payable to
OFCOM under subsection (5) to be paid to such a person;
(c) provision specifying any such sum or part or the method for
determining it.”
(7) After subsection (8) insert—
“(9) In subsection (5A) “surrendered-s pectrum licence” an d “predecessor
licence” have th e meaning given by section 12(8) and (9).”
39 Enforcement of licence terms etc
(1) In Chapter 4 of Part 2 of the Wireless Telegraphy Act 2006 (enforcement of
regulation of radio spectrum) after section 43 insert—
“43A Special procedure for contraventions of certain provisions
(1) OFCOM may impose a penalty on a person if—
(a) that person is or has been in contravention in any respect of a
provision, term or limitation of a wireless telegraphy licence;
(b) OFCOM have notified that person that it appears to them that
the provision, term or limitation has been contravened in thatrespect;
(c) this section applies to that co ntravention by virtue of provision
included in the licence; and
(d) that contravention is not one in respect of which proceedings
for an offence under this Chap ter have been brought against
that person.
(2) A licence may provide in accordance with subsec tion (1)(c) that this
section applies to the contravention of a provision, term or limitationonly if it appears to OFCOM that a direction under section 5 requiresthe provision, term or limitation  to be included in the licence.
(3) Where OFCOM impose a penalty on a person under this section, they
must—
(a) notify that person of that decision and of their reasons for that
decision; and
(b) in that notification, fix a reaso nable period after it is given as the
period within which the penalty is to be paid.
(4) A penalty imposed under this section—
(a) must be paid to OFCOM; and
(b) if not paid within the period fixed by them, is to be recoverable
by them accordingly.
(5) No proceedings for an offence under this Chapter may be commenced
against a person in respect of a cont ravention in respect of which a
penalty has been imposed by OFCOM under this section.
(6) The amount of a penalty imposed under this section is to be such
amount not exceeding 10 per cent of the relevant amount of gross
revenue as OFCOM think—Digital Economy Act 2010 (c. 24) 47
(a) appropriate; and
(b) proportionate to the contravention in respect of which it is
imposed.”
(2) In section 44 of that Act (relevant  amount of gross revenue), in subsections (1)
and (10), after “43” insert “or 43A”.
(3) In section 400 of th e Communications Act 2003 (destination of licence fees and
penalties), in subsection (1)(d), after “42” insert “or 43A”.
Video recordings
40 Classification of video games etc
(1) Section 2 of the Video Recordings Act 1984 (exempted video works) is
amended as follows.
(2) In subsection (1)—
(a) after “video work” insert “other than a video game”,
(b) after paragraph (a) insert “or”, and
(c) omit paragraph (c) (and the word “or” before it).
(3) After that subsection insert—
“(1A) Subject to subsection (2) or (3) below, a video game is for the purposes
of this Act an exempted work if—
(a) it is, taken as a whole, designed to inform, educate or instruct;
(b) it is, taken as a whole, concerned with sport, religion or music;
or
(c) it satisfies one or more of the conditions in section 2A.”
(4) After subsection (3) insert—
“(4) The Secretary of State may by regulations amend this section—
(a) by adding or removing a case in  which a video work is not an
exempted work, or
(b) by amending a description of such a case.”
(5) After section 2 of that Act insert—
“2A Conditions relating to video games
(1) The conditions referred to in section 2(1A)(c) are as follows.
(2) The first condition is that the video gam e does not include any of the
following—
(a) depictions of violence towards human or animal characters,
whether or not the violence looks realistic and whether or notthe violence results in obvious harm,
(b) depictions of violence towards other characters where the
violence looks realistic,
(c) depictions of criminal activity that are likely, to any extent, to
stimulate or encourage the commission of offences,
(d) depictions of activities involving illegal drugs or the misuse of
drugs,Digital Economy Act 2010 (c. 24) 48
(e) words or images that are like ly, to any extent, to stimulate or
encourage the use of alcohol or tobacco,
(f) words or images that are intended to convey a sexual message,
(g) swearing, or
(h) words or images that are intended or likely, to any extent, to
cause offence, whether on the grounds of race, gender,disability, religion or belief or sexual orientation or otherwise.
(3) In subsection (2) “human or animal character” means a character that is,
or whose appearance is similar to that of— 
(a) a human being, or
(b) an animal that exis ts or has existed in real life, 
but does not include a simple stick character or any equally basic
representation of a human being or animal.
(4) The second condition is that the designated authority, or a person
nominated by the de signated authority for the purposes of this section,
has confirmed in writing that the video game is suitable for viewing bypersons under the age of 12.
(5) The Secretary of State may by regulations amend this section—
(a) by amending the first condition, or
(b) by adding a further condition (or by amending or removing
such a condition).
(6) Regulations under this section may make provision by reference to
documents produced by the designated authority.”
(6) In section 3 of that Act (exempted supplies), after subsection (8) insert—
“(8A) The supply of a video recording in the form of a machine of a type
designed primarily for use in an amusement arcade is an exemptedsupply unless the video game (or, if more than one, any of the videogames) that it contains—
(a) depicts, to any significant extent, anything falling within section
2(2)(a), (b), (c) or (d) or (3), or
(b) is likely to any significant ex tent to stimulate or encourage
anything falling within section 2(2)(a) or, in the case of anythingfalling within section 2(2)(b), is likely to any extent to do so.
(8B) The supply of any other video recording is an exempted supply if the
recording is supplied for the purpose only of its use in connection with
a supply that is an exempted supply under subsection (8A).”
(7) At the end of that section insert—
“(13) The Secretary of State may by reg ulations amend this section and the
regulations may, in particular—
(a) add a case in which the supply of a video recording is an
exempted supply for the purposes of this Act, or
(b) repeal a provision of this section.”Digital Economy Act 2010 (c. 24) 49
41 Designated authority for video games etc
(1) After section 4 of the Video Re cordings Act 1984 insert—
“4ZA Designated authorities for video games and other video works
(1) The power to designate a person  by notice under section 4 includes
power to designate different persons—
(a) as the authority re sponsible for making arrangements in respect
of video games (“the video games authority”), and
(b) as the authority re sponsible for making arrangements in respect
of other video works (“the video works authority”).
(2) Where there are two designated authorities, references in this Act to the
designated authority, in relation to a vi deo work, are references to the
designated authority responsible for ma king arrangements in respect
of the video work, taking account of any allocation in force undersection 4ZB.
4ZB Designated authorities: allocation of responsibility for video games
(1) Where there are two designated authorities, the video games authority
may, with the consent of the video works authority, allocate to thatauthority responsibility—
(a) for a class of video games, or
(b) for video games, or a class of video games, when (and only
when) they are contained in a video recording that is describedin the allocation (whether by reference to its contents, to the
manner in which it is, or is to be, supplied or otherwise).
(2) If an allocation is in force—
(a) the video works authority is responsible for making
arrangements under this Act in respect of the allocated videogames, and
(b) the video games authority ceas es to be responsible for making
such arrangements.
(3) An allocation—
(a) must be made by a notice, and
(b) may be withdrawn at any time by a notice given by the video
games authority with the consent of the video works authority.
(4) When making or withdrawing an allocation under this section, the
video games authority must have regard to  any guidance issued by the
Secretary of State.
(5) A notice under this section must be—
(a) sent to the Secretary of State, and
(b) published in such manner as the video games authority
considers appropriate.
(6) A question as to which designated authority is responsible for making
arrangements in respect of a video game may be conclusively
determined by the video games authority.Digital Economy Act 2010 (c. 24) 50
4ZC Designated authorities: video works included in video games
(1) The video games authority may make such arrangements in respect of
video works included in video games as it considers are necessary forthe purposes of fulfilling its responsibilities in respect of video games.
(2) Where there are two designated authorities, the arrangements made by
the video games authority under section 4 must, to  the extent that the
video games authority considers appropriate, include either or both ofthe following—
(a) arrangements for having reg ard to any classification certificate
issued by the video works authority in respect of a video workincluded in a video game;
(b) arrangements for obtaining and having regard to a
determination by the video works authority as to the suitabilityof all or part of a video work included in a video game.
(3) For the purpose of determining the extent to which arrangements
described in subsection (2)(a) or (b) are appropriate, the video gamesauthority must—
(a) consult the video works authority, and
(b) have regard to any guidance issued by the Secretary of State.
(4) In this section, “suitability” means suitability for the issue of a
classification certificate or suitability for th e issue of a classification
certificate of a particular description.”
(2) Schedule 1 (which contains further amendments of the Video Recordings Act
1984) has effect.
Copyright and performers’ property rights: penalties
42 Increase of penalties relating to infringing articles or illicit recordings
(1) The Copyright, Designs and Patents  Act 1988 is amended as follows.
(2) In section 107 (criminal liability for  making or dealing with infringing articles
etc.) in subsections (4)(a) and (4A)(a) for “the statutory maxim um” substitute
“£50,000”.
(3) In section 198 (criminal liability for making, dealing with or using illicit
recordings) in subsections (5)(a) and (5A)(a) for “the statutory maximum”substitute “£50,000”.
Public lending right
43 Public lending right
(1) Section 5(2) of the Public Lending Right Act 1979 (interpretation) is amended
as follows.
(2) Before the definition of “local library authority” insert—
““author”, in relation to a work recorded as a sound recording,
includes a producer or narrator;
“book” includes—Digital Economy Act 2010 (c. 24) 51
(a) a work recorded as a sound recording and consisting
mainly of spoken words (an “audio-book”), and
(b) a work, other than an audio-book, recorded in electronic
form and consisting mainly of (or of any combination of)written or spoken words or still pictures (an “e-book”);
“lent out”—
(a) means made available to a member of the public for use
away from library premises for a limited time, but
(b) does not include being communicated by means of
electronic transmission to a place other than librarypremises,
and “loan” and “borrowed” are to be read accordingly;
“library premises” has the meaning given in section 8(7) of the
Public Libraries and Museums Act 1964;”.
(3) After the definition of “prescribed” insert—
““producer” has the meaning given  in section 178 of the
Copyright, Designs and Patents Act 1988;”.
(4) At the end of the definition of “the register” omit “and”.(5) After the definition of “the Registrar” insert—
““sound recording” has the meaning given in section 5A(1) of the
Copyright, Designs and Patents Act 1988.”
(6) The Copyright, Designs and Patents  Act 1988 is amended as follows.
(7) In section 40A (permitted acts in relation to copyright works: lending of copies
by libraries or archives), for subsection (1) substitute—
“(1) Copyright in a work of any description is not infringed by the following
acts by a public library in relation to a book within the public lendingright scheme—
(a) lending the book;
(b) in relation to an audio-book or e-book, copying or issuing a
copy of the book as an act incidental to lending it.
(1A) In subsection (1)—
(a) “book”, “audio-book” and “e-book” have the meanings given in
section 5 of the Public Lending Right Act 1979,
(b) “the public lending right scheme” means the scheme in force
under section 1 of that Act,
(c) a book is within the public lending right scheme if it is a book
within the meaning of the provisions of the scheme relating toeligibility, whether or not it is in fact eligible, and
(d) “lending” is to be read in accordance with the definition of “lent
out” in section 5 of that Act (and section 18A of this Act does not
apply).”
(8) In Schedule 2, in paragraph 6B (permitted  acts in relation to performances:
lending of copies by libraries or archives)—
(a) at the beginning insert—
 “(A1) The rights conferred by this  Chapter are not infringed by the
following acts by a public library in relation to a book withinthe public lending right scheme—Digital Economy Act 2010 (c. 24) 52
(a) lending the book;
(b) in relation to an audio-book or e-book, copying or
issuing a copy of the book as  an act incidental to
lending it.
(A2) Expressions used in sub-para graph (A1) have the same
meaning as in section 40A(1).”;
(b) in sub-paragraph (2), for “this paragraph ” substitute “sub-paragraph
(1)”.
General
44 Power to make consequential provision etc
(1) The Secretary of State may by regulations ma de by statutory instrument make
incidental, supplementary, consequential, transitional, transitory or savingprovision in connection with the amendments made by this Act.
(2) The regulations may—
(a) make different provision for different purposes,
( b ) m o d i f y  a n  A c t  p a s s e d  b e f o r e  o r  i n  t h e  s a m e  S e s s i o n  a s  t h i s  A c t  o r
subordinate legislation made before this Act is passed, and
( c ) w h e r e  t h e y  a r e  m a d e  i n  c o n n e c t i o n  w i t h  a n  a m e n d m e n t  m a d e  b y
section 28 or by a provision listed in section 47(3), modify a provisionof an Act passed, or subordina te legislation made, before the day on
which that amendm ent comes into force.
(3) A statutory instrument containing reg ulations under this section that amend or
repeal a provision of an Act may not be made unless a draft of the instrument
has been laid before, and approved by a resolution of, each House ofParliament.
(4) Any other statutory ins trument containing regulations under this section is
subject to annulment in pursuance of a resolution of either House of
Parliament.
(5) In this section— 
“modify” includes amend, repeal or revoke;“subordinate legislation” has the same meaning as in the Interpretation
Act 1978.
45 Repeals
Schedule 2 (repeals) has effect.
46 Extent
(1) This Act extends to England and Wales, Scotland and Northern Ireland.(2) An amendment of the following enact ments that is made by this Act may be
extended to any of the Channel Islands or the Isle of Man under the relevantextending power—
(a) Part 1 of the Copyright, Design s and Patents Act 1988;
(b) the Broadcasting Act 1990;Digital Economy Act 2010 (c. 24) 53
(c) the Broadcasting Act 1996;
(d) the Communications Act 2003;
(e) the Wireless Telegraph y Act 2006.
(3) “Relevant extending power” means—
(a) in relation to amendments of Part 1 of the Copyright, Designs and
Patents Act 1988, section 157(2) of that Act;
(b) in relation to amendments of the Broadcasting Act 1990 , section 204(6)
of that Act;
(c) in relation to amendments of the Broadcasting Act 1996 , section 150(4)
of that Act;
(d) in relation to amendments of the Com munications Act 2003, section
411(6) of that Act;
(e) in relation to amendments of the Wire less Telegraphy Act 2006, section
118(3) of that Act.
(4) The power conferred by section 157(2)(c) of the Copyright, Designs and Patents
Act 1988 (power to ext end to British overseas territories) is exercisable in
relation to any amendment made by this Act to Part 1 of that Act.
47 Commencement
(1) This Act comes into force at the end of the period of two months beginning
with the day on which it is passed, but this is subject to—
(a) section 28(8), and
(b) subsections (2) and (3).
(2) The following come into force on the day on which this Act is passed—
(a) sections 5, 6, 7, 15 and 16(1),
(b) sections 30 to 32, and
(c) this section and sections 46 and 48.
(3) The following come into force on such day as the Secretary of State may by
order made by statutory instrument appoint—
(a) sections 19 to 21, 
(b) section 29 and the entries in Sch edule 2 relating to sections 183A and
184 of the Broadcasting Act 1990  and Schedule 15 to the
Communications Act 2003 (and section 45 so far as it relates to those
entries),
(c) sections 40(2) , (3), (5) and (6) and 41(1), paragraphs 2 to 4, 6 to 9 and
10(2) of Schedule 1 (and section 41(2) so far as it relates to thoseprovisions) and the entrie s in Schedule 2 relating to sections 2, 4 and 22
of the Video Recordings Act 1984 (and section 45 so far as it relates tothose entries), and
(d) section 43 and the entry in Schedule 2 relating to the Public Lending
Right Act 1979 (and section 45 so far as it relates to that entry).
(4) The Secretary of State may appoint different days for different purposes.
48 Short title
This Act may be cited as the Digital Economy Act 2010.Digital Economy Act 2010 (c. 24)
Schedule 1 — Classification of video games etc: supplementary provision54
SCHEDULES
SCHEDULE 1 Section 41
CLASSIFICATION  OF VIDEO  GAMES  ETC: SUPPLEMENTARY  PROVISION
1 The Video Recordings Act 1984 is amended as follows.
2 (1) Section 4 (authority to determine suitability of video works for classification)
is amended as follows.
(2) In subsection (1)(b)—
(a) in sub-paragraph (i), after “issue” insert “or revocation”, and
(b) in sub-paragraph (ii), after “issuing” insert “and revoking”.
(3) After subsection (1B) insert—
“(1C) The arrangements made under this section may require a person
requesting a classification certificate  for a video work to agree to
comply with a code of practice, which may, in particular, includeprovision relating to the labelling of video recordings.”
(4) After subsection (3) insert—
“(3A) The Secretary of State must no t make a designation under this
section unless satisfied that adequat e arrangements will be made for
taking account of public opinion in the United Kingdom.”
(5) For subsection (5) substitute—
“(5) No fee is recoverable by, or in accordance with arrangements made
by, the designated authority in connect ion with a determination in
respect of a video work or the issue of a classification certificateunless the designated authority has con sulted the Secretary of State
about such fees.”
(6) Omit subsection (6).(7) After that subsection insert—
“(6A) When making arrangement s under this section, the designated
authority must have regard to any guidance issued by the Secretaryof State.
(6B) The Secretary of State may not issue guidance about the matters to be
taken into account when determining the suitability of a video workfor the issue of a classification certif icate or a classification certificate
of a particular description.”
(8) In subsection (8)—Digital Economy Act 2010 (c. 24)
Schedule 1 — Classification of video games etc: supplementary provision55
(a) after “Act” insert—
“(a) ”, and
(b) at the end insert “, and
(b) references to the designated authority, in relation to a
classification certificate, are references to the personor persons designated under this section when thecertificate is issued,
(but see also section 4ZA(2)).”
3 In section 7 (classification certificates), at the end insert—
“(3) For the purposes of this Act, a vi deo work is not a video work in
respect of which a classification certificate has been issued if every
classification certificate issued in respect of the video work has beenrevoked.”
4 After that section insert—
“7A Classification certificates for particular video recordings
(1) A classification certificate issued in respect of a video work may be
issued so as to have effect only for the purposes of a video recordingthat is described in the certificat e (whether by reference to its
contents, to the manner in which it is, or is to be, supplied orotherwise).
(2) For the purposes of this Act, a video recording contains a video work
in respect of which a classification certificate has been issued if (andonly if) a classification certificate that has been issued in respect ofthe video work has effect for the purposes of the video recording.”
5 In section 8 (requirements as to la belling etc), omit subsections (2) and (3).
6 (1) Section 11 (supplying video record ing of classified work in breach of
classification) is amended as follows.
(2) In subsection (1)— 
(a) for “containing” substitute “, or no video recording described in the
certificate, that contains”,
(b) for “a video recording containing that work” substitute “such a video
recording”, and
(c) after “unless” insert—
“(a) the video work is an exempted work, or
(b) ”.
(3) In subsection (2), after paragraph (b) (but before “or”) insert—
“(ba) that the accused beli eved on reasonable grounds that the
video work concerned or, if th e video recording contained
more than one work to which th e charge relates, each of those
works was an exempted work,”.
7 (1) Section 12 (certain video recordings only to be supplied in licensed sex
shops) is amended as follows.
(2) In subsections (1) and (3)—
(a) for “containing” substitute “, or no video recording described in the
certificate, that contains”, andDigital Economy Act 2010 (c. 24)
Schedule 1 — Classification of video games etc: supplementary provision56
(b) for “a video recording containing the work” substitute “such a video
recording”.
(3) In subsection (6)—
(a) for “containing” substitute “, or no video recording described in the
certificate, that contains”, and
(b) for “a video recording containing that work” substitute “such a video
recording”.
8 (1) Section 13 (supplying video recording not complying with requirements as
to labels etc) is amended as follows.
(2) In subsection (1), after “unless” insert—
“(a) the video work is an exempted work, or
(b) ”.
(3) In subsection (2), before paragraph (a) insert—
“(za) believed on reasonable grounds that the video work
concerned or, if the video recording con tained more than one
work to which the charge relates, each of those works was anexempted work,”.
9 (1) Section 14 (supplying video recording contain ing false indication as to
classification) is amended as follows.
(2) In subsection (1), after “unless” insert—
“(a) the video work is an exempted work, or
(b) ”.
(3) In subsection (2)(a), after sub-paragraph (i) (but before “or”) insert—
“(ia) that the video wor k concerned or, if the video
recording contained more than one work to which thecharge relates, each of those works was an exemptedwork,”.
(4) In subsection (3)—
(a) after “unless” insert—
“(a) the video work is an exempted work, or
(b) ”.
(5) In subsection (4)(a), before sub-paragraph (i) insert—
“(ai) that the video work concerned or, if the video
recording contained more than one work to which thecharge relates, each of those works was an exemptedwork,”.
10 (1) Section 22 (other interpretation) is amended as follows.
(2) In subsection (1), at the end insert— 
““video games authority” and “video works authority” have the
meaning given in section 4ZA.”
(3) In subsection (2), after “Act” insert “(and subject to regulations under
subsection (2A))”.Digital Economy Act 2010 (c. 24)
Schedule 1 — Classification of video games etc: supplementary provision57
(4) After subsection (2) insert—
“(2A) The Secretary of State may by regulations make provision about the
circumstances in which, for the purposes of this Act, a videorecording does or does not contain a video work.”
11 After section 22 insert—
“22A Regulations
(1) Regulations under this Act are to be made by statutory instrument.
(2) Every power of the Secretary of State to make regulations under this
Act includes—
(a) power to make different provision for different purposes,
and
(b) power to make transit ional or saving provision.
(3) A statutory instrume nt containing regulations  under section 2, 2A or
3 may not be made unless a draft of the instrument has been laidbefore, and approved by a resolution of, each House of Parliament.
(4) Any other statutory instrument co ntaining regula tions under this
Act is subject to annulmen t in pursuance of a resolution of either
House of Parliament.”
12 Until such time as section 2A of the Video Recordings Act 1984 comes into
force, section 22A(3) of that Act has effe ct as if the words “, 2A” were
omitted.
SCHEDULE 2
Section 45
REPEALS
Short title and chapter Extent of repeal
Public Lending Right Act 1979
(c. 10)In section 5(2), the word “and” at the end of the
definition of “the register”.
Video Recordings Act 1984
(c. 39)Section 2(1)(c) (and the word “or” before it).
Section 4(6).
Section 8(2) and (3).In section 22(1), the word “and” at the end of the
definition of “business”.
Broadcasting Act 1990  (c. 42) Section 14(7).
In section 106(1A), the word “or” at the end of
paragraph (c). 
Section 183A(7)(a) and (b).
Section 184.
Communications Act 2003
(c. 21)In section 218(7), the words after paragraph (b). 
Section 221. 
Section 224(3).
In section 314(1)(a), the words from “but” to
“that case”. 
In Schedule 15, paragraph 63 and the preceding
heading.
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