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House of Lords
Session 2009 - 10
Internet Publications
Other Bills before Parliament

Digital Economy Bill [HL]


Digital Economy Bill [HL]

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(b)   

operates a computer program or server that forms part

of the system that enables the names included in the

register to be used to access internet portal addresses or

other information by means of the internet;

“prescribed” means prescribed by regulations made by the

5

Secretary of State;

“registrar”, in relation to an internet domain registry, means a

person authorised by the registry to act on behalf of end-users

in connection with the registration of internet domain names;

“relevant body” means a company formed and registered under

10

the Companies Act 2006 or a limited liability partnership.”

19      

Appointment of manager of internet domain registry

(1)   

After section 124N of the Communications Act 2003 insert—

“124O   

Appointment of manager of internet domain registry

(1)   

This section applies where—

15

(a)   

the Secretary of State has given a notification under section

124N to an internet 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 for

20

remedying the failure and any consequences of 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 of

securing that the registry takes the steps described in subsection (1)(c).

(3)   

The person appointed may be anyone whom the Secretary of State

25

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

30

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

35

a person to act as administrative receiver, administrator, provisional

liquidator or liquidator of the registry.

(7)   

When discharging an order under this section, the Secretary of State

may make savings and transitional provision.

(8)   

The Secretary of State must send a copy of an order made under this

40

section to the registry as soon as practicable after it is made.

(9)   

In subsection (4), “receiver” includes a manager (other than a manager

appointed by the registry) and a person who is appointed as both

receiver and manager.

 
 

Digital Economy Bill [HL]

21

 

(10)   

In subsection (6)—

“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));

5

“administrator” means a person appointed to manage the affairs,

business and property of the registry under Schedule B1 to that

Act or Schedule B1 to that Order.

124P    

Functions of manager etc

(1)   

An order under section 124O may make provision about the functions

10

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

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directors), and

(b)   

provide for 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—

20

(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

25

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 the

manager (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

30

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 Ireland, the High Court.

35

(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 member

of the limited liability partnership.”

(2)   

In section 192(1)(d) of that Act (appeals against decisions of the Secretary of

State), after sub-paragraph (ii) insert—

40

“(iia)   

an order under section 124O;”.

(3)   

In section 402(1) of that Act (powers of the Secretary of State to make orders

and regulations), after “conferred by” insert “section 124O and”.

 
 

Digital Economy Bill [HL]

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20      

Application to court to alter constitution of internet domain registry

After section 124P of the Communications Act 2003 insert—

“124Q   

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

5

124N to an internet 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 for

remedying the failure and any consequences of the failure.

10

(2)   

The Secretary of State may apply to the court (as defined in section

124P) 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

15

specified alterations, of its constitution 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 the

failure specified in the notification under section 124N and any

20

consequences of the failure.

(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, the

limited liability partnership agreement;

25

“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

30

(b)   

their rights and duties in relation to the partnership.”

Channel Four Television Corporation

21      

Functions of C4C in relation to media content

(1)   

Before section 199 of the Communications Act 2003 insert—

“198A   

C4C’s functions in relation to media content

35

(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

40

general public at the cinema in the United Kingdom, and

(c)   

the broadcasting and distribution of such content and films.

(2)   

C4C must, in particular, participate in—

 
 

Digital Economy Bill [HL]

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(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

5

communications networks of feature films that reflect cultural

activity 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

10

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 of

ways, and

15

(b)   

contribute towards the fulfilment of the public service

objectives (as defined in section 264A).

(4)   

In performing their duties under subsections (1) to (3) C4C must—

(a)   

support the development of people with creative talent, in

particular—

20

(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

25

issues, in particular by challenging established views,

(c)   

promote alternative views and new perspectives, and

(d)   

provide access to material that is intended to inspire people to

make changes in their lives.

(5)   

In performing those duties C4C must have regard to the desirability

30

of—

(a)   

working with cultural organisations,

(b)   

encouraging innovation in the means by which relevant media

content is broadcast or distributed, and

(c)   

promoting access to and awareness of services provided in

35

digital form.

(6)   

In this section—

“participate in” includes invest in or otherwise procure;

“relevant media content” means material, other than

advertisements, which is included in any of the following

40

services that are available to members of the public in all or part

of the United Kingdom—

(a)   

television programme services, additional television

services or digital additional television services,

(b)   

on-demand programme services, or

45

(c)   

other services provided by means of the internet where

there is a person who exercises editorial control over the

material included in the service;

   

and a film is a “third party film” if C4C did not participate in making it.

 
 

Digital Economy Bill [HL]

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(7)   

The services that are to be taken for the purposes of this 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

5

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 section, at the beginning insert “Other”.

10

(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 the day on which section

198A comes into force,”,

(b)   

in paragraph 10, in the definition of “relevant licence period”, after

15

paragraph (a) (but before “and”) insert—

“(aa)   

in relation to the notification under paragraph

1(1)(aa), the period beginning on the day on

which section 198A comes into force and ending

on the last day of the first licence period to expire

20

after that day;”, and

(c)   

in that definition, in paragraph (b), for “any other such notification”

substitute “any other notification under paragraph 1”.

(4)   

Accordingly, in the heading for Part 3 of that Act (television and radio

services), at the end insert “ETC”.

25

(5)   

In section 24(1) of the Broadcasting Act 1990 (Channel 4 to be provided by

C4C), for “The function of the Corporation shall be to” substitute “The

Corporation must”.

(6)   

In paragraph 1 of Schedule 3 to that Act (status and capacity of C4C)—

(a)   

in sub-paragraph (4)(b), for “primary functions” substitute “Channel 4

30

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

35

Channel under section 265 of the Communications

Act 2003.”

22      

Monitoring and enforcing C4C’s media content duties

(1)   

After section 198A of the Communications Act 2003 insert—

“198B   

Statement of media content policy

40

(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

(b)   

subsequently at annual intervals.

45

 
 

Digital Economy Bill [HL]

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(2)   

C4C must monitor their performance in carrying out the proposals

contained in their statements 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

5

(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.

10

(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—

15

(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—

20

(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

25

(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 ends after this section comes into

force.

198D    

Directions in relation to C4C’s media content duties

30

(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

35

(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,

40

(b)   

C4C’s effectiveness and efficiency in monitoring their own

performance, and

(c)   

general economic and market conditions affecting the provision

of relevant media content (as defined in section 198A).

 
 

Digital Economy Bill [HL]

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(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

5

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.

10

(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—

15

(a)   

that C4C have failed to comply with a direction under section

198D in respect of a failure to perform one or more of their

duties under section 198A,

(b)   

that C4C are still failing to perform that duty or those duties,

and

20

(c)   

that it would be both reasonable and proportionate to the

seriousness of the failure to vary the licence under which

Channel 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

25

such conditions, or making such modifications of conditions, as

OFCOM consider appropriate for remedying (entirely or partly) C4C’s

failure to perform the duty or duties under section 198A.

(3)   

If, at any time following such a variation, OFCOM consider that any of

the additional conditions or modifications is no longer necessary, they

30

may again vary the licence with effect from such time as they may

determine.

(4)   

OFCOM must consult C4C before exercising their power under this

section to vary the Channel 4 licence.”

Independent television services

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23      

Determination of Channel 3 licence areas

(1)   

In section 14 of the Broadcasting Act 1990 (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), and

(b)   

after that subsection insert—

40

“(7A)   

The areas mentioned in subsection (2) must at all times include

at least one area that comprises, or falls entirely within,

Scotland.”

 
 

 
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