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Session 2009 - 10
Internet Publications
Other Bills before Parliament

Digital Economy Bill [HL]


Digital Economy Bill [HL]

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(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

5

(c)   

in Northern Ireland, 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 member

of the limited liability partnership.”

(2)   

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

10

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

“(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”.

20      

Application to court to alter constitution of internet domain registry

15

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

124N to a qualifying internet domain registry specifying a

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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.

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(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

30

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

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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;

40

“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—

 
 

Digital Economy Bill [HL]

26

 

(a)   

the mutual rights and duties of the members, and

(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—

5

“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,

10

(b)   

the making of high quality films intended to be shown to the

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—

(a)   

the making of relevant media content that consists of news and

15

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 cultural

20

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

communications networks.

25

(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

(b)   

contribute towards the fulfilment of the public service

30

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—

(i)   

people at the beginning of their careers in relevant

35

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

40

from around the world and 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.

 
 

Digital Economy Bill [HL]

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(5)   

In performing those duties C4C must have regard to the desirability

of—

(a)   

working with cultural organisations,

(b)   

encouraging innovation in the means by which relevant media

content is broadcast or distributed, and

5

(c)   

promoting access to and awareness of services provided in

digital form.

(6)   

In this section—

“participate in” includes invest in or otherwise procure;

“relevant media content” means material, other than

10

advertisements, which is included in any of the following

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,

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(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 the

material included in the service;

   

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

20

(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

25

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”.

30

(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

35

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

40

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”.

45

(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”.

 
 

Digital Economy Bill [HL]

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(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

functions”, and

(b)   

after that sub-paragraph insert—

    “(5)  

In sub-paragraph (4) “Channel 4 functions” means—

5

(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 Communications

Act 2003.”

22      

Monitoring and enforcing C4C’s media content duties

10

(1)   

After section 198A of the Communications 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

15

section comes into force, and

(b)   

subsequently at annual intervals.

(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—

20

(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—

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(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

30

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.

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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.

40

(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.

 
 

Digital Economy Bill [HL]

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(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

(1)   

This section applies if OFCOM—

5

(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

10

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

15

performance, and

(c)   

general economic and market 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—

20

(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—

25

(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.”

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(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 their

35

duties 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 which

40

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

such conditions, or making such modifications of conditions, as

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

45

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

 
 

Digital Economy Bill [HL]

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(3)   

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

the additional conditions or modifications is no longer necessary, they

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

5

section to vary the Channel 4 licence.”

Independent television services

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

10

for the whole of England or the whole of Scotland), and

(b)   

after that subsection insert—

“(7A)   

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

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

Scotland.”

15

(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—

20

(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 area for which the licence

25

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—

30

“(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 or

propose to renew one or more other licences to provide a Channel 3

service for all of the area to which the licence relates.”

(5)   

In subsection (8)(a) for “subsection (4)(c)” substitute “subsection (4A)(c)”.

35

(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).”

 
 

Digital Economy Bill [HL]

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(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—

5

(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 is

10

made.”

(8)   

In section 217(1) of that Act, in the opening words, for “section 216(4)(b)”

substitute “section 216(4A)(b)”.

24      

Initial expiry date for Channel 3 and 5 and public teletext licences

(1)   

Section 224 of the Communications Act 2003 (initial expiry date for licences) is

15

amended as follows.

(2)   

For subsection (1) (meaning of “initial expiry date”) substitute—

“(1)   

Subject to any postponement under this section, for the purposes of this

Part the initial expiry date for the following types of licence is 31

December 2014—

20

(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)”.

25

(4)   

Omit subsection (3) (no postponement if digital switchover is to occur before 1

July 2013).

25      

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.

30

(2)   

In each of sections 214(6) and 216(12) (definition of “licensing period” for

Channels 3 and 5)—

(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

35

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) (definition of “licensing period” for

public teletext service)—

(a)   

in paragraph (a), at the end (but before “or”) insert “for the licence to

40

provide the public teletext service”, and

(b)   

in paragraph (b), at the end insert “for that type of licence”.

 
 

 
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