1. Creators should be paid when their music is downloaded or streamed.
2. The bigger problem is that of the failure to license new and innovative services rather than to sanction existing consumers. As such we agree with Lord Mandelson that “...it is essential that film, music and other content companies do more to build joint services with ISPs, such as the deal between Virgin Media and Universal Music to allow unlimited music downloads for a monthly fee...”.

3. If the creative industries and the ISPs cannot come to voluntary licensing agreements and provide services that mimic illegal P2P then the Government should intervene and impose licensing solutions that could include statutory licensing in the same way that radio is licensed. There should also be more experimentation with licensed services (through the Technology Strategy Board) to further develop consumer friendly offerings.

4. The FAC is correct in asking for objective research into the music market to determine consumer attitudes and potential solutions.

To preserve industry unity we will not be abstaining from the UK Music submission to Government on illegal P2P file sharing which is of necessity relatively anodyne. It does allow for the possibility of temporary suspension as a last resort for persistent offenders who ignore 3 warning letters and 3 periods of bandwidth shaping although all these sanctions will be discussed further.  It also mentions licensing which as we have seen from Government quotes is also a concern of ministers. We will be reinforcing the licensing issue in our own submission. As a result of this issue coming to the fore we will in future have regular meetings with rights holders and will be pushing the licensing agenda.