In 2014, the High Court ordered Sky, TalkTalk, BT, Virgin Media and EE to block websites dealing in counterfeit luxury products. The ISPs appealed the case on a number of grounds, including that the court had no power to order the injunctions. That
appeal has now failed.
In their appeal, the ISPs complained that they are innocent parties and that the Court had no jurisdiction to hand down a blocking order. However, even in the event that it did have jurisdiction, the ISPs said that certain
thresholds required for an injunction had not been met.
Continuing, the ISPs said that the judge had failed to apply the correct principles in deciding whether or not to hand down an order, and that the orders made were disproportionate. Finally,
the judge should not have ordered the ISPs to foot the bill for blocking the infringing sites.
This week the Court of Appeal handed down its long awaited decision and it's almost completely good news for the brand owners.
Dismissing the
ISPs' appeal, the Court said that High Court did indeed have the power to issue the blocking injunctions and that all the legal thresholds for doing so had been met.
Interestingly, on the issue of who would pay for the site-blocking to be carried
out, the Court of Appeal had some sympathy for the ISPs. Justice Briggs wrote:
In my judgment the cost burden attributable to the implementation of a particular blocking order should fall upon the rightsholder making
the application for it.
In circumstances where valuable intangible rights of this kind need to be protected from abuse by others, I regard it as a natural incident of a business which consists of, or includes, the exploitation of
such rights, to incur cost in their protection, to the extent that it cannot be reimbursed by appropriate orders against wrongdoers.
But that doesn't mean that the ISPs are completely off the hook. Justice Briggs said that while the
ISPs wouldn't have to pay the costs associated with implementing a blocking order, they would still have to foot the bill for designing and installing the software with which to do so whenever ordered.