September 22, 2005
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September 22, 2005 |
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Verizon to Police Web Customers By DIONNE SEARCEY and MERISSA MARR
Stepping up the battle against entertainment piracy, Verizon Communications Inc. and Walt Disney Co. have entered a long-term programming deal that calls for the phone company to send a warning to Internet users suspected of pirating Disney's content on its broadband services. Under the deal, one of the first of its kind in the television industry, Disney will contact Verizon when the company suspects a Verizon customer of illegally downloading content. Without divulging names or addresses to Disney, Verizon will then alert the customer that he or she might be violating the law. Disney will be able to identify suspicious customers through an Internet coding system.
The provision was announced as part of a content deal that will provide Verizon with Disney and ESPN programming and broadband services. New York-based Verizon, one of several telephone carriers launching video services to compete against cable companies, also secured 12 Disney channels, including ESPN, ABC News Now and the Disney Channel for its new television service, Fios TV, which will start rolling out today in Texas. In a related development, News Corp. Chief Executive Rupert Murdoch told a Goldman Sachs investment conference yesterday that News Corp. is "99% there" in completing a content deal with Verizon. He didn't elaborate, but that deal would likely include such networks as FX and Fox News. Verizon's deal with Disney comes as content providers are looking at more ways to deliver movies and music over the Internet while protecting copyrighted material. Verizon in the past has successfully battled the music industry in court over the issue, refusing to turn over the names and addresses of customers. The Digital Millennium Copyright Act compels Internet providers to divulge customer information regarding pirating upon subpoena. Verizon insists its deal with Disney doesn't compromise any of its past court efforts. Company officials say they want to comply with the law but also must protect subscribers' privacy. "We understand that Disney has issues of copyright but for Verizon the critical issue is privacy for our customers. We're as committed to that as we ever were," said Verizon spokesman Eric Rabe. Mr. Rabe said the company could shut off service to customers who have been repeatedly warned that they are infringing on Disney copyrights. In a presentation to the Goldman Sachs conference yesterday, Disney's CEO-elect Robert Iger described the antipiracy provisions of the deal as "breakthrough" and said "the rest of the industry should pay heed and hopefully follow." Write to Dionne Searcey at dionne.searcey@wsj.com3 and Merissa Marr at merissa.marr@wsj.com4
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