August 01, 2011
Online payment processor PayPal has revealed that it will cut ties with websites deemed to be illegally offering copyrighted material by the music industry and the City of London Police.
According to a statement released by the International Federation of the Phonographic Industry (IFPI), websites found to be offering music without having the proper license to do to do so could soon lose their right to offer PayPal to their customers.
"The work the City of London police is undertaking is at the cutting edge of tackling online copyright infringement, a serious problem that is eroding the ability of record companies to invest in a diverse range of artists with serious consequences for jobs, tax revenues and consumer choice," said Frances Moore, Chief Executive of the IFP
PayPal's Acceptable Use Policy states that "items that infringe or violate any copyright... or other proprietary right" cannot be bought using the payment processor's software.
And under the new scheme, IFPI will submit evidence of downloading from allegedly infringing websites to the City of London Police's Economic Crime Directorate. The police will then consider the evidence before passing their findings on to PayPal.
According to Carl Scheible, Managing Director of PayPal UK, the move confirms PayPal's commitment to "fighting music piracy".
"We've always banned PayPal's use for the sale of content that infringes copyright, and the new system will make life even harder for illegal operators," he said. "Our partnership with the music industry helps rights holders make money from their own content while stopping the pirates in their tracks."