Digital Economy Bill (HL Bill 122)

(5) When draft guidance is submitted to the Secretary of State under subsection
(4), the Secretary of State may approve it either without modification or with
such modifications as the Secretary of State decides should be made to it.

(6) Once the Secretary of State has approved draft guidance under subsection (5),
5the Secretary of State must lay the following before both Houses of
Parliament—

(a) the draft guidance, incorporating any modifications the Secretary of
State has decided should be made to it under that subsection, and

(b) if the draft incorporates such modifications, a statement of the
10Secretary of State’s reasons for deciding that those modifications
should be made.

(7) If, within the period of 40 days beginning with the day on which draft guidance
is laid before Parliament under subsection (3) or (6), either House resolves not
to approve that draft guidance, the age-verification regulator must not publish
15guidance in the form of that draft.

(8) If no such resolution is made within that period, the age-verification regulator
must publish the guidance in the form of the draft laid before Parliament.

(9) But subsection (11) applies, instead of subsections (7) and (8), in a case falling
within subsection (10).

(10) 20The cases falling within this subsection are—

(a) the case where draft guidance is laid before Parliament under
subsection (3) and no previous guidance has been published under
subsection (1)(a) by the age-verification regulator; and

(b) the case where draft guidance is laid before Parliament under
25subsection (6) and no previous guidance has been published under
subsection (1)(b) by the age-verification regulator.

(11) The regulator must not publish guidance in the form of the draft laid before
Parliament unless the draft has been approved by a resolution of each House
of Parliament.

(12) 30Subsections (7) and (11) do not prevent new draft guidance from being laid
before Parliament.

(13) For the purposes of subsection (7)—

(a) where draft guidance is laid before each House of Parliament on
different days, the later day is to be taken as the day on which it was
35laid before both Houses, and

(b) in reckoning any period of 40 days, no account is to be taken of any time
during which Parliament is dissolved or prorogued or during which
both Houses are adjourned for more than 4 days.

(14) References in this section to guidance and draft guidance include references to
40revised guidance and draft revised guidance.

28 Exercise of functions by the age-verification regulator

(1) The age-verification regulator may, if it thinks fit, choose to exercise its powers
under sections 21, 23 and 25 principally in relation to persons who, in the age-
verification regulator’s opinion—

(a) 45make pornographic material or extreme pornographic material
available on the internet on a commercial basis to a large number of

persons, or a large number of persons under the age of 18, in the United
Kingdom; or

(b) generate a large amount of turnover by doing so.

(2) The age-verification regulator may—

(a) 5carry out such consultation with any person as it considers appropriate
for the purposes of exercising, or considering whether to exercise, any
function under this Part;

(b) carry out, commission or support (financially or otherwise) any
research which it considers appropriate for the purposes of exercising,
10or considering whether to exercise, any function under this Part;

(c) publish the results of that research.

29 Guidance by Secretary of State to regulator

(1) The Secretary of State may issue guidance to the age-verification regulator in
relation to the exercise of the regulator’s functions, and may from time to time
15revise that guidance.

(2) The guidance may cover (among other things) the following matters—

(a) considerations to be applied in determining—

(i) whether arrangements for making pornographic material
available comply with section 16(1);

(ii) 20whether a person is an ancillary service provider, for the
purposes of section 23;

(b) the approach to be taken by the regulator to the exercise of its powers
to give notices under sections 21, 23 and 25;

(c) the preparation and publication of guidance and reports by the
25regulator and the content of such guidance and reports;

(d) the maintenance by the regulator of arrangements meeting the
requirements of section 18(5)(a) and (b).

(3) The regulator must have regard to the guidance.

(4) The Secretary of State must lay before both Houses of Parliament the guidance,
30and any revised guidance, issued under this section.

30 Requirements for notices given by regulator under this Part

(1) The age-verification regulator may give notice to a person under section 20, 21,
22, 23 or 25 by sending the notice to that person—

(a) by post to that person’s proper address; or

(b) 35by email to that person’s email address.

(2) In the case of a notice given under section 20, 23(1) or 25(1), a person’s proper
address for the purposes of subsection (1)(a), and section 7 of the Interpretation
Act 1978 in its application to that subsection, is—

(a) where that person is a body corporate, the address of its registered
40office or principal office;

(b) where that person is a partnership or an unincorporated association or
body, the address of its principal office;

(c) in any other case, that person’s last known address.

(3) In the case of a notice given under section 21, 22, 23(3) or 25(10), a person’s
proper address for the purposes of subsection (1)(a), and section 7 of the
Interpretation Act 1978 in its application to that subsection, is any address at
which the age-verification regulator believes, on reasonable grounds, that the
5notice will come to the attention of that person or (where that person is a body
corporate) any director or other officer of that body corporate.

(4) For the purposes of subsection (1)(b), a person’s email address is—

(a) any email address published for the time being by that person as an
address for contacting that person; or

(b) 10if there is no such published address, any email address by means of
which the age-verification regulator believes, on reasonable grounds,
that the notice will come to the attention of that person or (where that
person is a body corporate) any director or other officer of that body
corporate.

(5) 15A notice under section 20, 21, 22, 23 or 25 sent to a person by email is to be taken
to have been given to that person 48 hours after it is sent.

(6) In the case of—

(a) a body corporate registered outside the United Kingdom;

(b) a partnership carrying on business outside the United Kingdom; or

(c) 20an unincorporated association or body with offices outside the United
Kingdom,

the references in subsection (2) to its principal office include references to its
principal office in the United Kingdom (if any).

(7) In this section—

• 25“director” includes any person occupying the position of a director, by
  whatever name called;

• “officer”, in relation to a body corporate, includes a director, a manager, a
  secretary or, where the affairs of the body corporate are managed by its
  members, a member.

31 30Code of practice for commercial social media platform providers on online
abuse

(1) Within six months of the passing of this Act, the Secretary of State must publish
a code of practice about the responsibilities of social media platform providers
to protect children and young people from online abuse and bullying.

(2) 35The Secretary of State may bring the code of practice into force by regulations
made by statutory instrument.

(3) A statutory instrument containing regulations under this section may not be
made unless a draft of the instrument has been laid before, and approved by a
resolution of, each House of Parliament.

(4) 40The code of practice must include—

(a) the overarching duty of care of internet service providers and social
media platform providers to ensure the safety of a child or young
person involved in any activity or interaction for which that service
provider is responsible;

(b) 45the obligation to inform the police with immediate effect if notified that
content on social media sites contravenes existing legislation;

(c) the obligation to remove content with immediate effect if notified that
posts on social media sites contravene existing legislation;

(d) the obligation to have specific terms of use that prohibit cyber-bullying
and provide a mechanism for complaints of cyber-bullying to be
5received and for the offending content to be removed; and

(e) their responsibility to work with education professionals, parents and
charities to give young people the skills to use social media safely.

(5) Commercial social media platform providers must comply with the code of
practice, once it is in force.

(6) 10The Secretary of State may from time to time revise and re-publish the code of
practice.

(7) The Secretary of State may bring into force a revised and re-published code of
practice by regulations made by statutory instrument.

(8) In this section—

• 15“commercial social media platform provider” means a person who
  operates on a commercial basis an internet site on which people can
  interact;

• “cyber-bullying” means material that has the effect of seriously
  threatening, intimidating, harassing or humiliating children and young
  20people.

32 Report on this Part

(1) Within 18 months, but not before 12 months, of the coming into force of this
Part, the Secretary of State must produce a report on the impact and
effectiveness of the regulatory framework provided for in this Part.

(2) 25Before publishing this report, the Secretary of State must consult on the
definitions used within this Part.

(3) The report must be laid before each House of Parliament.

33 Part 3: general and interpretation

(1) In this Part—

• 30“the age-verification regulator” means the person or persons designated
  as the age-verification regulator under section 18;

• “extreme pornographic material” has the meaning given in section 24;

• “internet service provider” means a provider of an internet access service
  within the meaning given in Article 2 of Regulation (EU) 2015/2120 of
  35the European Parliament and of the Council of 25 November 2015;

• “pornographic material” has the meaning given in section 17;

• “turnover” has the meaning given in section 22(15).

(2) Section 22(3) of the Video Recordings Act 1984 (effect of alterations) applies for
the purposes of this Part as it applies for the purposes of that Act.

(3) 40Nothing in this Part affects any prohibition or restriction in relation to
pornographic material or extreme pornographic material, or powers in relation
to such material, under another enactment or a rule of law.

Part 4 Intellectual Property

34 Lending of e-books by public libraries

(1) In section 5(2) of the Public Lending Right Act 1979 (interpretation) for the
5definition of “lent out” substitute—

• ““lent out” means made available to a member of the public for use
  away from library premises for a limited time (including by
  being communicated by means of electronic transmission to a
  place other than library premises) and “loan” and “borrowed”
  10are to be read accordingly;”.

(2) Section 40A of the Copyright, Designs and Patents Act 1988 (lending of copies
by libraries or archives) is amended as follows.

(3) After subsection (1) insert—

“(1ZA) Subsection (1) applies to an e-book or an e-audio-book only if—

(a) 15the book has been lawfully acquired by the library, and

(b) the lending is in compliance with any purchase or licensing
terms to which the book is subject.”

(4) In subsection (1A)—

(a) for “subsection (1)” substitute “subsections (1) and (1ZA)”;

(b) 20after paragraph (a) insert—

“(aa) “e-audio-book” means an audio-book (as defined in
paragraph (a)) in a form enabling lending of the book by
electronic transmission,”.

35 Offences: infringing copyright and making available right

(1) 25The Copyright, Designs and Patents Act 1988 is amended as follows.

(2) In section 107 (criminal liability for making or dealing with infringing articles,
etc), for subsection (2A) substitute—

“(2A) A person (“P”) who infringes copyright in a work by communicating
the work to the public commits an offence if P—

(a) 30knows or has reason to believe that P is infringing copyright in
the work, and

(b) either—

(i) intends to make a gain for P or another person, or

(ii) knows or has reason to believe that communicating the
35work to the public will cause loss to the owner of the
copyright, or will expose the owner of the copyright to a
risk of loss.

(2B) For the purposes of subsection (2A)—

(a) “gain” and “loss”—

(i) 40extend only to gain or loss in money, and

(ii) include any such gain or loss whether temporary or
permanent, and

(b) “loss” includes a loss by not getting what one might get.”

(3) In subsection (4A)(b) of that section, for “two” substitute “ten”.

(4) In section 198 (criminal liability for making, dealing with or using illicit
recordings), for subsection (1A) substitute—

“(1A) A person (“P”) who infringes a performer’s making available right in a
5recording commits an offence if P—

(a) knows or has reason to believe that P is infringing the right, and

(b) either—

(i) intends to make a gain for P or another person, or

(ii) knows or has reason to believe that infringing the right
10will cause loss to the owner of the right, or expose the
owner of the right to a risk of loss.

(1B) For the purposes of subsection (1A)—

(a) “gain” and “loss”—

(i) extend only to gain or loss in money, and

(ii) 15include any such gain or loss whether temporary or
permanent, and

(b) “loss” includes a loss by not getting what one might get.”

(5) In subsection (5A)(b) of that section, for “two” substitute “ten”.

(6) The amendments made by this section do not apply in relation to offences
20committed before this section comes into force.

36 Registered designs: infringement: marking product with internet link

(1) Section 24B of the Registered Designs Act 1949 (exemption of innocent
infringer from liability) is amended as follows.

(2) In subsection (2) (defendant not deemed to have been aware etc that design
25was registered by reason of the marking of the product unless it includes the
number of the design), after “the number of the design” insert “or a relevant
internet link”.

(3) After that subsection insert—

“(2A) The reference in subsection (2) to a relevant internet link is a reference
30to an address of a posting on the internet—

(a) which is accessible to the public free of charge, and

(b) which clearly associates the product with the number of the
design.”

37 Copyright etc where broadcast retransmitted by cable

(1) 35In the Copyright, Designs and Patents Act 1988 the following are repealed—

(a) sections 73 and 73A (copyright not infringed where broadcast
retransmitted by cable);

(b) paragraphs 19 and 19A of Schedule 2 (rights in relation to performance
or recording not infringed where broadcast retransmitted by cable).

(2) 40In consequence the following are repealed or revoked—

(a) in the Copyright, Designs and Patents Act 1988—

(i) in section 134, subsection (3A) and, in subsection (1), the words
“Subject to subsection (3A)”;

(ii) section 149(za);

(iii) section 205B(1)(cc);

(b) 5in the Broadcasting Act 1996, section 138 and Schedule 9;

(c) in the Copyright and Related Rights Regulations 2003 (S.I. 2003/2498),
regulation 22.

(3) The Secretary of State may by regulations make transitional, transitory or
saving provision in connection with the coming into force of this section.

(4) 10The power to make regulations under subsection (3) is exercisable by statutory
instrument.

(5) A statutory instrument containing regulations under subsection (3) is subject
to annulment in pursuance of a resolution of either House of Parliament.

Part 5 15Digital government

CHAPTER 1 Public service delivery

38 Disclosure of information to improve public service delivery

(1) A specified person may disclose information held by the person in connection
20with any of the person’s functions to another specified person for the purposes
of an objective which is a specified objective in relation to each of those
persons.

(2) In this section “specified person” means a person specified, or of a description
specified, in Schedule 4.

(3) 25The appropriate national authority may by regulations amend Schedule 4 so as
to add, remove or modify an entry relating to a person or description of person.

(4) Regulations under subsection (3) may add an entry relating to a person or a
description of person to Schedule 4 only if—

(a) the person is a public authority or (as the case may be) each person of
30that description is a public authority, or

(b) the person provides services to a public authority or (as the case may
be) each person of that description provides services to a public
authority.

(5) In the case of a person (“P”) who is a specified person merely because of
35providing services to a public authority, the reference in subsection (1) to the
functions of a specified person is limited to the functions P exercises for that
purpose.

(6) In determining whether to make regulations under subsection (3) in relation to
a person or description of person the appropriate national authority must have
40regard, in particular, to—

(a) the systems and procedures for the secure handling of information by
that person or persons of that description, and

(b) in the case of regulations which remove a person from Schedule 4
whether that person, or any person providing services to that person,
has had regard to the code of practice under section 46 as required by
that section.

(7) 5In this section “specified objective”, in relation to a specified person, means an
objective specified in relation to that specified person in regulations made by
the appropriate national authority.

(8) An objective may be specified by regulations under subsection (7) only if it
complies with the following conditions.

(9) 10The first condition is that the objective has as its purpose—

(a) the improvement or targeting of a public service provided to
individuals or households, or

(b) the facilitation of the provision of a benefit (whether or not financial) to
individuals or households.

(10) 15The second condition is that the objective has as its purpose the improvement
of the well-being of individuals or households.

(11) The reference in subsection (10) to the well-being of individuals or households
includes—

(a) their physical and mental health and emotional well-being,

(b) 20the contribution made by them to society, and

(c) their social and economic well-being.

(12) The third condition is that the objective has as its purpose the supporting of—

(a) the delivery of a specified person’s functions, or

(b) the administration, monitoring or enforcement of a specified person’s
25functions.

39 Disclosure of information to gas and electricity suppliers etc

(1) If the first and second conditions are met, a specified person may disclose
information held by the person in connection with any of the person’s
functions to—

(a) 30a licensed gas supplier, or

(b) a licensed electricity supplier.

(2) The first condition is that the disclosure is for the purpose of assisting people
living in fuel poverty by—

(a) reducing their energy costs,

(b) 35improving efficiency in their use of energy, or

(c) improving their health or financial well-being.

(3) The second condition is that the information is disclosed with the intention that
it will be used by the recipient of the information in connection with—

(a) a support scheme under Part 2 of the Energy Act 2010 (schemes for
40reducing fuel poverty),

(b) in the case of a disclosure to a licensed gas supplier, an obligation
imposed by an order under section 33BC or 33BD of the Gas Act 1986
(powers to impose obligations on gas suppliers etc),

(c) in the case of a disclosure to a licensed electricity supplier, an obligation
imposed by an order under section 41A or 41B of the Electricity Act
1989 (powers to impose obligations on electricity suppliers etc), or

(d) the making of grants (by any person) under section 15 of the Social
5Security Act 1990 in accordance with regulations under that section
made by the Scottish Ministers or the Welsh Ministers.

(4) In this section and section 40 “specified person” means a person specified, or of
a description specified, in Schedule 5.

(5) The appropriate national authority may by regulations—

(a) 10amend Schedule 5 so as to add, remove or modify an entry relating to
a person or description of person;

(b) amend subsection (1) so as to add or remove a person or description of
person to whom information may be disclosed;

(c) amend subsection (3) so as to add, modify or remove a reference to a
15fuel poverty measure.

(6) Regulations under subsection (5)(a) may add an entry relating to a person or a
description of person to Schedule 5 only if—

(a) the person is a public authority or (as the case may be) each person of
that description is a public authority, or

(b) 20the person provides services to a public authority or (as the case may
be) each person of that description provides services to a public
authority.

(7) Regulations under subsection (5)(b) may add a person or a description of
person to subsection (1) only if the person or (as the case may be) each person
25of that description—

(a) provides assistance of a kind mentioned in subsection (2) to people
living in fuel poverty,

(b) monitors or enforces the provision of such assistance to such people,

(c) administers a fuel poverty measure, or

(d) 30provides services to a person within paragraph (a), (b) or (c).

(8) In determining whether to make regulations under subsection (5)(a) or (b) in
relation to a person or description of person the appropriate national authority
must have regard, in particular, to—

(a) the systems and procedures for the secure handling of information by
35that person or persons of that description, and

(b) in the case of regulations which remove a person from Schedule 5 or
subsection (1), whether that person, or any person providing services
to that person, has had regard to the code of practice under section 46
as required by that section.

(9) 40In the case of a person (“P”) who is a specified person merely because of
providing services to a public authority, the reference in subsection (1) to the
functions of a specified person is limited to the functions P exercises for that
purpose.

(10) For the purposes of this Chapter a person lives in fuel poverty if the person is
45a member of a household living on a lower income in a home which cannot be
kept warm at a reasonable cost.

(11) In this section—

• “fuel poverty measure” means—

  Digital Economy BillPage 39

  (a)

  a scheme, arrangement or set of arrangements, or

  (b)

  a function or set of functions,

  which has as its purpose (or one of its purposes) the provision of
  assistance of a kind mentioned in subsection (2) to people living in fuel
  5poverty;

• “licensed gas supplier” means the holder of a licence under section 7A(1)
  of the Gas Act 1986;

• “licensed electricity supplier” means the holder of a licence under section
  6(1)(d) of the Electricity Act 1989.

40 10Disclosure of information by gas and electricity suppliers etc

(1) If the condition in subsection (2) is met, a person to whom information may be
disclosed under section 39 may disclose information held by that person to a
specified person.

(2) That condition is that the disclosure is for the purpose of assisting people living
15in fuel poverty in England and Wales or Scotland by—

(a) reducing their energy costs,

(b) improving efficiency in their use of energy, or

(c) improving their health or financial well-being.

41 Disclosure of information to water and sewerage undertakers etc

(1) 20If the first and second conditions are met, a specified person may disclose
information held by the person in connection with any of the person’s
functions to—

(a) a water or sewerage undertaker for an area which is wholly or mainly
in England, or

(b) 25a water or sewerage undertaker for an area which is wholly or mainly
in Wales.

(2) The first condition is that the disclosure is for the purpose of assisting people
living in water poverty by—

(a) reducing their water or sewerage costs,

(b) 30improving efficiency in their use of water, or

(c) improving their health or financial well-being.

(3) The second condition is that the information is disclosed with the intention that
it will be used by the undertaker in connection with provision in the
undertaker’s charges scheme under section 143 of the Water Industry Act 1991
35which is included in that scheme—

(a) in compliance with regulations under section 143A of that Act which
impose requirements within subsection (2)(d) of that section (power for
regulations to require charges schemes to make special provision for
particular classes of individual), or

(b) 40by virtue of section 44 of the Flood and Water Management Act 2010
(social tariffs).

(4) In this section and section 42 “specified person” means a person specified, or of
a description specified, in Schedule 6.

(5) The appropriate national authority may by regulations—