Yet again it's proposing a 'brute force' tactic that contradicts other laws (or rather lack of them) & common practices, rather than both investigating more interesting ways of dealing with the problem.
Well, currently, as half suggested in the article, there is no requirement under the law for a customer to attempt to secure their internet connection in any way - i say attempt to since, without not having an internet connection, there is no actual way to prevent a malicious 3rd party from, potentially at least, using your computer/internet connection to route traffic - well, on one hand Microsoft release monthly security updates that are reactive to (existing) exploits in their software, most anti-virus & firewall software updates at least several times a week (again reactive), & it is neither possible to truly secure a wireless connection (since they tend to be more prone than wired connections) nor stop, for example, a 'cloned' cable modem from being used, (etc, etc), &, on the other, both iSPs (such as BT) have actively suggested that you leave your wireless connection unsecured & any place (shops, cafes, bars, hotels, airports, etc) that offered wireless connection would then equally become as liable as the individual whose connection had been misused by a 3rd party (effectively destroying the sense in the service being provided).
You then add in that anonymizing networks (such as i2p & Tor), which are seen as vital to many internet users as they can help to prevent the tracking of their legitimate usage of the internet by 3rd parties, can also be used to illegally transfer copyright material so that it could appear that you were downloading the information rather than simply acting as a relay (yeah i'm all for promoting freedom of speech, so...).
So were the proposals to actually come into law as suggested, not only would there be nothing that could practically be done by an individual or company to prevent a 3rd party from downloading copyright material, but it then means that any of us who use the internet are susceptible & hence stand the risk of having our connections terminated without having done anything ourselves in breach of the copyright laws.
Separately to this, you then have the statement that "Music and film companies say that the illegal downloads cost them millions of pounds in lost revenues" - which they have said for years, but does not necessarily add up; primarily for two reasons - firstly, comparing revenue levels from the pre-p2p age is not an honest methodology since the cost for items such as CDs & DVDs has fallen, & secondly, monitoring downloads is not equivalent to actual lost sales since someone downloading something for free does not mean that they would have paid for it if that was the only option.
Then, mentioning simply as it's relevant to an alternative solution rather than directly relevant, under UK copyright law atm there is no 'fair usage' allowance for the individual - basic meaning that if you buy, for example, a CD, you are breaking the law if you copy it in any way; so anyone who copies music they have bought onto their computer or MP3 player is, to use the language of the corporations, 'stealing' from them & could legitimately be prosecuted in the UK for copyright infringement in exactly the same way as someone who illegally downloads the music from the internet.
Okay, so accepting that there is nothing that the end user can do to prevent a 3rd party... (which the media corporations know), & accepting that there are many millions of people in the UK who are breaking the law by copying music (for their own use) onto their computers/portable devices, & also that, no matter what measures they take, people will still 'pirate' material (before the internet & CD burners people copied tapes etc), an alternative model to penalising (the potentially innocent, at least) internet user.
(too few characters left to finish - will supplement)
Supplement from 02/12/2008 04:25pm:
Hence, as Sias describes quite accurately "The recording industry needs to pull their collective heads out of their bums and realise that the age of the old distribution paradigm has passed".
Since it is quite correct that the artists, writers, actors, etc should be reimbursed for their work, & it is clear that neither the current distribution channels nor the efforts to curb the methods of circumventing those channels can actually work on the large scale then two more sensible suggestions, IMHO, would be to both introduce the equivalent of a PRS Music Licence into the costs of either the internet subscription or end user items such as blank media & portable music devices (since it would be unfair to double pay) - which then could provide fair compensation for the artists - & separately for the commercial media corporations to put things like TV shows online for free but with advertising programmed in - thus both decriminalising the user in other 'territories' (well, people would prefer to watch something on the same day in the UK as it's shown in America for example) & providing a directly chargeable income stream for the corporations (allowing them to charge the companies who are advertising per download, & a popular show might be downloaded hundreds of thousands of times).