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Argument: Enforcing graduated response will be very expensive

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"Estimating The Cost of a Three-Strikes and You're Out System." Michael Geist Blog. January 26, 2010: "Much of the three-strikes debate has focused on its impact on Internet users, yet the price of establishing such systems have scarcely been discussed. That may be changing due to the UK government's own estimates on the likely costs borne by Internet providers and taxpayers in establishing and maintaining a three-strikes system. [...] Initial government estimates peg the expense to Internet providers alone at as much as 500 million pounds (C$850 million) over ten years. This includes the costs of identifying subscribers, notifying them of alleged infringements, running call centres to answer questions, and investing in new equipment to manage the system. [...] The UK recording industry has challenged these numbers, but there is reason to believe they actually understate the actual economic impact. The UK estimates focus exclusively on the Internet provider costs, but provide no accounting for actual enforcement of the system. When court and regulatory costs are factored into the equation, the taxpayer burden runs into the hundreds of millions. [...] Moreover, the UK estimates are consistent with a 2006 Industry Canada commissioned study on the costs of Internet provider notification schemes. The study concluded that the cost of a single notification was $11.73 for larger Internet providers (more than 100,000 subscribers) and $32.73 for smaller Internet providers. Considering the sheer number of notifications - last summer Bell Canada acknowledged receiving 15,000 notifications each month - the costs quickly run into the millions of dollars."

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