The problem is there is too little competition. If you could simply drop your ISP for another this would be OK, but in some areas, there is only one or two choices for broadband.
Copyright holders already blanket notices without regard to legality or not. And places like Google and Wikipedia, will allow them, without looking at them.
So say you have a site and it gets a DMCA notice, you fight it and win. Well that copyright holder also files a DMCA notice with Google, Yahoo, MSN etc,
They don’t fight it. They comply meekly. So now you fight your DMCA notice and win. So you were right, but Google and the other search engines won’t reverse that, so your site remains up, but out of search.
Another abuse is anyone can claim DMCA. You don’t have to be the copyright holder. You won’t win, but it’s often enough to get your competition taken down for awhile. You can claim for losses but it’s too easy too set up a shill and claim DMCA.
This is the same thing that will happen here, the copyright holders will simply blanket users with notices left and right. Why? Because it costs them nothing.
You can’t use the traffic cop example as comparison, because it costs the city something to put a cop out there writing warnings, when he could be more useful elsewhere. It’ll cost nothing to copyright holders to blanket issue warnings and get everyone up to the final warning. There should be a charge by the ISP for each warning issued. Maybe $5.00 per warning by copyright holder. This would stop that abuse of the system.
And because broadband is limited, once your in trouble, there’s little you can do. Most broadband providers limited bandwidth now. So you already have an effective way to limit piracy, just keep lowering the download limit.
AT&T will charge you to download Netflix movies if you go over your limit, but you can get U-Verse pay per view and get the same thing.
All this will do is drive people away from torrents and on to more secure P2P networks. If you’re on What.Cd or PassThePopcorn you already have pretty decent security for your torrent downloads. One notice from an ISP reported to either site, will get the user and all his invites kicked off immediately. So this will effect only those on public trackers like Pirate Bay or Demonoid.
It’s a sign of the times though. Torrents have been around too long. Someone will come up with yet another way to DL illegally but more securely.