The law will come into effect April 2010, says the Department for Business, Skills and Innovation. Ofcom will be in charge of monitoring the file-sharing of UK citizens.
UK ISP TalkTalk, a strong critic of the bill, came out swinging after the announcement: "What is being proposed is wrong in principle and won't work in practice. In the event we are instructed to impose extra judicial technical measures we will challenge the instruction in the courts."
When asked about the material losses for ISPs given disconnection from the Internet for their subscribers, Mandelson added: "I have no expectation of mass suspensions. People will receive two notifications and if it reaches the point [of cutting them off] they will have the opportunity to appeal."
Another staunch critic of the plan, the Internet Service Providers' Association believes that copyright holders should be in charge of all costs related to the system, and that ISPs should be reimbursed for all lost customers.
"This approach is consistent with the principle of beneficiary pays and would serve to incentivise rightsholders to develop new business models and ensure an effective and efficient use of notifications and targeted legal action," says the ISPA.
The Open Rights Group says the DarkNet is coming: "Even MI5 disagree with Mr Mandelson - they are convinced we will see a rise of a 'Dark Net' of infringers. Nobody at C&binet from an online music service, as opposed to an old media company, thought that peer-to-peer [file-sharing] was a threat to their businesses. Yet Mandelson seems determined to push forward with his plans for 'three strikes' - threatening to punish people extremely harshly, threatening their education, businesses and livelihoods for a relatively minor financial misdemeanour," says Jim Killock, executive director of the Open Rights Group.