Demonology: The trials and tribulations of an ISP

Round one in the case between Demon Internet and Dr Laurence Godfrey - a computer science lecturer suing the ISP for an allegedly defamatory posting on a Demon-hosted newsgroup - seems to have gone the academic's way. However, the fight's not over: Demon has pledged to battle on, and much of the Internet community has sided with the ISP, calling the law an ass for creating an unworkable framework and claiming that the right to free speech has been infringed.

Organisations such as the Internet Service Providers Association (ISPA), and cyber-liberties groups Internet Freedom and Cyber-Rights & Cyber-Liberties UK, have called a recent pre-trial ruling a disaster for ISPs and Net users (see http://www.silicon.com/a30792 ). The ruling stated that Demon can't use the so-called 'Internet defence' that it had unknowingly distributed libellous information.

However, the way the case has developed - whatever its ultimate outcome - says a lot about the current ISP market in the UK, and Demon's rise and fall.

Many industry groups and end-users are concerned the case will set a precedent, and will end up curtailing the way ISPs act. ISPA, for example, has said the pre-trial ruling "has serious consequences for the Internet industry in the UK" and that it "opens the floodgates for [ISPs] to be sued for unlawful removal of content and puts them in the unwanted position of being a censor".

Others - though perhaps not many others - claim that ISPs merely find themselves in the position of established media players such as newspaper owners and TV stations, as they'd only have to make sure they respond to material which they know about and which could legally be described as defamatory.

The irony is that while Demon sees market share go to free rivals, and AOL develop into a true international media company, it is left to carry the torch for the whole ISP community. How many lawyers are Freeserve et al paying for?

As one former employee of an ISP suggested to Silicon.com, this is a cut-throat market, and solidarity only goes so far. While Demon may have the sympathy of its peers, few are prepared to put their money where their mouths are - and this could be payback time for previous 'crimes' committed by Demon. The source said: "In the past, [Demon] was overly competitive, slashing the price of monthly access to £10 at a time when it knew some smaller rivals wouldn't be able to compete."

The message is clear - a lot of people don't care about Demon, but they care about a Demon v Godfrey precedent affecting their businesses.

More controversy struck Demon last week when the BBC dug up the story of Neil McRae, a former Demon employee who libelled the ISP on a Net newsgroup, and was then sued by the ISP, even after issuing an apology. Is this a case of pot calling the kettle black?

If the media also turn on Demon, the company may well wish it could turn back the clock.