Internet service providers BT and TalkTalk failed in their legal challenge to the Act last month.
They had challenged provisions that require ISPs to notify subscribers of copyright infringement reports received from copyright owners, and to provide copyright infringement lists to copyright owners under an Ofcom code. They also provide that ISPs must pay some of the costs incurred.
In a 115-paragraph judgment last month, the judges at the Court of Appeal broadly upheld the first instance ruling, saying the Act complied with relevant European legislation.
But it backed the ISPs on the issue of cost sharing, saying that case fees in appeals by ISP subscribers should be considered as administrative charges. This means parts of the legislation now need to be rewritten.
Although the Act was passed quickly in 2010, it has been held up since by several legal challenges.
Once the new legislation is approved, the revision will be incorporated into Ofcom's draft code, which was published in May 2010 and is open for consultation.
