This is a step in the right direction. Instead of just randomly suing people when a music label or movie studio suspects copyright infringement, ISPs will notify people that a copyright holder believes a copyright infringement has occurred:
The entity announced today that AT&T, Verizon, Comcast, Time Warner Cable and Cablevision have teamed up with the RIAA and MPAA in order to agree upon a six-stage notification system that’ll electronically alert internet users whenever their account is used for wrongful downloading.
Under no circumstances will this system result in your Internet being cut off. The UN considers Internet access a human right, and it shouldn’t be shutoff just because a company believes copyright infringement may have occurred. This new system is a lot more user friendly, and hopefully it will lead to less litigation and more education and awareness of what is and isn’t legal.