At this point, by law, an ISP must accept copyright complaints and have a publicly registered copyright agent (At our ISP, our team's director was the registered agent). The DMCA gives ISPs some choice in how they handle the complaints, but they can not be ignored. I fear this ISP owner may not be fully aware of current obligations(I am not speaking about non-actionable RIAA threats or future plans).
We hated this work. Our main focus was catching criminals that were committing crimes either utilizing or against our network. With an online customer base in the millions we would get thousands of complaints a day. If a big movie came out on Friday, for the next week or two we could get upwards of ten thousand a day. We feared Star Wars openings like you wouldn't believe. You can imagine a team of 6 very techy hacker guys getting extremely depressed spending 2-3 hours a day matching IP logs to modem MACs and finally onto a customer.
Our only solace in this work was something that my manager made clear was a department goal and practice. That this menial task was meant to protect the customer base from the copyright holder's carpet bombing mentality. We kept accurate data and because of that, were able to simply discard a large portion of the complaints as inaccurate. When the evidence was clear, we forwarded the complaint to the subscriber by email and snail mail. We instructed our subscribers to not contact the copyright holder to discuss it as this would just enable the holder to get identifying info(name, address) without a subpoena.
We also warned our customers that after a single complaint the copyright holder may subpoena our records and take them to court. Out of the almost million complaints a year, I saw an insignificant amount of cases ever go this far. The DMCA complaints were largely a scare tactic and often nothing more.
I was not privy to any knowledge of the compensation we received for completing this process, but did gleam from over hearing from the higher ups that we did indeed receive some money for the process or were in process of creating contracts to do so. I wish I had more info on that aspect to share with news.y.
The guys doing this work hate it, but the law forces it onto them. Until the laws change, no security department is going to bend over backwards for these guys.
It was an amazing and exciting job despite this issue.
On a lighter note, for your random facts file, the movie "Mean Girls" was the number one infringed file for 4 years running. Lots of laughs were had seeing what kind of weird and random stuff the people were downloading. Fun times.