I run a number of websites for independent bands and musicians. They don’t have the cash to lash out on changing their entire music download operation to comply – having already gone on average £15k into the red just to record and release an album, the compliance work for downloads would wipe out the entire profit on projected lifetime sales of both physical and download products. Understandably, there’s a lot of anger about this.

You said “As an example if you have a service where you design an ebook cover for a customer, that would not fall under the these rules as you are providing a unique, hands-on service to the customer.”

So, if the artist sells a personalised product and gives away the download with it, the transaction would appear to be exempt under the rules.

What defines a personalised product? Since it is simple to insert details captured in the transaction into a personalised letter or downloadable gift card, would that be good enough? We’re not talking about the purchaser completing a template, we’re talking about using data they supply to create a personalised download.

Second, if a personalised product is ordered to qualify for a free download, who will know whether a personlaised hands-on product has in fact been delivered? The customer, yes. No-one else gets proof. How soon must the product be delivered or collected? This seems to offer a loophole.