Demon has posted its solicitor's letter and an open letter from its Chairman on its Web site after The Observer failed to print a retraction of its August 25 article accusing the ISP of being one of the "key links in the international paedophile chain".
The solicitor's letter states: "You have represented that both our clients actively support the supply of paedophile material. This allegation is entirely false and is a most serious and outrageous libel. Demon Internet Limited [has] been the subject of serious expressions of concern and outrage from various of the readers of your newspaper." The letter also states an intention to issue a writ against The Observer.
The chairman's letter refers to a "highly defamatory as well as a poor piece of journalism that sensationalises a serious issue and clouds fact with emotion". The letter also details Demon's work with the police and the DTI to combat paedophile materials appearing on the Web, and its support of Microsoft's plans to classify material.
Demon Internet failed to answer calls requesting clarification.