What exactly does naughtiness amounts to?
'A second allegation of naughtiness within twelve months will result in the despatch of a “Warning Notice” ...'
'Naughtiness' by itself is a simple notion, so what's its actual extent? A single encounter with a file-sharing site that would make the Ort Cloud seem close, or one that would make Kim Dotcom feel overly satisfied.
Exactly how this is played out will be its key to success or failure.
As a person who feels that movies of the 1930's are overly modern, it's unlikely I'll ever encounter Hollywood's wrath, but it seems to me that many such industry agreements are dangerous and often fail. Also, using a surrogate cop for any reason is fraught with problems, especially one who is under duress to perform. Sometimes the antiquated procedures the law may be a better option, and this may be one of them.
Seems a worry for some, I'll bet there'll be blood on the floor before it's over.