This article is written by Andrew Orlowski, who I wouldn't trust as far as I could throw him on a variety of topics, but particularly that of copyright (where he delights in calling anyone who disagrees with him a "Freetard"). It's largely his writing that's put me off the site, which I use to enjoy for an irreverent take on technology, but is now frequently just a ranting pit.
In any case, The Register has a history of this - and in a previous article were so inaccurate that they caused two articles to be produced by the government to try and correct his inaccuracies. You can read them here and here. If, understandably, you don't trust the government then you can read a piece by the Open Rights Group here.
Now, there are definitely gaps in understanding at the moment - things that are still to be defined. But please don't play into the hands of people like Orlowski by panicking about this. The statutory instruments will be along shortly, filling in those gaps, and making it clear where things actually stand. If _those_ are awful, then that's the time to panic about it.
Original post on Dreamwidth - there are comments there.