If they are not registered with this quango agency, your images can be plundered and used anywhere, by anyone – on the understanding that the thief makes a very minimal effort to find you – the author of the image.
This is frightening proposed legislation. You can always tell when proponents know how much a bill stinks by the way they try to slide it in without definitive wording or real debate.
[UPDATE:] Account was suspended at original link; here’s a link to the cached page: http://bit.ly/cs89bW
The Small Wave. 
Awesome. Thanks for the link. (I should have tried Google/cache!)
Account was suspended; here’s a link to the cached page: http://bit.ly/cs89bW
That link is dead but I’d really like to read more about it…. This posterous post is the top hit for this article title and the photoactive.co.uk link is dead (slashdot effect? or government censorship?)