Internet service provider (ISP) iiNet has told the High Court it is not liable for people who use its network to download copyright material illegally.
The High Court in Canberra is hearing an appeal by a consortium of major film companies, headed by Roadshow Films, who allege iiNet failed to take steps to stop its customers from downloading movies and television shows illegally.
The companies also say iiNet breached copyright itself by storing illegal data and transmitting it through its system.
The Federal Court ruled in favour of iiNet in 2010 and dismissed the movie giants' initial appeal in February.
Counsel for iiNet Richard Cobden, SC, told the full bench of the High Court on Thursday that knowledge was an essential element of authorisation.
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"It's hard to see how if you are a service provider providing facilities and someone else merely uses them that you would thereby be liable for their primary infringement," Mr Cobden said.
"Saying you know nothing about it says that you wouldn't authorise."
The case continues in the High Court.
