The Federal Court has handed down a landmark ruling in favour of iiNet, finding that the ISP is not responsible for copyright infringements of its users
A consortium of 34 movie studios, headed by Village Roadshow, had hoped to prove iiNet not only failed to take steps to stop illegal file-sharing by customers but breached copyright itself by storing and transmitting the data through its system.
Justice Dennis Cowdroy has found it is "impossible" to hold iiNet responsible for what its users have done in the landmark judgment that may secure the future for all internet service providers (ISPs).
"While I find that iiNet had knowledge of infringements occurring, and did not act to stop them, such findings do not necessitate a finding of authorisation," Justice Cowdroy told the court on Thursday.
"The evidence establishes that iiNet has done no more than to provide an internet service to its users." Justice Cowdroy said it was clear that illegal file downloading was happening on a large and international scale but he could not find against iiNet simply to make a point.
"The evidence establishes that copyright infringement of the applicant's films is occurring on a large scale ... however, such a fact does not necessitate or compel ... a finding of authorisation, merely because it is felt that `something must be done' to stop the infringements," the judge said.
'Copyright cops'
Australian Internet rights groups feared the piracy court case could force Internet Service Providers (ISPs) to become "copyright cops" and cut web access to customers who make illegal downloads.
But entertainment companies, including Village Roadshow, Paramount Pictures Australia and Twentieth Century Fox International, said iiNet did not do enough to stop its customers illegally sharing movies on the net.
ISP iiNet argued it has never encouraged or authorised the illegal sharing or downloading of files in breach of copyright laws and specifically warned its users against doing so.
ISPs were under mounting pressure to regulate the activities of those who subscribe to their Internet services.
BitTorrent websites were hard to shut down while individual file-sharers were too numerous to sue, added Dawes.
BitTorrent is a technology that allows online users to share parts of a large file such as a film or song over the Internet. The parts are then stitched together on the end user's computer to create a complete file.
