Telcos to starve piracy sites of ad money

Australia's largest telcos have agreed to stop advertising on illegal downloading sites amid a government crackdown on internet copyright infringement.

Telstra signage in Sydney

Australia's largest telcos have agreed to stop advertising on illegal downloading websites. (AAP)

Australia's largest telcos are leading a push to starve illegal downloading sites of money by pulling advertising.

Lobby Group the Communications Alliance says its members, including Telstra, Optus and iiNet, have collectively agreed not to advertise on any sites that promote or facilitate online copyright infringement.

It's a "concrete" strategy to reduce the viability of illegal downloading sites, said the group's chief, John Stanton, in a statement.

"We are hopeful that a very broad coalition of companies - not just in the telecommunications sector, but right across the economy - will join the strategy and make real inroads against infringement."

The group has approached several other industry organisations, with employers' body the Australian Industry Group expressing in-principle support.

A similar strategy on trial in the UK had put a 12 per cent dent in the revenues flowing to illegal downloading sites, the Communications Alliance said.

The move is the alliance's preferred strategy as the government considers a range of more robust proposals to curb illegal downloading by Australians.

One key proposal cautiously welcomed by the alliance would compel internet providers to block infringing websites altogether.

That mechanism has weaknesses but could work with certain safeguards, the alliance said in a submission.

But another, which would compel providers to curb customer infringements by making it easier for rights holders to take the companies to court, has been rejected outright.

The alliance has applied to the Australian Competition and Consumer Commission for authorisation to go ahead with the advertising pull, given such collective action could breach cartel provisions in competition law.


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