5th February 2010, 06:12 AM
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| Admin - Owner Palm & Tree Services in Brisbane
Join Date: Jan 2007 Location: Brisbane
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|  Landmark case| ISPs not responsible for internet copyright breaches
Court clears illegal internet downloads | The Australian Quote:
AUSTRALIAN telcos and download enthusiasts came out on top yesterday after the Federal Court in NSW rejected a landmark legal bid to make internet service providers liable for online copyright infringement.
A group of 34 major entertainment companies desperately hoped to convince the court that Perth-based internet firm iiNet authorised its customers to engage in acts of illegal file-sharing on peer-to-peer networks.
However, before a packed courtroom early yesterday, Federal Court judge Dennis Cowdroy dismissed the group's application.
In summarising a ruling that ran for more than 200 pages, Justice Cowdroy said the critical issue in the proceeding was whether iiNet authorised copy infringement of certain iiNet users".
"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. I find that iiNet did not authorise the infringements of copyright of the iiNet users."
Justice Cowdroy ordered the application by the Australian Federation Against Copyright be dismissed and awarded costs to iiNet.
Neil Gane, executive director of AFACT, said it would review the court's decision before deciding whether to launch an appeal.
For now, internet providers can continue to let their customers use peer-to-peer networks to share illegal movie and music files without fear of sanction.
The file-sharing system accounts for half of all Australian internet traffic and lets individuals share files directly with each other in pieces.
Justice Cowdroy acknowledged that copyright infringement was occurring on a mass scale but said that he could not be compelled to make a finding of authorisation "merely because it is felt that `something must be done' to stop infringements".
The chief and founder of iiNet, Michael Malone, was jubilant about the decision.
"We've always said that we don't condone copyright (infringement) in any way," he said. "Copyright violations don't benefit iiNet at all so I guess we'd much rather be working with the studios to find some way to make their content legitimately available to customers."
Yesterday, both Telstra and Optus released statements welcoming the Federal Court's decision.
"We welcome the legal clarity that today's judgment provides regarding the role of ISPs," Telstra spokesman Craig Middleton said.
Anita Cade, senior associate for law firm Blake Dawson's intellectual property division, said it could take two years to completely resolve the matter if it were to be pushed to the High Court.
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