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Australian internet service provider iiNet found itself facing the wrath of the Hollywood studios when it was sued by an industry group that included the Australian divisions of such major players as 20th Century Fox, Disney, Paramount, Sony, Universal and Warner Bros in early 2010.   The group claimed iiNet was guilty of copyright infringement because it failed to block illegal downloads.

In his ruling on the case in February 2010, however, Judge Dennis Cowdroy failed to agree.  He wrote, ‘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… The evidence establishes that iiNet has done no more than to provide an internet service to its users.’

The ruling was a blow to the studios, who were keen to have users who illegally downloaded material first warned about their conduct, and then blocked from access to the internet if they continued to infringe.   They had already placed pressure on ISPs, leading some to enter into monitoring agreements which could result in users having their internet access terminated if they were suspected of infringing.   The group’s initial tactic of filing lawsuits against individuals backfired when the majority of cases failed to go to trial amidst a furore of negative publicity which painted them as corporate bully-boys prosecuting their own customers.

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