Conroy to examine iiNet ruling, will consider effects on industry

Federal communications minister Stephen Conroy says the Government will look at the ruling of the iiNet/AFACT case and determine how it might influence future legislation.

The comments come as the internet industry welcomed Justice Cowdroy’s decision to find iiNet innocent of encouraging copyright violations among its users.

It is understood the Government will consider the implications of the trail for future legislation regarding copyright violations on the internet and the methods of catching and suspending users who have engaged in illegal downloading and sharing.

“The Government will examine the Federal Court’s decision in the AFACT/iiNet case and will consider what the implications for the industry are,” Conroy said in a statement

But the statement is a far cry from the minister’s previous comments. Last year at the CommsDay summit Conroy said he had seen iiNet’s defense and that it was “stunning” and like “something out of a Yes Minister episode”.

Meanwhile, the Australian Federation Against Copyright Theft has expressed its disappointment in the ruling and said the Government should pick up the slack.

Neil Gane, director of the Federation, said outside the Federal court yesterday he hoped the decision would not prompt users to openly download copyrighted files. He also said the Government would be concerned the decision would give the impression of an “open invitation”.

“Today’s decision is very disappointing for the film industries who launched the case and for the 50,000 Australians who are employed in the Australian film industry.”

“We believe this decision was based on a technical finding centred on the court’s interpretation of how infringements occur and the ISP’s ability to control them. iiNet accepted the evidence we provided as legitimate proof of copyright infringement on their network.”

He said the Government will hopefully support legislation which denies the “continued, rampant and unaddressed infringements that are occurring”, and said the federation is considering an appeal.

Meanwhile, Telstra has issued a statement in which it praised the ruling, saying it provided certainty for ISPs regarding their role in catching copyright offenders.

“We welcome the legal clarity today’s judgement provides regarding the role of ISPs,” a spokesman said in a statement.”

“As one of the major content publishers in Australia we do not condone piracy and we encourage the lawful use of our services. Allegations of wrongdoing should be dealt with in accordance with due legal process, with which we will always cooperate fully.”

Additionally, Internet Industry Association chief executive Peter Coroneos said in a statement the ruling was a “very important decision for the internet industry in Australia”.

“There is an international campaign afoot to try and force ISPs to accept responsibility for the acts of their customers,” he said. “Our position has always been to argue for balance – the balance between legitimate rights of content owners on the one hand and the legitimate rights of those that make the internet possible as intermediaries.”

Judge Cowdroy ruled yesterday that while iiNet provided a service to users through which they could download copyrighted files, the company itself did not encourage or promote these illegal activities and therefore was not liable.

“I think it sets a precedent for ISPs around the world,” iiNet managing director Michael Malone said outside court yesterday. “But this is jurisdictional and only applies to Australian law. In the Australian context, Justice Cowdroy is saying that ISPs in Australia don’t have a positive obligation to stop copyright [infringement].

“That said, I think the best way for us to all stop the copyright violation – which doesn’t help iiNet either – is to make the material legitimately available to customers. The most important thing for us is to engage with those studios and see if we can get that stuff online,” said Malone.