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Australian ISP Wins Case Against Movie Studios

trawg writes "The Australian High Court has just dismissed an appeal by Australian and American media companies against ISP iiNet, in what will hopefully be the final step in an ongoing copyright lawsuit drama. The Court noted that 'iiNet had no direct technical power to prevent its customers from using the BitTorrent system to infringe copyright.' Ultimately, the court has held that iiNet's inactivity to act on infringement notices didn't imply any sort of authorization of that infringement by their customers. Good news for Australians as a clear line has been drawn that will help ensure ISPs don't have to bear the cost of policing their customers."

47 of 155 comments (clear)

  1. Wait, what?! The court found in iiNet's favour? by lostsoulz · · Score: 5, Funny

    C'mon, surely this can't be true? Stuff like this *never* happens. This demonstrates a clear failure of the studio's lawyering and lobbying. They need to find more lawyers immediately and seriously up their game. If this sort of common sense is allowed to take hold, who knows what may happen.

    1. Re:Wait, what?! The court found in iiNet's favour? by girlintraining · · Score: 5, Funny

      C'mon, surely this can't be true? Stuff like this *never* happens.

      Well it's Australia not some backwater podunk country like the United States. Everything on that slab of rock is trying to kill you, so a few lawyers don't really scare anyone.

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    2. Re:Wait, what?! The court found in iiNet's favour? by sjwt · · Score: 5, Insightful

      I am not sure how 'lobbying' works where you come from, but over here when you 'lobby' a judge, we call that 'bribing'

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    3. Re:Wait, what?! The court found in iiNet's favour? by Anonymous Coward · · Score: 3, Funny

      Actually, as an Aussie who's been twice on his "deathbed" (admittedly only once from our huge array of deadly beasts, especially the drop-bears), I *still* have a fear of lawyers. I'm brave, not stupid :-)

    4. Re:Wait, what?! The court found in iiNet's favour? by deniable · · Score: 2

      "Attempting to pervert the course of justice" is the technical term.

    5. Re:Wait, what?! The court found in iiNet's favour? by rtb61 · · Score: 4, Interesting

      The Australian High Court is very different to the US Supreme Court.

      High Court judges are more like the high priests of Australian judiciary. Their professionalism and ego are very much bound to that appointment. Strict accurate literal interpretation of the law is what they believe in and what they adhere to. This often trips up many politicians and of course corporations. None of this sounds like, looks like, could possibly be, politically aligned decisions. Even when politicians have made their way there, upon appointment they have demonstrated strict professionalism.

      Unhappy with their ruling. Rewrite the law so that it fits in with constitution or if that is not possible, attempt to force a referendum to get the constitution changed, so that the law you wants fits in with that. Yeah good luck with that.

      More simple access to referendums (where the whole electorate) votes on a single issue, make stacking the high court kind of mute, they could say no, it gets put in a referendum and the majority of the public say yes, then it's yes. especially on key issues.

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    6. Re:Wait, what?! The court found in iiNet's favour? by lostsoulz · · Score: 2

      Bribing is such a dirty word. It sounds low, base and frankly illegal. We can't have that. Instead, you lobby the lawmakers until you have legislation that leaves the judiciary with no option but to find in the studio's favour. The alternative is unconscionable - e.g. Disney DVDs & BDs drop in price, consumers have increased choice, customer service improves and margins fall. Think of the children for Dawkin's sake!

    7. Re:Wait, what?! The court found in iiNet's favour? by TheLink · · Score: 3, Insightful

      Yeah most of those dangerous australian animals kill you relatively quickly.

      Lawyers don't.

      --
    8. Re:Wait, what?! The court found in iiNet's favour? by jimboindeutchland · · Score: 2

      I know, right. It's as if the judges and politicians haven't been bought!

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  2. Re:Great news by kava_kicks · · Score: 5, Informative

    As an Australian, this is a big relief. iiNet are actually a pretty good ISP too: great network, good service, reasonable prices.

  3. The trouble is... by countach · · Score: 5, Informative

    The trouble is, when the courts smack down the media companies, the government steps in with new legislation, since they are in the back pocket of the media companies. Stephen Conroy, Labor's communication minister has already signalled that when iiNet loses, he's going to do just that.

    1. Re:The trouble is... by johnjones · · Score: 4, Insightful

      let your MP know on this single issue you will vote against them...
      http://www.abc.net.au/tv/qanda/find-your-local-mp.htm

      wonder how many people actually will... worth twittering/emailing/commenting on the MP in question

      regards

      John Jones

    2. Re:The trouble is... by powerspike · · Score: 3, Informative

      Your Forgetting that the standing government is going to lose the next election, hell they might not even get to the end of their term. When a government is in this position they'll pass a lot of legislation that will be bad, look at previous governments in this country that knew they where going to lose - like nsw labour selling off the power companies etc...

    3. Re:The trouble is... by Anonymous Coward · · Score: 2, Insightful

      Implying the liberals aren't just as bad as labor for giving the copyright industry a massive fellatio whenever they want. Howards government started the acta talks, and the current labor signed it. This is not a switch government to fix issue situation.

    4. Re:The trouble is... by Anonymous Coward · · Score: 2, Interesting

      Just be fair about it. Artists should be paid for their work, even if they use the *IAA's like loan sharks. Tell your legislator of choice to focus legislation on allowing the artists to ask distributors that they don't have a deal with for a *reasonable* payment per download (ie: about what an artist actually gets in their pocket per iTunes download), and also limit it to only those distribution sites that are making money (advertising, donations, subscriptions, etc.). Then let them go after the distributors that don't pay up. The ones that aren't making any money should be treated as free marketing for the artist.

  4. Finally by philmarcracken · · Score: 5, Interesting

    I'm gladdened that the courts saw the logical fallacy of allowing one corporation legal rights to force another corporation to lose profits through direct cost or degradation of service based on a failure to adapt to market changes.

    While i agree there is value being lost through piracy it just seems the courts were the easier path to take instead of adaptation and new delivery methods. That might require some planning and work after all.
    I'm in 100% agreement with Gabe Newell from Valve that piracy is largely a service problem.

    But since these fellows at the RIAA and the MPAA seem hell bent on using the copyright laws like a club to beat the ISPs and potential customers over the head with in order to get their way, will anything change?

    1. Re:Finally by Runaway1956 · · Score: 2

      No, things aren't going to change, unless and until people stop patronizing the rat bastards who fund MPAA/RIAA and their ilk.

      If we, the human population of the world, just stopped buying their shit tomorrow, within the year, MPAA/RIAA would be pretty much irrelevant. Let them spend their remaining billions buying politicians. If we just stop doing business with them, there will be no more billions with which to buy newly elected politicians. It's simple, really.

      Ditto Microsoft, Apple, Oracle and all the others with huge patent portfolios, though they are less vulnerable to direct consumer pressure than the MAFIAA's of the world.

      --
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  5. good now let them know... by johnjones · · Score: 2

    great now 2 things...

    let them know by switching to an ISP who won't filtering the internet is wrong

    http://www.iinet.net.au/

    secondly let your MP know filtering is not a good plan... a list of websites and twitter can be found :

    http://www.abc.net.au/tv/qanda/find-your-local-mp.htm

    regards

    John Jones

    1. Re:good now let them know... by Fluffeh · · Score: 2

      Yet outside of the abc we never hear anything about it.

      Yeah, which is the funny part considering that the ABC is government funded.

      I knot that we are the "upside down" place and all stand on our heads, but this aspect always makes me laugh. The only fully government funded station (SBS is only partially funded by the government) and it is the only one that really calls bullshit when needed.

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  6. Actual Judgement and Summary by Anonymous Coward · · Score: 5, Informative

    Here's the Judgement Summary: http://www.hcourt.gov.au/assets/publications/judgment-summaries/2012/hcasum16_2012_04_20_iiNet.pdf
    Here's the full Judgement: http://www.austlii.edu.au/au/cases/cth/HCA/2012/16.html

    In the full judgement, the Justices systematically (and unanimously!) take apart the assertion that iiNet had "authorised" infringement just because they refused to kowtow to demands that they police their users for the copyright lobby. They point out that it's not appropriate (or legal) for an ISP to monitor or police their users' private traffic at the demand of another private entity.

    Further, they held that the notices of infringement (aka shakedown letters that most ISPs meekly pass along) "did not provide iiNet with a reasonable basis for sending warning notices to individual customers containing threats to suspend or terminate those customers' accounts".

    And at the very end, after the Justices explicitly provide some useful closing of loopholes by carefully passing over the legislation and common law cited by the copyright lobby... they order said lobby to pay all iiNet's costs.

    Glorious.

    1. Re:Actual Judgement and Summary by gstrickler · · Score: 3, Interesting

      So, iiNet didn't just win, they smacked down just about all of plaintiff's claims, and made them pay all of the defendant's costs?

      That's a big win.

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    2. Re:Actual Judgement and Summary by Fluffeh · · Score: 2

      deliberately went after iinet (a relatively small ISP)

      They might have been smaller at the time, but there really aren't a "small" ISP. You also know that they recently knocked Optus off its perch to get the number 2 position right? The difference is that both Telstra and Optus are much much bigger companies (they both deal with landlines seriously and are mobile phone providers) while iiNet only deals with internet.

      All that isn't to say that I disagree with the sentiment in your post - the fact that they calculated a player major enough to be seen as important, but considerably smaller than the other two - only shows how insidious they are and I am absolutely elated that they came through on the final appeal chance that the studios had.

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  7. Re:Short lived by Cinnaman · · Score: 3, Interesting

    Western governments will not let their populations have a free and open internet without a fight.

  8. How will this play out now? by Yonan · · Score: 5, Informative

    The two main courses now of action seem to be: the media companies start offering media in a reasonable format in a reasonable timeframe at a reasonable price, or they lobby government and pursue backroom deals. The first is supported by many and has been proven to work fairly well with PC games by Valve with Steam, and iiNet has said it would be happy to help with this. The second however is much more in character, despite having been proven fairly well to not work.

  9. Re:Great news by crafty.munchkin · · Score: 5, Informative

    Also, very glad to see that the High court awarded costs in iiNet's favour - translation, the MAFIAA have to pay all of iiNet's lawyers bill!!!

    --
    ... wait, what?
  10. Re:Great news by Anonymous Coward · · Score: 5, Insightful

    Good. The copyright cartels are like negligent parents: they think all the rest of society should bear their responsibility for them.

    Can't be bothered to be involved in your kids' life and pay attention to what they watch and what games they play? No problem! Just censor everything! Can't be bothered to do your own discovery and catch your own filesharers? No problem! Just offload the task to the ISPs without compensating them!

    Tired, tired, TIRED of this bullshit. About damned time a court had some sense. Guess the MAFIAA didn't bribe^H donate to the right politicians this time?

  11. All aussies by Anonymous Coward · · Score: 5, Funny

    And a loud roar came forth across all the land, in a voice strangely reminiscent of one Darryl Kerrigan:

    Hey. Bad luck. [pause] Ya dickhead. Suffer in your jocks!

    1. Re:All aussies by Anonymous Coward · · Score: 2, Informative

      Not sure why this was modded down. Probably by someone not familiar with the Aussie movie it came from. It is a quote made because of a victory in the High Court, so kinda relevant here.

      Can someone mod this up?

  12. ISPs are like phone companies by GoodNewsJimDotCom · · Score: 3, Interesting

    Is the phone company to blame if someone plays a song over the phone and someone records it on the other end?

  13. Re:Great news by Anonymous Coward · · Score: 5, Informative

    Also, very glad to see that the High court awarded costs in iiNet's favour - translation, the MAFIAA have to pay all of iiNet's lawyers bill

    It is the default in Australia that a losing party will be ordered to pay the winning party's inter-party costs. It helps to inhibit frivolous litigation.

  14. Re:Great news by Fluffeh · · Score: 4, Informative

    "Oh well, we lost fair and square, let's move on"

    They didn't, the lost their original case, their appeal was denied and they took it to the High Court of Australia - pretty much the equivalent of SCOTUS in the US. There really isn't anywhere further for them to take this case.

    Sure, they might try down a parallel path with a similar objective, but a wonderful side effect of taking it to the High Court is that now pretty much any similar path they try will still be in the shadow of this ruling - making it greatly more difficult for them to introduce anything remotely similar.

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  15. Re:Here's hoping by TENTH+SHOW+JAM · · Score: 4, Informative

    There is a reasonable technical way to police bit torrent. (watch torrent, determine torrents contents is your intellectual property, get list of IP addresses from the swarm, match those to users via ISP) But now the studios have to subpoena the ISPs with enough details to satisfy the ISPs legal departments then sue or prosecute the end users. The studio wanted the system where they got to shortcut the legal system at the expense of the ISP to punish the end user.

    Basically the court said "If it's worth doing, it's worth doing properly. If it ain't worth doing, stop doing it."

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  16. Re:Short lived by Anonymous Coward · · Score: 2, Informative

    Well the reason for that is that the average aussie doesn't know or care about politics, but mandatory voting exists here. So, every election they get out their crayons to draw penises on the ballot, or flip a coin to decide who to vote for.

    Informality rates are around 5%, that includes both ballots spoilt by accident and those deliberately spoil. Average?!

    There are perhaps 1-2% who care enough to decide properly ...

    That figure should be 75-80%. See, I can pull bogus figures out of my arse too!

    ... hence most aussie elections go down to the wire 49-50 between labor and liberal.

    Non sequitur.

    I say that as someone who lives here :D

    Clearly residency does not equate with being well informed. Lemme guess ... your name is not Anthony Green?

  17. Re:Great news by crafty.munchkin · · Score: 3, Interesting

    I wouldn't have stuck with Netspace for 8 years if they weren't fantastic. It was a terrible shame to see them get so badly stuffed up.

    On leaving them, they sent me a survey to fill out to tell them why I'd left, the link for which didn't work, so I emailed the customer service people back, cc'ing Michael Malone, explaining how as a long term customer of Netspace that it was with regret I was leaving after 8 years as a customer, but in 4 paragraphs exactly how they drove me away.

    The next morning, I got a phone call from a senior customer service person at iiNet, who apologised for everything that happened and gave me an undertaking that iiNet were going to endeavour to make sure what had happened to me didn't happen with their future acquisitions. Whilst it was too late for me as I'd already churned away, I hope that they stuck to their word.

    --
    ... wait, what?
  18. Don't be overjoyed yet... by kocsonya · · Score: 4, Informative

    Yes, iiNet won and the studios lost. Now here's the reaction from the studos' media representative (http://www.abc.net.au/news/2012-04-20/iinet-wins-download-case/3962442):

    ----
    AFACT [*] managing director Neil Gane said the group would lobby for changes to copyright laws following the decision.

    "Now that we have taken this issue to the highest court in the land, it is time for government to act," Mr Gane said.

    "The Government has always maintained that content is the key driver of digital economic growth. I'm sure the Government would not want copyright infringement to continue unabated across Australian networks, especially with the National Broadband Network soon to be rolled out."
    ----

    [*] AFACT is the Australian equivalent of the RIAA/MPAA, or rather, as some Wikileaks memos have shown, they are the Australian arm of the RIAA/MPAA, the control directly coming from the States.

    So, the copyright industry's attitude is that "if what we demand is unlawful, we will lobby/bribe/force the government to change the law to our favour". Knowing the Australian parliament, probably they will succeed in a reasonably short time.

    1. Re:Don't be overjoyed yet... by Sasayaki · · Score: 3, Interesting

      I'm an Australian author (plug: http://www.amazon.com/dp/B006RZNR3Y/ ) who relies exclusively on digital sales and I strongly oppose any such fucking with our legal system.

      Go away, AFACT. Nobody wants you to exist. Not the politicians. Not the voters. Not the readers (listeners/viewers/etc). Not the content creators.

      Nobody.

      AFACT serve only the Hollywood industry who is so inept and out of touch with what's going on around them that they senselessly blunder into things like this. They are dicks and their defeat in court -- an utterly humiliating and complete defeat where they had to pay all of iiNet's costs -- makes me cackle with glee.

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  19. Re:Great news by pt73 · · Score: 5, Insightful

    While I'm sure studios don't mind that much. They are playing a bigger game than just this case. The certainty means that any lobbying for change of law cannot be stifled by claims that the current law is adequate (for what they want). So whereas law makers could have said there was no need to change the law to achieve what the studios want, the certainty of the High Court ruling shows that the current law does not allow them to easily pursue the ISP. So expect pressure on the federal government for a law change.

  20. Beginning of the end! by DuranDuran · · Score: 2

    This is the thin end of the wedge. Soon there'll be no media companies, and then where will I get my remakes of films from the 70s and 80s? Or rock bands that sound like Lady Gaga?

    --
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  21. Re:Short lived by Anonymous Coward · · Score: 2, Insightful

    And you are a perfect example of an average American. Only an American can think an election is always between two parties.

  22. Re:Great news by skine · · Score: 4, Interesting

    Here's the problem for me personally:

    Where I currently live (in the US), I have three options for internet:

    1) Dial-up.
    2) Satellite.
    3) Time Warner.

    Since I require use of the internet for more than email, 1) is out.

    Since I can't afford $90/month, 2) is out.

    But with 3), the ISP is owned by the copyright holders. That is, the same company that owns New Line, Time Magazine, HBO, TBS, The CW, Warner Bros, Cartoon Network, CNN, DC Comics, Castle Rock Entertainment, and others.

  23. Re:Great news by Boronx · · Score: 5, Informative

    There's a whole slew of ideas that were once considered so important they were taken for granted but have fallen out so thoroughly that people today barely even think of them at all.

    For instance, thirty years ago there was a consensus that one company shouldn't control huge swaths of the media. It was understood that even the appearance of the conflict of interest was not to be tolerated.

    You'll get blank stares these days if you bring them up.

  24. Re:Great news by mwvdlee · · Score: 2

    Why do you think the big media companies will stop pushing for less consumer rights?
    Big media copyright is truely a case where "The price of freedom is eternal vigilance" applies.

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  25. Australian Wildlife to the rescue? by Hyperhaplo · · Score: 3, Informative

    Perhaps the real solution is to have the 'AFACT' actually live in Australia for several months... if they survive - http://www.theaustralian.com.au/archive/travel-old/australian-animals-show-theyre-not-so-cute-and-cuddly-after-all/story-e6frg8ro-1226331660816 - then perhaps they can try carrying on with this crap.

    For those who are not aware, AFACT stands for 'Australian Federation Against Copyright Theft' yet most of the companies behind AFACT are American. It would be better named American Federation Against Copyright Theft.

    I am not a lawyer, but I am surprised that no one has challenged the name of this business.. for example with the intent to force them to change it from 'Australian' to 'American' as right now they could well be deemed to be passing off in a deliberate attempt to deceive the public - which would be classified as a type of fraud.

    A view from a lawyer or legal professional on this would be useful if anyone out there cares to comment..

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  26. Re:Short lived by SuricouRaven · · Score: 4, Insightful

    They only let it get as free as it is because the internet snuck up on them. No-one in government really planned the civilian growth of the internet... it just happened. If the governments of any world were allowed a do-over, you can be sure they'd make it more centralised, controlled and policeable. For the children, naturally.

  27. Re:Great news by ajdlinux · · Score: 2

    If you look at the court records, it wasn't actually AFACT that sued - it was its member companies (Roadshow, Universal, Paramount etc). AFACT wasn't actually party to the case.

  28. Re:Short lived by Dorkmaster+Flek · · Score: 2

    If I had mod points, I'd mod you to the moon. The Internet is as awesome as it is because we got lucky. By the time the governments and corporations realized what they had on their hands, it was too late to redo the whole thing.

    --
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  29. In other news YouTube lose case in Germany by Big+Hairy+Ian · · Score: 2

    "YouTube could face a huge bill for royalties after it lost a court battle in Germany over music videos. A court in Hamburg ruled that YouTube is responsible for the content that users post to the video sharing site. It wants the video site to install filters that spot when users try to post music clips whose rights are held by royalty collection group, Gema. The German industry group said in court that YouTube had not done enough to stop copyrighted clips being posted. YouTube said it took no responsibility for what users did, but responded when told of copyright violations."

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