iiNet is facing possible disconnection if the Federal Court action filed by the Australian Federation Against Copyright Theft (AFACT) is won. iiNet said it will vigorously defend the claims that the ISP (Internet Service Provider) has encouraged customers to download films illegally. 

iiNet managing director, Michael Malone said iiNet does not in any way support or encourage breaches of the law, including infringement of copyright. 

“We have always cooperated fully with the law in the past and we continue to do so in the future,” Malone said.

“In reality, iiNet has been leading the industry in making content available legally through our Media Lounge, including agreements with iTunes, ABC iView, Barclays Premier League football and classic highlights of golf's four Majors,” Malone said. 

Hollywood heavyweights weigh in
AFACT filed the action on behalf of Village Roadshow, Universal Pictures, Warner Bros Entertainment, Paramount Pictures, Sony Pictures Entertainment, 20th Century Fox, Disney Enterprises and the Seven network. 

Executive director of AFACT, Adrianne Pecotic said iiNet was sent 18 separate notifications, involving thousands of copyright infringements, over a period of five months. She said iiNet could’ve stopped the activity by issuing notices to its customers, choking their bandwidth or suspending their internet browser, but failed to do so. 

"They attempted to pass off the responsibility which is not something you can do under the law," Pecotic said. 

"Ultimately, the sanction could be disconnection." 

iiNet passed information on
Malone said information received was passed onto the law enforcement agencies, and that iiNet can’t simply disconnect a customer’s internet service based on allegations.

“The alleged offence needs to be pursued by the police and proven in courts. iiNet would then be able to disconnect the service as it had been proven that the customer had breached our Customer Relations Agreement,” Mr Malone said. 

The agreement says that customers must comply with the law and that the iiNet service must not be used “to commit an offence or to infringe another person’s rights”. 

iiNet singled out
AFACT has filed the suit against iiNet, meanwhile no other major ISP has been singled out despite providers like Telstra and Optus delivering similar services. 

The outcome of the case will be of great interest to all other Australia ISP’s as it will set a standard for the roles and responsibilities of Australian ISP’s in the future. The matter is back before court on December 17.