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AFACT v iiNet: Epic BitTorrent Copyright Case Concludes

The copyright case between AFACT, representing the movie industry, and Aussie ISP iiNet is set to conclude today. The Internet Industry Association was disallowed from becoming a friend of the court, and the chief movie industry barrister said that ISPs who refuse to forward infringement notices should get out of the business.

AFACTThe copyright infringement case of AFACT – representing several Hollywood studios – and Aussie ISP iiNet (multiple links to all our earlier coverage can be found here, here, here, here and here) is set to conclude today.

Lead barrister for AFACT, Tony Bannon, continued with his aggressive approach to this case by issuing warnings to Australia’s Internet service providers on the issue of copyright infringement.

He said that iiNet and other ISPs who don’t want to handle copyright infringement notices (such as those issued by his clients) are happy to take money from their subscribers, but are shirking their responsibilities. The solution to this, he said, was for them to shut down.

“They [ISPs] provide a facility that is able to be used for copyright infringement purposes. If they don’t like having to deal with copyright notices then they should get out of the business,” he said, as quoted by ITNews.

This reluctance to deal with infringement notices at the behest of the studios has been one of the main points of contention in the case. The studios feel that iiNet should hand infringement notices to their customers and even disconnect them, while iiNet feels that it has no obligation to do so under the law, particularly when acting on the unverified evidence of a 3rd party.

Bannon went on to say that iiNet had made zero effort to deal with even a small percentage of the alleged infringements on their network, commenting: “…they say they can’t send a single notice to anybody, it’s like saying they can’t stop physical violence happening to the person next to them because there’s physical violence happening all around the world.”

Bannon said he believed that terminating a customer or two on allegations of infringement would have sent out a clear message to other potential infringers. But of course, iiNet knows that if they complied with that request the studios would be back saying “you did it there, why can’t you do it here…here….here….here…..”

Bannon went on to say that while iiNet denied it had any control over BitTorrent clients and the potential for users to operate them for infringing purposes, it did have the power to render the software useless.

“But if the user isn’t online there’s nothing the BitTorrent client can do to infringe,” Bannon told the court.

For its part, iiNet sits firmly behind Section 112E of the copyright act:

A person (including a carrier or carriage service provider) who provides facilities for making, or facilitating the making of, a communication is not taken to have authorised any infringement of copyright in an audio visual item merely because another person uses the facilities so provided to do something the right to do which is included in the copyright.

Earlier the Internet Industry Association (IIA) had applied to contribute to the case as amicus curiae, or ‘friend of the court’. Justice Cowdroy decided today that the industry group would have little to add to the case, since the issues it planned to raise had already been covered in detail by iiNet, mostly concerning the ISP’s commitments under the Copyright Act and Telecommunications Act 1997.

Earlier this week at their annual general meeting, iiNet boss Michael Malone gave company shareholders some painful news. The costs of defending the AFACT case had amounted to $4m AUD (approx $3.7m US).

The court proceedings are scheduled to conclude today, but the verdict will not be issued for several months.

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  • xxploit

    wonder if they can claim the cost from AFACT if they win :>

  • n

    Finally

  • Just some guy

    “iiNet sits firmly behind Section 112E of the copyright act:”

    Has AFACT made any attempt to explain why this section of the Act is not relevant?

    How can they be simultaneously claiming copyright which is defined by the Act while ignoring the same Act when it comes to the obligations of ISP’s? (rhetorical question)

  • @3

    Lol troll fail.

    RTFA.

  • anon2

    have said all along the ‘industry’ wants to control the internet. they are telling isps to get out of the business if they dont do what they want, but are not prepared to do anything themselves. if they dont like people downloading, dont produce stuff to download or change your own ways of distributing. would be a completely different story if they did control the internet. p2p etc would be the dogs danglies if they could use it as they wanted and could charge for it. even when eg an album is available for ‘legal download’, people are expected to pay the same price as if they bought it from a shop but get nothing physical. that is after using their own internet, electricity, equipment, software and media.

  • the.dwarfer

    i think to get the $4 Million back they would have to sue AFACT and have another court case.

  • Anonymous

    With the crap AFACT is spewing, *they* should pay the $4m AUD iiNet spent in defending the case.
    Is this possible in any way? Can iiNet claim the costs of their defense?

  • Trevor

    Good on you Michael Malone, you did the right thing by your customers. These evil cartels RIAA, AFACT etc. should be the ones out of business, they are immoral. Not much different to the way the Mafia operate. It’s no wonder judges bow to their demands.

  • ffs

    “For its part, iiNet sits firmly behind Section 112E of the copyright act:
    A person (including a carrier or carriage service provider) who provides facilities for making, or facilitating the making of, a communication is not taken to have authorised any infringement of copyright in an audio visual item merely because another person uses the facilities so provided to do something the right to do which is included in the copyright.”

    How the hell is there even a case against the ISP?????

  • 000

    “it’s like saying they can’t stop physical violence happening to the person next to them because there’s physical violence happening all around the world.””

    lol That’s the dumbest thing I’ve read this week…

  • captain hoff

    Its like saying we have to chop violent peoples arms and legs off to stop violent crime!!!

  • James

    A better analogy would be to send DUI notices for BMW for letting their customers drive drunk and run people over.

  • thakrazed1

    im still confused at why the case was even accepted. surely iinet would have asked for a pardon on Section 112E of the copyright act. which should have voided afacts case all together ?

  • SearchE

    4 Mils? Yeah , right… 4000 might be the true number !

  • Tomas

    “it’s like saying they can’t stop physical violence happening to the person next to them because there’s physical violence happening all around the world.”

    Yeah, I also have no lawful obligation to stop any physical violence, next to me or anywhere in the world. If another guy told me to stop violence that was happening next to me and I didn’t, he can’t sue me for it.

    Same goes for the ISP. They are clearly protected under law, so what is the point in this whole waste of time?

  • hmmm

    I think riaa, afact and others are applying a mob tactic.

    They can’t force isps to comply, so they try to make them go bankrupt by making wtf-ish trials.

    Since they nearly have unlimited money, even if they have dumb lawyers, they might succeed and get to buy the smaller isps in the end.

    What we’d need is a class action against those lobbies, once they are sentenced to a several billions fine, for showing wrong testimonies, abusing Justice’s time and lying to their consumers (where’s the serious study showing filesharing hurts majors’ bilancies?), they should calm down.

  • scott

    The court may award costs in iiNet’s favour, but it is in their discretion (ie, they could potentially get the A$4m back).

  • kabuki0009

    It’s been very interesting so far, but who will win?

  • Anonymous

    I really do not understand how AFACT managed to have their case heard, considering that it would appear to have no legal basis whatsoever.

    I believe that piracy is morally questionable, but I would not have even heard the case if it were up to me. As it stands, I would rule in iiNet’s favor, and force AFACT to pay their legal fees. I would then penalize them a minimum of $25,000 for frivolous litigation. Their behavior is simply a malicious attempt to undermine the laws of Australia, and an example should be made for future reference.

  • Jax

    In case some of you still don’t know, the losing side is always made to pay the legal costs of the winner.

  • vyvyan

    Someone tell bannon that being an d!ckh3ad with a d!ck his facility is capable of committing rape, so off chop off his d!ck and head both.

    on the same note again, “But if the content isn’t made there’s nothing the BitTorrent client can do to infringe,” so shutdown all the afact partners.

  • yahoo101

    they know that there not going to win what they are doing is trying to scare people from downloading movies tv or music well i say they can go fuck them self because if it wasn’t for the Internet in Australia we would be just starting to watch Heroes season 1 episode 1 and that no joke and you people in the USA have most movies on blue ray dvd before they come out cinemas here the only movies i watch at the cinemas are the one i want to see on the big screen so all in all they can all go
    F%U*C^Ked rant over

  • gorehound

    he copyright infringement case of AFACT – representing several Hollywood studios – and Aussie ISP iiNet
    this is just one of the bullshit things that hollywood is trying to do to this world.
    WE NEED TO BOYCOTT THEM PEOPLE !!!

    I refuse to go any longer to a theater or to buy any new movies ever again.Don’t worry there will be enough fools out there to support the mafia greedbags so we can buy their used films and keep hollywood out of our wallet.Wake up folks !!!
    Stop feeding these pigs and their greedbag industry.

  • the way…

    Vexatious litigation is legal action which is brought, regardless of its merits, solely to harass or subdue an adversary. It may take the form of a primary frivolous lawsuit or may be the repetitive, burdensome, and unwarranted filing of meritless motions in a matter which is otherwise a meritorious cause of action. Filing vexatious litigation is considered an abuse of the judicial process and may result in sanctions against the offender.

  • John

    If Sony (for example) thinks that Mr. X is downloading their copyrighted materials using P2P, why don’t they just fine them directly?

    I’ll tell you why – because every person they sue will never ever buy a Sony anything ever again. The people that person talks to will be discouraged from buying Sony products when he tells them what happened.

    All this shit about getting ISPs to send their customers notices is about who has to give the customer the bad news.
    There’s no reason why Sony can’t get a court-order to release the name/address of an individual from the ISP under the current system of law.

    F*cking Scumbags.

  • Tigger

    “Bannon said he believed that terminating a customer or two on allegations of infringement would have sent out a clear message to other potential infringers”

    – If this isnt clear evidence of these evil bastards agenda i dont know what is. Whats next? AFACT endorsed book burnings??

    The similaraties to the French revolution are rather scary. The aristrocacy pissed people off, but ultimately the government and they’re “endorsed” media outlets, attempts to stop “piracy” and dictate what media was “acceptable” pushed people over the edge – result – revolution and a major change in law all over europe.

    These pro-copyright groups are trying to undo hundreds of years of evolution in society.
    I believe we are reaching a counterpoint, but we’re not quite there yet. Either these AFACT types will loose, or they will win – we have a revolution – and then they loose. It boggles my mind how these arseholes can ignore the past and push for a totalitarian system.

    Hundreds of years from now, people will look back and pity groups like AFACT for not being able to see beyond they’re own wallets.

    The VCR will destroy the movie industry! – FAIL
    The cassette tape will destroy the music industry! – FAIL
    The photocopier will destroy the publishing industry! – FAIL

    The golden age of the compact disc is over, they should just suck it up =)

  • ralphie

    >“They [ISPs] provide a facility that is able to be used for copyright infringement purposes.

    I could write a book listing all the ‘facilities’ able to be used.

    We don’t hold gun mfgs liable for murders.

    They’re not stupid, they’re evil and greedy. Satan loves RIAA/MPAA.

  • Dipper

    If AFACT had there way as specified above and actually went about shutting down ISP’s to prevent online piracy they would for one have upset many thousands of music/movie buying customers who would then out of retaliation avoid the music/movie business like shit on the sidewalk and then the music/movie business would be going bust (Finally)

  • Trelew

    People are wondering why the Courts are even entertaining this case? The answer is pretty simple. The governments are in the back pocket of Big Business. They told the government to push this through, the Courts had no choice to let this go through. If AFACT wins this case then it will show that it is nothing more than a “show trial”. Sadly, it will also show how much control Corporations have over governments and our courts. Not just here but world wide.

  • talorthain

    To respond to the quote..about violent people….

    In there terms it would be lock that person up, because I think they might perform a violent crime..

    And as for the get out of buisness..

    should we sue Sony etc for producing the vdeo recorder, cd and DVD and now blu ray recorders, what about the computer manifactures for producing equipmnt that bit torrent can run on or even better microsoft for an opperating system that can run torrent / buring / video compression and editing software

    They will still lose, but its not fair and is the court bending to the money of the real pirates

  • Kapcha

    very interesting case…

  • Tigger

    Piracy is back, now they all want a piece of us-

    Desperate corporations are making such a fuss-

    At last they seem to want to give us some credit-

    but once again I think we’ll live to regret it-

    Not so long ago to them we didnt exist-

    Narrow minded views, they printed, they couldnt resist-

    Trying so hard to slag and kill filesharing dead-

    But we’ve embarrased them by getting bigger instead-

    They still dont understand that people like what they like-

    We’re not all sheep who follow the commands that they write-

    They try to convince and dictate whats cool-

    But we are filesharers, and we dont live by this rule-

    When it suits, they’ll try and destroy us once more-

    Please dont forget the time that they tried it before-

    Bring on they’re best but dont forget the cry-

    Filesharing will NEVER DIE.

  • Kaotik4266

    That violent crime one is an abysmal example!
    A better one would be being told to shoot someone because a random person who also wasn’t there says they committed an act of physical violence.

  • Ninja

    As far as I can see iiNet owned AFACT. They forwarded the infringement notices to the police for further investigation and validation of the claims. They have the law on their side as they can’t be held responsible for infringements from people using their network. AFACT fails.

    Also, seems AFACT wants to close down the internet. ISPs that do not assume their clients are guilt without further verification and refuse to disconnect them without explicit and official order from the court are the ones that follow the right, sane and fair model.

    The ones that limit users or agree to disconnect them without any legal basis on a private agreement with corrupt labels are the ones that should be shut down. And they will eventually fail as their cleints discover the truth and move away from them.

    It’s a matter of time the big ones fall down. They are digging their graves faster than ever.

  • Reality

    This is all EXTREMELY worrying. iiNet have the law on their side however AFACT have money on their side and money always trumps law. Look at the pirate bay case!

    If iiNet somehow lose this case, this will be a clear message that the music industry will always get it’s way no matter which side of the law they are on.

    Boycott CDs & DVDs and get a VPN service. Thats the only way you can ensure your privacy is kept intact.

  • Dr. James Catanzaro

    Give once inch to the MAFIAA, and they will TAKE a mile. Because they are nothing more than criminals!

  • Cujo

    ya! “finally”!! ,, what a waste of time???? hehehehe

  • worried aussie

    NEWS FLASH

    Sony entertainment intends to sue Sony electronics for supplying a cammer with a camera!!

    How bout the mafiaa goons fine someone a fair amount ie. the price of a movie ticket rather than 10000x a movie ticket for a inferior (cam) copy of there ‘copyrighted material”

    They will get your money in some way from most of us (movie ticket, dvd sale, dvd rental etc). But still want more than there pound of flesh from all of us!!

  • Dexter

    “A person (including a carrier or carriage service provider) who provides facilities for making, or facilitating the making of, a communication is not taken to have authorised any infringement of copyright in an audio visual item merely because another person uses the facilities so provided to do something the right to do which is included in the copyright.”

    The law is clear. No Cigar for AFACT. They obviously are doing this to scare ISPs into doing something.

  • reality

    6 Nov 26, 2009 at 12:09 by the.dwarfer

    i think to get the $4 Million back they would have to sue AFACT and have another court case.

    No..if they win they are awarded ‘costs’ which includes all legal fees incurred

  • PuhLeez

    Sauron(AFACT)Dies.

    Middle Earth is saved.

  • DeFACT

    AFACT knows that they will lose the case, but then it will allow them to come back to the politicians, which of course can never be bought, to change the laws. Nothing like having christian conservatives as key components in both main political parties to be the moral police.

    Next thing Australia will see is a report similar to Mandy’s digital Britian, where George Orwell’s worst nightmares start to be realised and the civil rights and freedoms the people have fought for over so many centuries are removed. All in the name of a $$$ or two by some backward thinking people who cannot for the life of them embrace the wonderful change that technology allows and develop suitable business models with “all you can eat”, or very cheap products. After all they are competing with a free service.

    Simple economics and the laws of supply and demand dictate that either scarcity of supply, or high consumer demand which creates scarcity of supply affect price. Any form of artificial price fixing will create “new” markets.

    Consumers are no longer as willing to pay the same overly inflated prices for a product that has so many restrictions upon it and that has not kept up with the times in terms of a media format that they want it to be delivered in. Consumers dictate to the market, not the suppliers.

    I really don’t think the studios understand the large backlash that is starting to forment against them and their bullyboy tactics and that it is probably only a matter of time before someone goes “Postal” in a Tim McVey style attack on the “corrupt corporate” establishment.

  • me3p0

    According to AFART the sole purpose for the internet is committing copyright infringement.. At least this is how their testimone reads to me.. Either way, their case is and always was a pointless one, my guess is to test the political and legal waters in this country. They didn’t have a chance in hell in american, europe or the uk but as many people know, australian politicians generally don’t have a clue about the internet in australia.. So I see it as a recon by these guys more than a real attempt at winning anything..

  • UGG

    We have many beautiful down jacket and boots, I hope you will be happy to shopping http://www.uggnetshop.com

  • TerribleTony

    I predict the return of Network parties…

  • zod

    and there it is …

    The costs of defending the AFACT case had amounted to $4m AUD (approx $3.7m US).

    cant win legally, do it by bullying via financial superiority that way dont need to worry about right, wrong, morality, law

  • A guy

    yeah, render bittorrent software useless, because NOBODY uses it for legitimate purposes. Especially people downloading Linux iso’s. Those are the most illegal thing on earth to have on a computer! I mean downloading child pornography is ALMOST as bad as downloading a Linux iso!

    /sarcasm off

  • punko

    A better analogy:

    Requesting the ISP to sever the customer’s connection based on unverified evidence is equivalent to roporting Mr. Baron as a paedophile to his doctor, and demand his penis cut off.

  • Jasper van Weerd

    The ISP should build in a kill switch in their systems. For example, take down all large HUBS with in the country if the verdicts goes the was as wished by the industry, lets see how the government respons if the total public environment comes to a sudden stop.

  • Anonymous

    Judge: So your case has no basis in law?
    AFACT: no
    Judge: You don’t have any legal or constitutional way for iiNet to act on your demands?
    AFACT: no
    Judge: You have no solid evidence or facts to back up your argument?
    AFACT: no
    Judge: You’re still right to contribute to the bar association?
    AFACT: yes
    Judge: Court finds in favour of AFACT.

  • John Paul Jones

    @#50 Anonymous

    Sounds about right to me!

  • d[iO]nysus

    Hey iiNet… where can I donate some funds to help your case?

  • Bob Roberts

    Sorry guys, but i’m all for the actions of AFACT. It costs money to make those movies you watch and music you listen to, and thousands of people are employed just in cinemas around the country, and not all of them are the nameless faceless corporate types like Hoyts & Greater Union. Some of them are people you know and they rely on sales of films and music to earn a living. Stealing music or film is no different to going into Ford and trying to drive out in a new XR8 without paying for it, and you wouldn’t think that was a legitimate thing to do.

    People make the products you enjoy, and you should have to pay for them. I you dont want to pay, you be prepared to do without the product.

    No, I dont work for AFACT either.

  • Bob Roberts

    sorry for the gramatical errors…. damn inability to edit.

  • Ridley Walker

    Take the power company to court for providing a facility used to power the servers which provide a facility to move the illegal bits around!

  • John

    Sue the companies AFACT is defending because they made the material which is being used to break copyright. If it wasn’t for them, no one would have broken any laws.

  • Zappy

    If iinet win they will claim for costs against AFACT and they should be successful.

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  • defacto

    What this really comes down to is:

    If your ISP is privately owned, they have a vested interest in providing the most convenient, open, unencumbered connections available in order to attract more clients.

    If your ISP is owned by a Media conglomerate, they have a vested interest in providing the most crippled, caged in, restrictive connections in order to continue bilking uninformed clownsumers out of money for things they’ve already paid for twice.

    Time Warner & Paramount should just start advertising their movies on TPB and Google, with .torrent links and extra CocaCola / FOXNews ads inserted to cover the perceived loss of revenue.

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