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Day One: AFACT v iiNet BitTorrent Piracy Appeal

Six months ago Aussie ISP iiNet celebrated following its legal victory against the Australian Federation Against Copyright Theft. Now the pair are back in Federal Court for the appeal, where AFACT hopes to show that iiNet acted illegally when it refused to take action against customers who file-shared movies and TV shows using BitTorrent.

February this year saw Aussie ISP iiNet celebrating after it successfully defended legal action brought by Hollywood anti-piracy outfit AFACT.

Village Roadshow, Universal Pictures, Warner Bros Entertainment, Paramount Pictures, Sony Pictures Entertainment, Twentieth Century Fox Film Corporation, Disney Enterprises, Inc. and the Seven Network took iiNet to court in the hope that a judge would find the ISP responsible for copyright infringements carried out by its customers.

The Australian Federation Against Copyright Theft lost the case but didn’t give up. They said there was a “fundamental error” in Judge Cowdroy’s original ruling – that AFACT had sued the wrong person and should’ve gone after actual infringers – and earlier today the pair faced each other in Federal Court for the appeal.

From early reports coming out of the Court, nothing much appears to have changed.

AFACT continues to insist that iiNet authorized its customers to illegally download movies by simply not stopping them from doing so. ‘Authorized’ is the key word here. AFACT have chosen not to go after the BitTorrent users referred to in the case – the so-called ‘primary’ copyright infringers. Going after these individuals is “undesirable” it insists. Instead they want the Court to rule that iiNet ‘authorized’ their infringements, which would make the ISP liable for their actions.

Representing AFACT, David Catterns told the panel of three Federal Court judges that despite being provided with huge numbers of IP addresses and times of copyright infringements carried out by their customers – data which iiNet chief Michael Malone labeled “compelling evidence” – the ISP did nothing to stop further illicit activity.

In his opening salvo, Catterns put forward the case the of one iiNet customer in particular. Referred to in court as ‘RC-08′, the user had allegedly seeded 40 copyright works during 2008 and 2009. Catterns claimed that at some point ‘RC-08′ had exceeding his monthly traffic limit and iiNet had advised him to upgrade his package along with the suggestion that he could “get more of the stuff you love”.

This contact iiNet had with their customer was a point at which the ISP could’ve acted to prevent infringement, he argued.

Catterns went on to state that while iiNet takes action to deal with the menace of spam, the ISP did nothing to block or otherwise tackle file-sharers on its network. He suggested that iiNet could have taken a broad range of actions such as sending out letters, throttling customers’ connections, right through to suspending accounts.

At this very early stage it seems that AFACT are simply restating points they made in the first hearing, points which almost totally failed to convince Judge Cowdroy to rule in their favor. It is difficult to see what they can say in order to change the direction of the original decision but one thing is almost certain.

“Neither the original case nor this latest appeal will stop piracy,” said iiNet chief Michael Malone earlier. “Even if in the unlikely event they won the appeal.”

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  • Paul UK

    When you have money, you dont have to take NO for an answer, you just keep asking until you get a more appropriate answer.

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  • jovialau

    As an Australian.I shall be very disappointed if the original decision is in any way compromised.That would lead I, and many others, to the conclusion that some deals have been done behind closed doors!Hollywoods tentacles are many and varied.Misinformation,threats and money are their main weapons!It is most important that the populace does not lose faith in the judicial system.That would ultimately lead to anarchy.As a well known English judge once stated.”The law must not only be done.It must be seen to be done!!!Let the games begin.

  • duane

    Hardly surprising. They’ll keep appealing until they find a judge with a stake in the content business, who’ll be corrupt enough to rule in their favour. That’s just how these people roll.

  • Another Aussie

    I think it’s great that our major ISP’s that are not originally Telco’s, are taking the fight on in a very Aussie way of not backing down when something as miss guided as AFACT steps up.

  • Larry

    David Catterns address please.

  • Anonymous

    I’m not positive but i think that they can’t appeal after this one, unlike in the states. Here’s hoping AF@CT face defeat as they should!

  • Anonymous

    AFACT continues to insist that iiNet authorized its customers to illegally download movies by simply not stopping them from doing so.

    The Aussie government would appear to be guilty and should be sued for allowing people to fileshare.

  • Tomas

    @1 Paul UK

    “you just keep asking until you get a more appropriate answer”.

    Not quite. More like:
    “you just pay the judge and ask again to get the answer you wanted”.

  • Whatever

    Even if AFACT doesn’t win in the highest court they will go to the lowest court again and change a word or two to make it a different case (they could then use ‘conspiracy to defraud’ like in the UK). The trick is to make the judge believe it is something different, which will succeed with most judges.

  • MAFIAA

    WTF… A nation has laws preventing us from re-appealing repeatedly until we get a favorable judgement?

    We’ll have to get our lobbyists and litigators on to that ridiculous unplutocratic practice!

  • LawGrad

    “At this very early stage it seems that AFACT are simply restating points they made in the first hearing, points which almost totally failed to convince Judge Cowdroy to rule in their favor. It is difficult to see what they can say in order to change the direction of the original decision but one thing is almost certain.”

    @Enigmax: both parties (who are both appealing various aspects) are not allowed to introduce new points/evidence so the arguments will generally follow the same as the first case.

    They are now arguing the primary judge erred on the initial judgement, so the format is largely expected.

    This is standard appeals process. This time, the three judges, Emmett, Nicholas and Jagot have vastly more experience in IP law in Australia, so they may indeed find counter to the primary judges interpretation of existing case law/legislation and how to apply it here.

    Not to say i agree with the potential outcome, but if I was a betting man, I would put money on an adverse finding for iiNet.

  • ThatsGold

    Again, it comes down to safe harbour provisions. If an iinet client downloads illegal material, and iinet makes a copy to check if the material is illegal, then iinet has breached copyright itself.

    In the end, it doesnt matter what the decision is, iinet won’t lose out much, but VPN companies in SE Asia might start seeing a lot more business.

  • anonymous

    hope the outcome is the same with the appeal as with the original case. however, i think we as a world should just curl up and give in to what every company and individual with money wants us to do. we wont win simply because they wont stop appealing and appealing and appealing until they get what they want. once they have taken everything from us, there is nothing left to take. what are they going to do next? stop everything from happening, everywhere, just because they dont like it or dont want it to? better stop kids from being born, growing up, being educated, having ideas, being innovative and making things. in other words, turn people into mindless machines that only do as they are told!

  • surfer

    thats what they are counting on.

  • optimist

    @5 its a work address but you can still ‘complain him over the head’
    David Catterns

    Nigel Bowen Chambers

    Level 9
    169 Phillip Street
    Sydney
    New South Wales 2000
    Australia

    02 9930 7900
    02 9223 2177

  • Daffy Duck

    Besides the obvious reasons, I’d like to see AFACT lose this appeal just for the massive hissy fit they’ll have.

  • ThatsGold

    @13 They can’t appeal this case. Not AFACT nor iiNet. They’ve both appealed the original case, and unless they want to fight over a new, different case, then this is as far as it will go.

    In the end, AFACT still has to pay $4 Million in legal fees to iiNet’s lawyers, and even more if they lose this case.

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  • StevO

    iinet SHOULDNT be resposable for its users actions. Period.

  • Anonymous

    Sigh. Death to AFACT already!

    Destruction also to Village Roadshow, Universal Pictures, Warner Bros Entertainment, Paramount Pictures, Sony Pictures Entertainment, Twentieth Century Fox Film Corporation, Disney Enterprises, Inc. and the Seven Network.

  • LawGrad

    @17 The party that loses this case can seek leave to appeal to the High Court of Australia. However this is not automatic.

    The particular party must show there has been an error in law (still). This is most likely to occur if the 3 judges on the full bench deliver a split decision. I.e. Not unanimous.

    The application can therefore be accepted, in which case, round 3 OR it can be rejected if the court finds there is not sufficient prospect of succeeding in the High Court.

  • Pingback: AFACT v iiNet – An appeal with no hope or something to be encouraged? « OpenBytes

  • John

    Senator Conroy has already stated that if AFACT loses, he will change the laws in favour of AFACT.

    This is already happening with the Data Retention laws so once in place AFACT can request the data from the ISP with no challenge.

  • Ninja

    Appealing again. Good to know there’s not space for endless appealing.

    It’s funny that the RC guy there is being used. The ISP has no way to know why the determined costumer has exceeded his quota unless they are actively monitoring their connections. So no, iinet couldn’t have done anything and they did not authorize anything since they were only offering a new plan based on the fact that he went over his quota (like a phone company offering a plan with more minutes – meaning less $ per minute – to an organized crime customer, the phone company wouldn’t know he’s dealing and killing using his phone unless they started listening to his calls).

    I smell failure here. MAFIAA and merry friends could die already so they’d stop wasting others money, be it public or from a company that could be improving its services instead of spending money in useless trials. Also they’d stop ruining innocent ppl lives..

  • autumn

    @21. perhaps a new senator is needed PDQ, to replace Conroy? he’s obviously a ‘paid for official’. what do you reckon?

  • You

    Can’t wait to see the result of this case come out. Cowdroy didn’t buy AFACT’s case (sorry, the copyright owners’ case), but a differently constituted court could go the exact opposite way following Sharman and Cooper. To be honest I think that it just might, the judgment really doesn’t sit that at well with Australian principle. Of course I want it to sit well, and it seems logical and forward thinking – but that is not how the Australian judiciary has approached authorisation. Wait and see.

  • Aussie

    Imagine how much more money they’d have if they ignored filesharers.

  • dan

    Catterns claimed that at some point ‘RC-08? had exceeding his monthly traffic limit and iiNet had advised him to upgrade his package along with the suggestion that he could “get more of the stuff you love”.

    That lawyer suggested that “get more of the stuff you love” meant more illegal downloads. It could have meant anything. Just goes to show how good lawyers are at twisting the facts.

    Justice 0
    Manipulating lawyers 1

  • The Last Booger Bender

    I wonder if language was a problem to this situation and why there’s piracy all together. The reason I say this is because, look at the deaf culture .. that’s a very valid reason that there’s so many pirates. Then you have to remember the International audience as well. Example, someone from China, UK, Ireland, and India etc.. come to the United States and rely on languages of their own cultures in order to enjoy any media content. This would be the primary reason for piracy.

    Until people realize that the public isn’t stupid and the big capitalists elite are painting themselves into a corner with obsolete practices. It’s time to listen to the masses and obvious trends. We stopped smoking in every place possible, now we have e-cigarettes so that people can go right back to smoking again in their favorite places. Does all of this seem familiar?

    It’s time we all focus on open source community and focus on ourselves as we can’t seem to depend on trends with copy protection.

    to finish off .. I’m gonna tell a joke for you all, enjoy.

    ” What do you get when you mix The United States Constitution and a Deaf person?”

    A: ” A Signed Document. ”

    http://twitter.com/Booger_Bender

  • John

    @23 He is in a safe electorate and is pretty much guaranteed to be elected.

    There are others in Government that support his views. Like the ones who support the new Data Retention laws.

    Some of the supporters believe it is to help the spooks but there are already provision for spooks to tap into any data stream. Authorities just need a court order.

    Data Retention laws will only help the ‘third parties’. That include and not limited to AFACT.

  • Some Joe

    @21, you misspelled Conjob.

  • Nathan

    @John

    I’d like to see where Conroy has said he would have the law changed in AFACT’s favour. It certainly is a concern if a senator has said something like that.

  • Memories

    iiNet had advised him to upgrade his package along with the suggestion that he could “get more of the stuff you love”

    I received the same suggestion from my ISP in Australia and I promptly upgraded my package. Good on ya iinet!

  • Binary Bandit

    Hmmm…seems to me that iiNet should counter sue AFACT. Why you ask…well, AFACT represents the companies that produce the pirated products. They wouldn’t be pirated on their networks, clogging the pipes, so to speak, if it wasn’t for the inducement via advertising to see the movies. Most of the trailers are misleading and exagerate the worth of the movies getting everyone all excited, thus inducing the pirates to download.

  • Harquebus

    If printed out all of Australia’s laws, rules and regulations, it would fill seven semi-trailers. This could go on for years and years.

  • John

    @29 – Som Joe:
    True.

    @30 – Nathan:

    “It will be a very fascinating decision and [it has been] a fascinating case to watch and a lot of interesting evidence has been tendered. We are waiting for the outcome of that before we make any calls about whether we need new legislation or not.” Conjob said.

    http://www.arnnet.com.au/article/328529/conroy_holds_his_breath_iinet_v_afact_verdict/

    Wow. Check the link below. The comments he makes just scare me.

    Apparently he stated this as a solution. “getting content industry players to change their business models and adopt Internet delivery mechanisms.” Can not find it anywhere else. Unlikely to happen probably just make alleged copyright infringers automatically guilty. :)

    http://www.crn.com.au/News/140900,iinet-trial-could-be-test-case-for-government-p2p-policy.aspx

    The other link below discusses that it is certain that the government will be called on to changed the law. It would be great if they just made it legal to ‘file-share’ when not for profit. But this is never going to happen.

    http://www.itnews.com.au/News/166400,legal-experts-expect-appeal-in-iinet-judgement.aspx

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  • Jahm Mitt

    The RIAA and MPAA even scam thir own.

    AFACT – they are so crooked even their bogus PR campaign is a lie.

    http://torrentfreak.com/tech-news-sites-tout-misleading-bittorrent-piracy-study-100724/ [torrentfreak.com]

    http://www.techdirt.com/articles/20100708/02510310122.shtml [techdirt.com]

    http://www.latimes.com/business/la-fi-ct-disney-20100708,0,4051564.story [latimes.com]

  • bogler

    David Catterns? David Sh1tworms, more like.

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