Backflip is good news for iiNet

A consortium of some of the world’s largest entertainment companies has dropped a key allegation against ISP provider iiNet in their landmark copyright infringement claim.

Less than one week before Federal Court hearings are set to commence, lawyers for the Australian Federation Against Copyright Theft have dropped their claim that Australia’s third largest ISP provider participated in ‘primary’ copyright infringement by making copies of films.

The Federation earlier said this was its primary claim against iiNet.

“These allegations were unfounded and demonstrated a complete lack of knowledge of internet technology and operations,” an iiNet spokesperson says.

“But it hasn’t increased or decreased our confidence in the case – we’ve been confident from day one and we will vigorously defend the claims”

The consortium of Australian and overseas companies, including Disney, Paramount Films, Universal and the Seven Network maintains that iiNet engaged in ‘secondary’ infringement by failing to prevent customers from illegally downloading movies and other files.

iiNet says it will seek costs regarding the withdrawal, made earlier this week, which it says shows AFACT is struggling to make its case.

“They launched this case in November last year with a blaze of publicity but then took six months to be specific about what exactly they wanted to sue iiNet for. They dropped a key claim in May this year and now they’re dropping another one just a few days before the case is due to be heard,” the spokesperson told SmartCompany.

In May, the Federal Court awarded iiNet cost against a dropped claim that iiNet had been intentionally interfering or converting the copyright holders’ films.

As stated in court documents, AFACT will focus its resources on the court filing’s remaining claim that iiNet failed to “take reasonable and appropriate steps to prevent illegal downloads”.

“AFACT is confident of these claims and these claims were always the main game, the others were subsidiary.”

AFACT maintains iiNet should police users downloads in order to aid copyright holder’s fight to protect their work.

But iiNet says it would have to breach telecommunications laws in order to take steps to disconnect customers alleged to be involved in illegal file sharing.

The courts decision will effectively dictate the behavior of other ISPs including Telstra and Optus, Minter Ellison partner Charles Alexander says.

“The other telco providers are watching the case very closely.”

iiNet says it is “ready and eager” to have the case heard on October 6.