Copyright lawsuit against iiNet kicks off

A lankmark court battle between iiNet and the Australian Federation Against Copyright Theft (AFACT) kicked off this week with the national internet service provider pledging to vigorously defend itself against claims that it authorised piracy among its users.

iiNet will vigorously defend itself against claims that it authorised piracy among its users (Pictured: iiNet boss Michael Malone)

An initial hearing was held at the Federal Court in Sydney before Justice Cowdroy on Wednesday where it was determined iiNet would have until February 5 to file its defence.

iiNet said it would vigorously defend the action.

"The law currently provides a process for investigating copyright theft or any other illegal activity using the internet. AFACT did not use this process," an iiNet-issued statement read.

Australia's biggest film and television companies lodged the lawsuit against the Perth-based broadband provider in late November to seek damages that could run into millions of dollars.

The broad aim of the action is to stop internet users from using high-speed connections to swap digital versions of Hollywood films such as American Gangster and Mamma Mia! as well as popular television series such as Heroes and Two and a Half Men.

Twentieth Century Fox, owned by News Corporation, which also owns The Australian, is also party to the action.

The lawsuit will be a major test case if it proceeds, and was lodged in the Federal Court yesterday. It seeks cease and desist actions again iiNet customers and an unspecified amount of damages.

The group, which includes Warner Bros, Sony Pictures, Disney and the Seven Network, has left open its options of taking further legal action against the country's big two broadband players, Telstra and Optus.

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