Film studios drop part of iiNet case

In federal court today the film studios backed down from an aspect of their piracy court case against iiNet, leading the judge to award iiNet compensation.

(My DVD Collection (pt.2) image by Andres Rueda, CC2.0)

The studios alleged that iiNet users had not only infringed the copyright of its members' films by making them available, electronically transmitting them and making copies of them, but also that "conversion" (interfering with the right of possession) had been committed.

Conversion is when goods are dealt with in a manner which is inconsistent with the rights of the owner — in this case the claim was that iiNet had by transmitting packets of data and operating its telecommunications system intentionally interfered with the studios' title over the films.

At court today, the film studios dropped the claim of conversion from their case. This meant that the damages which were sought alongside this claim were also withdrawn. The rest of its case still stands.

Justice Cowdroy had already at the last hearing asked for evidence that conversion had occurred, as he did not believe the studios' statement of claim was adequate. Because iiNet would have wasted its money considering the conversion claim since then, he ruled today that the studios pay iiNet's court costs for that part of the claim from the date of the last hearing.

iiNet's managing director, Michael Malone, welcomed the withdrawal of what he called a "key element" of the case, but expressed frustration that it had taken almost six months for the film studios' claim to be finalised.

A spokesperson for the Australian Federation against Copyright Theft (AFACT), which is representing the studios, said that the conversion claim had only ever been secondary to the infringement claim. The spokesperson said that the studios had decided to drop that aspect when it became obvious that iiNet was going to use it to delay the court case. The court has now set in extra time to hear the court case, so that it will be completely heard before Christmas, the spokesperson said.

iiNet's Malone said that the company had also been trying to meet with AFACT, to discuss its concerns about the issues raised by the proceeding but had so far failed to arrange a meeting.

"We will keep trying to meet with AFACT as we think that a frank discussion of the issues raised by this proceeding is in everyone's best interest," Malone said.

A spokesperson for AFACT said that the Federation was willing to meet with iiNet if the company meant what it said. "The door is always open if they have a genuine desire to resolve the film industry's concerns. We are yet to see any evidence of that."

AFACT alleges that iiNet allowed its users to download and make available pirated films via its network. It alleges that despite receiving infringement notices, the internet services provider did nothing to stop the infringement occurring.

iiNet said that it would continue to defend the allegations vigorously.

"The law currently provides a process for the applicants to pursue individuals who they think are breaching copyright laws when accessing the internet.If the film and television studios are serious about copyright infringement they can, and should use, this process," Malone said.

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Talkback 5 comments

    When oh when will it ever end... Anonymous -- 08/05/09

    Please let this entire ridicuous case/claim be dropped soon.

    Sure, sue Inet becasuse they provide "the last mile" of the internet to the end-user
    Why not sue Telstra as they probably provide the backhaul and physical DSL infrastructure.
    Sue SouthernCross as they probably provided the internal links across the Pacific Ocean
    Sue the Power company as they provided the electricty for this all to occur.
    Sue Dell as the user had a Dell computer
    Sue the Government as they've made a percentage income (tax) from all the income everyone else derived.
    Sue the cinema where the film was videod or the dodgy studio exec who leaked the content onto the internet (Start looking in your OWN backyard AFACT)
    Sue GOD for providng the air the 'downloader' was breathing
    Sue Commbank/ANZ/Westpac/etc for managing the funds of these "evil organised crime gang" ppl who download
    Sue the bejesus out of the rest of the Australian population for not paying good money to watch the same crap studio movies over and over and over again so they become (even more) filthy rich.
    Sue the cinemas for not magically getting even more bums on seats and making the studios richer.

    Assuming for a moment that the end users DID actually download this content 'illegally', at what point does the responsibility stop as to who "aided" this to happen?

    AFACT - your wankers pure and simple.

    Dvd collection edwin -- 09/05/09

    Hey, Nice dvd collection. I have a movie collection too except it's on a 1 terabyte hard drive ;)

    Make sure Australia Post gets targetted next! Anonymous -- 11/05/09

    If iinet is guilty of copyright infringement then Australia Post must be too. Next the movie companies should force the government to require Australia Post to open all packages just in case copyrighted material is being shared illegally inside post packages. It's the only logical way forward.

    What about the Australian Customs Service??? Anonymous -- 12/05/09

    ....for letting everyone bring these $1 DVD's in from Bali and Phuket and Bangkok. How easy is that. You can't bring in 2 bottles of scotch or 5 packets of cigarettes, but you can bring in 50 illegal DVD's.

    They must be next on the list of people to sue.

    IInet - can win Anonymous -- 02/11/09

    This case – should be relatively easy to resolve.

    In layman terms, it is the same pricniple as claiming a Girrafe and and Elephant are the same thing. They are both mammals, two ears, eyes four legs, 1 head, tail, live in the same environment, bear live young etc etc – but they are not the same.

    Its the taxonomic ranking process.

    So to are the P2P/Bit Torrens and other file sharing application formats which are dedicated facilities for the purpose of file sharing. An ISP does alot of the same but is not the same.

    In addition, there is case law which distinquishes liability of facilitiating Intellectual Property infringement and providing a process which may have two uses one of which is lawful – this distinction is based on the facts eg: Sony betamax, cassete tapes or university photocopiers, etc.

    Remember the distinquishing feature under these cases to the P2P/Bittorrens file sharing cases. The facts are diffferent hence the applicaiton of the law to them too.

    IInet firstly might consider uncoupling itself from the claim that it is the same as file sharing facility on the basis of fact.

    Secondly, IINet may wish to bring to life a number of secitons of the copyright act which are specifically desgined to protects ISPs particualrly given the interpretaion of the legislation on its plain and ordinary meaning.

    Thirdly, The fours area of the claim cited ( I think at 58/9 ish area in the claim) are easliy unshackled by reference to the facts again including undertking a practicing of disconneting for misuse for safe habouring under the assention of the FTA requirements (and therefore influential US case law too).

    Overall remember that file sharing is not illegal – only the unlawful dealing in another party’s IP is.

    I can understand that the claimaint/plaintiff can see that on the principles of the P2P/BitTorrens and other files sharing cases, that a stretch of these principles, and a strech of the law in these circumstance may enbale the plaintiff to now rope in ISP’s. However, the application of the previous cases doesn't seem to fit.

    We have seen this streeeetching of the law technique used with respect to the copyright act Part IV to accomodate cinemagraphic film to accomodate multimedia and digital technology. However this goes to the Juris or academic thinking of whether the curent law are suffficent to accomodate new technlogies or we need new specific legislation to do so. However these cases are distinquished as the facts in this case, don't seem to support the application process.

    On balance, it may be reasoned that this situation will require to much streching of the current law with the consequence of it's application snapping and thus resulting in IINet being succesful.

    IInet should not back down on this case as it is an important case for the operation of IP law in Australia. It would be interesting to see IInet make a claim against the hollywood studio group for any unlawful reproduction of the application code which forms part of iinet's system as part of the group preliminary searching process - was there unlawful conduict undertaken in looking for any unlawful conduct ???.

    That said - no one would support illegal use of another party's IP and hence the Holywood group do a good job (often lonely) in this noble cause. But is the claim correct at law based on these facts ?

    Go for it - IInet as all Telco’s, ISP and even Australia Post will fear an outcome in favour of Hollywood.

    Ainzy
    p.s sorry about any spelling mistakes.

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