From now on it’s ‘three strikes and you’re out’ in New Zealand

As of today residents of New Zealand are considered to infringe copyright by illegal filesharing through their internet account, via the three strike law.

The new Copyright (Infringing File Sharing) Amendment Act comes into force on the first of September this year. It offers copyright holders the possibility to notice ISP’s when their copyright has been infringed by the owner of an internet account. After this notice, the copyright holders have twenty one days to deliver specific information about the infringement to the ISP’s. So as of today (twenty one days before the Act will come into force) ISP’s can expect the first infringement notices from copyright holders.

After twenty one days the ISP’s will send a warning to the owner of the internet account. This first strike is just a warning that states that there has been illegal up- and downloading detected on the account and that this must stop.

Who can expect this warning? A warning concerning infringement will be send to individuals and companies who are marked as owners of an internet account by the ISP’s, in other words the person who holds and pays the internet subscription. That could be the father of a household of four persons who all use the same account, but that could also be a fast food chain that offers free internet to its customers. It’s remarkable that it is possible that the owner of the account is not the person who infringed the copyright, but will be the person who first gets warned and when he does nothing to stop it, gets punished for it.

When the illegal file sharing continues after the first warning, a second warning will be send. This second strike states that there will be legal consequences (third strike) if the infringing continues any further.

The third strike can consist of two measures. Firstly it offers the copyright holders the possibility to go to the Copyright Tribunal, a panel of five experts. The Copyright Tribunal can fine the owner of an account with a penalty varying from $ 275 to $15.000.

Another measure can be taken by the District Court. The Court can order suspension of the infringers’ internet account. This penalty is currently not yet in force. The government of New Zealand has decided that the measure will not be in force until 2013.

Suspending internet accounts of copyright infringers has been met with a lot of criticism. Cutting off the internet means that also legal use isn’t possible anymore. Things like internet banking, social networking and reading your e-mails can’t be done. Therefore it is an extensive measure and perhaps a disproportional penalty.

In spite of the law that will come in force on the first of September this year, the New Zealand ISP’s stated that they are not yet ready to handle the infringement notices and handling the notices is too expensive. The costs for copyright holders to send a warning via ISP’s to an internet subscription holder (first and second strike) are $ 25 per warning. The third strike at the Copyright Tribunal costs $ 200. This means that the copyright holders must pay $ 250, before the possible infringement will be punished.

We will see if the new Copyright (Infringing File Sharing) Amendment Act will be a success against illegal file sharing, or that the disadvantages will outweigh the advantages.

Read more about three strikes on Future of Copyright:

• Should ISP’s pay the enforcement costs of Three Strikes in New Zealand?
• Kiwis to protest ‘sneaky three strikes legislation
• New Zealand file-sharing bill passes second reading in Parliament
• New Zealand to write new copyright act from scratch

Source: The National Business Review, 3strikes NZ

By: Karen Groen