Roadshow Films Pty Ltd & Ors v iiNet Limited

Roadshow Films Pty Ltd and others (the applicants) brought proceedings against iiNet Limited (the respondent) in the Federal Court of Australia, seeking an injunction to restrain the respondent from authorising or encouraging its customers to infringe copyright. The applicants, who were copyright owners and distributors of films and television programs, alleged that iiNet, an internet service provider, had failed to take reasonable steps to prevent its customers from engaging in online copyright infringement, particularly through peer-to-peer file-sharing networks.

The central legal issue before the court was whether iiNet had, by its conduct and the services it provided, authorised or encouraged its customers to infringe the copyright of the applicants. This involved determining the scope of the term "authorise" as used in section 112 of the Copyright Act 1968 (Cth) and whether iiNet's knowledge of, and inaction in relation to, customer infringement constituted authorisation. The court also considered whether iiNet had a legal obligation to take steps to prevent such infringement.

The High Court of Australia, on appeal from the Full Federal Court, ultimately held that iiNet had not authorised or encouraged copyright infringement by its customers. The Court reasoned that while iiNet was aware that some of its customers were infringing copyright, this knowledge alone, without more, did not amount to authorisation. The Court emphasised that authorisation requires a more direct or positive act of sanctioning, approving, or facilitating the infringing activity. iiNet's role as an internet service provider, providing infrastructure and access, was distinguished from directly enabling or encouraging the infringing acts themselves. The Court found that the notices sent by iiNet to its customers, which merely informed them of allegations of infringement and advised them to cease such activity, did not constitute authorisation.

The High Court dismissed the applicants' appeal, upholding the decision of the Full Federal Court.