Consumer advocate group Choice has likened the proposed new online anti-piracy code to medieval-style law, and has launched a campaign to allow consumers more rights.
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Under the draft code by Communications Alliance, which represents internet service providers (ISPs), internet users found by copyright owners to have downloaded content illegitimately, would receive three warnings within 12 months. After that, ISPs would expedite the process of allowing the content owners to obtain account and contact details of the "pirates".
Copyright holders could the use the details to pursue payment or legal action.
Choice campaigns manager Erin Turner likened the scheme to a "Hollywood horror film", which would threaten average users with uncapped fines and legal threats.
She said the campaign, which includes sending a letter to Communications Minister Malcolm Turnbull, highlighted the lack of consumer protections, including no independent appeals process and left online pirates exposed to possibly huge fines.
"Mr Turnbull needs to step in and rewrite the script on this horror scheme to make it suitable for public viewing," she said.
"Passing the buck and letting big business drive average Australians into the court system will leave the majority of the community shivering in their seats."
"It's truly scary," she said.
The online campaign had garnered more than 50 per cent of its target 10,000 signatures at time of writing.
It argues:
"The system proposed by the industry purports to be educational, but clearly has a focus on facilitating court actions. After a customer receives three notices, a rights holder can compel [the customer's] ISP to hand over their personal details to make court action easier and faster. There is no limit on the amount of money that a rights holder can seek from the customer. If a consumer objects to any notice received, they can lodge a complaint with a largely industry-controlled body. There is no avenue for appeal if the consumer disagrees with the decision made."
Under the draft Copyright Notice Scheme industry code, internet users found to have illegally accessed copyright material such as films or songs will receive an "education" notice. A second infringement would result in a "warning" notice and a third would be followed by a "final" notice.
If adopted, the code would significantly streamline the current drawn-out courtroom drama facing both sides.
Last week, the copyright owner of the Oscar-winning film Dallas Buyers Club took iiNet and other ISPs to court to discover the details of some 4700 IP addresses it says infringed its copyright. iiNet is fighting the move. A decision is not expected until mid March.
Choice wants the code to include a maximum financial penalty, independent appeals process and for ISPs to be required to inform users where they can legally access copyright material.
"The scheme also forces internet service providers to act as an anti-piracy police force on behalf of Hollywood rights holders, handing over personal contact details on the basis of unproven allegations," Ms Turner said of the industry-run code.
In December, Mr Turnbull and Attorney-General George Brandis demanded Australia's ISPs and the entertainment industry develop a code by April 8. The federal government has threatened to ask the Australian Communications and Media Authority for a binding code, or introduce legislation if a voluntary code cannot be agreed. Australia has one of the worst records for online piracy in the world.
In Britain, notices are sent to re-educate internet users, while New Zealand's system results in legal action in only rare cases and fines are capped at $15,000.
The draft code is open for public consultation until March 23.
Mr Turnbull's office has been contacted for comment.
