The move follows similar action proposed in the United States and precedes a High Court trial in which the Australian Federation Against Copyright Theft will attempt to prove iiNet allowed its users to infringe copyright of major film and television studios.
iiNet is a signatory to the new proposal, which is organised by the Communications Alliance.
Five large companies – iiNet, Telstra, Optus, iPrimus and Internode – have all signed the proposal, which will see them give users warning notices that state activity has been monitored on their accounts that could amount to infringement.
The proposal comes after several discussions with ISPs and the Federal Government, with the Alliance saying it has a large emphasis on educating customers as many may not know what they are doing is illegal.
"It is also designed to assist Rights Holders to protect their copyright in cases where internet users persist in improper activity despite repeated warnings," the Alliance says.
While the proposal itself does not allow termination of customers' accounts, or for sanctions to be handed out, they do warn that rights holders can apply to find out that account holder's details if three or more notices are sent out. Further legal action could be taken, it warns.
Any rights holders that want to take part in the scheme would need to have their fraud detection technology audited, and the entire process allows for users to appeal notices if they feel they haven't download any copyrighted material illegally.
Communications Alliance chief executive John Stanton says the proposal comes after a long period of discussions, and noted the discrepancy in being able to access content as quickly as users in other countries has led to a growth in the frequency of unauthorised access.
"We believe the Notice Scheme can greatly reduce online copyright infringement in Australia, while protecting consumer rights, educating consumers about how to access legal online content and helping rights holders to protect their rights," he says.
"Equally important is the need for rights holders to ensure that consumers have access to legal and affordable content online, to reduce the motivation to source content in ways that might be illegal."
The proposal comes as iiNet prepares for its High Court trial, having already gone through two Federal Court trials. Although it maintains the company is innocent of any wrongdoing, managing director Michael Malone says the proposal was welcome given it emphasises education.
"I have consistently said that a whole-of-industry plan based on a clear and evidence-based approach was the best way forward," he says. "The paper and proposal provides that."
If taken on board, the proposal would run for 18 months, in which time ISPs would determine whether the system could run cost-effectively, and whether consumer behaviour had actually changed.
However, Stanton warns the proposal still requires consultation with industry, rights holders, and the Federal Government before it could be implemented.
"We look forward to continuing the discussions with Rights Holders, consumer representatives, the broader ISP community and the Federal Government, then to launching an agreed scheme that is that is efficient, fair and cost-effective for all parties, particularly consumers," Stanton says.
The move comes after a similar proposal was put forward in the United States, and Stanton has noted that any action taken locally would need to be developed while keeping an eye on international developments.
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