The chief executive of iiNet, Michael Malone, is considering legal action against Federal Communications Minister Stephen Conroy after he ridiculed iiNet’s defence against alleged copyright infringements.
iiNet, Australia’s third-largest internet service provider, is currently facing trial in the Federal Court against a consortium of entertainment companies for the alleged illegal downloads of its customers.
But Conroy has sparked controversy about the case after describing the ISP’s defence in the trial as something that belonged “in a Yes, Minister episode”.
“I saw iiNet’s defence in court under oath … they had no idea their customers were downloading illegally music or movies. Stunning defence, stunning defence,” Conroy said at the CommsDay telecommunications conference.
“I thought a defence in terms of ‘we had no idea’ … belongs in a Yes, Minister episode.”
But iiNet’s managing director told SmartCompany this morning that the comments are surprising as the ISP’s defence hasn’t even been released.
“It’s our impression that the Minister is commenting on a case that’s before the judge, he’s saying he’s been briefed by the parties involved. We’ve never briefed him, he’s saying he’s seen our evidence yet we’ve never provided it.
“He’s either lying or he’s got access to our evidence when we haven’t submitted it to the court.”
Malone says that the comments are “very confusing”, and appear to be revenge for dropping out of the trials for the Government’s mandatory filtering system.
“I think it’s all extraordinary…and we have sought legal advice and we’re waiting on the outcome of that.”
Opposition Communications Spokesman Nick Minchin and Shadow Attorney General George Brandis have also hit out against Conroy, saying that the comments were “grossly improper”.
“[iiNet is] well within its rights to seek legal advice about their potential impact on its defense,” Brandis said.
“Senator Conroy’s comments were both reckless and irresponsible; particularly considering iiNet was yet to even file that aspect of its defence and has every right to a fair hearing,” Minchin said.
“The only purpose his comments served were to get back at iiNet for highlighting serious short-comings in his planned internet filtering trials and withdrawing its offer to participate.”
The trial in the Federal Court is a groundbreaking one, as it will determine whether iiNet is responsible for the actions of its users in illegally downloading copyrighted material such as music and films. That decision could then apply to other Australian ISPs.
Malone has claimed that the argument against iiNet is like “suing the electricity company for things people do with their electricity”.
A formal hearing before the Federal Court is scheduled for October.
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Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
