Dallas Buyers Club: What does it mean?

While in the not-so-recent past the US justice system has been actively fighting the war on piracy, last week, the Australian public saw a Court's decision in a first of its kind copyright infringement case.  We are of course talking about the lawsuit surrounding the illegal download of the film, The Dallas Buyer’s Club.  The recent decision is likely to make anyone think twice about downloading or sharing songs and films online without paying for them.

The Decision

The decision handed down by the Federal Court orders the release of IP addresses of those individuals who downloaded the Dallas Buyers Club film from a torrent site.  The staggering number is 4,726 internet subscribers who are customers of iiNet and its subsidiaries.  This decision establishes a precedent for copyright owners, which was not previously available in Australia.  While this certainly is an exciting time for copyright owners and may result in at least a temporary reduction of piracy, it is hard to know if the penalty fit for the crime.

Does the Punishment Fit the Crime?

First, the subscribers will have to be identified and contacted to inform them of the alleged infringement.  However, in order for such a letter to be directed, the Court will have to provide permission for contacting the identified parties in this case.  Justice Nye Perram said that these letters will only be sent out under the condition that the first draft undergo the Court’s scrutiny prior to being sent out.

The Court also imposed the condition that the identities of alleged pirates cannot be disclosed and are to be kept absolutely confidential.  Considering the sheer number of letters that will need to go out, this step could take a long time.  Outside of Australia, for example in the US, such cases were notorious for harsh penalties and demands of extremely high payments for those allegedly illegally downloading films.  In Australia this is known as “speculative invoicing” and is prohibited.  Overseas copyright holders would normally send a letter to the offending party advising them of copyright infringement and threatening lawsuit in lieu of a payment.  Therefore, the copyright holders, here the Dallas Buyers Club, will have to establish a reasonable penalty rather than merely plucking a number out.  In the US a similar lawsuit can allow a fine of up to $150,000, however in Australia, the figure is unlikely to come even close to this.

Consequences for Consumers

With the case gaining so much publicity and momentum, is it likely that the happy days of free internet film viewing are coming to an end?  It depends.  If copyright owners seeking to punish the copyright infringers go with the aggressive strategy which has been used overseas, the idea that someone would rather pay a hefty fine than get involved in a costly lawsuit with a powerful company, just might be scary enough to deter such acts in the future.  However, as mentioned above, it is a difficult task reaching all the individuals, and overcoming all the obstacles put in place by the Court, with the letter approvals and fines to be decided at the discretion of the court, this will not be something that will blow over in one night.

At the same time, with the now existing precedent, anyone considering illegally downloading a film might think twice.  Copyright holders now have the right and a precedent to back up that right to go after the individual users of Internet Service Providers (ISPs).  Even though some ISPs have not been very forthcoming in delivering identifying information for their users, others have co-operated.

The plaintiffs must also demonstrate that the copyright infringement has resulted in sizeable damages and to prove that the downloaded film was specifically downloaded by the identified subscriber.

Overall, we expect that this will continue to be in the spotlight and we will keep our readers up to date.

What Should I Do Next?

Contact us if you would like further legal advice on copyright laws.  Our lawyers at You Legal will be happy to assist you in whatever way we can.

* This blog is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.