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section heading icon     Australian filesharing law

This page considers the status of filesharing under Australian law.

It covers -

section marker     introduction

Peer to Peer as such (and other filesharing) is not prohibited by Australian copyright law or other legislation, discussed elsewhere on this site.

However, the Copyright Act does prohibit breaches of the exclusive rights of copyright owners. The availability of content on the net does not necessarily mean that a sound recording or other item is can be legally copied onto a personal computer or other device in Australia or provided to another entity through for example email or P2P access.

section marker     the legislation

The legislation encompasses rights in published musical works (eg scores), artistic works, sound recordings and cinematographic films.

The owner of copyright in a musical work has the exclusive right to -

  • reproduce the work in a material form
  • publish the work
  • perform the work in public
  • communicate the work to the public
  • make an adaptation of the work

The owner of copyright in a sound recording has the exclusive right to -

  • make a copy of the sound recording
  • cause the recording to be heard in public
  • communicate the recording to the public
  • enter into a commercial rental arrangement in respect of the recording

The owner of copyright in a cinematographic film (including items on a DVD or videotape) has the exclusive right to -

  • make a copy of the film
  • cause the film to be heard/seen in public
  • communicate the film to the public

Those rights include both the exclusive right to authorise another person to do any of the things listed above.

section marker     liability

Liability for copyright infringement through filesharing can encompass organisations and individuals, including students at an educational institution, people working in a business and children/adults at home who are not seeking to make financial gains through sale of the work or advertising.

Liability can arise jointly: more than one person (and indeed both an organisation and individual) can be held liable for the same act of infringement.

In principle, anyone who uses P2P to make copyright online music, film and other content available without authorisation by the copyright owner is personally liable. That liability is subject to a defence or exception, discussed below, and does not disappear merely because unauthorised access was undertaken at an organisation such as a university or a business' hardware and connectivity.

As noted above, copyright owners broadly have exclusive rights. An organisation can be found liable for authorising the infringing conduct of employees/agents. Educational institutions can be found liable for authorising infringing conduct by students, where for example a university has both provided access to equipment and connectivity used in carrying out that conduct and not taken 'reasonable steps' to prevent infringement. There is uncertainty about specifics of what is reasonable and practical, although emerging case law does provide some guidance for organisations regarding authorisation liability.

Organisations may be vicariously liable where an employee/agent infringes within the course of that individual's employment. That liability may arise even though the employee acts in a way contrary to directions by the organisation.

section marker     defences

Australian filesharers sometimes assume that they can successfully use fair use or other defences/exceptions under US copyright law. That assumption is incorrect.

Section 39B of the Act provides that a person who provides facilities for making, or facilitating the making of, a communication is not taken to have authorized any infringement of copyright merely because another person uses the facilities so provided to infringe copyright.

The stated intention of that provision was to "clarify" the liability of carriers, carriage service providers and others who provide such facilities. The clarification has been criticised as doing no more than restate the common law position regarding liability for authorisation of copyright infringement.

The Act contains significant exceptions regarding 'fair dealing', ie permit copying without permission by the copyright owner in particular circumstances. Those exceptions are limited and copying outside specific purposes identified in the Act will not fall within the fair dealing exceptions. They essentially relate to copying for the purpose of research or study, criticism and review. There is no broad-brush US-style general 'fair use' exception to copyright. There is thus no inherent right under Australian copyright law to make a backup copy of a CD or copy a sound recording to a personal computer or device such as an iPod, although personal copying of television broadcasts for the purpose of 'timeshifting' is permitted.

Overall, fair dealing exceptions can generally not be relied on in use of P2P networks to share copyright works. The emphasis on 'making available' results in emphasis on the entity doing the copying/communicating, rather than the person accessing or receiving the work. The individual's intention in making available a sound recording or other content is also significant.

section marker     penalties


Penalties for infringement of copyright may be substantial.

Infringement of copyright is generally a civil rather than criminal matter: although the Copyright Act provides for criminal penalties, criminal actions in Australia for copyright infringement have been less common than civil actions.

The primary civil remedy is damages under section 115(2)) of the Act. Those damages are intended to compensate the copyright owner for economic loss suffered through infringement by the defendant. The scale of damages is dependent on the facts of each case, although commonly it is the fee that the copyright owner of might reasonably have charged for the use which defendant made of the work and loss of sales suffered by the owner. With music and film filesharing the latter potentially involves damages of millions of dollars.

Damages might not be awarded where a defendant was able to demonstrate that the individual/organisation was not aware (and had no reasonable grounds for suspecting) that action was an infringement of copyright. That defence, under section 115(3) is not a charter based on mere ignorance of the law. The so-called 'innocence' provision might be available where the defendant was of the mistaken but reasonable belief that there was a license for the actions that amounted to the infringement.

Courts can award additional damages where a defendant has acted in flagrant disregard of the rights of the copyright owner. That disregard would include deliberate and calculated infringement after receipt of a 'cease and desist letter'. It would also include instances where the defendant has received substantial financial benefit from the infringement. It has been held to include conversion of a work from analogue to digital formats.

The Act provides that where -

a) an infringement of copyright is established; and
b) the court is satisfied that it is proper to do so, having regard to:
(i) the flagrancy of the infringement; and
(ia) the need to deter similar infringements of copyright; and
(ib) the conduct of the defendant after the act constituting the infringement or, if relevant, after the defendant was informed that the defendant had allegedly infringed the plaintiff's copyright; and
(ii) whether the infringement involved the conversion of a work or other subject-matter from hardcopy or analog form into a digital or other electronic machine-readable form; and
(iii) any benefit shown to have accrued to the defendant by reason of the infringement; and
(iv) all other relevant matters;

the court may, in assessing damages for the infringement, award such additional damages as it considers appropriate in the circumstances.

Criminal penalties can apply when an individual/organisation -

  • sells or lets for hire
  • by way of trade offers or exposes for sale or hire
  • imports into Australia for the purpose of distributing for trade or any other purpose to an extent that will affect prejudicially the owner of copyright

an article that the person knows or ought reasonably to know is an infringing copy of a work or other subject matter in which copyright subsists (s 132). It is important to recognise that criminal liability can arise without the need for money to change hands.

The maximum penalty for an individual guilty of a criminal offence is $60,500 or five years imprisonment in respect of each infringing article. A corporation may be fined up to $302,500 regarding each infringingement.

section marker     investigation and injunctions

Investigation of offences may involve examination and seizure of personal and corporate machines.

In responding to infringements copyright owners may seek civil remedies such as injunctions restraining a defendant from continuing to engage in the infringing conduct. Defendants may also be required to provide an account of profits, often sought as an alternative to damages where the benefit to the defendant exceeds any damage suffered by the plaintiff.

For infringements on a non-commercial basis the major penalty may be the financial and emotional cost of litigation, including seeking legal advice, appearing in court and "explaining to mum or dad why the police want to examine your bedroom" or why the organisation has been hit with an Anton Piller Order.







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version of December 2006
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