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In the first case of its kind, an Australian court has ruled that an internet service provider cannot be responsible for illegal downloading. iiNet, Australia's third largest ISP, was taken to court by a group of 34 movie production houses. The group included the Australian divisions of Universal Pictures, Warner Brothers and 20th Century Fox. They claimed that iiNet was guilty of copyright infringement for not preventing illegal downloads of films.

In a setback for Hollywood, an Australian judge has ruled that an Internet Service Provider (ISP) is not liable for the illegal downloads of its customers.

Hollywood studios lost a landmark copyright court case against an Australia internet provider on Thursday, when a court ruled iiNet could not be held responsible for unauthorized downloads of movies using its service.