The Government still wants the internet community to sort out its problems with new copyright laws, even though TelstraClear said today it was pulling out of the code of practice that is being developed.
Section 92A of the new Copyright Amendment Act has upset the community, which says it could force the closure of websites following any accusation of breach of copyright, even if it was not proven.
The Government said last month it would delay implementation of Section 92A until March 27 to give the community time to come up with a workable code of practice.
It said if agreement could not be reached it would suspend the section.
Labour's communications spokeswoman, Clare Curran, said today TelstraClear's decision to pull out of the code that was being drafted had scuttled the process.
"I call on the Government to step in and create a mechanism for resolving differences of opinion between rights holders and internet service providers," she said.
A spokesman for Justice Minister Simon Power told NZPA it was still the Government's preference that the industry should sort out the issue itself.
"We're advised that the negotiations are going along in a reasonably constructive way so we're hopeful that could still happen, even without TelstraClear," the spokesman said.
