Lightbox, MediaWorks, SKY and TVNZ have announced they are going ahead with legal action against CallPlus and Bypass Network Services after the two companies said they would not back down on the issue of offering customers Global Mode - which gives easy access to overseas TV services where the content is blocked from New Zealand.
The four companies issued a joint statement to CallPlus among other businesses, demanding that they stop offering Global Mode which they said breached their local copyright on TV shows and movies by allowing customers to set up false addresses, allowing for "back door" and easy access to US pay-TV services.
CallPlus chief executive Mark Callander this week said he had responded to the "threats" from broadcasters.
"We have responded to cease and desist letters today. We reject their vague assertions and are seeking clarification of their claims," Callander said.
"We stand by our strongly-held belief that access to the internet via Global Mode is completely legal, and believe threats of legal action from this gang of big media companies are just an attempt to restrict consumer choice in favour of their profits," he said.
The companies this afternoon issued a statement saying they were proceeding with legal action and were confident they had a strong legal position.
"Companies who profit by marketing and providing access to content they haven't paid for are acting unlawfully and in breach of copyright," the statement said.
"Call Plus and Bypass Network Services have both sought further information from us regarding the unlawfulness of Global Mode, which we have provided in good faith.
"However, our position has not changed and unless they remove the unlawful service we will begin court action in the next few days."
The statement also hit back at Callander's comments that the companies were trying to limit choice in the market.
"This is not about taking action against individual consumers or restricting choice, indeed each of our businesses are investing heavily in more choice so New Zealanders can have legitimate access to the latest TV shows and movies.
"This is about defending the value of content rights in the digital world, in order to invest with more certainty in the future."
Callander also commented on the decision by Bypass Network Services to not stop offering Global Mode, after the company issued a statement calling the demands "bullying" and "threatening".
"We're glad to see that Bypass, who supply the Global Mode service to us, have not caved in to these unfair demands so that together we can keep Global Mode going for the benefit of Kiwi consumers," Callander said.
The four businesses have said they would be looking to studios and content owners to possibly join the legal action.
- by Holly Ryan, NZ Herald
