Legal proceedings have formally kicked off between Lightbox, MediaWorks, Sky and TVNZ against CallPlus over its Global Mode service - which gives access to overseas TV services where the content is blocked from New Zealanders.
Earlier this month, the four companies issued a joint statement to CallPlus, among other businesses, demanding they stop offering Global Mode, which they said breached their local copyright on TV shows and movies by allowing customers "back door" and easy access to US pay-TV services.
In response, CallPlus chief executive Mark Callander said he rejected their "vague assertions".
"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," Callander said.
An in-chambers hearing yesterday before Justice Sarah Katz at the High Court at Auckland was expected to cover timetabling issues.
Sky TV chief executive John Fellet said he believed one or more Hollywood studios would join the legal action.
In a joint statement last week, the four companies said they were requesting an expedited hearing to provide certainty on the issue as quickly as possible.
"This is not about taking action against individual consumers," the statement read. "Our companies invest over $300 million annually in content rights - we have an obligation to our various stakeholders to protect those rights and are confident of our legal position."
The four businesses are also liaising with studios and content owners to determine how they might participate in the legal action.
Earlier this month, CallPlus co-founder Annette Presley told the Herald New Zealanders were paying too much because of a lack of choice and the company would not "kowtow to bullies".
"But if they just fixed the issue so that New Zealanders could get decent overseas content - which I get the minute I arrive in New York and the minute I arrive in Sydney - why can't we have it."
- By Brendan Manning of the New Zealand Herald; additional reporting: John Drinnan
