A controversial internet copyright law will not come into force and will be replaced following a review by the Government, Prime Minister John Key confirmed yesterday.
Section 92a of the new Copyright Amendment Act has upset the internet 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.
Internet service provider (ISP) TelstraClear recently pulled out of the code of conduct that was being drafted and the Cabinet decided it was time to start again.
"Section 92a is not going to come into force as originally written. We have now asked the Minister of Commerce to start work on a replacement section," Mr Key said.
"There is a need for legislation in this area. Some progress was made between copyright holders and the ISPs but not enough to agree a code of conduct.
"In our view there are a number of issues that made it difficult to complete that code of conduct without fixing the fundamental flaws in section 92a."
Mr Key said unanimous support was needed among ISPs and Commerce Minister Simon Power would be engaging with experts in the area to go back to the basics.
Mr Key has said previously both sides of the debate had a point.
The Government would not allow the internet to be the "Wild West" where any copyright holders did not have entitlement to compensation or recognition of their work.
However, its interactive nature led to different issues than arose in the traditional media, Mr Key said.
