The Act lays out a ‘three-notice regime’ which the rights owner can use when their work is being uploaded or downloaded using a ‘file sharing network‘ It allows them to make a claim for compensation at the end of the ‘three-notice’ process through a newly formed copyright tribunal.
When a rights owner believes that their rights have been infringed, they must collect evidence of the IP address used for the infringement,the time of infringement and the infringing file which is being shared.
This information can then be sent to the Internet Service Provider (ISP or IPAP as it is referred to in the Act) associated with the IP address with a request that the ISP notifies the internet account holder, informing them that their IP address has been recorded as having carrried out infringing filesharing.
Each account holder can receive only 1 notice per rights holder per 21 day period, and they have the right to challenge any notice. The ISP can send up to 3 notices per infringement.
If, once the three-notice procedure has been completed, the rights holder does not feel that a satisfactory outcomes has been reached with the account holder, they can take a claim to the copyright tribunal. The account holder has the right to appear at the tribunal hearing to present their case in respect of the alleged infringement/s. The tribunal has the authority to award damages up to $15,000 to the rights holder..