Sky Television has launched a legal claim against Hamilton-based streaming company My Box, arguing for $1.47 million in lost revenue.
My Box sells a decoder which gives users access to Sky Television channels, Netflix, and international channels. The company sells the box for a one-off fee of $269.
A court date has not yet been set.
Founder Krish Reddy said My Box would fight the claim in the Hamilton High Court in what he expected would be a "prolonged" battle.
"Sky probably thinks we will go away but I believe we have the weight of public opinion behind us," Reddy said.
Sky TV alleged it had lost $1.47m in lost revenue and claims a further $570,000 per month from 14 July that My Box remains operating.
My Box maintained it was "completely legal" in its dealings.
"The service simply allows customers to access high-quality streams of their own accord. The fact that the box is set up to allow customers to find certain streams [does] not hold My Box accountable for what they may find," Reddy said.
The company advertises access to Sky TV channels on its website, which reads:
"TIRED OF PAYING FOR SKY, NETFLIX, FOXTEL AUSTAR OR OTHER CABLE TV??!!"
The company argued they were legally sound because the streams which My Box accessed were hosted through locations such as the UK.
Kirsty Way, spokeswoman for Sky TV, confirmed the legal action.
Way pointed out similar cases in the UK had been successful and that buyers should be aware the service could be shut down.
"Purchasers of boxes and software that promise access to content should be wary that their investment may effectively be for a very expensive paperweight if the services are shut down like we've seen in other countries," Way said.