New copyright law could hinder the uptake and use of ultra-fast broadband networks, says an international industry analyst.
Ericsson's director of government and industry relations, Rene Summer, said the enforcement of copyright did not encourage the growth of markets that would drive the demand for high-speed internet.
"We have done three global
studies [over the last four years] - the bottom line of it is that media regulation and copyright impact the prospect of take-up on new ultra-fast broadband services," he said.
The Copyright (Infringing File Sharing) Amendment Bill passed through Parliament on Thursday. It seeks to tackle illegal file-sharing, including unauthorised movie and music downloads.
Summer argued enforcing copyright did not go to the heart of why internet users illegally shared content.
"Enforcement [of copyright breaches] is addressing a symptom of limited legal availability of digital content," he said. "There is a root cause to the problem which enforcement doesn't address and hence will not provide a solution to, and that [is the problem of growing] legal digital markets."
Rights holders tightly controlled how and when content could be distributed, rather than offer users flexibility, Summer said.
He gave the example of Hollywood films which were released at the cinema and then after a period released on DVD. That controlled the conditions under which the public could consume the content, rather than offering choice.
Summer said illegal file-sharing was about more than consumers wanting "a free lunch".
"The problem is there is no legal choice. Sometimes you need the whip, but you also need the carrot and the carrot is missing here. And the carrot would be rights holders making sure competing platforms [such as internet movie services] can provide new offerings."
The New Zealand Federation Against Copyright Theft, a lobby group connected to the Motion Picture Association, lauded the legislation as a tool for "promoting and protecting the continued growth of New Zealand's creative industries".
