The internet providers have nine months to send the warning notice to an infringing customer.
THE YOUTH THESE DAYS
Jared Hardie, 18, has 2000 songs on his iPod and says he didn't pay for any of them.
The impressive collection comes courtesy of "computer geek" friends and continues to be updated, despite the risk of tough penalties.
"I'm computer illiterate; I don't even have an iTunes account. So I'm not breaking the law; they are," Hardie, a tertiary student, says.
Maddy Moorhouse, also 18, now pays to download music through legal sites. But because her music collection is well established already, it's not costing her much to maintain.
"There was so much music at your fingertips before, so everyone's already got all the old school songs," she says.
"I don't think it's anything to do with ethics."