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An Auckland internet cafe has been charged for allowing punters to watch movies at computer terminals.
The director of the inner-city cafe, which has not been named, faces 21 charges under the Copyright Act after an investigation by the New Zealand Federation against Copyright Theft (NZFACT).
A police raid on the premises yesterday was supported by NZFACT investigators and computer forensics experts.
The company director will appear in Auckland District Court next Monday.
"This is the first time that criminal action has been taken against an internet cafe suspected of illegally distributing movies in this manner" said Tony Eaton, NZFACT executive director.
"Internet cafe owners around New Zealand should take this as a wake up call and review their operations to ensure they are not breaking the law. This is the first time such action has been taken. It won't be the last."
Movies made available - likely without the permission of copyright owners - included Quantum of Solace, Wall-E, Iron Man, Indiana Jones and the Kingdom of the Crystal Skull.
Wall-E was on the café's screens two months before its September 18 release in theatres.
"It is very disappointing to see the illegal distribution of Quantum of Solace before its New Zealand release on 27th November," said Andrew Cornwell of Sony Pictures.
"People who illegally distribute movies are taking money away from the many legitimate New Zealand businesses that make and distribute the movies we love and they must be stopped."
"The illegal distribution of movies, particularly movies like Wall-E which had not yet been released in New Zealand cinemas, strikes right at the heart of the New Zealand film production and distribution industry."
A study undertaken by independent research firm LEK Consulting on behalf of the Motion Picture Association (MPA) showed that piracy cost the film industry in New Zealand an estimated 25 per cent of the potential market in 2005, or $70 million.
Internet piracy via P2P file-sharing networks is a significant concern and accounts for the majority of New Zealand movie industry losses - an estimated $33 million in lost consumer spending in 2005.
- NZ HERALD STAFF