The Federal Court of Australia has dismissed a case (read the ruling) from the movie industry which argued that ISPs must take action against file-swappers, based on allegations of infringement from copyright holders. The case against ISP iiNet was an appeal of the original judgment in the matter, which also went against rightsholders.
The new ruling doesn't give ISPs total freedom to ignore what's happening on and through their networks, however. The court made clear, in future cases, it is possible an ISP could be found to have "authorized" infringement based on the specific facts of a case. "It does not necessarily follow from the failure of the present proceeding that circumstances could not exist whereby iiNet might in the future be held to have authorized primary acts of infringement on the part of users of the services provided to its customers under its customer service agreements," said the chief judge.