D-Day for global mode: CallPlus rejects cease-and-desist letter

CallPlus has rejected a cease-and-desist letter sent by Buddle Findlay on behalf of Sky TV, Spark, TVNZ and MediaWorks over its global mode service.

The country's third largest ISP had been playing its cards close to its chest. On Monday, it was sold to $A2.04 billion Australian company M2 for $250 million. The big question was whether the new Aussie owner would have taste for the fight. Now we have the answer: yes.

Spark and the broadcasters had set a deadline of 5pm yesterday for CallPlus and others to abandon global mode, which makes it easy to access offshore commercial services like Netflix US usually blocked to New Zealanders.

CallPlus CEO Mark Callander says it's business as usual. Global mode is still available to all customers (albeit now switched off by default on Orcon in a move the company says is unrelated to the threat of legal action. A second CallPlus-owned ISP, Slngshot, still has global mode on my default).

For their part, Sky, Lightbox owner Spark, MediaWorks and TVNZ did not immediately press ahead with legal action. Instead they released a joint statement at 6pm saying "responses are currently being considered" (scroll to end of story for their full statement).

"We reject their vague assertions and are seeking clarification of their claims," Mr Callander says, echoing the argument used by Bypass Network Services Ltd (BNSL), which supplies CallPlus with its global mode technology, as it also rejected the letter (read BNSL responds to Buddle Findlay with a flame-thrower).

"We stand by our strongly-held belief that access to the internet via Global Mode is completely legal, and believe threats of legal action from this gang of big media companies are just an attempt to restrict consumer choice in favour of their profits," the CallPlus boss says.

"New Zealand consumers simply don’t want to have limited content options, and to pay more for goods and services in New Zealand – whether it be for digital content, books, DVDs or software – than our overseas cousins.

"We’re glad to see that ByPass, which supplies the Global Mode service to us, has not caved in to these unfair demands, so that together we can keep Global Mode going for the benefit of Kiwi consumers."

However, CallPlus is yet to say whether it's open to sharing legal costs with BNSL, which earlier said it did not have the resources to fight Sky TV et al.

Three smaller ISPs – Mynx Internet, Lightwire and Primo Wireless – said they would turn off global mode yesterday. 

Mynx director John Humphrey tells NBR his legal advice is that the technology is not a breach of the copyright act – but Mynx does not have the means to support a protracted fight with Sky, Spark, TVNZ and MediaWorks.

ckeall@nbr.co.nz

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RAW DATA: Sky TV, Spark, TVNZ and MediaWorks joint statement

Media companies consider next steps

Four New Zealand media companies are considering their next steps after Call Plus and Bypass Network Services have failed to stop operating the Global Mode service.

Acting together, the four New Zealand competitors previously sent Call Plus, Bypass Network Services and other ISPs requests to cease operation of Global Mode and other similar services in New Zealand.

Lightbox, MediaWorks, SKY and TVNZ say the responses are currently being considered but they remain committed to ensuring their rights are upheld.

“Our position has not changed, we believe companies who profit by marketing and providing access to content they haven’t paid for are in breach of copyright.

“Each of our businesses invests significant sums of money into the rights to screen content sourced legitimately from the creators and owners of that copyrighted material. This is being undermined by companies that have set up illegitimate ways to access that content.

“This is not about taking action against individual consumers or restricting choice, indeed each of our businesses has been investing heavily so New Zealanders can have legitimate access to the latest TV shows and movies.

“This is about fairness and taking a stand against businesses profiting from something they haven’t paid for.”