The Federal Court has heard almost 100,000 illegal downloads of video and music files were detected during a 59-week investigation of the internet service provider iiNet.
A group of 34 film, television and music companies is suing the company for allowing its customers to illegally share files.
The court has heard the Australian Federation Against Copyright Theft had warned iiNet during the investigation that its customers were illegally sharing files, but the internet provider failed to act.
The prosecution alleges iiNet drew up a policy document dealing with repeat copyright infringers, but never implemented it for fear of driving away customers and losing revenue.
Outside court, an iiNet spokesman said blaming the internet service provider for copyright infringement was akin to suing Australia Post if drugs were sent in the mail.
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