AFACT will have the last laugh if Australia signs the Anti-Counterfeiting Trade Agreement.

This week Australian ISP iiNet won its legal battle against the Australian Federation Against Copyright Theft (AFACT), which had teamed up with seven movie houses to accuse iiNet of not doing enough to stop its customers illegally downloading movies. The truth is that this case is merely one battle in the global war against piracy.

Meanwhile, Australia is part of a secret treaty to force ISPs to cut off people accused of illegal file-sharing. Leaked details of the confidential Anti-Counterfeiting Trade Agreement reveal that copyright groups are pushing for global powers to force ISPs to adhere to take-down notices and disconnect customers, or be held legally responsible for their actions. iiNet's court win will mean nothing if Australia signs this treaty, as AFACT will get its way on a global scale.

It's worth noting that Australia's Federal law enforcement and intelligence agencies were recently granted broad new powers to track and intercept online communications. Previously these agencies only had snooping rights to protect networks from malicious software. You can bet your bottom dollar that the copyright police will lobby hard for such laws to be applied to copyright theft - once again using McCarthyist tricks such as linking piracy to drugs, terrorism, child pornography and whatever else they can think of.

The copyright police may have lost this legal battle with iiNet but, behind the scenes, they're lobbying lawmakers for bigger weapons in the ongoing war.