Optus has won a landmark court case that shatters Telstra's stranglehold over internet sports broadcasting and poses an immediate threat to the Australian Football League's recent broadcast rights deals.

Justice Steven Rares of the Federal Court in Sydney this afternoon decided Optus would be granted court protection from copyright claims by the AFL, Telstra and National Rugby League over its TV Now Service.

Optus customers can record and watch matches screened on free-to-air television. Credit:Rebecca Hallas

While Telstra and the sporting bodies are likely to appeal against the decision, this will not happen before the AFL season starts on March 24 and the NRL season starts on March 1.

Optus customers can record and watch matches screened on free-to-air television and replay with delays as short as two minutes on some devices. This is in direct competition to Telstra's exclusive deal with the AFL and NRL to broadcast matches live over the internet.