For months the copyright industry and Australian Internet providers have been negotiating a joint strategy to fight online piracy.

Some expect that these talks will result in a “spying scheme” similar to the one that will be rolled out in the US this summer.

However, after ISP iiNet won its landmark case against the local anti-piracy outfit AFACT, a mutual agreement is farther away than ever before.

The Australian reports:

It is believed the talks have gone backwards since the landmark High Court decision that found Perth-based ISP iiNet could not be held liable for acts of piracy by its subscribers.

It is believed that internet providers have taken a tougher stance with copyright holders demanding more access to content earlier in its distribution cycle before they will agree to an anti-piracy code.