The Government has decided not to change the $25 fee that music and movies firms must pay internet providers to issue infringement notices to their customers under the three-strikes "Skynet" copyright regime, after a review.

The decision is expected to disappoint movie industry body NZfact, which had argued the fees needed to be axed or reduced to a "matter of cents" to entice its members to issue warnings and crack down on piracy.

The Justice Ministry this week confirmed that the Recording Industry Association, which represents major record labels, had asked the Copyright Tribunal to punish three internet users who had been issued their third and final "enforcement notices" for allegedly pirating music.

Commerce Minister Craig Foss advised Cabinet that the $25 fee remained appropriate given there had been a significant reduction in the volume of illegal file-sharing during the first six months the regime had been in force.

That suggested the fees had "not initially prevented the regime from having the desired outcome", he said.

Internet providers had not been able to recover all their costs in issuing more than 2700 infringement notices to customers, he said, so lowering them would be unfair.However, Foss proposed officials would continue to monitor how the regime was working "with a view to recommending whether future reviews of the fee are necessary".