Internet providers will be allowed to charge rights holders $25 for every infringement fee they send to internet users when a controversial "three strikes" copyright law takes effect in September.



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Justice Minister Simon Power proposed a $20 fee, but that was upped by another $5 when his proposal was put in front of the Cabinet. The charge would apply for each accusation of piracy by a rights holder, whether or not an infringement notice was sent out.



The charges, which are higher than expected, are likely to dismay recording companies and movie studios, whose lobbyists had called for a charge of no more than $2.



Under the new copyright regime, people accused of pirating copyrighted material using the internet could be hauled in front of the Copyright Tribunal and fined up to $15,000.