The studio pursuing Australians who allegedly pirated its film Dallas Buyers Club could end up spending hundreds of thousands of dollars to recover just $20 compensation per case if it chooses to pursue individuals through the courts, a leading intellectual property lawyer says.

In a landmark Federal Court case on Tuesday against several Australian internet service providers including iiNet, Dallas Buyers Club LLC won a "preliminary discovery" case to obtain the names and physical addresses of 4637 customers it alleged had downloaded its film, for the purposes of suing them for copyright infringement.

Pursuing pirates: Dallas Buyers Club. Credit:Pinnacle Films

However Shelston IP Lawyers partner Mark Vincent said unlike in the US, Australia did not have statutory damages provisions prescribing a minimum amount of monetary compensation, and an Australian court would likely only order damages for the cost of legally obtaining the film – about $20.

"The damage award is likely to be very modest," Mr Vincent said.