In the original court case, the Australian court last year found iiNet not to be accountable for the actions of its users.
Neil Gane, head of Australia's Federation Against Copyright Theft (AFACT), has been quoted as saying that it cannot be right that the ISP takes no responsibility [for the actions of its subscribers].
According to the TorrentFreak newswire, AFACT - acting on behalf of around 30 studios - took iiNet to court back in 2008, resulting in a court case in which the judge ruled that "iiNet was not responsible for their activities."
"An appeal was heard later [in 2010] and today the decision was handed down", says the newswire, adding that the ruling is an absolutely huge affair and will take a considerable time to digest.
"But at this early stage it seems quite clear that even after two years of legal battles, this fight is probably still not over", notes the newswire.
"Even though the copyright owners are not entitled to the relief claimed in this proceeding, it does not follow that that is an end of the matter. It is clear that the questions raised in the proceeding are ongoing", says this week's court ruling.
"It does not necessarily follow that there would never be authorisation within the meaning of s 101 of the Copyright Act by a carriage service provider, where a user of the services provided by the carriage service provider engages in acts of infringement such as those about which complaint is made in this proceeding", it adds.
The newswire says that "it is widely believed that the case will now proceed to Australia's High Court."