srjh writes "In the Australian Federal Government's latest assault on the internet, draft legislation has been released that allows network operators to intercept communications to ensure that their networks are being 'appropriately used.' Such legislation is particularly important given the interference of Communications Minister Stephen Conroy in a recent copyright lawsuit against iiNet, one of the largest ISPs in the country. Conroy called prominent filtering opponent iiNet's inaction over copyright infringement 'stunning,' whereas iiNet claimed that it would be illegal under current Australian law to intercept its users' downloads. While this latest legislation appears to be a concession of that point, the government is said to be watching the case closely and along with attempts to introduce a three-strikes law in Australia, it appears the law will be changed if the government dislikes the outcome of the case. The internet villain of the year just continues to earn his title."