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Keith Davidson, executive director of lobby group Internet New Zealand, says that while the three-phase notice period is an improvement, it still contains ''the toxic remains of a termination regime''.

"Nobody condones copyright abuse, but the termination of a household or business internet account is simply out of proportion to the alleged offence.''

The money collected from user subscriptions and advertising revenue will then be used to pay off the copyright holders. The exact monthly fee is yet to be decided, but Rosso did confirm that the more files people share, the lower it will be.

“The more of your computer resources you contribute to the network, the less you pay down to zero,” Rosso told Cnet. “The user is in control.”

But in court papers filed last week, Garcia said both are wrong. He said he never assigned the copyright for the photo to the AP, and retains the exclusive right to license the image.

"The photograph exhibits the artistic talent of Mr. Garcia. He was the one who got the right positioning, the right lighting, the right framing at the right moment," said his lawyer, George Carpinello. "We have no problem with Mr. Fairey creating a poster, but he should have used his own image, or at least acquired the rights to that image."

AP spokesman Paul Colford said in a statement that the news service "is evaluating Mannie Garcia's position, but remains confident in AP