A group representing performing artists says it is not opposed to independent adjudication of copyright disputes under a new law that requires Internet Service Providers (ISPs) to automatically shut down suspect websites.
The Copyright Amendment Act comes into force on February 28.
Opponents say Section 92A of the law means material will have to be removed from the internet if an accusation of breach of copyright is made, even if it is not proven.
They argue that ISPs may have to close down sites even if the complaint is malicious.
Those promoting the clause say it will effectively police widespread copyright abuse on the internet.
The law was passed by the previous government in the pre-election legislative rush last year, and has sparked widespread protest.
But Australasian Performing Right Association (Apra) New Zealand director Anthony Healey said the group, which collects royalties for artists, was not opposed to an independent third party adjudicating on objections.
He said such a provision could be included in an industry code of conduct which was currently being negotiated between copyright holder groups and the Telecommunication Carriers Forum (TCF).
He was confident Apra and the Recording Industry Association of New Zealand could reach a final code that satisfied all parties.
Creative Freedom Foundation director Bronwyn Holloway-Smith, who led a protest at Parliament this week against the law, said it would have unintended consequences.
"What this law may see is innocent people being punished for acts they haven't committed, it could see entire businesses being punished for the act of one user, and obviously in the current economic climate that raises huge issues in terms of maintaining businesses."
Commerce Minister Simon Power said the code of practice was a way to address the group's concerns.
But Ms Holloway-Smith said that would not come into effect until around April and would not address the fundamental legal issue.
