well i have some input for this being an IT Admin, and having been following the iinet court case.
Piracy will always exists until a police state like 1984 is introduced (god forbid) and even then it still exists. as much as they take the torrent site downs they will just pop up on another domain under another name and the process to shut down a site is a hell of a lot slower than the process to set one up.
the most interesting thing will be the decision the judge makes in the iinet court case, if iinet lose the case theirs a very good chance legislation will change and ISP will become responsible for policing the internet and monitoring illegal activity i imagine something like a 3 strike rule will apply, IE if you get busted 3 times over your x time frame you get disconnected and probably a black mark against your name or something.
atm as it stands some isp's send out infringement notices, basically a movie studio picks up that your downloading/sharing one of their movies with out the rights to, they then contact the ISP that the ip address belonged to, the ISP then decides if they then track that ip address back to a user account subsequently one of us and forwards an infringement notice, atm no one actually follows through with disconnections etc well as far as i'm aware they haven't.
also atm ISP's are prohibited from taking action for a few reasons.
1. an allegation from the film company is just that an allegation
2. the telecommunications act prevents isp's from breaching privacy rights to prosecute users breaching copyright acts (well this is at least what iinet is arguing)
3. to bypass that telecommunications act a court order is needed
4. their is no way an isp can know for sure that on the users end the account holder is the actual person breaching the copyright laws, for example if a person sets up a wireless connection in their home but don't secure it properly their neighbors can user that to access their internet and download any content they want.
this all comes part of the Rud governments censorship plans to introduce ISP level filtering of the internet a lovely 43mil spent on a useless trial that every expert told the government was a waste and wont be successful did they listen nooo, dropkick Stephen conry (communications minister) went ahead and wasted millions of dollars and never even released the report on their findings and does not plan to ever release them,
meh i stop before i ramble too much and go on to grate of a tangent