The law allows for disconnection of users for up to six months, based on claims of copyright violation from the holders of said copyright.
The Copyright (Infringing File Sharing) Amendment Bill will initially require internet service providers to send warning letters to users who downloaded copyrighted material.
The New Zealand Copyright Tribunal will be authorised to levy fines of up to $NZ15,000 on those who allegedly repeatedly download prohibited material.
All parties in the New Zealand parliament, apart from the Greens and two independents, supported the law.
In March 2009, New Zealand withdrew a similar law which had been passed in 2008. At that time, there was talk that a modified version of the law would be re-introduced.
A number of countries, including New Zealand and Australia, are currently involved in talks to finalise what is called a Trans-Pacific Partnership Agreement - and this includes an IP regime that the United States wants implemented.
There have been quite a few claims made in recent times in Australia about the extent of unauthorised downloads.