The Recording Industry Association fears that musicians will lose out under a proposed Code of Conduct for the Copyright Act.
Provisions in the code enable internet users to challenge infringement notices through the courts and limit the liability of ISPs for enforcing the law.
Recording Industry Association chief executive Campbell Smith says this means the code is stacked in favour of music freeloaders.
However, he says the music industry still hopes a concensus can be reached with the IT industry.
The Telecommunications Users Association says the code gives music companies a good deal.