In what could be a first major step by a country to thwart online piracy, the New Zealand government has outlawed unauthorised Internet file-sharing.

Effective 1 September, the new legislation allows penalties and also has a provison to cut off Internet access for repeat offenders for up to six months, reported AFP.

The penalty of up to NZ$15,000 ($12,000) would be paid to the copyright owner of the content being shared.

The move is intended to protect the creative industry including music, videos and books.

Commerce Minister Simon Power said, "Online copyright infringement has been damaging for the creative industry, which has experienced significant declines in revenue as file sharing has become more prevalent."

"This legislation will discourage illegal file sharing and provide more effective measures to help our creative industries enforce their copyright."