A couple of red flags
"RIANZ (which) directed the relevant ISPs to send notices to the offending customers."
"Telecom New Zealand confirmed it received notices from RIANZ to issue copyright infringement notices to 42 customers, while ISP Orcon also confirmed that it has been instructed to do the same."
If I'm reading this right, there are three, or at least two, instances here of a private, self-interested industry organization exerting what amounts to police power on ISPs. I am not at all comfortable with terms like "directed" and "instructed" in these cases.
Maybe I'm splitting semantic hairs here, or misreading this altogether, but I don't think so. If these were requests, then fine; the ISP can use the requests as a heads-up for instances of piracy on their networks. But "directed" and "instructed" read like imperatives, compelling the ISPs' actions, probably with time limits on compliance which would deny the ISPs the discretion as to when to investigate them, possibly resulting in acting on inadequately-researched claims if the ISP at the time was busy with other concerns. Compensated or not, ISPs are not the subordinates of the entertainment industry. When did RIANZ become a law-enforcement agency?