What has drawn near-universal criticism, is the provision that Internet Service Providers (ISPs) are to terminate the connection of anyone labelled a 'repeat infringer' of copyright violations. So just 'repeated accusations' are required, without further proof. Certainly a deviation of normal justice. The lack of response of the government to the criticism is drawing increasing ire.
At the Webstock conference, one of the game trading cards is used to highlight this.
At creativenewzealand.org a protest NZ Internet blackout has been called. Hence you see my profile photo blacked out on most of social websites.
Another potential side-effect is it adds another reason to the creative IT community in NZ to leave for other shores.
News article on parliament protest.
Blog post on Geekzone