A “three-strikes” system to combat online copyright piracy in Australia is on hold, due to the inability of IPSs and copyright holders to agree on how to pay for the scheme.

In a joint letter to the Australian Communications and Media Authority, ISPs and rights-holders said it had “not proved possible to reach agreement on how to apportion all of the costs” for the operation of the scheme, according to a CNET report.

Previously, Communications Alliance CEO John Stanton had said that ISPs and copyright holders should shelve the controversial scheme for 12 months while they consider whether piracy is already being solved by streaming services, according to a ZDNet report.