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After weeks of protest the government has delayed introducing controversial copyright laws.
It has told the industry to find a way to make the legislation work or it will be dumped altogether.
The government has announced it is delaying the controversial section 92a that critics say will force internet providers to cut people's connections without proving first they have breached copyright.
The Prime Minister has told the laws backers they have a month to figure out how they will make it work, or it goes.
"Let's see if that code of practice can be achieved. They've been promising it for some time, they say they're close, we're giving them another month to do that," says John Key.
The decision comes after weeks of opposition to the law.
John Clegg, owner of web map service zoomin.co.nz , 'dimmed the lights' on his website in protest.
"I think it's great 'cause now we can actually work with the lawmakers and make sure we're doing sensible things. You now the impact to my business is enormous and I want to make sure that I'm protected against any problems in the future," says Clegg.
The online protests of 'blacked out' websites have attracted international attention, and finally culminated in a petition to parliament.
"It's great to see that they have realised that there is a serious issue with this law and that they're keen to do something about it," says Bronwyn Holloway-Smith from the Creative Freedom Foundation.
Copyright holders who have pushed for this legislation have been taken by surprise.
They say the government's delay is not necessary because they are close to setting up a code of practice and they will have that in place by the deadline.
Internet service providers say they are pleased there is some reprieve but still argue that forcing them to act as internet police won't make, what they believe is a bad law around copying, right.
