iiNet in Australia

One of the headlines on Slashdot today was Hollywood's motion to sue Australia's second largest ISP--iiNet. Universal Pictures, Warner Brothers, Paramount, Sony, Twentieth Century and Disney are all after iiNet claiming the ISP is fully aware of its customers engaging in copyright infringement by using BitTorrent to file share. This is really getting to be an age old issue of debate where the presence of a technology indicates the criminal intent to infringe copyright. The Betamax case was more than twenty years ago, and the decision was made that copying content for "time-shifting" purposes constituted as fair use and that manufacturers of those video recording devices could not be held liable for infringement. So Napster went down, and a close eye is watching over systems of the like. Clearly there is a difference in conditions between waht happened in the Betamax case and what was concerning the Napster case. However, I was wondering if the copyright regulations in Australia might actually work to protect iiNet. Who exactly moderates or hears the cases when an American company, association or in this case, entire industry, files to sue a foreign company?