Wellington - The New Zealand cabinet on Monday abandoned a controversial new copyright law, which was widely condemned overseas, and decided to go back to the drawing board.

Prime Minister John Key told reporters that the law, designed to counter illegal downloading of films and music on the internet, was unworkable in its present form.

It was originally to have come into effect on February 27 but the government postponed it for a month to allow representatives of New Zealand's recording industry and internet service providers to negotiate a compromise agreement.

Key said that they while some progress had been made, there was not enough to complete a code of conduct.

The law instructed internet service providers to block online access to anyone accused of repeatedly downloading films and music illegally, whether they had been convicted or not.

But internet users claimed the law threatened freedom of speech, and staged a protest at parliament.

British actor Stephen Fry voiced his opposition while visiting New Zealand, blacking out his photo avatar on the social network Twitter site and changing his biography to read: "I'm blacked out: Stand up against Guilt Upon Accusation for New Zealand." (dpa)