Comms wholesaler Entanet has laid into last week's dismissal of a Judicial Review into the legality of the controversial Digital Economy Act.
The review, launched by BT and TalkTalk, was thrown out last week by Mr Justice Kenneth Parker, who rejected claims that the Act, which was rushed through before last year's General Election, was flawed and "incompatible" with EU law.
In its current form, the Act will see rights holders compiling lists of those suspected of illegal file-sharing, and ISPs will then be made to match these data to their customer lists and take further action against infringers.
The court threw out four out of five objections, accepting that the ISPs should not have to pay the costs of setting up the scheme, but would be made to pay a quarter of the costs of sending letters to suspected file sharers.
Enta marketing head Darren Farnden said that the court's ruling was disappointing but added he was "not surprised" by it.
Farnden put the point that only the rights holders would benefit financially, while ISPs would be left with extra costs.
"I am so keen to understand what benefits the ISPs are getting in return for shelling out for 25% of the costs," he said. "Perhaps [Communication Minister] Ed Vaizey thinks it's the satisfaction of knowing we've helped make the world a better place. Wake up, it's getting tougher to succeed in our economy as it is."
"The government seems determined to get this controversial and poorly considered Act implemented no matter what and seem to have little consideration for the views of one of the two main industries to be affected by it," concluded Farnden.
The court's decision was welcomed by the government, with a spokesman for the Department of Culture, Media and Sport saying the measures were both lawful and proportionate"
In a statement, TalkTalk said it was considering its next steps and did not rule out an appeal.