What the article doesn't state is that CallPlus is in the midst of being acquired by Australian company M2, and there has been speculation that M2 is behind the sudden settlement. Up until now, CallPlus were quite proudly sticking up for Global Mode.
It is a shame that this is not being tested in court. I do believe that the Section 226(b) of the New Zealand Copyright Act would have applied here:
"for the avoidance of doubt, [a Technological Protection Measure] does not include a process, treatment, mechanism, device, or system to the extent that, in the normal course of operation, it only controls any access to a work for non-infringing purposes (for example, it does not include a process, treatment, mechanism, device, or system to the extent that it controls geographic market segmentation by preventing the playback in New Zealand of a non-infringing copy of a work)"
It is the one reason that region free DVD and BluRay players are legal here. New Zealanders were using Global Mode to view legitimate content that they paid for; content that was otherwise unavailable to them due to geographic market separations.
The ones to lose out here are the various studios that are content producers. At least with Global Mode, people were still paying for the content. Now, with the demise of Global Mode, and the hassle of having to sort out a separate VPN provider, the number of people turning back to torrenting is just going to explode. Of course this is all because the local Media Distributors want their cut, as if the millions they already get weren't enough. These are the same Media Distributors who delay releases by months or even years to try to capitalize on popularity while paying the lowest possible price for broadcast rights (the reason many NZers flocked to Global Mode in the first place).
Given their talk in about this being so illegal, the fact that NZ Media Distributors are not proceeding with testing this in court means they have probably realised that a conclusive victory in their favour is simply not possible. Of course this does not stop them from trumpeting this as a win for them, which it really isn't.