I'm sure they've double and triple checked this with their legal departments, but this strikes me as being ripe for a lawsuit. If the MPAA (or Israeli equivalent) can prove that the ISP is caching copies of illegal torrents it doesn't seem like there's much to defend in court.
I was under the impression that Israel had really weak copyright protection. I thought that basically file sharing was allowed, or at least not prosecuted, unless it was commercial.
You forget that big business ISP's are in bed with big business MPAA/RIAA-like groups. The only reason ISP's ever side with the consumer is that is who pays their bills and makes them a tidy profit. The day they can figure out how to make both sides happy (and line their pockets with the cash from each) they'll do it in an instant.
