The Global Mode service will be withdrawn in New Zealand from September.
The removal of Global Mode forms part of a settlement which sees SKY, TVNZ, Lightbox and MediaWorks drop legal action against CallPlus and ByPass.
Details of the settlement are confidential and the parties have agreed that they will not provide additional information.
Global Mode made it easier to access offshore content services usually blocked to New Zealanders, which providers said undermined the significant amounts of money they paid to screen content sourced legitimately from the creators and owners of the copyrighted material.
InternetNZ says it is deeply disappointed the Global Mode service is being withdrawn from New Zealand.
"We were keen to see the matter go before the courts to provide users and the industry with clarity." chief executive Jordan Carter said.