But the vote, which is in favour of online freedom of expression, is not the end of the EU debate taking place between the European Parliament and Council.
Because the Parliament has not agreed with the Council, the proposals will now enter the EU's conciliation procedure where the two bodies will try and reach a compromise.
The reform raises the possibility that a 'three strikes' measure proposed by French president Nicolas Sarkozy could be adopted. The law would kick file sharers and illegal downloaders off the internet for up to a year if they were third-time offenders.
The decision by the Parliament not to adopt Sarkozy's proposition is the second time it has come to this conclusion. During the first reading of the proposal, the Parliament formed what is known as Amendment 138.
The Amendment reads: "No restriction may be imposed on the fundamental rights and freedoms of end users, without a prior ruling by the judicial authorities, notably in accordance with Article 11 of the Charter of Fundamental Rights of the European Union on freedom of expression and information, save when public security is threatened in which case the ruling may be subsequent."
Catherin Trautman, author of another report relating to the Framework Directive, revised the text in April to water down the Parliament's amendment, and secure agreement between the Council and Parliament before the elections in early June.
Citizen rights groups, such as La Quadrature du Net, were outraged by Trautman's changes, and called on MEPs to side with the previous version of the report which contained the amendment.
The groups have welcomed the decision of the MEPs. Jérémie Zimmermann, co-founder of La Quadrature du Net, described it as a "victory".
"A formidable campaign from the citizens put the issues of freedoms on the internet at the centre of the debates of the Telecoms Package," he said.
"The massive readoption of amendment 138/46, rather than the softer compromise negotiated by rapporteur Trautmann with the Council, is an even stronger statement."
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