Defamation is only the tip of the iceberg according to lawyers who say social media-related challenges could range from workplace bullying claims to commercial disputes.

Fairfax Media reported that the NSW District Court awarded a teacher $105,000 in damages in Australia's first Twitter defamation battle to proceed to a full trial. The court held that a former student had defamed music teacher Christine Mickle, making false allegations about her on Twitter and Facebook.

Lawyer Stuart Gibson said that the case would clarify this area of law.