A cross party group of peers lead by former Conservative defence minister Lord King attempted to insert the controversial Communications Data Bill in to the counter terrorism bill currently before the upper house.
After Monday's debate the amendments were withdrawn.
The Communications Data Bill has been widely criticised as a "Snoopers' Charter" for its blanket approach to surveillance.
Pirate Party Leader Loz Kaye said:
"It's good news for the British people that this outrageous attempt to sneak in the Snoopers' Charter by the back door has stopped for now. It's often said that people don't care about surveillance as a political issue. The massive online campaign mobilised in days to challenge this latest attack on our privacy.
But you can be sure this won't be the last attack. We saw Lords wearing their ignorance almost as a badge of pride. Conservative, Labour and Liberal Democrat peers spoke up in favour of the Snoopers' Charter. That's why we need the Pirate Party, to be the informed and passionate voice that's so missing at Westminster.
The bunch of Lords who came up with this plan to rush through complex legislation are guilty of blatantly trying to derail democracy."