Positive energy representations of Sobolev diffeomorphism groups of the circle

We show that any positive energy projective unitary representation of Diff(S^1) extends to a strongly continuous projective unitary representation of the fractional Sobolev diffeomorphisms D^s(S^1) for any real s>3, and in particular to C^k-diffeomorphisms Diff^k(S^1) with k>=4. A similar result holds for the universal covering groups provided that the representation is assumed to be a direct sum of irreducibles. As an application we show that a conformal net of von Neumann algebras on S^1 is covariant with respect to D^s(S^1), s > 3. Moreover every direct sum of irreducible representations of a conformal net is also D^s(S^1)-covariant.