Parents will be warned if their children download illegal music - and could face speed sanctions

Millions of people are to receive warning letters that their home computers are being used for illegal music and video file-sharing.

In many cases, the letters will alert parents to the fact that their teenage children are part of a global piracy network.

The UK's major internet service providers are sending out the letters following a groundbreaking deal with the music and film industries.

ISPs have formed a partnership with entertainment companies to identify the owners of computers being used for file-sharing.

Letters will be sent warning that the practice is illegal and could lead to court action for breach of copyright.

There are suggestions that householders who refuse to stop will be hit with sanctions including an annual fee or restrictions on their internet service.

It was hinted at one stage that someone caught three times could have their broadband service cut off.

However, no such sanctions have yet become firm proposals, and one industry insider described the threats as 'pie in the sky'.

It is thought that as many as six million Britons are involved in illegal file-sharing. This involves downloading music on to a home computer and then allowing people around the world to access it via the web to create copies.

The music industry claims the practice robs artists and record companies of money they are due for creating the tracks.

Government ministers were involved in the negotiations between the British Phonographic Industry and the six largest ISPs - BT, Virgin Media, Orange, Tiscali, BSkyB and Carphone Warehouse.

How file-sharing works (click to enlarge)

It was reported that Culture Secretary Andy Burnham supports the idea of a £30 annual fee on file-sharers. However, officials subsequently described this as 'misleading'.

Ministers said it is up to the music industry and ISPs to come up with ideas on what sanctions should be applied. They have not ruled out a fee.

Mr Burnham said the success of the UK's creative industries depends on a workable copyright system. 'It's a great thing that new technology lets young people today explore popular culture in a way my generation simply could not,' he said.

'But this freedom cannot extend to allowing people to think they can access content for free.

'We expect Britain to produce the best bands and films in the world, but that will only happen if we find new ways of rewarding our creative talent and investing in new names.'

Feargal Sharkey, the former Undertones singer who is now chief executive of British Music Rights which represents musicians, said the industry wanted to co-operate with downloaders to address the problem of piracy.

'Will we ever 100 per cent stop online piracy? I'm not sure we'd ever achieve that goal,' he told BBC Breakfast.

'But it's worth trying to pursue and work with the 70-80 per cent of young people that want to change and are prepared to work with the industry.'

However, the proposals have drawn a critical response from music lovers.

One told the Mail Online website: 'Music buyers have been ripped off by the record companies for so long that I guess people think they are getting something back.' Parents of teenagers who illegally download music will be sent letters informing them that their children have been using household PCs for illegal piracy.