ISPs warned over illegal downloads

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Culture Secretary Andy Burnham said the move was a "clear signal" of the Government's intent to tackle online piracy, which the music and film industries blame for a slump in CD and DVD sales.

Mr Burnham was speaking before the launch of a major creative industries strategy paper that commits the Government to action to protect intellectual property including legislation on illegal file sharing "by 2009".

Mr Burnham said: "Let me make it absolutely clear: this is a change of tone from the Government. It's definitely serious legislative intent.

"We're saying we'll consult on legislation, recognising there are practical questions and legitimate issues.

"We're not saying, 'Here's one we made earlier, here's a bill'."

Mr Burnham said there was "no burning desire to legislate", but warned ISPs could only prevent the move by taking concrete steps to curb piracy.

Some six million people are estimated to download files illegally every year in the UK, costing music and film companies billions in lost revenue.

Major ISPs such as BT, Virgin and Tiscali have been in talks with the entertainment industry over introducing a voluntary scheme for policing pirate activity, but no agreement has been reached.

Sticking points are thought to include how disputed allegations would be arbitrated - for example, when customers claim other people have been "piggybacking" on their internet service.