The threat of internet account suspension for people accused of illegally downloading copyright material has moved a step closer.

Such measures could be in place by 2011 with alleged offenders given only two warnings and not three as previously believed, before their service is cut off with no prior judicial hearing; although according to Lord Mandelson there would be an appeals procedure.

Speaking today at a C &binet (Creativity and Business International Network) forum, Lord Mandelson, business secretary, said that the Government had taken the decision to introduce technical measures and update legislation to safeguard and protect the UK’s creative industries.

He said there was a pervasive culture among young people for not paying for things online, such as music and movies - with only one in 20 music tracks in the UK downloaded lawfully. He warned that only a real deterrent, such as suspension of service, would work.

“We cannot sit back and do nothing. We will put in place a fair, thorough process, involving clear warnings to people suspected of unlawful file sharing, with technical measures such as account suspension only used as a very last resort," he said.

Legislation that will allow the Government to introduce internet account suspension is expected to be introduced in the Digital Economy bill in November and come into force in April. Warning letters would be sent for the first 12 months, but if illegal file sharing has not fallen by 70 per cent by April 2011, internet account suspension could begin that summer.

Critics slam 'disproportionate response'
Although Lord Mandelson didn’t think introducing this "proportionate measure" would lead to mass suspensions, the Internet Service Providers' Association (ISPA) has critcised the plans.

In a statement it said that although it doesn't condone illegal downloading, "ISPA is extremely disappointed that Government intend to legislate to force the disconnection of users based on a notice, a move that is contrary to many of the aims of Digital Britain.

"ISPs and consumer groups consider disconnection of users to be a disproportionate response, a view that has been supported by the European Parliament."

Internet disconnection is something that the Government had repeatedly shied away from. The French have been trying to introduce a similar penalty known as Hadopi 2; better known as the 'three strikes' rule. Then in August Lord Mandleson announced he would re-introduce the draconian measure.

A representative for the Department for Business, Innovation and Skills told Computeractive that although Lord Mandleson had mentioned today that there would be two warnings for people in the UK, they could get more.

“It would depend on the level of infringement and two warnings would be indicative of the process but theoretically it could be more than that. However, if these are ignored, Ofcom could have the powers to order an ISP to disconnect a service,” she said.

There also appears to be backing among member EU states for introducing such measures on a European level. Amendment 138/46 of the Telecoms package made it illegal for countries to disconnect someone’s internet service without a ruling from a judge.

However, this is currently under review and the new proposal leaves this protection out.

Jérémie Zimmermann, of internet neutrality organisation La Quadrature du Net, said: “The new proposal could authorise Member States to implement exceptions to the right to a due process in national internet-related legislation. This is extremely sad for European citizens as well as for the legitimacy of the EU institutions.

“To see the Parliament follow MEP Catherine Trautmann, (rapporteur of the main directives of the Telecoms Package) leaves the door open for Member States to allow restrictions of internet access such as "three strikes" policies or practices harmful to Net Neutrality."

Cost of fighting illegal downloaders
Lord Mandelson said that to ensure internet service providers (ISPs) are not “unfairly burdened”, the cost for introducing technical measures would be shared between providers and rights holders. However, he didn’t clarify how this would work and ISPA said rights holders should shoulder the burden for all costs for the notification stage including reimbursement of ISPs' costs.

"This approach is consistent with the principle of beneficiary pays and would serve to incentivise rights holders to develop new business models and ensure an effective and efficient use of notifications and targeted legal action," it said.

In other areas, Lord Mandelson said there was a case for copyright laws to be modernised to reflect reasonable consumer behaviour which did not damage the sustainability of the creative industries.

This would mean that, for example, someone who has bought a CD would be able to copy it to their portable music device or share it with family members without acting unlawfully