Illegal file-sharing 'costing the economy millions'

Illegal downloading of copyrighted material is costing the UK economy millions of pounds‚ it has been claimed.

Around seven million UK consumers are using file-sharing networks to obtain music and movies for free, according to a new report.

The Strategic Advisory Board for Intellectual Property (SABIP) found that illegal downloading is costing the UK economy millions of pounds every year.

Its study shows that there were 1.3 million web users on one file-sharing network at noon on a weekday.

If each user were to download one file per day, this would total 4.73 billion items a year, amounting to around £12 billion worth of content.

The research also revealed that there is widespread confusion about digital copyright law and what is and is not legal.

And it pointed out that with the launch of superfast download speeds, the problem is likely to get worse as consumers will be able to obtain music tracks in seconds and films in minutes.

Commenting on the research, intellectual property minister David Lammy said: "Illegal downloading robs our economy of millions of pounds every year and seriously damages business and innovation throughout the UK.

"It is something that needs tackling and we are serious about doing so."

But he stressed that the intellectual property issue is a global one that requires an international solution given the global reach of the internet.

"We can't expect 12-year-olds to become copyright lawyers before they can switch on a computer, but we can educate people on enforcement and work towards getting the right people caught and punished," he remarked.

In a recent article for the Telegraph, Michael Lynton, chairman and chief executive of Sony Pictures Entertainment, said the music and film industries have been "seriously harmed" by the internet.