Computer owners who use illegal file-sharing websites risk having their internet connections cut, one of Britain's leading service providers said yesterday.

Web users could see their BT accounts terminated if they download music and videos without paying, a spokesman said, as the recording industry prepares for a major crackdown on internet piracy.

The BPI - formerly the British Phonographic Industry - is working with a number of internet service providers (ISPs) to stamp out illegal file sharing, which it says costs the British recording industry hundreds of millions of pounds each year.

Services such as LimeWire, Morpheus and BitTorrent allow users to share music and video files online, with millions of people breaching copyright - often unwittingly - by distributing material without permission.

The tough stance taken by BT was brought to the fore as a debate begins between ISPs, record industry figures and the government over the best way to reduce online piracy. Several different approaches are being tested, with a cross-departmental government group preparing to legislate on the issue in April next year if a satisfactory solution is not reached before then.

A spokesman for BT said the policy for dealing with copyright infringement had been in place for some time, but the power of the service provider to close customer accounts has been highlighted by the current debate.

He said: "We ask that our customers adhere to our terms and conditions which state that they must comply with all relevant laws and not infringe the rights of others.

"We work with various bodies to help them protect their copyright material and will sometimes pass on warning notices to customers on their behalf where we feel this is appropriate. If a customer continues to be in breach of our terms and conditions then BT has the right to suspend or terminate that customer's account, though we work closely with customers to avoid this where possible."

Rival firm Virgin Media, the most popular domestic broadband provider in the UK, last month began sending letters to web users who it identified as having visited file sharing websites. Working in conjunction with the BPI, Virgin says it wants to make people aware of the fact file sharing is often illegal, drawing comparisons with crimes such as shoplifting.

A spokesman said: "Clearly there's an issue, given the scale of the problem. We believe education to be the right way to deal with this. Ultimately we're creating awareness, and trying to act responsibly, not just for the copyright holders but for our customers."