"Internet users who illegally download music and films could be banned from the web under leaked Government proposals. Users would be subject to a "three strikes and you're out" policy, receiving an emailed warning first, followed by a suspension, and then finally termination of their internet contract. Broadband firms who fail to enforce the rules could reportedly be prosecuted, and details of suspected customers made available to the courts."
"A draft of the green paper, states: "We will move to legislate to require internet service providers to take action on illegal filesharing." But a spokesman for the Internet Service Providers Association said it remained hopeful that a deal over a voluntary system could still emerge: "Every right-thinking body knows that self-regulation is much the better option in these areas." 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. Some six million people are estimated to download files illegally every year in the UK, costing music and film companies billions in lost revenue."
TorrentFreak: 5 Reasons Why Illegal Downloaders Will Not Face a UK Ban