BPI wins landmark file-sharing case

The BPI is currently seeking settlements in a further 51 cases

The British Phonographic Institute (BPI) has won a landmark court case after two individuals were found liable for illegally swapping music online. They now face bills running into thousands of pounds.

In the first cases of their kind to be heard in the British courts, a man from King's Lynn and a father of two from Brighton have both been ordered to stop sharing files illegally and to pay costs and damages.

The music trade association, which declined to name the individuals, began proceedings against the man from King's Lynn in August 2005.

The High Court rejected his defence that the BPI had no evidence of infringement, and he has been ordered to make an immediate payment of £5,000. Total costs are estimated at £13,500 and damages are expected to take the bill even higher.

The father of two from Brighton claimed that he did not know he was doing anything illegal and had not sought to gain financially. But Justice Lawrence Collins threw his case out of court stating that "ignorance is not a defence".

The defendant has been ordered to pay £1,500 immediately, on the understanding that this is not a final determination of the total costs and damages.

The BPI claims that illegal file sharing has cost the UK record industry more than £650m in lost sales in the past two years alone.

"The courts have spoken and their verdict is unequivocal: unauthorised file sharing is against the law," said BPI chairman Peter Jamieson.

"We have long said that unauthorised file sharing is damaging the music industry and stealing the future of artists and the people who invest in them. Here is clear confirmation of what we also said: that unauthorised file sharing is illegal."

The BPI is currently seeking settlements in a further 51 cases launched in December 2004. The alleged file sharers have been given a deadline of 31 January to settle the cases and avoid costly court action.

A majority of the 139 legal cases launched by the BPI against individual file sharers since October 2004 have been settled. Some individuals have paid up to £6,500 to avoid a court case, according to the BPI.

Roz Groome, general counsel at the trade association, said: "We have been very patient litigators, and have given these people every opportunity to settle.

"Only when they refused to settle did we take them to court, which has now found in our favour. These rulings are a massive step forward in the music industry's bid to fight illegal file sharing.

"We would warn anyone else tempted to illegally upload and download music to cease immediately. The legal penalties can be significant."