A global anti-software piracy group has warned that it may take seven European web auction sites to court because they are being used by pirates to sell illegal software.

The Business Software Alliance (BSA), a pressure group which lobbies for changes in the law to curb software piracy and tips off local police forces in the worst cases, issued the warning as it prepares to publish a code of conduct that it wants ecommerce websites to adopt.

According to the BSA, the internet is the fastest growing area for software pirates, who range from organised crime syndicates to bedroom-based teenagers. Most of the pirated software is sold through online auction websites, or distributed through 'warez' websites.

Margo Miller, who heads the BSA's Internet Enforcement group in Europe, said: "There's an incredible level of fraud in auction websites, and that's where we focus our attention because that's where customers are being duped into thinking what they are buying is legal. Visitors to warez sites know they are being sold illegal software."

Miller's group runs a successful programme that notifies websites if they are carrying illegal material and asks them to stop doing so. Between January and June, the group had 713 websites across Europe closed down. She reports that the vast majority of internet service providers and auction sites aided the BSA after receiving the notifications.

It is now monitoring auction websites run by QXL, Huuto, Dinside, Bidlet, Ricardo, iBazar and Vobis and hopes to persuade them to adopt the new code of conduct when it is finalised next month.

However, preliminary talks with the auction sites have apparently not gone well.

Mike Newton, UK campaign manager at the BSA, told vnunet.com: "Initial discussions regarding adopting a code of conduct have resulted in resistance from the auction websites. It's fair to say we have some way to go to convince them there."

"I would suggest, however, that they need to demonstrate they are well-lit, safe places for ecommerce and not hiding behind uncertainties in the law," he added.

However, QXLRicardo, the company behind two of the websites being watched, refuted suggestions that it was resistant to closing down auctions if it was notified of any wrongdoing.

"If we're told that the material being sold on our website is pirated, we remove it immediately. Pirated software is one of the items specifically mentioned in our terms and conditions," said a spokeswoman.

Ironically, the BSA has already had a run-in with QXL, which handed over £34,000 in August after an internal audit revealed it was using unlicensed software to run its website.