Users of internet file sharing services risk having their homes raided by police after ratification of draconian digital rights management laws by the European Union.

Although the EU Intellectual Property Rights Enforcement Directive was originally drafted to fight commercial counterfeiters, heavy lobbying from copyright holders resulted in the legislation being widened to include any copyright infringements.

The final wording of the law gives copyright owners sweeping powers which could be used to unleash the police on individuals using peer-to-peer sites.

Under the terms of the legislation movie studios and record companies will be able to gather evidence and prosecute anyone they believe may have infringed their copyright.

They will be able to raid homes, seize property and ask courts to freeze bank accounts to protect trademarks or intellectual property which they believe are being abused or stolen.

Late amendments to the directive state that action should not be taken against individuals who download music "in good faith" for their own use.

But it is left to the copyright holders to decide what can be considered as good faith in music downloading.

Ian Brown, director of the Foundation for Information Policy Research, warned that the powers given to the industry are too great.

"They want to get the message across that file sharing is illegal, which it is, but is it right to give copyright holders the kind of powers normally held by police for criminal cases?" he said.

Although the directive has removed a broad proposal to slap criminal sanctions on private individuals who swap copyrighted files over the internet, it is being left to individual nations to determine whether to reintroduce criminal penalties.

Member states have to transpose the directive into their national statute books within two years.

The Recording Industry Association of America reported recently that CD shipments to retailers had plunged during 2003 by more than seven per cent.