Only 1 in 20 music downloads are legal, says Lord Mandelson

The music industry is missing out on considerable sums of money as a result of illegal downloading, the government has warned.

According to business secretary Lord Mandelson, only one in every 20 tracks downloaded from the internet in Britain is downloaded lawfully.

This, he stated, represents a "genuine threat" to the UK's creative industries.

Lord Mandelson called on internet service providers and the creative industries to collaborate with the government on educating people about the value of intellectual property rights, as this could bring about changes in behaviour.

He added that people who persistently download content unlawfully could have their internet account suspended, but said this punishment would only be used as a last resort.

"We will put in place a fair, thorough process, involving clear warnings to people suspected of unlawful file sharing," Lord Mandelson commented.

Pop star Lily Allen has been among those to warn that illegal file sharing is having a negative impact on the music industry.

Speaking to the Times, she said that while established musicians are unlikely to lose out, the problem could "strangle" those who are getting started in music.