To achieve their goals, in the first year hundreds of thousands of informative letters will be sent by participating ISPs to customers whose accounts have been identified by BPI as being used illegally. In addition, under the auspices of the British government, the signatories will work to identify effective mechanisms to deal with repeat offenders. The deal represents "a significant step forward, in that all ISPs now recognize their responsibility to help deal with illegal file-sharing," BPI chief Geoff Taylor said in a press release.

Food for thought: A study by Entertainment Media Research found that simply sending letters should have a measurable impact on online piracy. A survey of 1,600 Brits found that 70 percent would stop unauthorized downloads if they received a warning from their ISPs. More than 60 percent said they would stop if they had a better chance of being caught.