Interestingly this is what a someone is claiming on Radio 1 in todays news, one presumes they are from the music industry.
http://www.thinkbroadband.com/news
Radio 1 Newsbeat
BBC News Online
The UK is in an odd position strictly speaking it is illegal to copy a CD you own to your MP3 player - but the music industry is turning a blind eye to this and it appears this may be made legal - BBC News Online item
Though the danger is whether any law would be too tightly defined, so say someone downloading something in MP3 format cannot convert this to another format to use on some other device they own.
The worrying thing is the wide number of sweeping statements appearing in the mainstream media, which equate all file sharing with copyright violation, additionally other services like file exchanges over instant messaging systems, online back-up services etc.
Perhaps the Green Paper will also deal with situations like how an ISP knows exactly what is and is not a copyright violation. Consider this a new single appears but the artist released for free onto the internet, so people can share it, another artist releases something only available when paid for on CD. How does the ISP know which track is illegal? Will the music industry provide an ISP with copies of all tracks so bit comparisons can be done...comparison on title or just a few header bytes will through up too many false positives.
Something that is on the rise is people using secure VPN connections generally as a way of ensuring anonymous access to resources, now some of this may be for illegal purposes, but also many people do this for access to their companies business servers. With an encrypted VPN how will an ISP see what is happening?
Less difficult for the average consumer is encrypted compressed files, will people simply compress material and share a key with others. How will a provider police this sort of thing.
Oh and one assumes that Bluetooth connections will not stop people sharing music or video content, or someone with a large CD collection sharing it over a wi-fi connection with their neighbour...
All in all there are so many holes that it would seem the sensible thing to do is for the music and film industry to look towards itself. The old market for selling music has changed a lot since the 70's but it seems many record companies still exist in that area.
Has anyone done any analysis on people who listen to illegally obtained music ever pay for an album that they otherwise would not buy, or decide to go to gigs.