The Government has unveiled legislation designed to make Britain a "global digital capital", including plans to cut off people who repeatedly download music and films illegally.
The Digital Economy Bill would require internet service providers (ISPs) to notify those accused of online piracy and record how many times each subscriber has received a warning.
Copyright holders could apply for a court order to obtain the name and address of serious repeat offenders to take legal action against them.
The Bill would also enable the Secretary of State to apply to Parliament to force ISPs to impose technical measures such as the suspension of internet connections as a "last resort".
That action would be taken if the lesser measures failed to cut unlawful file-sharing by at least 70%, a timetable for which could not be given by Minister for Digital Britain Stephen Timms.
Anyone who feels they have been unfairly penalised could complain through a "clear and effective appeals mechanism".
Mr Timms said the Government was looking at civil ways to tackle the problem, adding: "We're not making anything illegal that is not already illegal".
But John Petter, managing director of BT Consumer said: "We have real concerns about the Government's plans and the lack of legal protections for accused individuals.
"We believe that technical measures are not the way forward and that a system of court fines for repeat infringers is preferable.
"Such an approach would not only protect innocent people, it could also create a fund that could be used to support the UK's creative industries."
