The record industry's trade association in the UK want the creation of a central database of piracy offenders that could eventually lead to offenders being banned from the Internet.
The BPI have been in negotiations with the UK's top ISPs on a voluntarily code of conduct. At the centerpiece of the proposed code would be a central database containing a list of suspected infringement actions. The database would then be used to send warning notices to Internet users regarding their behavior, and if needed, to take further action such as speed throttling or full disconnection.
It is believed that the BPI are keen on an industry led solution due to the delay of the implementation of the government's Digital Economy Act, which promised a similar 'graduated response' solution.
The solution itself, however, is mired in controversy. Consumer groups are concerned with privacy and the lack of due process, while ISPs worry about the technical and financial burden that's being placed on them.
One of the ISPs taking part in the negotiations, Virgin Media, told ZDNet that the record industry's current proposals are not appropriate.
"Music and film companies are speaking to broadband providers about how to address illegal file-sharing but what they're currently proposing is unworkable," said Virgin Media spokesperson Emma Hutchinson.
A spokesperson for ISP TalkTalk has similar doubts when speaking to the Guardian: "We are involved in discussions about measures to address illegal file-sharing and ultimately would like to reach a voluntary agreement. However our customers' rights always come first and we would never agree to anything that could compromise them."
One of the first countries to adopt a disconnection based graduated response system, France has only recently abandoned the system in favor of a system of fines, citing high cost and poor results.