Charles Dunstone, the chief executive of Carphone Warehouse, has said that he would refuse to disconnect internet users caught illegally downloading copyright music and other items.

The Government is trying to persuade internet service providers to reach agreement with the BPI, the body that represents the music industry, to agree a "three strikes and out" policy where people caught breaching copyright will have their connection cut after the third transgression.

However, the proposal is controversial because it requires internet providers to monitor what their customers do, to discover if they are engaged in any illegal downloading.

Carphone operates the TalkTalk service, Britain's third biggest internet service provider, and in a statement Mr Dunstone's company said: "TalkTalk rejects music industry threats and refuses to become internet police."

It said that the proposal would "impinge on customers rights" and "restrict freedom to use the internet".

In response, the BPI said that Carphone was either seeking "to misrepresent our position, or just doesn’t get it". It said that it wanted internet providers to act on information that is provided to them, and said that it "firmly believe in an internet where property rights are respected, and creativity is fairly rewarded".

Other internet providers, notably Virgin Media, have appeared more willing to co-operate. But without the support of all major providers it is hard to see how the proposal can go ahead, unless the Government makes good on a threat to legislate if the industry cannot agree.

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