Virgin Media (NSDQ: VMED) is likely to start threatening its broadband customers who illegally share music with disconnection. Speaking to paidContent:UK this morning, the telco confirmed a Sunday Telegraph report it is talking with the British Phonographic Industry (BPI) about piloting a version of its proposed three-strikes-and-you’re-out policy, under which ISPs would kick off rule-breaking subscribers. In this instance, those subscribers would be identified by the music body rather than by monitoring software installed by the ISP.

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Such developments will reduce the likelihood of legislation being imposed on the issue by government, which had threatened new laws forcing ISPs to step up to the plate by next April if they could not agree on a voluntary solution. A spokesperson told us it was too early to give further details on how the plan would work.

- Sony (NYSE: SNE) BMG: Meanwhile, Sony BMG - so often a complainant about piracy - finds itself being taken to court on claims it uses illegally obtained software. French server admin software maker PointDev said it received a support call from the label’s France office, which it found had used with its products a software key obtained from a cracker. A bailiff investigation is said to have found three more such instances at Sony BMG, which PointDev is prosecuting aggressively: “We are not interested in an amicable settlement. It is not just a question of money but more importantly in principle.”