Carphone Warehouse has been threatened with an injunction by the BPI unless it agrees to controversial plans to "crack down" on customers who download music illegally.

The Carphone Warehouse, with the TalkTalk branded broadband service had spoken out against the BPI's "three strikes" plan that would see internet service providers "policing" their users, via CEO Charles Dunstone.

Dunstone had previously stated: "We are the conduit that gives users access to the internet, we do not control the internet nor do we control what our users do on the internet".

"We believe that a fundamental part of our role as an ISP is to protect the rights of our users to use the internet as they choose. The music industry has consistently failed to adapt to changes in technology and now seeks to foist their problems on someone else."

It has been revealed that in response, a letter faxed to the Carphone chief executive, from the BPI counterpart threatened to take the retailer to court unless it cut off customers who downloaded illegally.

"Accordingly, unless we receive your agreement in writing that within 14 days Carphone Warehouse will implement procedures set out above, we reserve our right to apply to court for injunctions and other relief without further notice to protect our members' rights", read Taylor's fax.

Dunstone has said he was very surprised by the fax: "They have been quite heavy-handed in way they have threatened us".

A spokesman for the BPI said: "If, as it would appear, TalkTalk are not interested in partnership, we must consider how to proceed".