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The UK's Intellectual Property minister David Lammy has said the government will not force internet service providers to pursue file sharers.
There had been mounting speculation about government legislation on the issue as the music industry steps up its fight against the pirates.
Other countries, such as France, have supported tough action on file-sharers, who the industry claims cost them dear.
But Mr Lammy said legislation would be too complex.
"We can't have a system where we're talking about arresting teenagers in their bedrooms," he told The Times newspaper.