British ISPs reportedly are working with the music industry to bring to market an authorized P2P music sharing system that pays rights holders by the end of the year.

According to a report in The Register, the UK government's threat to regulate both industries if they can't find a mutually agreeable solution has brought both sides to the table. At issue are the costs, how to license music to such a system, and how the revenue would be split between all rights holders involved.

According to the report, the current model under consideration involves a ISP customers paying an optional extra fee to their monthly accounts for the right to acquire and trade music via P2P services.