The BPI is distancing itself from reports that the trade association has reached an agreement with Virgin Media to curb illegal filesharing on the ISP's network.

"Unfortunately it simply isn't true that we have agreed a pilot -- or any sort of deal -- with Virgin Media," says BPI CEO Geoff Taylor in a statement, "though we continue to work towards that."

In a statement issued today, Virgin Media said it was taking the filesharing "problem seriously" and would favor a "sensible voluntary solution." The firm added, "We have been in discussions with rights holders organizations about how a voluntary scheme could work."

Taylor says he was encouraged by Virgin Media's comments, but said the years of talks with major ISP have "not been backed by action. Time is now of the essence."

The trade body has published on its Website a statement detailing what it hopes to achieve through dialog with ISPs.

ISPs in Britain are under government pressure to find a voluntary solution with the industry, or face legislation from early 2009.