The agreement between Tiscali and British Phonographic Industry (BPI) on the issue of restraining users from downloading and sharing of files that leads to copyright violation suffered a major setback when both the parties could not agree on matters related to costs of the process. By implementing the process, the ISP can terminate the connection of the users who indulge in illegal file sharing. However, the users who use P2P and other file sharing programs should get warning letters and the cost of sending these warning letters became a hurdle for both the parties to reach an agreement, it seems.

Over the development Tiscali commented:
"The BPI led us to believe we had concluded an agreement to implement their preferred process in October last year, which not only demonstrated joint leadership in this area but also that both of our industries could work together to tackle this issue."

On the other hand, theregister reports the following statement from BPI:
"We are pleased that Tiscali agrees that our three step proposal is an appropriate way to begin dealing with the problem. While there have been discussions between BPI and Tiscali, we have not been able to reach agreement on a long term solution. That's because Tiscali is trying to force us to pay a substantial levy to enforce its own terms and conditions."

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