LEGAL music downloads in Britain have overtaken illegal downloads for the first time, record company chiefs said today.

A new report found six per cent of internet users regularly download music legally in Britain, compared to five per cent who regularly swap files illegally. The research from the IFPI, which represents record companies worldwide, found that huge online sales of artists like James Blunt, The Pussycat Dolls and X Factor winner Shane Ward - who released his first single online minutes after his victory - led to a record $1.1billion payday for music companies.

It found 420 million songs were sold last year, an increase of 20 times on 2004's sales.

"Two years ago, few could have predicted the extraordinary developments we are seeing in the digital music business today," said IFPI chairman John Kennedy.

Sales of mobile phone music, both songs and ringtones, have also risen dramatically, and now account for approximately 40 per cent of record company digital revenues.

However, Mr Kennedy criticised companies that sell broadband internet services for not helping the legal services to grow, saying: "We need more co-operation from service providers and music distributors, to help protect intellectual property and contain piracy.

"They need to take on their share of the responsibilities as well."

The report found that more than two million songs are now available online legally, and major record companies like Universal and Sony have also promised to put more of their back catalogue online. The report also predicted that high street retailers face a grim future unless they also have an online offering. "2005 has taught entertainment retailers about diversification," said Simon Wright, of Virgin Entertainment Group International.

The IFPI has also been behind a big rise in the number of legal cases brought against home users who illegally share music.

"Actions against illegal file-sharing, which in 2005 were extended to nearly 20,000 cases against uploaders in 17 countries, will be stepped up and spread to new countries in 2006," the report said.

2005's TOP SELLERS

1 Tony Christie featuring Peter Kay (Is This The Way To) Amarillo 2 Shayne Ward That's My Goal

3 Crazy Frog Axel F

4 James Blunt You're Beautiful

5 McFly All About You / You've Got A Friend

6 Akon Lonely

7 Pussycat Dolls featuring Busta Rhymes Don't Cha 8 Westlife You Raise Me

9 Nizlopi JCB Song

10 Madonna Hung Up

Source: Official UK Charts Company

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