The High Court's decision to back the government over the Digital Economy Act has been welcomed by the creative industries.
Internet service providers BT and TalkTalk had brought a judicial review of the legislation, passed at the end of the Labour administration, but Mr Justice Kenneth Parker ruled that the anti-filesharing legislation should stand.
Commenting on the decision, Richard Mollet, Chief Executive of the Publishers Association, said his organisation was "delighted" that the broadband providers had failed to derail the implementation of the Digital Economy Act.
He claimed that the law - which is designed to protect copyright material in the internet age - is vital to the success of the creative industries.
"Preventing online copyright infringement is a problem for large companies, small enterprises, start-ups and ultimately the whole economy," Mr Mollet stated.
"Innovation and creativity can't be sustained if those creating content aren't rewarded for their work."
Meanwhile, a spokesperson for the British Phonographic Institute said the court ruling "gives the green light" for action to tackle illegal downloading in the UK.
"It confirms that the Digital Economy Act is proportionate and consistent with European Law," they stated.