Copying compact discs on to computers or iPods will become legal for the first time under government proposals to be published on Tuesday in a move that the music industry has warned could “open the floodgates” to further filesharing.

Millions of people already copy their favourite albums on to their MP3 players or computers without necessarily knowing that they are breaking the law. But this commonplace activity will no longer be illegal under the changes suggested by the Department for Innovation, Universities and Skills.