The government is expected to announce plans to water down some of the measures in the Digital Economy Bill that had been aimed at protecting copyright following pressure from internet companies.
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The key concern for the likes of Google and Yahoo focus on clause 17 in the bill, which is designed to combat piracy but could also provide a back door for those planning to monitor the data of innocent users.
According to The Times, a letter penned by all the major internet firms has sparked a review of the legislation. Business secretary Lord Mandelson is expected to announce changes tomorrow.
Instead of focusing on those downloading material, the copyright laws could be tightened to help strengthen intellectual property protection.
Organisations in the publishing industry that stand to lose income through piracy will have to prove that their business would suffer without the planned changes in clause 17.
When the plans to curb piracy were first announced those industry groups that aim to protect intellectual property warned that the measures did not go far enough. They are unlikely to be impressed by any moves to water down the legislation.