The move could lead to a Magistrates Court increasing the maximum fine for online copyright infringement from £5,000 ($9,400) to the £50,000 ($94,000) maximum levied at physical copyright infringers.
The recommendation comes as part of a consultation exercise, conducted by the UK IPO, which concerns recommendation 36 of the Gowers Review.
The UK IPO's consultation paper has been sent to a broad range of organisations, including the British Chamber of Commerce, the Confederation of British Industry and the Copyright Licensing Agency, as well as to law firm Freshfields Bruckhaus Deringer and the law societies of England & Wales, Northern Island, and Scotland.
Interested parties have until October 31 to submit comments and suggestions.
In the case of Scotland, as there are no Magistrates Courts, the consultation paper has considered introducing maximum levels of fines for Scottish summary courts that deal with equivalent cases.
The Gowers Review examined the penalties for a copyright offence and found that they depended on whether or not the infringement occurred online.
In calling for a change in the law to increase online infringement penalties to the levels of physical infringement, the Review stated: "The intention and impact of physical and online infringement are the same. Crimes committed in the online and physical world should not be subject to different sentences. Increasing the penalties for online infringement will therefore make the law more coherent."
The Gowers Review was commissioned by the UK Chancellor and the Secretaries of State for Trade and Industry, and Culture, Media and Sport in 2005. The Review was led by former editor of the Financial Times Andrew Gowers with assistance from a team of civil servants.
Following presentation of the Review to the UK government in December 2006, the Departments for Culture, Media and Sports (DCMS), Business, Enterprise and Regulatory reform (BERR), and Innovation, Universities and Skills (DIIUS) published 'Creative Britain: New Talents for the New Economy' on February 22 this year.
Including a commitment to consult on introducing exceptional penalties for online copyright infringement beyond the maximum of £5,000, the document stated: "Copyright infringement is a serious economic crime. It is important that the penalties available are proportionate to the harm caused to UK industries and that they act as an effective deterrent."
