The schoolboy is the third student arrested for alleged copyright offences since 2001. He was tracked down with the help of his internet service provider.

Jimmy Tam Yat-keung, head of customs' copyright investigation division, said the boy had set up two websites. 'He was suspected of uploading pirated songs and movies on to one of the websites and inviting other internet users to upload songs and music to him,' Mr Tam said. 'He collected all the related files and categorised them for free downloading illegally.'

More than 600 pop songs and 20 movies, including current hits Ice Age 2 and Brokeback Mountain, were allegedly available on the website. The boy is accused of using the other website to promote the illegal downloads. Customs started the investigation after receiving a complaint from the local music industry about a month ago.

The teenager's desktop computer and modem, worth about $7,700, were confiscated for examination. Officers said the computer was linked to a 100 megabits-per-second broadband service that made its operation fast and stable.

Investigators believe the website had been operating for less than three months.

The schoolboy has been released on bail of $500 pending further investigation. If charged and convicted, he faces a four-year jail term and a $50,000 fine for each pirated article he possessed.

'Initial investigation showed that the suspect did this for his own interest and no profit was involved. He probably liked to set up websites,' Mr Tam said.

This is the ninth similar case since customs set up its anti-internet piracy team in 2000.

'I don't see that there is a trend that websites are used as a tool to distribute infringed articles. This is an individual case,' Mr Tam said.

The youngest person arrested for such a copyright offence was a 14-year-old boy in 2001, but he was not prosecuted.

International Federation of the Phonographic Industry (Hong Kong Group) Limited chief executive officer Ricky Fung Tim-chee said the industry fully supported and welcomed moves by customs officers to fight internet piracy.

'I hope this case can give a strong message to youths in Hong Kong and remind them that they should consider and respect intellectual property while playing on computers,' he said.

Secretary for Commerce, Industry and Technology Joseph Wong Wing-ping also urged young people to respect intellectual property rights and not get involved in any internet piracy activities.

'Illegal uploading or downloading of music, movies, TV series or software may attract civil or criminal liability. I strongly urge young people to stay away from these activities,' he said.