But do these companies really have a case against unknowing parents?

They do, according to Leong May-seey, regional director for Asia at the International Federation of the Phonographic Industry (IFPI).

'This can vary from country to country as the legal situation is different around the world. In Hong Kong, legal action is targeted at the owner of the computer and internet connection,' she said.

In recent years, many record companies in developed countries have resorted to suing file-sharers in an attempt to control the problem.

'Stealing music by illegal file-sharing is not morally different to walking into a music store and shoplifting CDs,' she said.

So to educate the public, IFPI and the government's Intellectual Property Department (IPD) last week launched a parents' guide to music on the internet in Chinese.

The guide, called 'Young People, Music and the Internet', provides parents with a jargon-free explanation of internet jargon such as 'peer-to-peer' (P2P), 'file-sharing' and 'downloading'.

It also alerts them to the dangers posed by computer viruses that are prevalent on many computer networks used to swap music files illegally.

But there are ways for parents to protect themselves: 'Be aware of what your children are up to on the family computer and provide them with advice about what is right and wrong,' she said.

'The free parents' guide explains the jargon so parents can give the right advice,' she said.

She also urged parents to make use of a free program on the website called Digital File Check. It finds and removes any copyright infringing files on a computer and blocks others from being downloaded.

The program can help ensure that the children in the house were conducting safe and legal activities on the internet.

'Digital File Check is an effective parental control technology. It is free and does not send tip-offs to anti-piracy organisations.

'It is a way to keep yourself and your family safe from future legal action,' she said.

Are there any indications that suing has led to a decrease in illegal file-sharing? Apparently, yes.

According to Ms Leong, while broadband penetration around the world increased by 26 per cent last year, the number of infringing files on the internet fell from 900 million in June last year to 885 million in January this year.

'Research conducted in Europe by independent analysts Jupiter found that three million people have cut back or given up file-sharing, with most citing fear of legal action and worries about the viruses prevalent on illegal P2P networks as a reason for doing so,' Ms Leong said.

She said the same research suggested that most people who had recently obtained broadband were going to legal rather than illegal sources for their music, so the message was most certainly getting through.

Akash Sachdeva, a Hong Kong-based intellectual property lawyer at Allen & Overy, said Mr Yeung's case was not straightforward.

'I guess [the record labels] settled because even though [Mr Yeung] owns the internet and computer, he hasn't done anything.

'It's not a straightforward case that the owner of the computer is liable and had authorised the infringement,' he said.

However, do not relax just yet. According to Mr Sachdeva, record companies will single out file-sharers whose information was easily accessible.

'They will pick people where their information can be easily obtained and it is easy to show evidence of infringement.

'Record companies will then send out 'cease and desist' letters,' he said.

Mr Sachdeva said that one way to reduce illegal downloading or file-sharing was for record companies developing a business plan to take advantage of the massive demand for digital media.

Three important steps