BitTorrent Inc, the San Francisco based company that created the software used to download pirated blockbusters from the internet, has entered into a licensing agreement with some of America's top studios in an attempt to dramatically decrease blackmarket activity.

Paramount Pictures, Metro-Goldwyn-Meyer, 20th Century Fox, Warner Bros and Lionsgate are among those who have agreed to supply The BitTorrent Entertainment Network with films and television shows that will be available to download for a fee via their website, which was launched today.

BitTorrent believes that by setting up a legitimate website, at least one third of the 135 million users who have downloaded their software will be willing to pay for product rather than continuing to risk picture and sound quality by downloading pirate versions. They maintain that it is a love of digital technology rather than criminal intent that makes people use their software.

The BitTorrent Entertainment Network will target males aged 15-35, the traditional demographic associated with downloading pirated films, offering high-definition video, genre and Japanese anime movies as well as television series such as Punk'd and 24, and keeping the price to around $1.99 per TV episode, which is equivalent to buying it on iTunes.