IFPI reports sales of digital music rose 40 percent to $2.9 billion over the past year.
International CD sales, the music industry's global trade body said Thursday.
The International Federation of the Phonographic Industry, or IFPI, said the increase in legitimate music sales did not come close to offsetting the billions of dollars being lost to music piracy, with illegal downloads outnumbering the number of tracks sold by a factor of 20-to-1.
But the trade group said it welcomed efforts by French President Nicholas Sarkozy, who has proposed a clampdown on those who violate copyright laws.
Sarkozy called in November for Internet service providers in France to automatically disconnect customers involved in piracy.
IFPI chief John Kennedy said the plan is "the most significant milestone yet in the task of curbing piracy on the Internet."
The industry body said CD sales fell 11 percent between 2005 and 2006 and were likely to drop further in 2007. Digital music revenue has so far failed to make up for the decline — and is also showing signs of slowing, the IFPI said.