The music group EMI today said the music industry was bouncing back from the effects of internet piracy, with lawsuits against file traders having had an "educational and deterrent" effect.

Although the global music industry recorded a decline of 1.3% in the first half of 2004, that figure represented a 9.6% improvement on the same period in 2003.

"Given the positive overall trend in the global music market over the past year, and the expected high levels of release activity across the industry in the months ahead, we are confident that we will see a substantial and very welcome full-year improvement in the performance of the recorded music market," Eric Nicoli, the EMI group chairman said.

EMI, the world's third largest label and home to artists including Radiohead and Norah Jones, said its digital music revenues had more than quadrupled in the six months to September 30.

The figure was boosted by the success of mobile phone ringtone sales and online stores such as Apple's iTunes. Digital sales of £12.2m in the first half represented more than 2% of group turnover.

Demand for songs downloaded via computer has surged since Apple launched its iTunes music stores in the UK, France and Germany in June. Microsoft, Tesco and Coca-Cola have also entered the market.

Robbie Williams - another of EMI's artists - became the first performer to put his entire album, plus videos, onto a memory card that can be inserted directly into a mobile handset.

After years of pressure from digital and physical music piracy, EMI said lawsuits filed against online file traders in the US and Europe were having an effect on music consumers.

"It's certainly had a significant impact on Germany," Alain Levy, the EMI music chairman, said. "There's no doubt that in Christian music, for example, when the lawsuits started, the legal downloads started to go up immediately."

For the six months to September 30, EMI reported a pre-tax profit of £36.9m, down from £39.8m a year ago.

The music label responded to the global downturn in the industry by culling its artists and outsourcing manufacturing operations in the US and Europe. It said the restructuring was on track to deliver savings of £50m, with at least half that amount coming in the current financial year.

EMI said its music division's revenues for October and November to date were running well ahead of last year, and it was on track to meet its full-year expectations.