The new draft would see fines for home users who illegally download music and films, as well jail sentences for those who distribute anti-copyright software. Interior minister Nicolas Sarkozy said file-sharing was "theft".
The government wants to delete an amendment which lets users download as much as they like for a small fee. In the original plans, the government suggested fines of 300,000 euros (£205,000) and imprisonment for home users.
But left-wing opponents, joined by dissenting members of UMP majority, had their amendment passed last December.
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