They can only sue for the value of goods downloaded...If, for example, I go buy a movie, then download a version for my media centre, I have not committed a crime.
So this is almost sensible.
What I'd like to see is a double edge approach providing a media licensing system where every ISP has an optional media subscription service at a reasonable price. Then have it that media companies can only request download metadata for content that they license to that ISP, however if a customer subscribes to the ISP media service, then that buys them immunity.
If the above was implemented then people would only need to download what their ISP can't provide, and there'd be incentive for media companies to license that content to ISPs, giving people what they want: One media subscription service that gives you everything.