"Digital piracy remains a huge barrier to market growth and is causing a steady erosion of investments in local music."

Speaking after the court case, however, Rose said of Ellis: "He didn't hide in a back alley. He did it with what he believed were good intentions."

Ellis had collected about £20,000 in donations from Oink users, which he planned to use to upgrade his servers for the service, Rose added.

It's hard to say if the case will set a precedent, as the availability of free music services such as Spotify has changed the music landscape since Oink was shut down, Rose said.

"I don't know whether it will really have any impact," Rose said.