For some reason, people in IT often seem to think the law doesn't apply to you if you act within sly nod nod, wink wink guidelines. As O'Dwyer's learning to his cost, that's not the case.
Primary source, but there are plenty out there:
http://www.guardian.co.uk/law/2012/jan/13/piracy-student-los...
FAQ number 7 is outrageous: http://web.archive.org/web/20090622020415/http://community.t...
EDIT: What UK law did he break? I'm very much not a lawyer, but believe it to be Section 107, 2A of the Copyright, Designs and Patents act 1988:
A person commits an offence who—
(a)makes an article specifically designed or adapted for making copies of a particular copyright work, or
(b)has such an article in his possession,
knowing or having reason to believe that it is to be used to make infringing copies for sale or hire or for use in the course of a business