Peter Sunde was arrested in southern Sweden to serve an outstanding sentence for copyright violations.

One is the familiar, dull world of the software industry, with its development costs, marketing teams, profit, and loss. And then there is warez world, the Mad Hatter's world, a strange place of IRC channels and Usenet groups, of thrills, prestige, and fear.

A world of expert crackers who strip the protection from expensive new software and upload copies onto the Net within days of its release.

Four men linked to Pirate Bay were originally sentenced to one year in prison and a fine of 32 million crowns (£3.8 million).

An appeals court later reduced the prison sentences by varying amounts, but raised the fine to 46 million Swedish crowns (£5.5 million).

For the wannabe underground, collecting it is an obsession.

For the software industry, it's a billion-dollar nightmare.

In Phil's world, software is a valuable tool that commands high prices - programs like Quark XPress, Windows NT, and Auto CAD, costing thousands of dollars a shot. Filthy lucre Phil's world is full of nasty numbers.

But in Mad Hatter's world, those sticker prices means nothing - except inasmuch as more expensive programs are harder to crack, and that makes them the most desirable, spectacular trophies of all. Antipiracy organizations like the Software Publishers Association and Business Software Alliance estimate that more than US million worth of software is cracked and uploaded daily to the Net, where anyone can download it free of charge.

It does say that those who receive an 'educational email' will not have their broadband cancelled.