The music industry claimed a big victory yesterday in its fight against illegal downloading over the internet when Stelios Haji-Ioannou's EasyInternet Cafe chain was found guilty of copyright infringement.

The Greek entrepreneur said he would appeal against the high court ruling that his business was wrong to let customers download music.

The cafes formerly allowed people to copy the downloaded music on to CDs for £5. They suspended this service in September 2001.

The action was brought by the British Phonographic Industry, the trade body, along with Sony Music, EMI and Universal Music. They are thought to have demanded £1m in compensation.

"Illegal copying jeopardises the livelihoods of artists and songwriters, as well as putting at risk the thousands of jobs directly and indirectly created by the recording and publishing of music," said Peter Jamieson, the BPI's chairman.

"We're delighted that we've won this ruling, which sets an important precedent in sup port of authorised licensing services."

Mr Haji-Ioannou - who founded the EasyJet no-frills airline but has now left its board - had argued that the cafes could not be held responsible for customers downloading music. "We will appeal. I believe the judge's interpretation of the law on our main defence point was inaccurate."

His defence was based on the principle that consumers had the right to record music or video in order to consume it at a more convenient time. "That is why they can use the VCR at home."

He added: "I believe it is a question for the House of Lords and not for a summary judgment. We will continue to fight the point on behalf of the consumer."

The court has yet to determine what costs and penalties are to be levied.

The fight between the music industry and internet users is a long-running and controversial one. The singer Robbie Williams recently acknowledged that his bosses at EMI might not like his view that downloading music from the internet was "great".