The Conservative MP and lawyer Dominic Raab, has called Richard O'Dwyer's settlement a 'victory for British justice.'
He's campaigned for reform of Britain's extradition arrangements with the US.
"This is a victory for Richard and his family, a victory for British justice and, above all, a victory for common sense. Now we need to put in law a proper safeguard to prevent these arbitrary cases from happening again."
Liberty, the human rights campaign group have welcomed the proposed settlement of Richard O'Dwyer's case.
O'Dwyer, who is from Chesterfield, will voluntarily go to the US to pay compensation.
In light of this, Liberty have warned that there is still a need to reform extradition laws.
"Case after case shows that our extradition arrangements must be overhauled to allow people who have never left these shores to be dealt with here at home. We need urgent legislation to prevent their torment."
Richard O'Dwyer will travel to the US voluntarily to pay compensation.
The High Court heard today how the university graduate created a website that helped people to watch films and TV shows for free online.
He has agreed to avoid extradition to the US as going over voluntarily will leave him free of a trial and criminal record if found guilty.
O'Dwyer, who is from Chesterfield, could have faced jail if convicted of the allegations which were brought following a crackdown by the US authorities.
Edward Fitzgerald QC, for O'Dwyer, told the court he had agreed to a "deferred prosecution agreement" and intended to honour it.
This meant O'Dwyer's pending application to challenge US moves to extradite him were no longer necessary.
The university undergraduate Richard O'Dwyer has reached an agreement to avoid extradition to the US, the High Court has heard.
He's facing allegations of copyright infringement.
O'Dwyer created a website which helped people watch films and TV shows for free online.
A man who was extradited to the UK from Jamaica has been charged with the murder of a 50-year-old man from Dudley.
Tony Ashman arrived at Gatwick Airport yesterday and has since been charged with the murder of Danny McCalla.
Mr McCalla was shot dead at a nightclub in Bilston, near Wolverhampton, in November 2009.
West Midlands Police liaised with the Crown Prosecution Service, the Home Office and the Foreign and Commonwealth Office to secure Ashman's extradition.
Ashman is due to appear at Wolverhampton Magistrates' Court later today.
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A student from Chesterfield who is challenging an extradition order to the United States where he is facing copyright charges has taken his fight to parliament. Richard O'Dwyer set up a website which offered links to pirated movies and tv programmes.
Today he met the MP Keith Vaz who chairs the Home Affairs Committee which has raised concerns about the extradition process.
A student from Chesterfield who is facing extradition to the United States to face copyright charges is to lobby the the Leicester East MP Keith Vaz at Westminster today.
It follows the signing of the extradition order by Home Secretary Theresa May earlier this year.
Richard O'Dwyer set up TVshack.Net, a website offering links to pirated films and television programmes.
His equipment was seized by the US authorities with the support of British police back in November 2010.
The Americans want him to stand trial for breaching copyright laws in the US.
They say that the student raised almost £150,000 in advertising on the site which has now been shut down.
Keith Vaz MP chairs the Home Affairs Select Committee and will meet Richard O'Dwyer and his mother Julia this afternoon.
A petition challenging the extradition order has now raised more than 20,000 signatures.
Richard O'Dwyer claims that to provide links to websites is not an offence under British law so therefore he does not believe he should face a trial in America.
There is growing concern cross party concern about the whole extradition process which was established by a treaty back in 2003.
The liberal democrat President Tim Farron has described the bid for Mr O'Dwyer's extradition as 'ludicrous'.
Richard O'Dwyer and his mother say they will never give up their legal challenge.
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