Student Richard O'Dwyer said he is looking forward to returning to normality after striking a deal with US authorities over his TVShack website.
"I'm happy it's finally over," he told the BBC. "I still maintain I never thought I was committing a crime.
"I'm glad the US has decided to drop the case. It's a pity the UK wasn't able to resolve this."
He added: "I'm looking forward to getting back to university and see all my friends."
- Richard O'Dwyer could have faced jail if convicted of the allegations.
- The allegations were brought following a crackdown by the US Immigration and Customs Enforcement agency.
- The agency claimed the TVShack.net website earned more than $230,000 (£147,000) in advertising revenue.
- US authorities obtained a warrant and seized the domain name in June 2010.
- It is thought Mr O'Dwyer will return to the UK with his family today.
Earlier this year Home Secretary Theresa May approved Mr O'Dwyer's extradition, which he appealed.
The UK government was happy to allow Richard's extradition to proceed, just like they have with others similarly accused of conduct in Britain, committed without ever setting foot in the US.
The Government is using a rotten law which was designed to bring fugitive offenders back to the place where a crime was committed, not for outsourcing our criminal justice system to another jurisdiction.
I feel very sorry for those people and their families who have not been as lucky as ours and who are still suffering under this rotten extradition law.
Richard O'Dwyer's deal with the US is "a first" in extradition cases, his lawyer has said.
Under the agreement, O'Dwyer must pay US authorities £20,000 and not break any US laws, "associate only with law abiding people" and work regularly in a lawful occupation.
So far as we know this is a first in extradition cases - and a sensible solution for UK defendants faced with an ever-growing extra-territorial reach of US prosecutions.
I expect this mechanism will be used by UK defendants in future US extradition cases now the precedent has been established and at least until the Government introduces the promised forum amendment into the Extradition Act 2003.
Richard O'Dwyer is very happy to put this behind him. He has avoided extradition and will avoid a conviction.
The solution reached is pragmatic and allows Richard to finish his final year at university and get on with his studies at a crucial time in his life. We are grateful that the US recognised it was in everyone's interests to find a practical solution.
A student who created a website that helped people to watch films and TV shows for free has reached an agreement to avoid extradition to the US over copyright infringement allegations.
Richard O'Dwyer from Chesterfield was facing extradition after allegedly earning thousands of pounds through advertising on the TVShack website.
He's now reached an agreement that involves travelling to the US and paying compensation, but avoiding a trial. As part of their campaign he and his mother had petitioned Leicester East MP Keith Vaz, Chair of the Home Affairs Select Committee.
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.