A trader has admitted two charges relating to selling TV boxes which allow free access to premium content such as sports channels and movies.
Shop owner Brian Thompson, 55, had originally denied the offences and set up the prospect of a landmark court case relating to the sale of Kodi boxes.
Judge Peter Armstrong told the businessman, who runs Cut Price Tomo's TV store in Middlesbrough, that all sentencing options will be open when he deals with him next month.
Thompson, of Barnaby Avenue, Middlesbrough, appeared atTeesside Crown Court to admit one count of selling and one count of advertising devices "designed, produced or adapted for the purpose of enabling or facilitating the circumvention of effective technological measures".
He was granted unconditional bail ahead of his sentencing on October 20.
Judge Armstrong told him: "I don't know what the sentence will be, all options to the court will be open."
As he walked away from court Thompson said he had never denied selling the boxes, but said customers had to adapt them themselves to gain access to premium content for free.
He has previously told reporters: "All I want to know is whether I am doing anything illegal. I know it's a grey area, but I want it in black and white.
"I'm prepared to accept what the court decides, but at the moment as far as I'm concerned I'm not breaking the law."