LANDLADY LOSES TV LEGAL BATTLE

But two senior judges gave Karen Murphy, who runs the Red White and Blue pub at Southsea, Hampshire, one last chance to win her case by relying on European Community legislation.

Mrs Murphy, who used the foreign service rather than the more expensive domestic broadcaster BSkyB, argued that she did not commit a crime under UK laws designed to prevent criminal copyright theft.

But Lord Justice Pumfrey, sitting with Mr Justice Stanley Burnton, dismissed her appeal at the High Court in London.

The judge said BSkyB had the exclusive right to screen, or broadcast, the football matches in question in the UK and it was "apparent" that Mrs Murphy knew that was the case.

However, the judge said the court had not heard argument on whether European Community single market rules on free movement and competition might affect the position.

The court granted Mrs Murphy permission to reopen the appeal for further argument to decide those issues at a one-day hearing in January.

The case is being watched by thousands of publicans all over the country, many of whom have also been warned they could be showing matches illegally.

The court's ruling so far against Mrs Murphy was welcomed by the FA Premier League, which says licensed premises are prohibited from screening matches without a valid agreement with BSkyB.

Premier League spokesman Dan Johnson said: "We hope that publicans and others will now heed the advice of the courts and accept that the use of foreign satellite systems to screen Premier League football in the UK is copyright theft pure and simple."