After an appeal which further increased the amount of damages to be paid, together the quartet owed 46 million kronor ($6.99m) to their movie and record company plaintiffs.

Interest has been accruing since the raid against The Pirate Bay on May 31, 2006 and by February 2012 the total owed had reached 73 million kronor ($11.09m). By September 2012 another 3 million kronor had been added and now, 8 months later, the position has worsened by a similar amount.

The founders of the site have always insisted that their adversaries won’t see a penny but the situation for former financier Carl Lundström has always been a little more complex.

At one point Lundström was rich. He made a small fortune in the 1980s when the Wasabröd family crispbread business was sold for around 77 million kronor ($11.7m). He later added another $5.32m when he sold his telecoms company Port80 but other less profitable business deals over the next 15 years saw the entrepreneur lose around $7.5m.

In 2008, Lundström went to live in Switzerland, briefly returning to Sweden last year to sit out a four month sentence.

While his debt to the state is now served, to date Swedish authorities have found just 233,000 kronor ($35,400) belonging to Lundström to put towards his damages bill. According to Sonntags Zeitung, Lundström currently lives in a three story house on Lake Zurich with a Cadillac sitting outside. The publication claims that the businessman previously transferred all of his possessions to his wife Bettina.

Apparently flat broke, last year Lundström filed for bankruptcy in Switzerland. That process is nearly complete.

“It is expected to close in the coming weeks,” says Heiner Scheuble from the Rapperswil Prosecution Office.

The 53-year-old’s financial plight has also attracted the attention of Hollywood who are listed as creditors in his bankruptcy and keen to recover money.

“We are well aware of the various stages of Lundström’s process,” says Sabine Henssler, spokeswoman for the Motion Picture Association.

However, the bankruptcy process is still not complete. Investigations into the former Pirate Bay financier’s business dealings continue in the light of earlier revelations that he had money hidden away in the Liechtenstein Global Trust Bank.

The money was found after German authorities bought confidential customer data from an ex-employee at the bank, which in turn generated a response from Swedish tax authorities.

“We have asked Mr. Lundström for 700,000 kronor ($106,250) in additional taxes for the years 2004 to 2007,” a spokesperson said.

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“We do not accept the Appeal Court’s ruling,” Lundström’s lawyer Per E. Samuelsson told Swedish radio when confirming his client would take his case to the Supreme Court.

It is claimed that Lundström, who is the millionaire heir to the Wasabröd crispbread empire, provided computers, bandwidth and server rackspace for The Pirate Bay in its early days through his company Rix Telecom. He rejects the decision of the Appeal Court on a number of grounds.

Firstly, Lundström questions why The Pirate Bay should be held liable for promoting infringements when other Internet services, such as Google, can be viewed as doing the same.

Lundström also writes that the prosecutor has failed to prove that he operated “jointly and in concert” with others in respect of any crimes potentially carried out via The Pirate Bay.

According to Realtid, Lundström says the Court of Appeal’s conclusion, that he must’ve known that his company had provided equipment free of charge to The Pirate Bay, is wrong. He insists he had no knowledge of any such arrangement.

But above all, Lundström insists that since he was a provider of bandwidth to The Pirate Bay, he must therefore have been their Internet service provider.

“Assessing the criminal responsibility of ISPs should be the target key precedent in this case,” he explains.

Lundström wants the Supreme Court to consider if an ISP should be held liable for assisting in crimes committed by their customers. His lawyer, Per E Samuelson, says that to his knowledge no one has ever been found guilty on this basis before.

The appeal lodged by Lundström also questions the huge damages awarded by the Appeal Court against him. As an ISP with no knowledge of the alleged infringements, he feels a share of $6.5 million in damages is excessive.

It is believed that Fredrik Neij and Peter Sunde will also file appeals with the Supreme Court in due course.

The fourth defendant, Gottfrid Svartholm, is behind in the process due to illness. His case will be handled by the Appeal Court at a later date.

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Lundström is the grandson of Karl Edvard Lundström who founded the famous Wasabröd company in 1919. Carl Lundström inherited a large sum of money from his father who died in 1973.

He started several companies, including Rix Telecom (Port 80) which sold colocation space and bandwidth to The Pirate Bay’s former hosting company PRQ.

Lawyer Per E Samuelson refuted claims from the prosecution that his client was actively involved in financing the Pirate Bay. In the fall of 2004, Carl Lundström met with Fredrik Neij at Dreamhack, who introduced him to the The Pirate Bay website, the lawyer said. This was after the website was founded.

Lundström later hired Neij as an employee for Rix Telecom in Gothenburg, the lawyer explained. The two made a deal to cut the wage of Neij in half in exchange for rack-space in the Rix Telecom datacenter where The Pirate Bay’s servers were placed. According to the defense, there was a verbal agreement that The Pirate Bay would eventually pay for itself.

In the hour that followed, Lundström’s lawyer disconnected his client even further from The Pirate Bay. Among other things, he presented an agreement between the three other defendants, an Israeli businessman and an advertising company. The agreement related to The Pirate Bay’s operation but didn’t include Lundström.

The rest of the morning was spent discussing Lundström’s (dis)connection to The Pirate Bay. No mention was made about the legality of the site itself or any of the crimes that the defendants are charged with.

The Appeal Court announced a lunch break at 11:45. After the lunch a video of the interrogations of defendant Gottfrid Svartholm at the District Court was played. The appeal will not question any of the defendants during the appeal, except from some additional questions to Fredrik Neij who was not present today due to illness.

During the interview the prosecution emphasized the financial issues, and specifically the link with the Israeli businessman who handles the ads. When asked if Gottfrid was in charge of ad sales he answered: “No, I tried to get away from that because of time issues. I had a business to run before you came and took it all away.”

The prosecution further questioned Gottfrid about moderation issues, replies to copyright holders and his involvement in developing the site. The prosecutor pushed hard on whether Peter Sunde had worked on the layout and graphics for the site. “To my knowledge, he is neither designer nor graphic artist,” Gottfried replied.

Movie industry lawyer Monique Wadsted later asked Gottfrid how they handle torrents that (allegedly) link to child porn. He said that in such a case they would inform the police.

She then asked if they removed those torrents. He said “some”. “Not all?” was Wadsted’s reply. Gottfrid explained that it is not up to them to investigate crimes, but that they do inform the police. “We can’t do investigations of our own. And if the police say we should remove a torrent, we will,” he said.

When asked about the revenue The Pirate Bay made Gottfrid said that the figure of 1.2 million Swedish Krona that the prosecution estimated could be right, but that would be before any bills were paid.

Gottfrid further said that Peter Sunde has nothing to do with technical administration, design, layout, ad sales or any hands-on stuff with the site. He’s just been a spokesperson for The Pirate Bay. “Neither me or Neij work well in furnished rooms. Peter was better on the verbal issues and media,” he said.

The video ended around 15:30 and he trial continues on Monday.

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