The Appellate Court backed a verdict by a lower court in October last year that saw 45-year-old Jimmy Sjostrom fined 20,000 Swedish crowns ($2,843) for infringing intellectual property rights by sharing four music files.
The International Federation for the Phonographic Industry (IFPI) hailed the conviction as a boost for intellectual property protection and said it could act as a deterrent.
"The verdict only concerns four songs and it costs the one sentenced about 20,000 crowns in fines--that is 5,000 crowns per song," IFPI said in a statement.
"Illegal file-sharing is thus expensive when there are legal and cheap alternatives available over the Internet today," IFPI added.
The legal action is part of a carrot-and-stick approach by the industry, which is pushing cases against illegal file-sharers while promoting legal music services.
movie and music files from the Internet illegal only in 2005 after having been by Hollywood.
But the Pirate Party, a political group that wants Sweden to re-legalize file-sharing, also claimed the verdict as a success--saying it meant Swedish police would have a hard time finding file-sharers since they could only access Internet records for a crime that carries a jail sentence.
"The verdict confirms that the penalty for file-sharing in Sweden today is a fine," the group said in a statement.
"For trifling crimes such as file-sharing, they are instead obligated to uphold their customer's right to anonymity," the group added.