The High Court denied him leave to appeal to the Court of Final Appeal, but he was bailed for HK$5000 on 3 January 2007 to seek leave for appeal at the CFA (leave can be granted by either the High Court or the CFA). On 7 February, the CFA granted him leave. Oral arguments were held on 9 May 2007. Chan's lawyer said the word "copies" only refers to tangible objects like CDs and tapes. Digital files don't count. He also said that UK law distinguish between the two by having separate "Distribution Right" for tangible objects and "Communication Right" for intangible files. Also, it is the downloader that initiated the transfer, thereby copying the work. Chan merely put it on the net. The government's lawyers disagreed. The decision is reserved.