The anti-pirate organisation The Rights Alliance sent the letter to the Pirate Party, threatening to take the political party to court if it did not stop giving the filesharing website use of its broadband connection.
The party was given a Tuesday deadline to answer the ultimatum and this morning it published a statement saying that Pirate Bay is leaving Sweden.
"For every cable that is cut we open two new ones," says Pirate Party chairperson Anna Troberg to news agency TT. She added that the move will only make Pirate Bay stronger.
She told Radio Sweden the party was now considering reporting the Rights Alliance to the police for illegal coersion for the letter.
Meanwhile, Sara Lindbäck, lawyer at the Rights Alliance organisation, says they welcome the decision to stop giving net access to the Pirate Bay, but have no comment on the possible legal retaliation by the party.