According to a report on the BBC website five people have been arrested, accused of selling set-top boxes modified to stream subscription football matches, television channels and films for free.
The five traders were arrested in early morning raids.
It is believed that the suspects had made in the region of £250,000 selling the devices online.
Kodi is free software built by volunteers to bring videos, music, games and photographs together in one easy-to-use application. The developers behind Kodi say their software does not contain any content of its own and is designed to play legally owned media or content "freely available" on the internet.
Kodi software turns compatible devices into a "media centre" and is not illegal. However, the software can be modified with third-party add-ons that provide access to pirated copies of films and TV series, or free access to subscription television channels.
The five arrests were made in Bolton, Bootle, Cheadle, Manchester and Rhyl.
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