You are quite correct and I have read the case many times. Linking is not illegal in the UK when you are not involved with the transmission of the information and most importantly, do not modify it.
However, the E-commerce directive, which the UK regulations spring from, contains an extra provision:
I believe it was argued in the TV-links case that adding categories such as DVDRip or DVDSCR, could amount to a form of collaboration. Essentially it was argued that they knew and allowed people to share copyright material, even if it was only through linking. In fact, the only reason the people in the tv-links were acquitted was because of the judges failure to properly apply EU law. Even if that wasn't submitted in the case (I will check later), it would certainly be an argument brought up in any future prosecution of the same kind.
However, the E-commerce directive, which the UK regulations spring from, contains an extra provision:
(44) A service provider who deliberately collaborates with one of the recipients of his service in order to undertake illegal acts goes beyond the activities of "mere conduit" or "caching" and as a result cannot benefit from the liability exemptions established for these activities.
I believe it was argued in the TV-links case that adding categories such as DVDRip or DVDSCR, could amount to a form of collaboration. Essentially it was argued that they knew and allowed people to share copyright material, even if it was only through linking. In fact, the only reason the people in the tv-links were acquitted was because of the judges failure to properly apply EU law. Even if that wasn't submitted in the case (I will check later), it would certainly be an argument brought up in any future prosecution of the same kind.