I know for a fact that Winter's Roar was hosted on a server in the USA and the ISP was hit with a copy of the C&D letter and they pulled the server.
Winter's Roar was reborn on a server outside of the USA as Shards of Dalaya.
It is possible for the ISP to be intimidated by a game company. They'll roll over in the blink of an eye if a company comes after them. ISP's don't want that kind of headache. I'd do some research on server hosting in Sweden.
