In April, the EU Court of Justice ruled that the sale of media players deliberately pre-loaded with links to copyrighted content is illegal.
Kodi says its team is pleased with the decision, but will not prevent users from accessing pirate streams through its software.
Nathan Betzen, a Kodi community and project manager, said in a blog post: "We still stand by our neutral policy. We are developers and not the police, and we have no interest in acting as police for our own software.
"Kodi will remain as free and as open as it always has. Feel free to continue using Kodi however you want. To us Kodi is and always will be just a tool, like a hammer, and how you choose to use that tool is up to you.
"We do ask that if you decide to use Kodi in a way that's illegal, please leave us out of it. People who steal cars don't tweet a picture of their stolen car to Ford Motor Co. We ask that if you watch pirate streams, that you not tweet us about those streams."