Smoke rebel Hamish Howitt has become the first licensee to be convicted of flouting the smoking ban.
Howitt, owner of Delboy's Sports Bar which incorporates Happy Scot karaoke bar in Blackpool, pleaded guilty to 12 offences of allowing smoking.
He was fined £500 and ordered to pay £2,000 costs. There was a £15 surcharge to help victims of crime.
As far as I am concerned my customers can carry on smokingHamish HowittBlackpool licensee
Last week, Howitt put his freehold pub on the market for £600,000.
He is also facing a premises licence review, which was delayed a month, to allow health and safety improvements to be made.
Howitt told the MorningAdvertiser.co.uk: "This doesn't change anything. My favourite films when I was a kid were the Carry On films starring Barbara Windsor and Syd James. Well, as far as I am concerned my customers can carry on smoking."
Howitt said he had refused in court to sign an undertaking to take down political pro-smoking banners at his pub.
"I am proud of what I am doing. There is so much apathy in our world because people don't believe they can change the system.
"My political and social conscience will not allow me to change. As long as I have the pub, smoking will continue."
District Judge Peter Ward told Howitt: "I suggest your campaign has been silly, pointless and misguided. It has achieved nothing. All it seems to have done is cause a great deal of problems for yourself.
"I do not intend to make a martyr of you by imposing swingeing penalties."