The real purpose of a protest against cartoons of the Islamic Prophet Mohammed was to encourage terrorism
Alleged protest organiser Abdul Muhid urged people to commit "terrorist killing", the Old Bailey was told.
The court heard Mr Muhid led the crowd chanting "bomb, bomb the UK" and produced placards with slogans.
Mr Muhid, 24, of Stoke Newington, north London, denies two counts of soliciting to murder at the demonstration in central London on 3 February last year.
The protest involved hundreds of people who marched from Regent's Park mosque to the Danish embassy in Knightsbridge.
It was one of many demonstrations across Europe and the Middle East against cartoons of the Prophet Mohammed, which were first published in Denmark.
The court heard that at the London protest the slogans included "annihilate those who insult Islam", "fantastic four are on their way" and "3/11 is on its way".
The latter two referred to terrorist attacks in London and Madrid, the jury heard.
David Perry QC, prosecuting, said: "The drawings of the Prophet had not appeared in any UK newspaper.
"This was supposed to be a demonstration against the publication of the drawings in the newspapers abroad.
"This behaviour shows what the demonstration was really about. It was an exhortation, an encouragement to terrorism."
Mr Perry added that the slogans were designed to "intimidate and frighten and also encourage terrorist killing".
"That is what the prosecution case is, that this defendant was in fact exhorting people to terrorist killing," he said.
The jury was told that Mr Muhid took part in the burning of a Danish flag which had been soaked in an accelerant.
There were no arrests during the protest, but instead police took video recordings to decide on evidence of any criminal offences.
Video footage seized from the mosque showed Mr Muhid carrying placards into the building courtyard, Mr Perry said.
He was also seen wearing a jacket with the slogan "soldier of Allah".
UK: Muslim Found Guilty Of Inciting Racial Hatred