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Megaupload founder Dotcom will face new charges if he launches new file-sharing service

The agency questions Dotcom's plans to launch a service similar to Megaupload

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Megaupload founder Kim Dotcom could violate the terms of his bail, or face new criminal charges, if he launches a new file-sharing and storage service as planned, the US Department of Justice said in a court filing this week.

Dotcom, who said earlier this month he plans to launch a service called Mega, would renege on assurances he made to a New Zealand court before he was granted bail in the DOJ's copyright infringement case against him and Megaupload, the DOJ said in a court document filed late Wednesday.

"Defense Counsel's claim that the corporate defendant can and should be allowed to operate undermines the sworn statements of Dotcom that he has no plans or ability to continue to operate or fund the businesses in the Indictment during pendency of the extradition process," the DOJ's lawyers wrote in a court filing opposing a motion by Dotcom's lawyers to dismiss the case against Megaupload. "If defendant Dotcom intentionally misled the court in New Zealand about his intentions and capabilities in order to obtain his release from pre-extradition confinement, it seems Defense Counsel's representation might endanger Dotcom's bail situation or even subject him to additional charges."

Dotcom, in a January affidavit given in New Zealand, said he had no plans to relaunch Megaupload or a similar service until the DOJ's case against him is resolved.

"There is no realistic prospect or possibility of restoring the business or recommencing the business having regard to both the seizure of the requisite servers and data storage equipment and to the seizure of all funds, monies and assets held both by Megaupload and by me personally," he said then."Further, it is likely that users would consider any new iteration of Megaupload as inherently unreliable as it could be subject to a further incident in which the US government takes action to close the site down and thereby prevents users from having legitimate access to their data."

Ira Rothken, a lawyer representing Dotcom and Megaupload, dismissed the DOJ's assertions. Dotcom has a "top-notch" legal team in New Zealand working with the court there to assure that he complies with the terms of his bail, Rothken said.

The DOJ's suggestion that Dotcom could face new criminal charges lacks merit, he added.

"It sounds like the United States is attacking a technology before they fully investigate it," Rothken said. "This looks to be the second time they're doing that. Kim Dotcom is innocent, and he's entitled to be involved in technology and business."

The DOJ has accused Dotcom and Megaupload of running a massive file-sharing operation infringing the copyrights of many US companies. In January, the agency seized the website and charged Dotcom and three other executives with conspiracy to commit racketeering, copyright infringement and money laundering.


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Corbs said: Defense Counsels claim that the corporate defendant can and should be allowed to operate undermines the sworn statements of Dotcom that he has no plans or ability to continue to operate or fund the businesses in the Indictment during pendency of the extradition process the DOJs lawyers wrote Dotcom NEVER actually stated that he wouldnt operate or fund etc in his affidavit he actually stated that he couldnt There is big difference between wouldnt and couldnt and the DOJ as per usual cant tell the difference and claim what they think rather then what Dotcom statesThis whole arguement of the DOJ will certainly blow up and backfire in their face if it transpires that this new company is in fact signed up and run in someone elses name and that Dotcom is going to launch the new company in the same manner as a mayor does in launching a new ship at the dock As long as Dotcom is not signed as a member employer or employee of the company and the company is run by and in the name of other people then he hasnt broken any laws and the DOJ will have egg on their face in claiming something that they once again they have no evidence of or cannot prove When the case against Megaupload has finished in the US and NZ then there is nothing in law for the people of the new company to sign the new company over to Dotcom

GoGoMegaDotcom said: Lay off the meat amp dairy KimWe dont want you dying of a heart attack before youve won this battle against the corrupt US gov

Barxalot said: New US policy Guilty until dissolved and prevented from proving innocent

Matt Hickman said: I expect this kind of intimidation and thuggery from the Mafia not from a US government agency whose purpose is to serve and protect This is sheer arrogance

01566 said: This is just bluster and intimidation by the DoJ who have already proved they do not understand due process and NZ law they are also having trouble understanding the difference between a company and a person His lawyers in NZ will have cleared his activities with the NZ judges who are deciding the case They are the ones that matter not the US DOJ and the DOJ should mind its manners if it wants to win the extradition case We should note the NZ prosecutors have not made any wild claims like those in this story

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