FileBox was a Flash applet that could be embedded onto any external webpage. It allowed users to upload content to Megaupload without having to visit the website itself or download the Mega Manager. Although incorporated in Hong Kong, the company did not operate in Hong Kong. From onward, users with Hong Kong IP addresses were banned from accessing the site.
The reason for the block was never disclosed by Megaupload, [22] but Hong Kong Customs officials have suggested that the block was an attempt to hinder law enforcement investigation. As of 23 May , access to Megaupload was intermittently blocked by the internet authorities in Saudi Arabia by their regulator Communications and Information Technology Commission. In July , access to Megaupload and Megavideo were blocked in India for Reliance Entertainment customers, [26] after a court order was obtained, citing illegal copies of the film Singham on file hosting sites.
On 19 January , U. For a short time after the closure of the site, users could access material via Google's web cache and The Internet Archive. One day after the indictment Google and Archive.
In January , MarkMonitor published a report entitled 'Traffic Report: Online Piracy and Counterfeiting', which said that Megaupload and Megavideo were, along with RapidShare, the top three websites classified as 'digital piracy', with more than 21 billion visits per year.
Megaupload Toolbar was said [ by whom? It was also said to contain spyware. When a file is uploaded to Megaupload and another file with the same hash is already found to exist, the uploader is asked if they would like to link to the already existing file.
Therefore, a single file may contain multiple links to it. This has caused some controversy, since when a DMCA takedown notice is issued only the link that was provided is removed; not necessarily the file itself.
Megaupload said that the video contained no infringing content, commenting: 'we have signed agreements with every featured artist for this campaign'. Federal Bureau of Investigation that the four be extradited for racketeering and money laundering. The crown argued against bail on the basis that he was a flight risk with a helicopter on his front lawn, while defence lawyers argued that the helicopter could not fly far enough to reach another country.
They also said that Dotcom denied any criminal wrongdoing. Judge David McNaughton expressed concern at the discovery of two shotguns at Dotcom's mansion during the police raid, [57] and deferred a decision on whether to grant bail, saying that he needed more time to review the submissions. Dotcom would flee jurisdiction and the possibility that if he reached Germany he wouldn't be extradited to face the charges'.
On 22 February , North Shore District Court Judge Nevin Dawson overturned the previous rulings and granted bail to Kim Dotcom, [61] saying that the risk of flight had diminished after his assets had been seized. On 5 March , a formal request for the extradition to the United States of Kim Dotcom and three other senior Megaupload staff was filed in a New Zealand court. The assets in 63 bank accounts and around thirty other vehicles remained in custody. The restraining order on his property was granted in April During April , US district court judge Liam O'Grady stated 'I frankly don't know that we are ever going to have a trial in this matter,' as he found out that the company had never been formally served with criminal papers by the US.
On 28 June , New Zealand High Court judge Justice Helen Winkelmann ruled that the search warrants used to raid the home of Kim Dotcom were invalid, saying 'The warrants did not adequately describe the offences to which they related. They were general warrants, and as such, are invalid.
On 10 July , a decision on whether Kim Dotcom and other Megaupload employees should be extradited to the United States was delayed until March , in order to allow further time for legal arguments to be heard. Key commented 'I expect our intelligence agencies to operate always within the law. Their operations depend on public trust. On 8 September , the Court of Appeal ruled that the New Zealand Police is to return seized electronic devices unencrypted back to Dotcom and those involved.
On 23 December , New Zealand judge Nevin Dawson ruled that Kim Dotcom, as well as three of his colleagues, can be extradited to the United States to face copyright infringement charges. Dotcom's lawyers said they would appeal the decision. The indictment [1] [73] alleged that Megaupload differed from other online file storage businesses. Media reports covering the case highlighted several points from the indictment used to support claims of illegal activity.
The indictment provided instances alleged to show criminal behaviour, as well as indicating design points of Megaupload's operating model as being evidence of criminal intent: [1].
Defense attorney Ira Rothken says that the raid was unjustly swift and did not give his client the opportunity to defend himself, quoting a similar case involving YouTube as an example of a completely different turnout. Legal commentators point out that while the indictment may be correct and Megaupload might have acted as a criminal conspiracy as said, a number of points in the indictment are based upon selective interpretations and legal concepts described in one article as 'novel theories' of the law [76] and could be challenged in court.
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