David Fisher

David Fisher is a senior reporter for the NZ Herald.

Dotcom says his case hurting NZ

Entrepreneur tells party guests about his extradition battle and vows to win it.

Kim Dotcom speaks to guests at the party at his mansion. Photo / Supplied
Kim Dotcom speaks to guests at the party at his mansion. Photo / Supplied

Kim Dotcom has held the first party at his mansion since his arrest, telling 100 entrepreneurs that the case against him was hurting New Zealand's economic success.

In a half-hour speech, Dotcom spoke of his fight against extradition to the United States on charges of criminal copyright violation and his business plans for the future.

The story - from teenage hacking exploits to current struggles - earned applause from guests asked to sign confidentiality agreements. Guests included Slingshot founder Annette Presley, bankrupt property developer Andrew Krukziener, "botox queen" Dr Cat Stone, and socialite and marketeer Gilda Kirkpatrick. Dotcom invited the Herald to attend.

The party was organised by the New Zealand chapter of the international Entrepreneurs' Organisation.

The mansion at Coatesville, north of Auckland, estimated to be worth $30 million, has not hosted a party since police raided it in January to arrest Dotcom at the request of the FBI.

Dotcom has forged relationships in the business and society communities, mentoring small business projects through knowledge and networks.

He spoke of his early entry to computer hacking after getting his first computer aged 11.

"It gave me an enormous kick. It became very addictive to go into these places and learn things you're not meant to learn."

He detailed his hacking-related arrest and subsequent insider trading charge - convictions which were wiped under Germany's "clean slate" law - before talking about how Megaupload came to be created.

He said the backdrop to the January raid was Hollywood's lack of success in getting laws passed which would have unreasonably interfered with the freedom on the internet.

"The internet rebelled and said we don't want you to have this kind of power on our internet."

The file-sharing internet site drew 4 per cent of internet traffic at the time it was shut down in an FBI raid.

"It is a significant internet property which has been taken down and destroyed without a trial.

"New Zealand, unfortunately, is right in the middle of it. This Government went quite far to assist the US.

"The problem is not New Zealand. The problem is not the New Zealand police. It is a handful of people who got over-excited."

Dotcom spoke about two business plans which he expected to provide income to continue fighting the charges. One continued earlier plans to cut record companies out of the revenue stream for musical artists.

The other was a new filesharing business called Mega, which he said could revolutionise privacy online.

It would allow users one-click encryption at their desktop, shutting out corporate and Government interference by shielding their material behind an impenetrable code.

He said the design was such it also excluded him and others at the company from accessing uploaded material.

"Encryption on the fly" meant it was an uncomplicated "one-click" process and could be adopted by any internet user.

Asked how he was coping with the charges against him, he said: "It's hard. I'm fighting the most powerful force on the planet. They didn't even need to use the law. They used guns. They came here and took me out like I was Osama bin Laden."

He praised wife Mona as his "hero" for coping while he was in prison.

"We are not going to get extradited. We are going to win this because we have the law on our side."

- NZ Herald

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