NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / New Zealand

Hollywood studios sue Megaupload and Dotcom

APNZ
8 Apr, 2014 03:10 AM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Kim Dotcom. Photo / Brett Phibbs

Kim Dotcom. Photo / Brett Phibbs

Kim Dotcom's New Zealand lawyer says court papers regarding legal action by seven major Hollywood movie studios against the internet mogul are yet to be served.

Paul Davison, QC, told APNZ the only details available to Dotcom's camp about the copyright infringement lawsuit, spearheaded by the Motion Picture Association of America (MPAA) and announced this morning (NZT), were ones reported in the media.

Major studios 20th Century Fox, Disney, Paramount, Universal, Columbia Pictures and Warner Bros filed claims in the Virginia federal court.

Dotcom is personally named in the indictment, which claims Megaupload and its key operators "facilitated, encouraged, and profited from massive copyright infringement of movies and television shows" before it was shut down in 2012.

He is already facing extradition to the United States on criminal copyright and racketeering charges in relation to the now defunct file sharing website.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Mr Davison said Dotcom's American legal team would be defending the claim against him and Megaupload.

"None of the papers for the claim have been received. All that's known is what that's been in the media so far.

"The claim that there is civil liability is obviously contested.

Advertisement
Advertise with NZME.

"The fundamental position that's been adopted [is] that there is no liability by Mr Dotcom and his business to the copyright owners, that he wasn't a party to copyright infringement and his company has no liabilities to those parties.

"Obviously, the proceedings will be defended, but they're being commenced in the US and they'll be defended by US lawyers engaged by the company and by Mr Dotcom and the others," he said.

As well as Dotcom, Megaupload, majority shareholder Vester Ltd, chief technical officer Mathias Ortmann, and programmer Bram van der Kolk were named as defendants in the claim filed through MPAA.

Both Mr Davison and Prime Minister John Key said news of the lawsuit had not come as a surprise.

Discover more

Opinion

Chris Barton: Kim Dotcom's quest for power

31 Mar 08:30 PM
Opinion

Paul Thomas: Anti-politician image lets Dotcom duck real criticism over Nazi buy

04 Apr 03:15 PM
New Zealand|politics

Dotcom to speak at Mana AGM

06 Apr 07:42 AM
New Zealand|politics

Internet Party applies to register as political party

07 Apr 04:17 AM

"The proposition that has underpinned the criminal proceedings is that there was a breach of copyright.

"So if that can be proven, you would expect liability to be sought to be established by the copyright holders themselves, and that's what's happening," Mr Davison said.

Mr Key said: "There's obviously been quite a dispute going on about intellectual property and whether that intellectual property's been paid for; that's the basis of the case that the Americans are taking against Dotcom.

"Essentially it's about whether people pay for intellectual property or whether it's ultimately used in what is claimed to be illegally. That's the whole issue about the internet and those sites," he said.

MPAA global general counsel Steven Fabrizio said in a statement Megaupload was "by all estimates the largest and most active infringing website targeting creative content in the world" when it was shut down in 2012.

"Infringing content on Megaupload.com and its affiliates was available in at least 20 languages, targeting a broad global audience. According to the government's indictment, the site reported more than US$175 million in criminal proceeds and cost US copyright owners more than half a billion dollars."

Advertisement
Advertise with NZME.

The companies are seeking profits and maximum statutory damages.

Megaupload was built on an incentive system which rewarded users for uploading the most popular content on the site, "which was almost always stolen movies, TV shows and other commercial entertainment content", Mr Fabrizio continued.

"Megaupload wasn't a cloud storage service at all, it was an unlawful hub for mass distribution.

"To be clear, if a user uploaded his term paper to store it, he got nothing ... But if that same user uploaded a stolen full-length film that was repeatedly infringed, he was paid for his efforts.

"That's not a storage facility; that's a business model designed to encourage theft - and make its owners very rich in the process.

Dotcom has criticised the lawsuit on twitter, saying: "Files above 100MB filesize did not earn rewards on #Megaupload. Hollywood claims that we were paying users to upload pirated movies. Stupid."

Advertisement
Advertise with NZME.

Dotcom's legal battles

Copyright accused:
Kim Dotcom and six others who worked on Megaupload face charges of copyright infringement, money laundering and racketeering in the US based on claims they encouraged users to upload popular content. The group deny the charges, saying they simply ran a cloud storage site.

Deportation:
To get Dotcom to the US, the FBI needs to have him deported from New Zealand. The hearing was initially set for months after his January 2012 arrest but delays mean it is now set for July.

Search warrant appeal:
The search warrant used to execute the January 2012 raid for the FBI has been found unlawful by two courts and then lawful by another. Dotcom's lawyers have asked the Supreme Court to review the decision. The Crown also wants it to review a finding FBI agents shipped cloned hard drives offshore in breach of a court order.

Damages:
The various blunders and bungles in the case sparked a damages hearing. Dotcom is seeking $6m. The hearing was meant to be happening this month but is now delayed until the end of the year.

Proceeds of crime:
The restraining orders which saw Dotcom's wealth and property in New Zealand seized are due to expire on Good Friday. A hearing next week will decide if they should be extended.

Advertisement
Advertise with NZME.

John Banks prosecution:
Dotcom is a key witness in the prosecution of Act MP John Banks under electoral law, which is being heard in May.

MPAA civil case:
The six major Hollywood studios are now suing Dotcom and Megaupload in a civil action which mirrors the allegations underlying the FBI charges.

Save

    Share this article

Latest from Business

Construction

Fletcher, Acciona settle Puhoi motorway dispute

22 Jun 10:04 PM
Telecommunications

Spark bags $47m windfall

22 Jun 09:42 PM
Premium
Property

'Pallet hotel' - Foodstuffs South Island boosting frozen storage by more than 200%

22 Jun 09:00 PM

Audi offers a sporty spin on city driving with the A3 Sportback and S3 Sportback

sponsored
Advertisement
Advertise with NZME.

Latest from Business

Fletcher, Acciona settle Puhoi motorway dispute

Fletcher, Acciona settle Puhoi motorway dispute

22 Jun 10:04 PM

Fletcher Building says it will gain $56 million from the Puhoi motorway settlement.

Spark bags $47m windfall

Spark bags $47m windfall

22 Jun 09:42 PM
Premium
'Pallet hotel' - Foodstuffs South Island boosting frozen storage by more than 200%

'Pallet hotel' - Foodstuffs South Island boosting frozen storage by more than 200%

22 Jun 09:00 PM
Premium
Foodstuffs South Island’s new $28m automated freezer distribution centre

Foodstuffs South Island’s new $28m automated freezer distribution centre

Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP