Dotcom unlikely focus of web freedom

Opinion

Kim Dotcom, aka Kim Schmitz, is a most unlikely poster boy for internet freedom. As well as a flamboyant self-promoting style, he has a long history of entrepreneurship verging on the edge of illegality and occasionally crossing over. Yet, his current legal difficulties and that of his website, Megaupload, are the centre of a storm regarding issues of the openness of the internet.

His arrest, the manner of it, the legal issues surrounding it and his status in New Zealand are all generating questions.

There is the grant of permanent residence in 2010, about which Mr Key's government is understandably embarrassed if not so understandably taciturn. Schmitz, who arrived in New Zealand in 2005 paid more than $10 million in government bonds and despite his convictions in Germany in 2000 for insider trading and embezzlement, was granted residence status, thus lending weight to F Scott Fitzgerald's aphorism: "The rich are different from you and me." In more ways than one, it turns out.

While the US government has received co-operation from a number of countries to freeze Dotcom's assets, he is able to afford the highest quality of legal representation.

This is as it should be, given the power of the US government arrayed against him. But don't expect the same legal services if you've just held up the local dairy. Or wandered off with someone else's flat-screen TV.

Acting in co-operation with the FBI, an organisation with a limited brief outside the US and a history of being politicised, the New Zealand police arrested Dotcom at his rented Coatsville mansion, owned by the founder of the "Christmas hamper" layaway business Chrisco. The latter had some interesting adverse publicity of its own last year. Never mind.

Despite the fact that his past criminal history and the present allegations of copyright infringement contain not a hint of danger to persons, Dotcom's arrest involved swat team tactics, including an aerial assault from a helicopter-borne team, fitting for an anti-terrorist operation. It's claimed Dotcom was found in a "panic room" inside his bedroom, in the presence of a sawn-off shotgun.

What isn't clear is the history of that room and whether it was constructed by Dotcom or the mansion's owner. What is clear is that selected details have been published, all to Dotcom's discredit. The actual details of evidence and proffers of proof in the extradition request made by the US government have not been made public. It's not clear that the judge in the case has been given the information as yet.

What is clear is that the shutting down of the website Megaupload, which he founded and which functions as a file-sharing, file storage, and alleged downloading site of copyrighted materials, caused havoc on the internet and ultimately affected the politics of the US.

That shutdown was cited as the precipitant for an internet-based protest that included the voluntary temporary closure of 7000 websites including the well-used Wikipedia. The protest was against the contemplated Stop Online Piracy Act (Sopa) and the companion Protect Intellectual Property Act (Pipa).

Supporters of these bills, included Rupert Murdoch and some music industry groups, contend they would protect intellect property, particularly against foreign websites. Opponents, including Google, say the proposed legislation inhibits free speech and innovation and is overbroad, allowing the government to shut down a site if only one page contains infringing material. The bills, if enacted, could result in worldwide, unprecedented web censorship.

The protest has been effective. The bills are now in limbo as even the Texas representative who sponsored Sopa has withdrawn his support.

Locally, there's been what anti-terror types call "collateral damage". People who uploaded treasured family photos to the Megaupload may have lost them.

Ironically, Dotcom lost his position as world's number one scorer in the game Modern Warfare: Call of Duty 3. He can't defend his position from behind bars and was recently bumped to No 2.

The irony here is that it takes obsessive dedication to become top scorer in a game which sold 15 million copies worldwide and the difficulty is increased by the number of free download copies Dotcom may have facilitated.