U.S. District Judge rules against Megaupload's motion to dismiss the criminal case against the file hosting website, as founder Kim Dotcom plans "comeback" with a new Mega website that is "90% done"
Megaupload faced a legal setback this week as U.S. District Judge Liam O'Grady ruled against a motion calling for the dismissal of the case.
Lawyers for embattled file hosting website Megaupload has asked for the criminal case against the company to be dismissed due to the fact that Megaupload did not have any offices within the United States. However, Judge O'Grady confirmed the federal prosecutor's assertions that they do indeed have authority to prosecute Megaupload violating the country's laws. "It is doubtful that Congress would stamp with approval a procedural rule permitting a foreign corporate defendant to intentionally violate the laws of this country, yet evade the jurisdiction of the United States' courts by purposefully failing to establish an address here," O'Grady wrote in his court ruling.
However, O'Grady also left a door open for Megaupload's lawyers to continue seeking the dismissal of the case until charging documents are delivered to Megaupload, in accordance with federal court laws. The delay in presenting the charging documents could provide ammunition for the argument that Megaupload has been denied due process.
"Although he deferred a final decision on whether the case should be dismissed permanently until after the extradition process in New Zealand is completed, he made it clear he will consider dismissing the case now on a temporary basis," said William Burck, one of the lawyers representing Megaupload in the case.
Meanwhile, Megaupload founder Kim Dotcom confirmed that a 'New Mega' website is near completion, news that will no doubt annoy US prosecutors.
Dotcom claims via Twitter the new website aimed at disrupting the current music distribution models, Megabox, is "90% done" in terms of programming, and that "Lawyers, Partners & Investors" are ready and waiting. Dotcom also assured still loyal fans that Megabox won't face the same fate as Megaupload. "That will be IMPOSSIBLE. Trust me!" posted Dotcom on Twitter when asked this question.
Megabox aims to allow artists to sell directly to fans, with artists getting 90% of the revenue, and bypassing the recorded music industry in the process, the very industry that was very likely one of the key backers behind the Megaupload legal actions.
These latest statements from Dotcom follows the upload of promotion and a "making of" video for Megabox that Dotcom posted to his YouTube account a few weeks ago.
A precise launch date has not been revealed so far for Megabox.
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