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Kim Dotcom Sues New Zealand For $6.8 Billion In Damages Over Erroneous Arrest (torrentfreak.com)

An anonymous reader quotes a report from the BBC: Kim Dotcom, the founder of file-sharing site Megaupload, is suing the New Zealand government for billions of dollars in damages over his arrest in 2012. The internet entrepreneur is fighting extradition to the U.S. to stand trial for copyright infringement and fraud. Mr Dotcom says an invalid arrest warrant negated all charges against him. He is seeking damages for destruction to his business and loss of reputation. Accountants calculate that the Megaupload group of companies would be worth $10 billion today, had it not been shut down during the raid. As he was a 68% shareholder in the business, Mr Dotcom has asked for damages going up to $6.8 billion. He is also considering taking similar action against the Hong Kong government. As stated in documents filed with the High Court, Mr Dotcom is also seeking damages for: all lost business opportunities since 2012, his legal costs, loss of investments he made to the mansion he was renting, his lost opportunity to purchase the mansion, and loss of reputation.

34 of 216 comments (clear)

  1. Bring it on big guy. by MoaDweeb · · Score: 5, Interesting

    Yeah the Police didn't have a valid warrant, spied on him illegally and chucked his MittleEurope ass in pokey.

    That's all fine 'cos they were doing the bidding of The Mouse and our Govt was only too keen to dry hump the US Govt's leg.
    Got one of our previous Prime Minister's a number of golf games with ex-Pres. Obama though.

    However I think his chance of getting through or not being deported are slim. Although he has seen off 2 PMs thus far maybe he will see off a third?

    --
    New Zealanders are well balanced with a chip on each shoulder. One represents Australia, the other the rest of the world
    1. Re:Bring it on big guy. by Anonymous Coward · · Score: 3, Insightful

      He pissed off the wrong people. He is learning that justice is a farce. It doesn't matter how right he is, he will receive none, and will only delay the roasting they have every intention of giving him.

      This is how power actually works in the real world. You get pretensions of justice if you basically follow the rules and don't piss off any of the people who actually matter.

      Apart from that, you are cattle, and will be treated as such.

    2. Re:Bring it on big guy. by Anonymous Coward · · Score: 2, Insightful

      lol. great! let him get paid so he'll be forced to pay it all to microsoft, etc, when they sue him for damages for piracy that WE ALL KNOW he helped commit.

      Are you forgetting that he didn't violate the laws in his own country, or do you just not care?

    3. Re:Bring it on big guy. by MoaDweeb · · Score: 5, Interesting

      However the NZ Govt did illegally clone a whole bunch of servers etc. and send them to the US.
      Whilst -as has been correctly pointed out- breached no New Zealand laws and the Fat German (who at the tome was a NZ resident and now citizen BTW) had never been to the US.

      To be fair this is not really an Obama thing but more a Joe Biden thing. Apparently he is the one in the pocket of Big Media but Obama still gave the go-ahead and played golf with his mate John Key.

      Interesting that the right-wing party in NZ -National- has so much in common with the Democrats, putatively the US 'left'.
      Our main 'left' party (Labour) is the one that ate all the free trade bullshot of Thatcher and Reagan back in the late '80s.

      --
      New Zealanders are well balanced with a chip on each shoulder. One represents Australia, the other the rest of the world
    4. Re: Bring it on big guy. by mSparks43 · · Score: 4, Insightful

      You have the wrong folk hero. Kim Dotcom ran a competitor to dropbox, not thepiratebay.

    5. Re:Bring it on big guy. by rtb61 · · Score: 2

      The high court is New Zealand is hugely different to the corrupt US top court where all sorts of paid for fanciful interpretations are allowed. The high priest of law system is in place ie the judges are scrupulous on the letter of the law interpretation, not happy rewrite the law, don't try to get us to corruptly interpret it like the US. So it would not have lasted any where near this long, if the New Zealand government was not fucked and knew it and was extending it out to forgotten history and a reasonable payout whereby the US governments foots the bill.

      It was shit from the beginning and now the New Zealand government is stuck with the mess, their back legs stuck in US gumboots and the US riding them for all they are worth. Probable easiest route, stick it to the US, allow Kim to sue the US government through the New Zealand government and let it go a bunch more years.

      --
      Chaos - everything, everywhere, everywhen
    6. Re:Bring it on big guy. by sg_oneill · · Score: 3, Informative

      The high court is New Zealand is hugely different to the corrupt US top court where all sorts of paid for fanciful interpretations are allowed. The high priest of law system is in place ie the judges are scrupulous on the letter of the law interpretation, not happy rewrite the law, don't try to get us to corruptly interpret it like the US. So it would not have lasted any where near this long, if the New Zealand government was not fucked and knew it and was extending it out to forgotten history and a reasonable payout whereby the US governments foots the bill.

      Its the difference an english style justice system makes. One of the fatal mistakes the US has made with its justitce system is the way it appoints judges has become utterly politicized, to the point where , somewhat bafflingly, in some states they actually vote for them, which has led to mindboggling corruption in so many cases.. There should be no such thing as a "conservative" or "liberal" judge, its an absurdity.
      More to the point, where theres electoral politics , even in the case of indirect electoral politics (Ie appointment of judges by elected officials) theres always the chance of corruption where interests can say "Give us this judge who we know always votes against consumers in copyright cases, and we'll throw another million into the electoral fund"

      The way the rest of the world does it, the court apoints new judges as the need emerges, with the government simply approving the choices. If the govt intervenes it better have a damn good reason, or theres trouble.

      Here in australia we had one case recently where the previous conservative government in Queensland (Its kind of like our Arizona, meth lab of democracy), put some crazy asshole with almost no qualification into the supreme court, throwing a huge protest up from the supreme court itself because it was unconscionable interference with the courts by a government that repeatedly kept violating the constitution and federal laws and thus had come into pretty serious conflict with the court. Fortunately the dodgy appointment soon realised he was way out of his depth and quit.

      --
      Excuse the Unicode crap in my posts. That's an apostrophe, and slashdot is busted.
    7. Re:Bring it on big guy. by Deliveranc3 · · Score: 2

      He has money and he's standing up for piracy and pirates in general.

      He's hiring good lawyers and fighting the good fight. He might set some precedents that will be useful later.

      He's just lucky in that he was already successful before they came after him so he can do a reasonable job on his defense. Most piracy cases are targetting people who can't afford to defend themselves so their defense is weak and the precedents set are scary and horrible.

      I don't think Kim really cares about the money he'd get from this, but he's interested in setting precedents that are good for piracy in general and we should applaud him.

  2. Can't but by Anonymous Coward · · Score: 5, Insightful

    I can't but wish him the best and hope he succeed. Not because of whom he is but to make sure government knows if it oversteps it's boundaries and relinquishes sovereignty to USA it would come with a high price. Hope they also jail every national traitor involved.

  3. Re:Kim Dotcom by Anonymous Coward · · Score: 5, Insightful

    Okay, so you don't like him. Neither do I, for that matter.

    But is that a reason to violate his rights like that? How'd you like it to have everything taken away from you just because some jerkface government took a disliking to you?

    And that really is the problem. "We don't like you" is not supposed to be a valid reason for the law. No matter how loathsome the defendant.

  4. Sovereign immunity? by SLi · · Score: 3, Interesting

    Isn't there an equivalent of sovereign immunity in New Zealand? If I understand correctly, the sovereign immunity doctrine at least in the US would bar such a suit against the government. Sovereign immunity is the concept that a sovereign cannot be sued for damages except in cases where it has waived the immunity (for example, by having a law stating that it is responsible for damages in certain types of cases, usually with an upper limit).

    I presume no sane government would make a law that subjects the country to that large liabilities. Many countries have laws that provide for some kind of restitution from the state in the case of wrongful imprisonment, but it's hard to imagine an unlimited liability.

    If the officers of the state did wrong, it may be possible to sue them for damages (also in the US), but good luck collecting billions of dollars from them...

    1. Re:Sovereign immunity? by taustin · · Score: 3, Informative

      People sue, and win against, the federal government in the US on a regular basis. Sovereign immunity isn't absolute.

    2. Re:Sovereign immunity? by Anonymous Coward · · Score: 4, Informative

      AFAIK NZ does not have sovereign immunity , lots of people have successfully sued the government.

      NZ only has ONE police force, funded from central government funds. There are no elected law enforcement agents , and the head of any government department is also not forced to resign with any change of government. To become a judge is actually quite difficult in NZ, and is generally outside the sphere of political interference.

      NZ used to have access to the UK privy council for legal appeals, many cases were taken there against the government and rulings were made against the government.

      For wrongful imprisonment it depends on if you are found innocent vs not guilty, and there is a formula used to work out the payment, though the government has to approve final settlement, however this too can be appealed through the courts.

      If he can prove the losses, there is a good chance he could receive the compensation he asks for, however I suspect he is likely to get at most 10% of what he is asking for, though local Maori has successfully received compensation for over $1 Billion

    3. Re:Sovereign immunity? by jpaine619 · · Score: 2

      Sovereign immunity isn't absolute.

      Actually it is. You can only sue when the government permits you to sue. The Supreme Court codified the idea of Sovereign Immunity quite a while ago. However, in practice, the government does permit itself to be sued quite often.

      If one thinks about it, Sovereign Immunity does make a bit of sense. You are suing the government in a government court. The court being a part of the government itself. You are effectively asking one branch of government to forcibly modify the behavior of another, coequal, branch.

      I'd liken it to, when you were a kid, and you had a gripe/complaint about your parents. You'd have to petition your parents for a change of rules or procedures. They would, of course, have to agree to hear your complaint in the first place. Then, if you were successful, they would have to agree to modify their behavior or change some rules, etc..

      If they decided, at the outset, that they didn't like your complaint, that was it.... game over.

    4. Re:Sovereign immunity? by Knuckles · · Score: 2

      There's a difference whether the law that the state gave itself says "I am always right, you can't sue me", or not.

      --
      "When I first heard Daydream Nation it quite frankly scared the living shit out of me." -- Matthew Stearns
    5. Re:Sovereign immunity? by Obfuscant · · Score: 2

      I'd liken it to, when you were a kid, and you had a gripe/complaint about your parents. You'd have to petition your parents for a change of rules or procedures.

      If only there were a separate but co-equal someone to your parents you could petition for redress of your grievances. I'd liken it to, the US courts and the US legislature/executive branch.

    6. Re:Sovereign immunity? by thegarbz · · Score: 2

      Governments are held accountable to their constituents in different ways around the world.
      The USA said you can't sue us, but you have the right to arm yourself to the teeth.
      NZ said you can't own a gun and we can out fire you, but it's your constitutional right to hold us accountable in court.

      You'll find a lot of commonwealth nations followed the UK in this. The UK introduced laws that made the Crown liable in 1947. NZ followed suit in 1950, and that was subsequently added to their Bill of Rights.

      I presume no sane government would make a law that subjects the country to that large liabilities.

      Why not? Governments are much like people. It's not insane to be held liable or accountable. Many governments are built on foundations of restricting what the government can and can't do. Some write lengthy constitutions, others leave it up to the courts.

  5. How Much Was The Pirated Software Worth? by dryriver · · Score: 4, Insightful

    Megaupload was a service (deliberately) overflowing with cracked copies of commercial software ranging in price from a few hundred Dollars to a few tens of thousands of Dollars - high end CAD software for example. THAT is largely what attracted millions of people to Megaupload - it was an online place where Kim Dotcom gave away thousands of software companies' products for free and people and also businesses in 196 countries could just "click and download for free". If you were to add together the monetary value of the software downloaded from Megaupload over the years and the financial damage caused, you might end up with far more than the "10 Billion Dollars" Kim claims Megaupload would have been worth today. Kim tried to make himself a billionaire businessmen by nonchalantly giving away other people's property without their permission. That does not excuse the nature of the police action against him, but I suspect that a strong message was intended to be sent to hundreds of other would-be-Kim-Dotcoms who wanted to hole themselves up in poorly governed countries with lax laws and build their very own "Megaupload". Kim Dotcom probably banked on the fact that if sued for piracy, he could claim "I just provide the servers - I'm not responsible for what people upload to them or download from them", and depending on the laws in New Zealand that might actually have worked for him. Kim was in New Zealand because there was no way his native Germany would have allowed the creation of something like Megaupload in the first place - German police would have shut the site down in weeks.

    --
    Why did the chicken cross the road? Because Elon Musk put an AI chip in its head.
    1. Re:How Much Was The Pirated Software Worth? by Kabukiwookie · · Score: 5, Insightful

      This is bullshit.

      I don't like Kim Dotcom, but Megaupload is in principle nothing different than Dropbox or OneDrive and even though he did not have to comply with the US DMCA law, he actually facilitated the US govt and removed things for which a take-down notice was issued.

      At some point he was asked by the US government to retain files that were 'pirated' on Megaupload's servers, which was later used against him. Even though there is proof that this was done at the behest of the government.

      The reason why Dropbox and OneDrive can exist is the fact that these are US companies. The US, not just the corporations, but its legal enforcer, the US government, will attempt stamp out any competition.

      On top of that, sending a anti-terror squad to his house to arrest him, while a letter from the justice department telling him to come to the nearest police office, would have had a similar, but somewhat less dramatic effect.

      He was meant to be made an example, with John Key sucking up to Obama and his RIAA/MPAA masters.

      As a kiwi I hope he doesn't make progress with his damages suit, but if it does, they should present the bill to hair pulling, too sleazy to be a second card dealer, John Key.

      --
      The mountains of madness have many little plateaus of sanity - Terry Pratchett.
    2. Re:How Much Was The Pirated Software Worth? by Zorpheus · · Score: 3, Interesting

      Though I didn't see a warez download link for Dropbox or OneDrive yet

    3. Re:How Much Was The Pirated Software Worth? by dryeo · · Score: 2

      They raided Uber in Quebec recently. Seems Uber has software to delete everything when the cops bust down the door. https://yro.slashdot.org/story...

      --
      https://en.wikipedia.org/wiki/Inverted_totalitarianism
  6. Re:Kim Dotcom by youngone · · Score: 5, Insightful
    I don't like Kim Dotcom at all, and as I am a New Zealander, I will be helping to pay him if he wins.
    I really, really hope he does win. The New Zealand Police rolled over like a pack of craven lickspittles when the US government called despite the case being terrible (as subsequent court rulings have shown).

    The other thing that smells bad about the whole thing is the way they went in guns drawn as if he was some kind of threat. The police here do not routinely carry firearms, and that's the way we like it. If a couple of detectives had walked up to his front door and knocked, they would have achieved the same end.

    I have often wondered why the video of the armed arrest was shown on the TV news the very night of the raid. Is it appropriate for the police to conduct trial by media?

  7. Re:Kim Dotcom by SpaceDave · · Score: 4, Insightful

    Another Kiwi here in general agreement with you.

    On one hand Dotcom's last business plan was literally to steal revenue from websites like mine - the websites that feed my children. For that I wish a slow painful punishment on him.

    On the other hand I love my country and seeing our government and police roll over and behave like American thug cops was very disturbing.

    I honestly can't decide which is worse - Dotcom winning or the American bullies winning. It's a no-win situation from my perspective.

  8. Re:But we have had a change of government by ColaMan · · Score: 5, Insightful

    his criminal activity
    Please define his criminal activity that he has committed under NZ law.

    While you're at it, mull over this hypothetical:

    Homosexuality and the depiction of such is illegal in some countries. If someone performs in and distributes gay porn on the internet, should they be summarily extradited to one of those countries and suffer the consequences if that country demands it?

    --

    You are in a twisty maze of processor lines, all alike.
    There is a lot of hype here.
  9. Re:Kim Dotcom by Anonymous Coward · · Score: 5, Insightful

    Which buildings/vaults did Kim break in to? Do you have security footage? How many literal dollars, Kiwi or otherwise, did he make off with? Did one of those cool exploding dye packs color him neon pink?

    FOR THE ONE THOUSANDTH TIME: Copyright infringement =/= Theft.

  10. Re: Kim Dotcom by Anonymous Coward · · Score: 2, Informative

    toss flashbangs into the children's room.

  11. Re:Kim Dotcom by Tom · · Score: 4, Insightful

    Finally someone gets it.

    Just because a career criminal is in conflict with the US government he doesn't suddenly become a saint. When two bullies fight, the proper thing to do is not to root for one of them to win, but to hope they beat each other up badly. There can be two wrong sides to an argument.

    You don't need to decide which is worse - they are both terrible assholes.

    --
    Assorted stuff I do sometimes: Lemuria.org
  12. Any Mega user around? by CustomSolvers2 · · Score: 2

    I read precisely in his interview here that he had no more contact with the last version of Mega. I found this kind of curious, did some quick research, saw that the company was offering a quite good free package and opened an account which I have been using since then as secondary backup for a project which regularly generates an important amount of information. My experience so far has been quite good: simple Linux-/Windows-supported application, quickly and easily performing any sync (well... it has problems to properly recognise different disks on Linux, but the workaround is quite straightforward), no spam or any other kind of nagging, no privacy problems I am aware of, on-time alerts when getting out of free space (what happens every few weeks; as said, lots of info is being generated), etc.

    What I have found kind of curious when doing some research about this company is that there isn't much information about it; basically, being included in some cloud rankings/reviews and new and Kim Dotcom. Is anyone else using mega.nz services or has any opinion/information to share? Also does anyone know how that Kim-Dotcom-out-of-the-company happened? How did this new version start anyway? Was he just giving the name and a visible face to an otherwise-unrelated-to-him company or had an active involvement in its creation?

    --
    Custom Solvers 2.0 = Alvaro Carballo Garcia = varocarbas.
  13. Kimmie, here's a tale for you by Opportunist · · Score: 3, Insightful

    Considering that the New Zealand authorities are the ONLY thing that keeps you from getting thrown to the wolves the US are...

    A mouse was fleeing from the cat and came to a cow. The mouse begged "hide me!", which prompted the cow to drop a huge, smelly big cow pat onto the mouse, covering it fully. The cat came along and didn't see the mouse, the mouse on the other hand squeaked and squeaked, happy to be safe from the cat.

    The cat heard the squeaking and picked up the mouse on its tail, cleaned the mouse of the manure and ate it.

    Moral of the story: Not everyone that shits on you is your enemy. Not everyone that pulls you out of the shit is your friend. And when you're up past your neck in manure, shut the fuck up!

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  14. Re:Kim Dotcom by houghi · · Score: 3, Insightful

    Dotcom winning is better. Because than you can solve the problems that he caused. If the bully wins, you will be the bitch forever and for other things as well. Do you want to be a master over your own destiny or a slave to somebody elses?

    --
    Don't fight for your country, if your country does not fight for you.
  15. Re: Kim Dotcom by jbengt · · Score: 3, Interesting

    Sounds like a civil case then, not a criminal one. OK, I know the US legislators have bowed down to their mickey mouse masters and made such things criminal, but they had been civil matters before.

  16. Re:Kim Dotcom by Gr8Apes · · Score: 4, Insightful

    I honestly can't decide which is worse - Dotcom winning or the American bullies winning. It's a no-win situation from my perspective.

    This isn't even in the same book. Kim should definitely win. The rule of law was abused and that should be corrected above all, even if a sleazebag like Kim walks away with lots of money. He'll lose it elsewhere soon enough or actually do something illegal, and then you can use rule of law as justified.

    --
    The cesspool just got a check and balance.
  17. Re:Kim Dotcom by swillden · · Score: 3, Insightful

    I honestly can't decide which is worse - Dotcom winning or the American bullies winning. It's a no-win situation from my perspective.

    How about: the Rule of Law winning? Documented norms that apply to everyone from the bum on the street corner to Bill Gates are a win for everyone.[1]

    In this particular case, it means that New Zealand should have followed its own laws, procedures and the treaties to which it is signatory without regard to political pressure brought by the United States. If those laws indicated that Dotcom should be arrested and extradited, well and good. If, as appears to be the case, New Zealand authorities violated their own laws, then Dotcom deserves compensation. I seriously doubt that he deserves 6.8B NZD. In an ideal outcome he ends up exactly where he would have without the illegal police action, which isn't "winning" it's "not losing".

    [1] Yeah, everyone knows that the bum on the street corner and Bill Gates do not get treated the same way, but that just means it's an aspirational goal toward which we should work, not something we should cynically laugh off. The further we are from it, the more seriously we need to take it and the more strongly we need to react when our appointed representatives fail to execute it.

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  18. Re:But we have had a change of government by swillden · · Score: 2

    his criminal activity Please define his criminal activity that he has committed under NZ law.

    Well, New Zealand is a signatory to the Berne Convention and a member of the World Trade Organization, which not only means that New Zealand honors US copyrights (and vice versa), but that the countries have certain reciprocal obligations around enforcement.

    And although I haven't followed it closely, as I recall the NZ High Court endorsed Dotcom's extradition to the US last year. OTOH, that doesn't mean everything else the NZ police did was legal or correct, and their overreaching and screwups are the basis for this lawsuit.

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