Dotcom launches Mega

Kim Dotcom

Megaupload founder Kim Dotcom is upbeat about the investigation against his now-defunct file-storage site, his possible extradition to the US, the future of Internet freedoms.

The United States government says that Dotcom, a German millionaire formerly known as Kim Schmitz, masterminded a vast criminal conspiracy by operating the file-storage site Megaupload. Dotcom, on the other hand, begs to differ. One year after the high-profile raid of his home and the shut-down and seizure of one of the most popular sites on the Web, Dotcom hosted a launch party for his latest endeavor, simply called Mega.

Dotcom says president Obama and the Obama administration for colluding with movie companies in order to orchestrate this giant arrest in New Zealand.

The driving force, of course, is Chris Dodd, the chairman of the MPAA [Motion Picture Association of America]. And he was senator for a long time and he is — according to [US Vice President] Joe Biden — Joe Biden’s best friend. And the state attorney that is in charge of this case has been Joe Biden’s personal counsel, Neil MacBride, and [he] also worked as an anti-piracy manager for the BSA, the Business Software Association, which is basically like the MPAA but for software companies.

“The fundraisers in Hollywood had to have some sort of Plan B, an alternative for SOPA [the Stop Online Piracy Act], because the president certainly was aware — and his team at the White House was aware — that if they don’t have anything to give at those fundraisers, to those guys in Hollywood who are eager to have more control over the Internet, they wouldn’t have probably raised too much. And Hollywood is a very important contributor to Obama’s campaign. Not just with money, but also with media support. They control a lot of media: celebrity endorsements and all that,” says Dotcom.

“So I’m sure the election plays an important role. The relationships of the people that are in charge of this case play an important role and, of course, we have facts that we want to present at our extradition hearing that will show some more detail about this and that this is not just some conspiracy theory but that this actually happened.”

The US Justice Department wants to extradite the German citizen living in New Zealand operating a business in Hong Kong.

“It is a very interesting question because the extradition law, the extradition treaty in New Zealand, doesn’t really allow extradition for copyright. So what they did, they threw some extra charges on top and one of them is racketeering, where they basically say we are a mafia organization and we set up our Internet business to basically be an organized crime network that was set up and structured the way it was just to do criminal copyright infringement. And anyone who has every used Megaupload and has any idea about how that website worked knows immediately that it was total nonsense. But they needed to chop that on in order to have even a chance for extradition. But in our opinion, you see, all of that was secondary. The primary goal was to take down Megaupload and destroy it completely. That was their mission and that’s why the whole thing in Hong Kong, for example, they called it Operation Takedown. And I think everything that’s happening now, they are trying on the fly to doctor it around, and found a way to find a case. They probably came here and thought, “We will find something; that these guys have done something wrong.” In the indictment, if you actually read that, it’s more like a press release. There’s nothing in there that has any merits.”

Dotcom says his case is a crucial case for Internet freedom. “I think more and more people realize that and the government is quite exposed here because they really went in with completely prosecutorial abuse and overreach and ignoring due process, ignoring our rights, spying on us, illegal search warrants, illegal restraining orders, illegal spying. The whole picture, when you look at it, shows that this was an urgent mission, done on a rush. “Take them down, I want them to go.” And it was a political decision to do that. And the execution was extremely poor, and the case is extremely poor, because that is something they thought that they could worry about later. It was all about the takedown: ‘Let’s send a strong message to Hollywood that we are on their side.’”

The new program, Mega, is fully encrypted, but do people need more encryption on the Internet?

Says Dotcom: “I think it’s important for the Internet that there is more encryption. Because what I have learned since I got dragged into this case is a lot about privacy abuses, about the government spying on people. You know, the US government invests a lot of money in spy clouds: massive data centers with hundreds of thousands of hard drives storing data. And what they are storing is basically any communication that traverses through US networks. And what that means they are not spying on individuals based on a warrant anymore. They just spy on everybody, permanently, all the time. And what that means for you and for anybody is that if you are ever a target of any kind of investigation, or someone has a political agenda against you, or a prosecutor doesn’t like you, or the police wants to interpret something in a way to get you in trouble — they can use all that data, go through it with a comb and find things even though we think we have nothing to hide and have done nothing wrong. They will find something that they can nail you with and that’s why it’s wrong to have these kinds of privacy abuses, and I decided to create a solution that overtime will encrypt more and more of the internet. So we start with files, we will then move to emails, and then move to Voice-Over-IP communication. And our API [Application Programming Interface] is available to any third-party developer to also create their own tools. And my goal is, within the next five years, I want to encrypt half of the Internet. Just reestablish a balance between a person — an individual — and the state. Because right now, we are living very close to this vision of George Orwell and I think it’s not the right way. It’s the wrong path that the government is on, thinking that they can spy on everybody.”

After Megaupload was shut down by the FBI last year, hacktivists with the movement Anonymous retaliated, so to speak. In response, they went and took down the websites for the FBI, the Motion Picture Association of America, the Department of Justice, the Recording Industry Association of America.

Dotcom laughs.t’s a kind of virtual protest, you know? I think it’s not a good idea to shut down websites. I’ve been a hacker myself. I understand why they are doing it and how they are doing it, but I think there are better ways to protest. Where you organize yourself in a group and do petitions and actually email congressmen, email your local politicians, let them know about what you don’t like. Organize your movement rather than attacking. I had a sense of understanding for them because everyone had stored so much data on Megaupload, and then all of a sudden a site like that disappears and billions of files are taken offline, the majority of them perfectly legitimate. You need to understand one thing: 50 percent of all files that were ever uploaded to Megaupload have not even been downloaded once. That clearly shows the non-infringing use. People just wanted to store their stuff on our site. And of course they were outraged when that disappeared and the government said, ‘We don’t give a care and we don’t give a damn about you people. We don’t care that you have your personal documents there because we have our agenda and we are going to take over the Internet.’ And you know the White House was supporting SOPA, and only when the masses came together — and Aaron Swartz: he stopped SOPA. With his efforts, he stopped SOPA. And he became a target. A political target, okay? And that’s why all these things happened to him. There is no reasonable cause behind going after a young genius like that in the fashion they did. It’s political. Because the White House wanted SOPA. They promised it to Hollywood and they failed and they couldn’t go ahead because the White House was afraid if they keep pushing hard and they keep pushing it forward, that the people who oppose it are not going to vote for Obama in the reelection campaign. So it’s all a game to them really and we are all the little puppets that they think they can kick around. So we need to organize. There needs to be a movement that identifies these things and fights that. Not with shutting down websites but with real protests. Going out on the streets, writing to politicians and especially, most importantly, don’t vote for the guys that are against Internet freedom. Anyone who voted for SOPA, you should have a close look at that guy. Do I want to give him my vote next time around? Because that’s the only language politicians understand is your vote. And if you can bring all these votes together, somehow pooled for Internet freedom, you will see all these efforts disappear. Because at the end of the day, they represent the public. Politicians represent the public. And when they have enough pressure they can’t move forward. And SOPA was the best example for that.”