The Justice Department Appears to Be Losing the Battle Against Megaupload

With several new court filings, the Department of Justice's case against Megaupload continues to unravel…

Quinn, along with Ira P. Rothken, filed two briefs yesterday. The first (PDF) was a motion to dismiss the case against the corporation Megaupload (but not the individuals involved in the litigation). The second (PDF) requests that the company have access to millions of dollars in frozen assets in order to pay its defense fees. From the Washington Post:

The legal motions do not seek dismissal of the case against the individual defendants, but they do seek release of millions of dollars in frozen assets so lawyers can prepare a full defense.

The defense attorneys argue that Megaupload and its officers can’t be held criminally responsible for copyright infringement by its users. They also said the company itself cannot be charged criminally in U.S. court because it is a foreign company, based in Hong Kong, that does not even have offices in the U.S. and cannot be legally served notice of the charges.

Those are some tough allegations. They build on issues raised by Rothken back in April, who argued that companies can’t be served outside the U.S.

On the other side of the wall, the DOJ is keeping mum in the press war:

A spokesman for the U.S. attorney for the Eastern District of Virginia declined to comment on the court filings Wednesday, saying the government will respond in court.

The filing is unusual because Dotcom and his co-defendants have not actually entered appearances in the case. Dotcom, who had his name legally changed, is currently in New Zealand fighting extradition.

But the defense attorneys are not being shy about making a public commotion and making the case personal. The strategy would probably make Jose Baez sad:

Ira Rothken, one of Megaupload and Dotcom’s lawyers, said Dotcom is exercising his legal rights by challenging extradition in New Zealand, and shouldn’t be punished for doing so by having his assets frozen and making it difficult for his lawyers to fully represent him.

The seizure of more than $67 million in assets is especially egregious, Rothken said, because the case against Megaupload and Dotcom is weak.

In court papers, Rothken and the defense team called the criminal charges “an experiment in stretching U.S. criminal law well past the breaking point.”

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For what it’s worth, Rothken is not alone. Professor Eric Goldman expressed similar sentiments, calling the prosecution an “abuse of government authority” earlier this month.

We will continue to follow this down the rabbit hole as the case moves along. Whatever happens, hopefully the United States will play fair (of course, the same goes for Quinn!).

Obviously, internet piracy is a major source of concern for the government and the entire entertainment industry. But if the government wants to make a difference, prosecuting fast and loose might do more harm than good to the cause.

Digital Notes: Judge Presses U.S. in Megaupload Case [Media Decoder / New York Times]
Megaupload, Kim Dotcom file in federal court to have piracy charges dismissed [Washington Post]
United States of America v. Kim Dotcom et. al.: [PROPOSED] Motion of Specially-Appearing Defendant Megaupload Limited To Dismiss Indictment For Lack Of Personal Jurisdiction & Memorandum Of Law In Support Thereof [United States District Court, Eastern District of Virginia]
United States of America v. Kim Dotcom et. al.: [Proposed] Motioned to Challenge The Scope of Pretrial Restraint of Assets of Defendants [United States District Court, Eastern District of Virginia]

Earlier: Quote of the Day: Cheap Tricks
Quinn Emanuel Calls B.S. on Government Conflict-of-Interest Objection in Megaupload Case
SOPA Be Damned, DOJ Has Sent a Message to Internet Pirates. And the Internet Sent a Message Right Back

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