Megaupload was shut down by federal prosecutors earlier this year and the case may actually be up for dismissal soon. It was actually stated by the government that shuold the indictment against Megaupload be dismissed they will try to indefinitely freeze all of the corporations assets. The reason that the case may get dismissed is because the US Government’s federal rules or criminal procedure in no way provide ruling against corporations like Megaupload with no US address.
Judge Liam O’Grady is currently weighing the merits of a motion to dismiss the case against Megaupload since there can be no real legal action against them. O’Grady sarcastically speculated that Congress actually intended to allow foreign corporations like Megaupload to “be able to violate our laws indiscriminately from an island in the South Pacifit,” Megauploads attorneys also insisted that this may actually be not far from the truth. He also argued that Megaupload is a Hong Kong corporate which has absolutely no presence in the United States which means that it is subject to the criminal laws of Hong Kong and not the United States.
What is funny about this is that the government actually suggests that there are ways that they could sidestep the actual notice that is required to be mailed to a US based company before pressing charges. They could actually wait for Kim Dotcom to be extradited to the United States where they could then mail him a notice while he is in prison. The government also suggested that they could send notice to Carpathia Hosting, who is a Virginia-based hosting company that leased hundreds of servers to Megaupload. Even more they suggested that they could use a provision of a Mutual Legal Assistance Treaty with Hong Kong in order to send notice to Megaupload’s Hong Kong Address.
Judge O’Grady then argued that the plain language of the law required that the federal government send notice to the company’s address in the United States as mentioned before. He stated that Megaupload has never had an address in the United States, he also then pointed out that the government has not satisfied any of the criminal procedure rules.
The US Government seems to be reaching here just to keep Megaupload offline even though they have zero grounds to do so. What do you think, will the US Government keep them offline or will Megaupload make a return?