Mega revelations may make uncomfortable reading for the Dotcom team

The defence team for Megaupload boss Kim 'Dotcom' Schmitz seem to have suffered a bit of a set back against moves extradite Dotcom to the USA to face criminal charges - as alleged new details have emerged about how the Mega system actually worked - and how those behind the platform went about their business.There again, they are only set backs if these allegations are actually true, and that has certainly not been tested or proven as yet. 

Firstly it has been argued that the Megaupload 'takedown' system, which was meant to allow owners of infringing content have their material removed, was not only ineffective - it was allegedly designed to be ineffective. The 'Abuse Tool'  was made available to U.S. copyright holders, and would purportedly remove copyright-infringing material from Mega-controlled servers. All very good and very DMCA compliant, The Abuse Tool allowed copyright holders to enter specific URL links to copyright-infringing content of which they were aware, and they were told by MegaUpload that that the Mega Conspiracy’s systems would then remove, or disable access to, the offending material. However - the Abuse Tool "did not actually function as the copyright owners were led to believe .... because the Abuse Tool only disabled the specific URL link identified, and the Abuse Tool failed to disable access to the underlying copyright-infringing material or remove the file from the server" and indeed would not disable other URL's linking to the same infringing content, even though Mega would have a list of all links to that content. So it was still there - still linked to - and still available.

Secondly,  files released by the U.S. Department of Justice,  to comply with a November order by Judge Liam O'Grady in the U.S. District Court for the Eastern District of Virginia, show multiple conversations about the scope of copyright infringement on the site. The DOJ seized Megaupload in January 2012 and charged owner Dotcom and other defendants with criminal copyright infringement and other crimes. Here's just a few examples of alleged conversations from what has been released:

- In a May 2007 Skype conversation, Megaupload CTO Mathias Ortmann told head software developer Andrus Nomm: "I have a feeling that Kim tolerates a certain amount of copyright violation." Nomm responded "Yep, but not too obvious ones" .... "Since it helps initial growth," to which Ortmann added. "But we must not overdo it."

September 2007, via Skype: "We're modern pirates" said Bram van der Kolk, Metaupload network engineer; Ortmann responded : "We're pretty evil, unfortunately, but Google is also evil, and their claim is "don't be evil." '. To that Van der Kola added : "The world is changing, this is the internet, people will always share files and download their stuff for free, with or without Megaupload."

And finally in March 2009: "We do have legit users" Ortmann said. Van der Kolk responded "Yes, but that's not what we make $ with."

At the end of August Kim Dotcom has resigned as managing director of the cloud hosting company to channel his energies into fighting extradition to the United States, as well as launching a music service, MegaBox, and political party. The party will be launched at a "big event" on 20 January 2014, although John Key, New Zealand's prime minister, said that the new party should be called the "No Hope Party".

Background on the 1709 blog here and here and here.

O'Dwyer escapes the wrath of the USA

Richard O'Dwyer, the 24 year old UK student who created TVShack, which offered consumers the chance to stream and download hundreds of copyrighted films and TV programmes without the permission of copyright owners, has escaped extradition to the USA. O'Dwyer has seemingly done a plea bargain - whereby he will attend the USA and visit a court - and pay over a limited amount of compensation, avoiding both extradition and a criminal trial for the infringements. O'Dwer was a student at Sheffield Hallam University and made an alleged £147,000 ($230,000) running his original incarnation of TVShack, and after that was closed down, a second similar service, before that was finally shut down in 2010. The site did not host content, but linked to infringing sites. 

After UK Home Secretary Teresa May blocked the extradition of hacker Gary McKinnon to the USA on human rights grounds, and said she was introducing more stringent tests before extradition requests for trials outside the UK could take place, O'Dwyer remained one of the last extradition cases to be heard. It seems his legal team sought a compromise with US prosecutors although just as talks were reaching a crucial point, New York was struck by Hurricane Sandy, delaying any agreement which was eventually announced in the High Court yesterday. More on the history of Mr Dwyer's trials and tribulations here and here .

And a more opinionated view at http://www.guardian.co.uk/uk/2012/nov/28/richard-odwyer-films-struggle-liberty

UK student faces extradition on infringement charges

A UK student faces extradition to the USA after District Judge Quentin Purdy ruled that the extradition could go ahead at Westminster Magistrates Court. Richard O'Dwyer, a 23 year old studying at Sheffield Hallam University faces charges relating to his 'TV Shack' website that allegedly linked to infringing films and television programmes that could be found on other internet sites. No infringing material was held on the site although allegedly after it was closed down for the first time, O'Dwyer simply re-started it the next day and made substantial financial returns from selling advertising on the site. District Judge Purdy ruled that "there are said to be direct consequences of criminal activity by Richard O'Dwyer in the USA, albeit by him never leaving the North of England" adding "such a state of affairs does not demand a trial here if the competent UK authorities decline to act and does, in my judgment, permit one in the USA". O'Dwyer's lawyer, Ben Cooper, said the matter would be appealed to the High Court. In a completely separate action Christopher Tappie, a retired businessman, who faces extradition to the USA on charges of conspiring to sell batteries used in Iranian missiles, failed to halt his extradition before Lord Justice Hooper and Mr Justice Cranston and said he will now appeal to the Supreme Court. An independent review of the extradition treaty between the UK and USA by Sir Scott Baker concluded last year that the extradition arrangements were balanced and fair, but many criticise the legislation for favouring the USA and the case of Gary McKinnon, the alleged computer hacker, raised a number of concerns.

http://www.telegraph.co.uk/technology/news/9013961/Piracy-student-Richard-ODwyer-loses-extradition-case-over-TVShack-website.html

From Sheffield TV shack to US gaol: how far will this guinea pig go?

The guinea pig: cute and appealing
-- especially if extradited ...

Listeners to BBC's Radio 5 may just have heard an interview with Richard O'Dwyer and his mother regarding a piece of breaking news. According to a Press Association report this morning,

" ...A Sheffield Hallam University student will learn whether he is to be extradited to the US to stand trial over alleged infringement of copyright. Richard O'Dwyer, 23, is accused of operating a website that offered free downloading and streaming of thousands of copyright films and television programmes without permission from copyright holders. 

The undergraduate earned money through hosting advertisements on the TVShack website, allegedly receiving more than 230,000 US dollars (around £147,000) in advertising revenue since January 2008, according to the US authorities. 

His lawyer, Ben Cooper, argued that the site did not store any copyright material but merely pointed users to other sites where they could download films and TV shows. He said the website linked to other sites in the same way as Google and Yahoo operate, and people were not able to view a film from TVShack directly. 

"Shack, horror!"

Mr Cooper added that his client would be the first British citizen to be extradited for such an offence and he would effectively become a "guinea pig" for copyright law in the US. John Jones, for the US authorities, said the victims of the alleged offences included the film studios. He said the website highlighted the savings that could be made in cinema tickets in the US ..."

If you're in Central London today and want to watch a bit of legal history in the making, get down to the Westminster Magistrates' Court at 2pm, when the application to extradite O'Dwyer will be heard. If it is granted, O'Dwyer will face charges of copyright infringement and conspiracy to infringe copyright.

This blogger will be offline this afternoon, but hopes that any reader who attends the hearing will send him an account which, ideally, will be posted on the blog this weekend.