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1
00:00:47,581 --> 00:00:50,549
It's really like
a Hollywood script.
That's how I see it.
2
00:00:51,651 --> 00:00:53,385
This whole thing
is a live movie
3
00:00:53,420 --> 00:00:56,688
that's playing out for, like,
four and half years already,
4
00:00:56,723 --> 00:00:58,323
and I'm the main act.
5
00:01:01,561 --> 00:01:03,495
Ridiculous.
6
00:01:03,530 --> 00:01:06,765
So what about
the notion of being innocent
until proven guilty?
7
00:01:06,800 --> 00:01:09,234
Yeah, exactly,
where did that go?
8
00:01:09,269 --> 00:01:10,469
You know?
9
00:01:10,504 --> 00:01:13,171
Guilty until
we say he's guilty,
10
00:01:13,206 --> 00:01:14,706
you know, which is now.
11
00:01:14,741 --> 00:01:16,308
I mean, it's crazy.
12
00:02:17,404 --> 00:02:20,772
As local people,
we just knew there was
a very large house.
13
00:02:22,442 --> 00:02:24,576
Because the house itself
was not easily seen,
14
00:02:24,611 --> 00:02:26,344
it became more noticeable
15
00:02:26,379 --> 00:02:27,879
when they started building
the stone wall,
16
00:02:27,914 --> 00:02:29,481
which pretty much surrounds it.
17
00:02:32,686 --> 00:02:34,519
And there were
all sorts of rumors about
18
00:02:34,554 --> 00:02:35,787
who was gonna move into it,
19
00:02:35,822 --> 00:02:39,724
and our favorite one was
that it was Tom Cruise
20
00:02:39,759 --> 00:02:42,494
who was gonna put
a Scientology center there.
21
00:02:42,529 --> 00:02:44,429
We thought that would be
kind of exciting.
22
00:02:58,712 --> 00:03:01,746
This person turned up
who had changed
his name to Dotcom,
23
00:03:01,781 --> 00:03:04,549
and we just thought, well,
that was fascinating,
24
00:03:04,584 --> 00:03:06,284
but otherwise, I mean,
25
00:03:06,319 --> 00:03:07,920
it's not as if we saw him
walking along the street.
26
00:03:10,857 --> 00:03:13,858
Then the cameras went up.
27
00:03:13,893 --> 00:03:15,961
I don't know whether there were
listening devices on the end,
28
00:03:15,996 --> 00:03:17,662
but I always wondered
29
00:03:17,697 --> 00:03:21,533
whether we were being
listened to or watched.
30
00:03:21,568 --> 00:03:23,502
It didn't mesh very well
with the community.
31
00:03:25,872 --> 00:03:28,373
And then, there was
a little bit more digging
into the background.
32
00:03:33,847 --> 00:03:36,682
And then it was,
"Oh, my God, who's just
landed in Coatesville?"
33
00:03:40,320 --> 00:03:43,521
So I started looking into
who our new neighbor
was gonna be,
34
00:03:43,556 --> 00:03:45,591
and I went onto
all sorts of websites.
35
00:03:52,465 --> 00:03:55,734
And the more I looked into it,
the more frightened I became
36
00:03:55,769 --> 00:03:59,337
of what kind of person
was gonna be coming
into our community.
37
00:04:09,916 --> 00:04:12,851
Ground unit,
gates are opened.
38
00:04:14,521 --> 00:04:16,921
Top story this hour.
39
00:04:16,956 --> 00:04:20,392
New Zealand is at the center
of one of world's biggest
Internet piracy investigations.
40
00:04:20,427 --> 00:04:23,428
Police conducted dawn raids
on behalf of the FBI.
41
00:04:23,463 --> 00:04:26,064
Kim Dotcom, the founder
of massive file-sharing site
42
00:04:26,099 --> 00:04:28,099
Megaupload was...
43
00:04:28,134 --> 00:04:31,369
The notorious Dr. Evil
of the information highway.
44
00:04:34,941 --> 00:04:36,708
Some say
he's a criminal master mind,
45
00:04:36,743 --> 00:04:38,410
others, an online innovator,
46
00:04:38,445 --> 00:04:41,947
but he has to be
the most wanted man online.
47
00:06:24,017 --> 00:06:26,518
I was a hacker.
48
00:06:31,157 --> 00:06:32,657
Hackers were wizards.
49
00:06:34,961 --> 00:06:35,994
Any kind of system,
50
00:06:37,197 --> 00:06:40,832
any kind of network,
51
00:06:40,867 --> 00:06:47,138
you know, a hacker right away
identifies weaknesses...
52
00:06:50,477 --> 00:06:52,778
...and I'm really good at that.
53
00:07:09,896 --> 00:07:14,566
Kim Schmitz wasn't
the only identity
that he assumed.
54
00:07:14,601 --> 00:07:16,701
He became Kimble,
55
00:07:16,736 --> 00:07:21,072
styling himself
after Richard Kimble
from The Fugitive.
56
00:07:21,107 --> 00:07:23,708
He claimed that
he'd hacked into the Pentagon,
57
00:07:23,743 --> 00:07:29,948
that he had reduced the credit
ratings of world leaders
down to zero.
58
00:07:29,983 --> 00:07:31,583
You know, there were
all these stories,
59
00:07:31,618 --> 00:07:33,251
and some people
didn't believe them.
60
00:07:33,286 --> 00:07:35,987
They did seem sort of
very fantastic in some ways.
61
00:07:36,022 --> 00:07:39,290
They seemed sort of, you know,
the sort of Hollywood version
62
00:07:39,325 --> 00:07:40,959
of what a hacker must be.
63
00:07:40,994 --> 00:07:44,496
My impression was that,
you know, it was someone
64
00:07:44,531 --> 00:07:47,198
who seemed to be
bragging quite a bit
65
00:07:47,233 --> 00:07:50,034
for someone who's
clearly breaking the law
in certain cases.
66
00:07:53,306 --> 00:07:56,207
All the other things
that he did
were about reputation
67
00:07:56,242 --> 00:07:58,109
and learning how stuff worked.
68
00:07:58,144 --> 00:08:01,079
The thing that
he was convicted for,
69
00:08:01,114 --> 00:08:04,950
that was a very obvious
criminal enterprise.
70
00:08:06,986 --> 00:08:10,655
It was a scam
using phone cards
71
00:08:10,690 --> 00:08:13,191
that would then generate cash
that would be Dotcom's.
72
00:08:15,695 --> 00:08:17,028
And he got caught.
73
00:08:26,940 --> 00:08:31,109
The judge
rightfully ruled that,
you know,
74
00:08:31,144 --> 00:08:35,079
I should get a two-year
probation sentence,
75
00:08:35,114 --> 00:08:38,850
and he also said that
there was an important factor
76
00:08:38,885 --> 00:08:41,620
which was
my youthful foolishness.
77
00:08:43,056 --> 00:08:46,291
Not understanding enough
at my young age
78
00:08:46,326 --> 00:08:49,060
you know, that
I shouldn't have done this.
79
00:08:51,631 --> 00:08:54,566
But it actually
launched my career.
80
00:09:05,912 --> 00:09:10,014
That arrest actually
helped him boost
his reputation.
81
00:09:11,351 --> 00:09:13,084
He set up this whole business
82
00:09:13,119 --> 00:09:14,819
around the idea of
protecting companies
83
00:09:14,854 --> 00:09:19,023
from hackers like him,
84
00:09:19,058 --> 00:09:24,062
and when you're dealing
with businesses
that really don't have
85
00:09:24,097 --> 00:09:28,132
any sort of computer security
expertise internally,
86
00:09:28,167 --> 00:09:29,701
that's
a really good business
to be in
87
00:09:29,736 --> 00:09:31,803
because you can say anything.
88
00:09:48,388 --> 00:09:52,423
He used his hacker mythos
to build his credibility
89
00:09:52,458 --> 00:09:54,359
as this security guy.
90
00:10:00,233 --> 00:10:02,166
I do know that his reputation
that he built up
91
00:10:02,201 --> 00:10:04,268
by the things he said he did
92
00:10:04,303 --> 00:10:07,305
allowed him to get
investment from people
93
00:10:07,340 --> 00:10:10,308
and to build up his company.
94
00:10:10,343 --> 00:10:13,144
All my life,
I've been an innovator,
95
00:10:13,179 --> 00:10:15,713
and all my life,
I've been
a little bit ahead
96
00:10:15,748 --> 00:10:18,049
of what everyone else
was doing.
97
00:10:18,084 --> 00:10:19,684
In the data security space,
98
00:10:19,719 --> 00:10:21,319
we were one of
the first companies
99
00:10:21,354 --> 00:10:26,190
to create firewalls that
alert you of a hacker attack.
100
00:10:26,225 --> 00:10:28,760
MegaCar.com.
101
00:10:29,996 --> 00:10:31,829
When no one was thinking
102
00:10:31,864 --> 00:10:33,965
about computers and cars,
103
00:10:35,101 --> 00:10:38,036
I created the MegaCar,
104
00:10:38,071 --> 00:10:41,406
real time video conferencing
from a car,
105
00:10:41,441 --> 00:10:44,242
that was driving
on the highway
at 200 miles an hour.
106
00:10:47,947 --> 00:10:50,915
You know, all these things
I thought about early on,
107
00:10:50,950 --> 00:10:54,852
you know, and again
patented it and sold it.
108
00:11:09,068 --> 00:11:10,868
Kim Schmitz.
109
00:11:19,178 --> 00:11:22,280
He did everything
he could to exude this
new image of himself
110
00:11:22,315 --> 00:11:25,349
as this
hyper successful hacker
111
00:11:25,384 --> 00:11:28,753
to really turn
everything about
his personal life
112
00:11:28,788 --> 00:11:31,856
into a promotion for
his professional life.
113
00:11:58,184 --> 00:12:01,452
He has this weird appearance
of the big guy
114
00:12:01,487 --> 00:12:03,254
with this black suit,
115
00:12:03,289 --> 00:12:05,056
and then, he is just nice,
116
00:12:05,091 --> 00:12:07,058
nice like a nice bear
to cuddle with.
117
00:12:09,162 --> 00:12:11,062
He wrote me
an email and asked me,
118
00:12:11,097 --> 00:12:13,331
"Well, I see you like
motor-sports.
119
00:12:13,366 --> 00:12:15,833
Why don't you come?
We're having
a weekend in Monaco,
120
00:12:15,868 --> 00:12:17,468
Formula One race weekend.
Why don't you come?
121
00:12:17,503 --> 00:12:19,070
I invite you
and your girlfriend,
122
00:12:19,105 --> 00:12:21,239
and let's have a party,
and I can meet you."
123
00:12:22,608 --> 00:12:26,144
He likes the music
we do with the band,
124
00:12:26,179 --> 00:12:28,412
and me as a character,
125
00:12:28,447 --> 00:12:31,048
and I said,
"That's interesting,"
and he got me there.
126
00:13:54,433 --> 00:13:57,435
He uses all
these status symbols,
127
00:13:57,470 --> 00:14:02,440
cars, girls and being together
with celebrities like myself,
128
00:14:02,475 --> 00:14:05,109
but he is not.
He himself doesn't
really act like that.
129
00:14:05,144 --> 00:14:06,878
Everybody is having champagne.
130
00:14:06,913 --> 00:14:08,346
"Hey, have champagne,"
and all the girls,
131
00:14:08,381 --> 00:14:10,014
but there is no girl
on his lap,
132
00:14:10,049 --> 00:14:11,316
and he doesn't drink alcohol.
133
00:14:13,452 --> 00:14:16,687
And he probably feels that
it makes himself likable
134
00:14:16,722 --> 00:14:20,124
when he's in this picture
'cause people like girls
and champagne and stars.
135
00:15:11,344 --> 00:15:14,145
I was
a complicated child.
136
00:15:16,983 --> 00:15:19,183
My mum and I
went through hard times
137
00:15:19,218 --> 00:15:21,519
with my father,
who was an alcoholic.
138
00:15:23,456 --> 00:15:26,724
This guy broke
my mother's bones
139
00:15:26,759 --> 00:15:30,294
and hit me many times
and was just evil
140
00:15:30,329 --> 00:15:32,063
when he was drinking.
141
00:15:35,701 --> 00:15:38,402
He's the reason why
I've never drank any alcohol
142
00:15:38,437 --> 00:15:42,607
'cause I saw firsthand
what that stuff can do to you.
143
00:15:52,752 --> 00:15:57,254
After the divorce, my mum,
even though times were tough,
144
00:15:57,289 --> 00:16:02,393
she tried to find ways
to get me my first computer.
145
00:16:05,031 --> 00:16:06,330
Once I had my computer,
146
00:16:06,365 --> 00:16:09,167
for me, school was
a waste of time.
147
00:16:10,436 --> 00:16:12,269
I wanna learn
about computers.
148
00:16:12,304 --> 00:16:14,472
I wanna learn
about the future.
149
00:16:21,080 --> 00:16:25,016
LetsBuyIt.com is
an online marketplace,
150
00:16:25,051 --> 00:16:28,085
very early version of
Amazon, if you will.
151
00:16:28,120 --> 00:16:30,788
Dotcom had talked of his plans
152
00:16:30,823 --> 00:16:35,493
to invest a large amount
of money into LetsBuyIt.
153
00:16:35,528 --> 00:16:37,762
When he said
he was going to do that,
154
00:16:37,797 --> 00:16:39,830
the share price took off.
155
00:16:39,865 --> 00:16:42,366
It was ramped massively,
156
00:16:42,401 --> 00:16:44,168
and then he sold his shares.
157
00:16:49,308 --> 00:16:52,143
I was in Thailand
because I was on a holiday...
158
00:16:58,484 --> 00:17:01,152
...and it didn't take long
for some people
159
00:17:01,187 --> 00:17:05,189
that didn't like my attitude,
my lifestyle,
160
00:17:05,224 --> 00:17:10,061
to make allegations that
there's something fishy here,
161
00:17:10,096 --> 00:17:15,033
and then the government
started an investigation
around insider trading.
162
00:17:18,537 --> 00:17:19,837
And they arrested me,
163
00:17:19,872 --> 00:17:24,608
and they took me
to a Thai prison,
164
00:17:24,643 --> 00:17:30,481
the worst living conditions
that I have ever
experienced in my life.
165
00:17:30,516 --> 00:17:33,217
And the embassy people arrive,
166
00:17:33,252 --> 00:17:35,753
and they say, "Look,
if you want to leave,
167
00:17:35,788 --> 00:17:37,688
we can give you
a travel document.
168
00:17:37,723 --> 00:17:39,590
You can fly back to Germany."
169
00:17:40,659 --> 00:17:42,560
And of course I agreed.
170
00:17:50,669 --> 00:17:52,536
The way that
German authorities recast it,
171
00:17:52,571 --> 00:17:55,706
they had to go to
Thailand to drag him back.
172
00:17:55,741 --> 00:18:00,244
Dotcom would have it that
he came back willingly
173
00:18:00,279 --> 00:18:01,546
to face the charges.
174
00:18:06,218 --> 00:18:10,321
In the end,
I agreed to a plea bargain.
175
00:18:21,333 --> 00:18:23,134
I simply didn't want to
deal with it anymore.
176
00:18:23,169 --> 00:18:24,668
I wanted to leave
Germany behind
177
00:18:24,703 --> 00:18:27,572
and start a new life
somewhere else.
178
00:18:43,556 --> 00:18:45,422
If there is any place
in the world
179
00:18:45,457 --> 00:18:49,894
that is left as sort of
the edge of business,
180
00:18:49,929 --> 00:18:52,797
of finance, of legality...
181
00:18:54,867 --> 00:18:57,768
It's a wild west sort of town.
182
00:18:57,803 --> 00:19:00,738
Hong Kong is
all about capitalism.
183
00:19:03,309 --> 00:19:08,512
Companies start there daily
and disappear the next day.
184
00:19:08,547 --> 00:19:10,714
It was both at
the center of the world
185
00:19:10,749 --> 00:19:12,583
and on its edge.
186
00:19:17,623 --> 00:19:21,192
He felt it was
really easy to restart
187
00:19:21,227 --> 00:19:26,297
what he was trying
to do in Germany,
there, without much oversight.
188
00:19:26,332 --> 00:19:28,266
Welcome to the Kimpire.
189
00:19:30,836 --> 00:19:32,436
Using a PC to download music
190
00:19:32,471 --> 00:19:34,905
is one of the hottest of
today's computer trends,
191
00:19:34,940 --> 00:19:36,407
and that has
the recording companies
up in arms
192
00:19:36,442 --> 00:19:37,641
and heading to court.
193
00:19:37,676 --> 00:19:39,210
Members of
the entertainment industry
194
00:19:39,245 --> 00:19:41,679
are fighting new websites
like Napster
195
00:19:41,714 --> 00:19:43,214
which allow you
to download music
196
00:19:43,249 --> 00:19:45,449
off of the Internet
free of charge.
197
00:19:45,484 --> 00:19:48,219
It's a surprisingly simple idea
198
00:19:48,254 --> 00:19:49,620
known as file-sharing.
199
00:19:49,655 --> 00:19:53,023
Napster is providing
a service that give people
200
00:19:53,058 --> 00:19:55,193
the opportunity to
steal our music.
201
00:19:59,765 --> 00:20:02,533
It started
with the music industry.
202
00:20:02,568 --> 00:20:04,668
They were no longer in charge
203
00:20:04,703 --> 00:20:07,638
of how they
distributed their wares
204
00:20:09,041 --> 00:20:10,942
because we had Napster.
205
00:20:12,611 --> 00:20:14,378
If it was digitized,
206
00:20:14,413 --> 00:20:18,249
then you could
copy it and send it
across the globe.
207
00:20:18,284 --> 00:20:19,517
Any one person could do that.
208
00:20:21,520 --> 00:20:24,455
When I wanted
something special,
a certain song,
209
00:20:24,490 --> 00:20:26,757
I couldn't find it.
I couldn't buy it
in a record store,
210
00:20:26,792 --> 00:20:28,292
and I couldn't order it.
211
00:20:28,327 --> 00:20:29,960
I just went online
and got it from Napster
212
00:20:29,995 --> 00:20:32,463
or from some
other dark corner
in the Internet.
213
00:20:33,766 --> 00:20:34,732
It was a little en vogue.
214
00:20:34,767 --> 00:20:36,267
It was a little radical.
215
00:20:36,302 --> 00:20:39,770
Everybody did this in
this transition times
216
00:20:39,805 --> 00:20:41,805
when the legal market,
217
00:20:41,840 --> 00:20:44,008
legal online market,
started to establish.
218
00:20:44,043 --> 00:20:46,978
In that time,
everybody did this.
219
00:20:53,319 --> 00:20:55,586
Every aspect of
music has changed,
220
00:20:55,621 --> 00:20:57,888
how it's consumed,
how it's disseminated,
221
00:20:57,923 --> 00:20:59,690
how it's marketed.
222
00:20:59,725 --> 00:21:01,792
It's this shifting climate,
223
00:21:01,827 --> 00:21:05,396
and the old guard's
trying to hold on
224
00:21:05,431 --> 00:21:08,733
and penalize anyone
who impedes
their revenue streams.
225
00:21:13,839 --> 00:21:15,873
So they had
these crazy lawsuits
226
00:21:15,908 --> 00:21:17,975
against suburban housewives
227
00:21:18,010 --> 00:21:20,744
who had downloaded
illegally 20 songs,
228
00:21:20,779 --> 00:21:23,380
you know, trying
to like sue them
for millions of dollars.
229
00:21:23,415 --> 00:21:26,517
Well, I don't think this
is about record companies.
230
00:21:26,552 --> 00:21:29,019
I think this is about
whether or not people
231
00:21:29,054 --> 00:21:30,721
who create music,
and invest in music,
232
00:21:30,756 --> 00:21:31,989
have a right to get paid.
233
00:21:32,024 --> 00:21:33,757
The record companies
never gave a damn
234
00:21:33,792 --> 00:21:35,759
about the artist anyway.
235
00:21:35,794 --> 00:21:39,330
95% of them have problems
retrieving their money
236
00:21:39,365 --> 00:21:41,365
from the major corporations
anyway.
237
00:21:41,400 --> 00:21:43,934
Four major corporations,
four of them,
238
00:21:43,969 --> 00:21:46,503
and Hilary is fighting
to protect them.
239
00:21:46,538 --> 00:21:49,606
Ms. Rosen, isn't this
strictly about your profits
and your money?
240
00:21:49,641 --> 00:21:51,809
Well, it's about
everybody's profits and money.
241
00:21:56,849 --> 00:21:59,083
Originally the film industry
was quite naive
242
00:21:59,118 --> 00:22:00,651
in believing that
they were immune
243
00:22:00,686 --> 00:22:02,119
because they thought,
you know,
244
00:22:02,154 --> 00:22:05,089
we've got two gigabyte,
three gigabyte files,
245
00:22:05,124 --> 00:22:08,592
and if you're sharing those,
you know, on dial-up modems,
246
00:22:08,627 --> 00:22:10,027
it would take
days to download.
247
00:22:10,062 --> 00:22:12,529
But, of course,
in the current state,
248
00:22:12,564 --> 00:22:14,832
it's trivial to download
that kind of content.
249
00:22:16,168 --> 00:22:19,370
And so that industry
is threatened as well,
250
00:22:19,405 --> 00:22:21,038
and the business model
of that industry
251
00:22:21,073 --> 00:22:22,573
is very different from music.
252
00:22:22,608 --> 00:22:24,174
You know,
when you get access to music,
253
00:22:24,209 --> 00:22:26,677
you want a song
that if you like it,
254
00:22:26,712 --> 00:22:28,946
you're gonna listen to it
a thousand times.
255
00:22:28,981 --> 00:22:30,981
If you watch a movie,
256
00:22:31,016 --> 00:22:33,617
it's not likely
you're gonna watch it
two or three times.
257
00:22:35,621 --> 00:22:38,722
So they had
a stronger reason
to be anxious
258
00:22:38,757 --> 00:22:40,691
that people not get access
to their movie
259
00:22:40,726 --> 00:22:44,161
and to bleed
the potential revenue.
260
00:22:44,196 --> 00:22:49,133
You can copy on
a digital format
10,000 copies,
261
00:22:49,168 --> 00:22:51,969
and the ten thousandth copy
is as pure and pristine
262
00:22:52,004 --> 00:22:53,404
as the original.
263
00:22:53,439 --> 00:22:55,939
If you allow that,
you don't have copyright
264
00:22:55,974 --> 00:22:58,041
to protect you
on the Internet,
265
00:22:58,076 --> 00:22:59,076
we're dead.
266
00:23:02,214 --> 00:23:04,882
They had no understanding.
267
00:23:04,917 --> 00:23:08,685
The music industry
had been decimated.
268
00:23:08,720 --> 00:23:10,120
The film industry
had the same problem.
269
00:23:10,155 --> 00:23:12,055
They didn't understand
what was coming
270
00:23:12,090 --> 00:23:14,858
until things had already
gotten out of hand.
271
00:23:19,832 --> 00:23:20,831
As you can see, 250,
272
00:23:22,835 --> 00:23:27,037
this is the Gumball speed,
ladies and gentlemen.
273
00:23:36,181 --> 00:23:39,616
Gumball Rally is where
the richest car nuts
in the world
274
00:23:39,651 --> 00:23:44,522
get together
to cover thousands
of miles across Europe.
275
00:23:46,925 --> 00:23:48,725
Dotcom treated it
like it was a race
276
00:23:48,760 --> 00:23:50,627
because he likes
to win everything.
277
00:23:50,662 --> 00:23:51,628
This is the winner.
278
00:23:51,663 --> 00:23:53,063
This is the winner.
279
00:23:53,098 --> 00:23:55,232
I've been a hacker
in my early years,
280
00:23:55,267 --> 00:23:57,167
and then I started...
281
00:23:57,202 --> 00:23:58,635
You know, always
when I was there,
282
00:23:58,670 --> 00:24:01,104
there were videos
made about it,
283
00:24:01,139 --> 00:24:04,875
and I wanted to share them
with my friends.
284
00:24:07,112 --> 00:24:10,013
And I could not because
the files were too big
285
00:24:10,048 --> 00:24:11,982
to send via email.
286
00:24:14,253 --> 00:24:17,221
And I was like, well,
let's create a site
287
00:24:17,256 --> 00:24:19,056
where you can upload a file,
288
00:24:19,091 --> 00:24:20,757
and then instead of
emailing the file,
289
00:24:20,792 --> 00:24:21,959
you just email the link.
290
00:24:21,994 --> 00:24:24,194
And no matter
how large the file is,
291
00:24:24,229 --> 00:24:27,832
people can download it,
and problem solved.
292
00:24:29,801 --> 00:24:32,203
That's how it started.
293
00:24:40,612 --> 00:24:43,680
At the time Megaupload
really took off,
294
00:24:43,715 --> 00:24:47,751
we were a relatively small team
of developers.
295
00:24:52,991 --> 00:24:54,892
There are not many people
that I know
296
00:24:54,927 --> 00:24:58,562
that I can call
a genius, but Mathias is.
297
00:25:00,599 --> 00:25:03,267
He was the brains
behind the code.
298
00:25:05,571 --> 00:25:07,037
He is really a genius.
299
00:25:08,273 --> 00:25:12,142
Bram was kind of
a fan of Kim
300
00:25:12,177 --> 00:25:13,911
because of his Gumball racing,
301
00:25:13,946 --> 00:25:15,646
and I think that way they met
302
00:25:15,681 --> 00:25:18,949
because he said, "You know,
I can-- I'm a coder too.
303
00:25:18,984 --> 00:25:20,217
Can I do something for you?"
304
00:25:21,820 --> 00:25:24,922
I was not part of
the founding members.
305
00:25:26,258 --> 00:25:29,126
I met him at a club in Munich.
306
00:25:31,730 --> 00:25:34,298
Kim got in touch with me
because Megaupload grew,
307
00:25:34,333 --> 00:25:39,202
and there was a need for
marketing and advertising.
308
00:25:39,237 --> 00:25:41,939
So because
we knew each other,
and he trusted me.
309
00:25:47,045 --> 00:25:51,949
There was this boom in
remote storage locker services
310
00:25:51,984 --> 00:25:54,685
that people were using
for both infringing
311
00:25:54,720 --> 00:25:56,186
and non-infringing purposes
312
00:25:56,221 --> 00:25:59,189
to store information in
what we now call the cloud.
313
00:26:00,425 --> 00:26:01,992
I guess you could really say
314
00:26:02,027 --> 00:26:04,261
that Megaupload was
among the innovators
315
00:26:04,296 --> 00:26:07,898
of consumer cloud services.
316
00:26:07,933 --> 00:26:10,034
Certainly the interface design
was dead simple.
317
00:26:11,770 --> 00:26:13,604
As we talk about Megaupload,
318
00:26:13,639 --> 00:26:15,672
we're gonna be talking
a lot about music and films,
319
00:26:15,707 --> 00:26:16,840
but it's not just that.
320
00:26:16,875 --> 00:26:20,043
Academic research, data sets...
321
00:26:20,078 --> 00:26:22,012
This is the promise of
the Internet, right?
322
00:26:22,047 --> 00:26:25,349
That across the globe
we can share access
to all of this stuff,
323
00:26:25,384 --> 00:26:27,317
and build upon it
and share it,
324
00:26:27,352 --> 00:26:29,119
and that's really,
really amazing.
325
00:26:29,154 --> 00:26:31,254
And that's
the underlying technology
326
00:26:31,289 --> 00:26:34,324
of cloud computing
that Megaupload used
327
00:26:34,359 --> 00:26:35,826
that's really so exciting.
328
00:26:40,732 --> 00:26:42,032
There was a high demand.
329
00:26:42,067 --> 00:26:43,233
We had crazy rates of growth.
330
00:26:46,004 --> 00:26:48,338
Say you have
a million visitors
on your website,
331
00:26:48,373 --> 00:26:52,042
and every user
that came to our website
332
00:26:52,077 --> 00:26:54,712
is potentially
advertising income.
333
00:26:59,084 --> 00:27:01,184
It doubled in size
almost every month,
334
00:27:01,219 --> 00:27:03,086
and we needed to
get new servers,
335
00:27:03,121 --> 00:27:06,290
more bandwidth, new servers,
more bandwidth.
336
00:27:09,494 --> 00:27:11,962
I was surprised.
337
00:27:11,997 --> 00:27:15,732
I was so surprised
that something simple
338
00:27:15,767 --> 00:27:19,436
would grow into
such proportions,
339
00:27:19,471 --> 00:27:23,207
but I also immediately
understood its potential.
340
00:27:26,078 --> 00:27:29,179
Now, whether Dotcom
ever envisioned
what it was gonna turn into,
341
00:27:29,214 --> 00:27:31,382
I don't know,
but users did.
342
00:27:35,854 --> 00:27:37,287
Once users could see
343
00:27:37,322 --> 00:27:41,058
the latest Hollywood movies
on Megaupload,
344
00:27:41,093 --> 00:27:44,061
the use of the site exploded.
345
00:27:46,364 --> 00:27:49,032
They would Google
a movie they wanted to see
346
00:27:49,067 --> 00:27:51,368
or a song they wanted to hear.
347
00:27:51,403 --> 00:27:53,937
It would be
one of the top hits.
348
00:27:53,972 --> 00:27:55,338
They'd click on the link,
349
00:27:55,373 --> 00:27:57,340
and, oh yeah, I guess
I'm at Megaupload,
350
00:27:57,375 --> 00:28:01,178
and by the way,
if you want it
to go faster, pay here.
351
00:28:01,213 --> 00:28:02,913
Then they would pay there,
352
00:28:02,948 --> 00:28:05,415
and get a premium account
and have it go faster.
353
00:28:05,450 --> 00:28:08,051
So it actually,
it was very well designed
354
00:28:08,086 --> 00:28:10,220
to attract people who
weren't even thinking
355
00:28:10,255 --> 00:28:12,789
one way or the other
about legal, illegal.
356
00:28:12,824 --> 00:28:14,157
They just wanted
to see the movie
357
00:28:14,192 --> 00:28:16,393
and were happy
to pay somebody
for the privilege,
358
00:28:16,428 --> 00:28:18,929
and a company
like Kim Dotcom's
was cashing the checks.
359
00:28:22,834 --> 00:28:26,737
A girlfriend, I saw her
watching Mad Men
on her computer,
360
00:28:26,772 --> 00:28:29,773
and I'm like,
"Where did you get that?"
361
00:28:29,808 --> 00:28:33,043
And she's all like,
"Megaupload,"
and I'm like, "What is that?"
362
00:28:33,078 --> 00:28:36,179
And she told me that
Megaupload was the in place
363
00:28:36,214 --> 00:28:37,447
at the University of Kansas,
364
00:28:37,482 --> 00:28:39,816
where she had just
graduated earlier,
365
00:28:39,851 --> 00:28:41,485
to find free movies.
366
00:28:41,520 --> 00:28:42,919
How did you hear about it?
367
00:28:42,954 --> 00:28:45,355
She said
her 63-year-old professor
368
00:28:45,390 --> 00:28:48,859
at the University of Kansas
turned her on to Megaupload.
369
00:28:50,262 --> 00:28:52,229
And then I was like,
this is big.
370
00:28:52,264 --> 00:28:54,331
They're essentially
streaming to you,
371
00:28:54,366 --> 00:28:56,833
and it was easy.
372
00:28:56,868 --> 00:28:59,970
If they make this
this simple to do,
373
00:29:00,005 --> 00:29:03,273
this means
it could go mainstream.
374
00:29:11,883 --> 00:29:14,251
I was traveling
a lot in Asia,
375
00:29:14,286 --> 00:29:17,421
and I was in
the Philippines at a disco,
376
00:29:19,291 --> 00:29:22,960
and I saw Mona dancing
on the dance floor.
377
00:29:25,497 --> 00:29:27,197
And she immediately
caught my eye
378
00:29:27,232 --> 00:29:29,032
because she is
so incredibly beautiful.
379
00:29:31,636 --> 00:29:37,240
I was a bit shy,
so I sent my PA to go to Mona
380
00:29:37,275 --> 00:29:39,176
and ask her if
she wants to join us.
381
00:29:40,478 --> 00:29:44,114
He was just this guy
sitting alone in the corner.
382
00:29:44,149 --> 00:29:47,351
So it's like, why is
no one talking to him?
383
00:29:48,386 --> 00:29:50,554
I thought we really connected.
384
00:29:50,589 --> 00:29:55,292
We both grew up
in a tough life,
385
00:29:55,327 --> 00:29:59,229
but, yeah,
we were just friends.
386
00:29:59,264 --> 00:30:01,565
I just knew that
I wanted to be with her.
387
00:30:01,600 --> 00:30:03,567
Look at me.
388
00:30:03,602 --> 00:30:05,936
I'm not a supermodel, right?
389
00:30:07,572 --> 00:30:11,074
And now we are going
to the Tower de Eiffel.
390
00:30:11,109 --> 00:30:15,011
So I have to spend
extra time and extra work
391
00:30:15,046 --> 00:30:19,016
to get someone to fall for me,
392
00:30:21,386 --> 00:30:22,919
but she ultimately did,
393
00:30:22,954 --> 00:30:24,621
and we were really
happy together.
394
00:30:44,910 --> 00:30:47,911
We went on a holiday
to New Zealand,
395
00:30:47,946 --> 00:30:49,580
and we just fell in love
with the place.
396
00:30:56,554 --> 00:30:58,488
Run for your lives.
397
00:30:59,524 --> 00:31:00,690
Bye bye.
398
00:31:00,725 --> 00:31:02,392
What's happening?
399
00:31:02,427 --> 00:31:05,395
OK, we are up here
on the hill at Coatesville.
400
00:31:05,430 --> 00:31:07,998
This is our house.
401
00:31:08,033 --> 00:31:10,634
We found that house
in Coatesville
402
00:31:13,438 --> 00:31:15,305
and we just made that
our second home.
403
00:31:15,340 --> 00:31:16,340
Yeah.
404
00:31:20,312 --> 00:31:22,012
Megaupload was huge,
405
00:31:22,047 --> 00:31:27,484
and there were tens of
millions of dollars coming in.
406
00:31:27,519 --> 00:31:32,489
At that time,
he was largely unknown
in New Zealand.
407
00:31:32,524 --> 00:31:36,459
He was a reclusive,
wealthy foreigner
who was living
408
00:31:36,494 --> 00:31:40,297
in the grandest house
in the land.
409
00:31:46,604 --> 00:31:49,039
Now for
the biggest fireworks display
410
00:31:49,074 --> 00:31:51,107
ever seen in New Zealand,
411
00:31:51,142 --> 00:31:53,977
a gift from Mr. Kim Dotcom
412
00:31:54,012 --> 00:31:57,314
as he hovers up here
over our beautiful harbor.
413
00:31:57,349 --> 00:31:59,349
Happy New Year, Auckland.
414
00:31:59,384 --> 00:32:01,218
Happy New Year.
415
00:32:10,228 --> 00:32:13,263
Dotcom had a very slow entry
416
00:32:13,298 --> 00:32:14,298
into New Zealand life,
417
00:32:16,368 --> 00:32:19,569
but then, he spent about
a half million dollars
418
00:32:19,604 --> 00:32:21,404
on that fireworks display.
419
00:32:27,078 --> 00:32:30,480
That was a celebration
of getting his residency.
420
00:32:36,621 --> 00:32:39,289
These thieves are now
migrating offshore,
421
00:32:39,324 --> 00:32:40,690
locating themselves in places
422
00:32:40,725 --> 00:32:43,460
that're beyond
the jurisdiction of U.S. courts.
423
00:32:43,495 --> 00:32:45,362
And so we need to come up
with a mechanism
424
00:32:45,397 --> 00:32:46,629
to protect our jobs
425
00:32:46,664 --> 00:32:48,631
and protect
the intellectual property
426
00:32:48,666 --> 00:32:50,767
by going after those sites
427
00:32:50,802 --> 00:32:52,435
or those search engines
428
00:32:52,470 --> 00:32:56,106
that allow
these illegal criminal
foreign sites to exist.
429
00:33:00,078 --> 00:33:03,680
Dotcom had a plan
to list Megaupload.
430
00:33:03,715 --> 00:33:05,448
He wanted
to float the company,
431
00:33:05,483 --> 00:33:07,985
and he reckoned it was worth
about two billion dollars.
432
00:33:10,088 --> 00:33:12,222
This is next level stuff.
433
00:33:17,362 --> 00:33:21,164
We wanted to launch
several new sites.
434
00:33:21,199 --> 00:33:24,100
One of them was Megamovies,
435
00:33:24,135 --> 00:33:26,336
which was
a Netflix competitor,
436
00:33:26,371 --> 00:33:29,272
and the aim was
to license content
437
00:33:29,307 --> 00:33:31,041
from the big studios.
438
00:33:32,477 --> 00:33:35,078
We have Megabox.
439
00:33:35,113 --> 00:33:37,480
It would give the artist
90% of the earnings.
440
00:33:37,515 --> 00:33:39,315
It would give them
an online platform
441
00:33:39,350 --> 00:33:44,054
where they can sell
directly to their fan base.
442
00:33:44,089 --> 00:33:49,659
Because we were thinking
about how can we reinvent
this whole copyright model?
443
00:33:49,694 --> 00:33:51,494
How can we make it work
444
00:33:51,529 --> 00:33:55,398
for the artists
and creators directly?
445
00:33:55,433 --> 00:33:57,500
Kim was definitely talking
about new business models
446
00:33:57,535 --> 00:34:00,170
that he was working on
and new services
that he was working on.
447
00:34:00,205 --> 00:34:01,638
And you got this idea that
448
00:34:01,673 --> 00:34:04,074
like many other platforms
that started out
449
00:34:04,109 --> 00:34:07,477
as being very focused on
kind of infringing uses,
450
00:34:07,512 --> 00:34:09,879
a legitimate and authorized
business model
451
00:34:09,914 --> 00:34:11,548
might actually come out of it.
452
00:34:13,885 --> 00:34:17,420
This technology is live
and in place now, correct?
453
00:34:17,455 --> 00:34:19,089
Yes, that's correct.
454
00:34:19,124 --> 00:34:21,191
I will happily do
a deal with you guys,
455
00:34:21,226 --> 00:34:22,725
not an issue.
456
00:34:22,760 --> 00:34:25,495
Amazing, great,
I'm happy to hear that.
457
00:34:25,530 --> 00:34:28,731
We have gotten a lot
of fire from everyone,
458
00:34:28,766 --> 00:34:32,268
you know, in
the content industry for,
459
00:34:32,303 --> 00:34:34,370
you know, Megaupload.
460
00:34:34,405 --> 00:34:37,340
There are certain people
I can have conversations with
461
00:34:37,375 --> 00:34:40,410
where you'll be moved
onto a different list
462
00:34:40,445 --> 00:34:43,313
-as opposed to a bad list.
463
00:34:43,348 --> 00:34:46,649
If it would be
from evil to neutral,
464
00:34:46,684 --> 00:34:48,818
and then later from
neutral to good,
465
00:34:48,853 --> 00:34:50,620
I think that would be fair.
466
00:34:50,655 --> 00:34:52,689
- That, we can do that.
- OK, good.
467
00:34:54,893 --> 00:34:56,626
One of the things
that I thought was,
468
00:34:56,661 --> 00:34:59,262
maybe this was the sign
that Megaupload was making
469
00:34:59,297 --> 00:35:02,332
that sort of shift
to a legitimate platform.
470
00:35:03,668 --> 00:35:05,135
The movie industry
did not react that way.
471
00:35:05,170 --> 00:35:06,836
I think they sort
of freaked out.
472
00:35:06,871 --> 00:35:10,273
They don't go past this whole,
"There's infringement.
473
00:35:10,308 --> 00:35:11,908
It's bad. End it."
474
00:35:23,388 --> 00:35:25,355
Megaupload was
effectively a copy cat
475
00:35:25,390 --> 00:35:27,857
of some pirate services that
already existed at the time,
476
00:35:27,892 --> 00:35:30,827
so there was
no creative innovation
in what they did.
477
00:35:30,862 --> 00:35:33,463
They just did it
better in the sense
478
00:35:33,498 --> 00:35:36,299
that they bested
their pirate competitors
479
00:35:36,334 --> 00:35:37,433
in terms of growing.
480
00:35:37,468 --> 00:35:39,569
So the entire
business model was based
481
00:35:39,604 --> 00:35:43,706
on distributing content
that Megaupload didn't own.
482
00:35:43,741 --> 00:35:48,344
This guy is becoming
a multi, multi millionaire,
483
00:35:48,379 --> 00:35:52,515
and dual use,
this is not people
sharing their vacation photos
484
00:35:52,550 --> 00:35:54,384
and then others
paying a premium
485
00:35:54,419 --> 00:35:56,553
to download them
a little faster.
486
00:35:56,588 --> 00:35:59,456
This is just movie
after movie after movie.
487
00:36:12,971 --> 00:36:15,338
Kim Dotcom made a lot
of money for himself.
488
00:36:18,309 --> 00:36:21,377
Did he make a lot of money
to fund all of the art
489
00:36:21,412 --> 00:36:22,979
that he was
distributing for free?
490
00:36:23,014 --> 00:36:24,414
No way.
491
00:36:24,449 --> 00:36:27,350
Also remember that like
creators have rights.
492
00:36:27,385 --> 00:36:30,887
I mean, in
the Universal Declaration
of Human Rights,
493
00:36:30,922 --> 00:36:33,556
which was signed by
the UN, not the MPAA,
494
00:36:33,591 --> 00:36:35,225
you know, you have the right
495
00:36:35,260 --> 00:36:37,961
to moral
and material interests
of your work.
496
00:36:37,996 --> 00:36:40,230
That's a big deal.
497
00:36:40,265 --> 00:36:42,899
You wanna give it away for
free? Give it away for free.
498
00:36:42,934 --> 00:36:45,034
You wanna stream it?
Stream it.
499
00:36:45,069 --> 00:36:46,703
You wanna put it on LaserDisc,
500
00:36:46,738 --> 00:36:48,972
beam it into space,
show it on airplanes?
501
00:36:49,007 --> 00:36:50,640
That's your choice.
502
00:36:50,675 --> 00:36:53,776
But Kim was violating
the rights of a lot of people.
503
00:37:07,792 --> 00:37:12,028
When someone like
Kim Dotcom put up a site,
504
00:37:12,063 --> 00:37:14,497
and he collects
millions of dollars
505
00:37:14,532 --> 00:37:16,933
of advertising income
off that site
506
00:37:16,968 --> 00:37:20,770
to pay for his yachts,
his mansions,
507
00:37:20,805 --> 00:37:22,706
and his private jets,
508
00:37:23,941 --> 00:37:27,244
that's, to me, parasitical.
509
00:37:28,379 --> 00:37:30,413
He is a parasite,
510
00:37:30,448 --> 00:37:35,685
and he is sucking
the blood out of
the artist's corporate body.
511
00:37:35,720 --> 00:37:36,919
Just one more time,
are you ready?
512
00:37:38,856 --> 00:37:44,394
So he's a criminal,
and it's just that simple.
513
00:37:44,429 --> 00:37:47,030
You know, he deserved,
he should be in jail.
514
00:38:04,415 --> 00:38:05,949
That wasn't right.
Let's do it again.
515
00:38:09,821 --> 00:38:11,621
And then the other one.
516
00:38:11,656 --> 00:38:14,624
I was working
on a music site
called Megabox.
517
00:38:14,659 --> 00:38:17,126
Megabox was actually
a real threat
518
00:38:17,161 --> 00:38:21,764
to the music labels because
it empowered the artists,
519
00:38:21,799 --> 00:38:23,966
and cut out the middlemen,
520
00:38:24,001 --> 00:38:27,637
these monopolist labels
that are just
stealing money from them,
521
00:38:27,672 --> 00:38:29,972
and the artists loved that.
522
00:38:30,007 --> 00:38:31,674
Hey, we have our hit, man.
523
00:38:31,709 --> 00:38:33,009
And they were all excited.
524
00:38:33,044 --> 00:38:34,844
They wanted to be
a part of that,
525
00:38:34,879 --> 00:38:38,114
and that's why they decided
to promote Megaupload
526
00:38:38,149 --> 00:38:40,149
in the way they have done.
527
00:38:54,499 --> 00:38:56,165
I use Megauploads, man.
528
00:38:56,200 --> 00:38:57,767
I like to use Megaupload.
529
00:38:57,802 --> 00:38:58,968
I like Megaupload.
530
00:38:59,003 --> 00:39:00,670
I like Megaupload.
531
00:39:00,705 --> 00:39:02,572
I love Megaupload.
532
00:39:02,607 --> 00:39:04,040
A whole bunch of A-listers,
well-known faces
533
00:39:04,075 --> 00:39:05,975
singing a Megaupload jingle,
534
00:39:06,010 --> 00:39:07,377
...suggest that I might be.
535
00:39:07,412 --> 00:39:09,679
I mean, that was really
sticking his fingers
536
00:39:09,714 --> 00:39:11,914
up the noses
of the record companies
and Hollywood.
537
00:39:14,986 --> 00:39:17,653
But it was surprising
because I'm sure
538
00:39:17,688 --> 00:39:20,390
that many of the labels that
represent these celebrities
539
00:39:20,425 --> 00:39:22,392
were incredibly unhappy to see
540
00:39:22,427 --> 00:39:25,795
that promo because
their message was one
541
00:39:25,830 --> 00:39:27,730
that does not align
very easily
542
00:39:27,765 --> 00:39:29,766
with the copyright industry's
message,
543
00:39:29,801 --> 00:39:35,638
that any kind of
copyright infringement
hurts them, not helps them.
544
00:39:37,475 --> 00:39:38,908
Like, what is this?
545
00:39:38,943 --> 00:39:42,779
Here are the artists
backing Kim Dotcom
546
00:39:42,814 --> 00:39:46,549
and Megaupload at
a crucial time.
547
00:39:46,584 --> 00:39:48,618
Listen, Kim Dotcom
is a PR genius.
548
00:39:48,653 --> 00:39:51,788
He knows what
really makes impact.
549
00:39:51,823 --> 00:39:53,055
He knows
what people wanna see.
550
00:39:53,090 --> 00:39:54,590
He knows
what's gonna affect them.
551
00:39:54,625 --> 00:39:56,726
The guy's a genius
when it comes to that,
552
00:39:56,761 --> 00:40:00,897
and Hollywood had no idea
that he'd be able
to do this kinda thing.
553
00:40:00,932 --> 00:40:02,198
That came out of nowhere.
554
00:40:02,233 --> 00:40:04,967
Hey, I'm Alicia Keys,
and I use Megaupload.
555
00:40:05,002 --> 00:40:06,436
Hi, I'm Naomi Campbell.
556
00:40:06,471 --> 00:40:07,870
What up, doe?
Megaupload.
557
00:40:07,905 --> 00:40:09,472
I am Demi Moore.
558
00:40:09,507 --> 00:40:11,174
Hey, what's up?
It's Kim Kardashian,
559
00:40:11,209 --> 00:40:13,075
and I love Megaupload.
560
00:40:13,110 --> 00:40:15,445
These people are whores.
561
00:40:15,480 --> 00:40:16,980
They're-- they're, you know,
562
00:40:18,249 --> 00:40:20,049
wave a little check
in front of them.
563
00:40:20,084 --> 00:40:21,684
They'll show up anywhere,
564
00:40:21,719 --> 00:40:23,953
and that's what's so sad,
you know.
565
00:40:23,988 --> 00:40:27,123
I mean, the music business
didn't use to be that way,
566
00:40:27,158 --> 00:40:31,494
but now whether
it's brands or Kim Dotcom,
567
00:40:31,529 --> 00:40:36,165
people are so anxious
to get some cash
568
00:40:36,200 --> 00:40:38,001
that they'll do anything.
569
00:40:44,175 --> 00:40:45,975
He seemed to them
570
00:40:46,010 --> 00:40:48,044
he was rubbing their nose,
571
00:40:48,079 --> 00:40:50,012
that he was living
in this huge mansion
572
00:40:50,047 --> 00:40:53,082
with all these cars,
living this high life,
573
00:40:53,117 --> 00:40:55,885
and to them,
he was doing that
with their money.
574
00:40:58,689 --> 00:41:00,790
It was like, he had to go.
575
00:41:00,825 --> 00:41:04,594
So he kinda, in a way,
he invited some of this.
576
00:41:10,535 --> 00:41:12,768
He has long been viewed
577
00:41:12,803 --> 00:41:17,507
as an adversary of the film
and entertainment industry
in Hollywood,
578
00:41:17,542 --> 00:41:19,709
and that industry wield
579
00:41:19,744 --> 00:41:22,479
enormous political power
inside the United States,
580
00:41:23,781 --> 00:41:25,314
and therefore it wields
great influence
581
00:41:25,349 --> 00:41:27,717
within the halls of
power of Washington.
582
00:41:29,353 --> 00:41:31,754
Top lobbyist
for Hollywood told FOX
583
00:41:31,789 --> 00:41:35,725
his industry is threatening
to cut off money
to the President.
584
00:41:35,760 --> 00:41:37,660
Don't make
the false assumption this year
585
00:41:37,695 --> 00:41:39,028
that because we did it
in the years past
586
00:41:39,063 --> 00:41:40,229
we're gonna do it this year.
587
00:41:40,264 --> 00:41:42,331
This industry is
watching very carefully
588
00:41:42,366 --> 00:41:43,966
who's going
to stand up for them
589
00:41:44,001 --> 00:41:45,168
when their job is at stake.
590
00:41:47,672 --> 00:41:50,773
Chris Dodd,
the head of the Motion Picture
Association of America,
591
00:41:50,808 --> 00:41:53,676
the most powerful
lobbying group
for Hollywood in America,
592
00:41:53,711 --> 00:41:55,011
was very explicit
about the fact
593
00:41:55,046 --> 00:41:57,580
that if you're not gonna
give us what we want,
594
00:41:57,615 --> 00:42:00,283
we're not gonna give you
what you want
when it comes around time
595
00:42:00,318 --> 00:42:02,952
for you to raise money
to fund your campaigns.
596
00:42:02,987 --> 00:42:05,321
Now that was more explicit
than he should have been
597
00:42:05,356 --> 00:42:07,056
'cause it just
sounded so grotesque,
598
00:42:07,091 --> 00:42:09,759
but what he was saying
was understood
by everybody to be true.
599
00:42:12,897 --> 00:42:14,297
I've heard
a lot of suspicion
600
00:42:14,332 --> 00:42:17,934
about whether Hollywood
really did put pressure
601
00:42:17,969 --> 00:42:19,802
on the President
to take down a site
602
00:42:19,837 --> 00:42:22,872
that they believed was
pirating music and films.
603
00:42:22,907 --> 00:42:25,575
And I would say,
"Yeah, absolutely."
604
00:42:25,610 --> 00:42:28,110
That's what we do.
He shouldn't be
surprised by that.
605
00:42:28,145 --> 00:42:29,579
That's what happens.
606
00:42:29,614 --> 00:42:32,348
You get in between
America and its money,
607
00:42:32,383 --> 00:42:34,284
and you're gonna have
big problems.
608
00:45:33,531 --> 00:45:36,065
They've been arrested
on warrants relating
609
00:45:36,100 --> 00:45:39,535
to breach of
copyright offenses in
the United States,
610
00:45:39,570 --> 00:45:43,139
money laundering
and racketeering.
611
00:45:45,309 --> 00:45:47,076
Within New Zealand,
612
00:45:47,111 --> 00:45:49,779
we have seized an excess
of six million dollars worth
613
00:45:49,814 --> 00:45:53,849
of top-end motor vehicles
and over $10 million in cash
614
00:45:53,884 --> 00:45:56,319
from several New Zealand
finance companies.
615
00:45:59,824 --> 00:46:03,259
More details
of Kim Dotcom's actions
during the raid have emerged.
616
00:46:03,294 --> 00:46:05,561
Police say when
they arrived in
two helicopters,
617
00:46:05,596 --> 00:46:10,232
Dotcom retreated into
an electronically locked
panic room.
618
00:46:10,267 --> 00:46:12,802
They found him clutching
a sawed-off shotgun,
619
00:46:12,837 --> 00:46:14,870
and they had to cut him
out of the room.
620
00:46:14,905 --> 00:46:17,840
The firearm that was found,
sir, was illegal.
621
00:46:17,875 --> 00:46:19,475
Here's a photo of it,
622
00:46:19,510 --> 00:46:21,177
and it was loaded.
623
00:46:42,233 --> 00:46:46,969
The FBI claims that
Kim Dotcom made $175 million
624
00:46:47,004 --> 00:46:49,338
in criminal proceedings
625
00:46:49,373 --> 00:46:55,077
and that Megaupload cost
half a billion dollars
in harm to copyright owners.
626
00:46:55,112 --> 00:46:56,412
He was put into
the criminal category
627
00:46:56,447 --> 00:46:58,314
because he was a criminal,
628
00:46:58,349 --> 00:47:00,349
and he is a criminal,
629
00:47:00,384 --> 00:47:04,286
and he was
a pretty significant criminal.
630
00:47:04,321 --> 00:47:06,388
Just because he is not violent
631
00:47:06,423 --> 00:47:08,357
doesn't mean
his conduct isn't criminal.
632
00:47:08,392 --> 00:47:10,492
People go to jail for
securities fraud every day
633
00:47:10,527 --> 00:47:13,296
without ever having taken
a bat to the side
of someone's head.
634
00:47:15,099 --> 00:47:17,399
So the harm that
Kim Dotcom causes
635
00:47:17,434 --> 00:47:19,335
really does affect
real people.
636
00:47:19,370 --> 00:47:22,571
It affects those
1.9 million people
that go to work every day
637
00:47:22,606 --> 00:47:25,307
trying to earn
a living in the film
and television industry.
638
00:47:25,342 --> 00:47:27,343
It affects
the small businesses
639
00:47:27,378 --> 00:47:30,446
that are trying to start up
new legitimate online platforms
640
00:47:30,481 --> 00:47:32,147
and that are playing
by the rules.
641
00:47:32,182 --> 00:47:34,483
So the conduct that
Kim Dotcom engaged in
642
00:47:34,518 --> 00:47:36,485
was criminal,
and it had real victims.
643
00:47:46,997 --> 00:47:48,964
- Hi, Kim.
-Hello.
644
00:47:51,302 --> 00:47:55,337
Well, I'm relieved to
go home to see my family,
645
00:47:55,372 --> 00:47:58,307
my three little kids
and my pregnant wife,
646
00:47:58,342 --> 00:47:59,575
and I hope you understand
647
00:47:59,610 --> 00:48:01,243
that that's all
I want to say right now.
648
00:48:01,278 --> 00:48:02,444
How have
you been treated?
649
00:48:02,479 --> 00:48:04,380
I just want to go home,
and see my family.
650
00:48:04,415 --> 00:48:07,249
Gentlemen, just...
Excuse me.
651
00:48:07,284 --> 00:48:09,018
What about
the extradition hearing?
652
00:48:09,053 --> 00:48:11,153
You will obviously
be fighting that one?
653
00:48:11,188 --> 00:48:14,323
Yes, I will be fighting that.
654
00:48:14,358 --> 00:48:18,661
And in New Zealand,
Megaupload tycoon Kim Dotcom
655
00:48:18,696 --> 00:48:23,499
was released on bail today
after 31 days in prison.
656
00:48:23,534 --> 00:48:25,200
A hearing will be held shortly
657
00:48:25,235 --> 00:48:28,470
to determine whether
the Megaupload co-accused
658
00:48:28,505 --> 00:48:31,440
will be sent to
Washington to stand trial.
659
00:48:31,475 --> 00:48:34,043
If found guilty,
the men could face
660
00:48:34,078 --> 00:48:35,978
up to 80 years in prison.
661
00:48:40,751 --> 00:48:42,518
Hi!
662
00:48:44,521 --> 00:48:46,155
Yeah, but they didn't say no.
663
00:48:58,268 --> 00:49:01,270
We were living
in this happy bubble, ya know?
664
00:49:01,305 --> 00:49:02,438
Everything was perfect...
665
00:49:06,243 --> 00:49:07,476
until the raid.
666
00:49:10,381 --> 00:49:12,214
Yay...
667
00:49:13,584 --> 00:49:15,117
it's happening.
668
00:49:17,554 --> 00:49:19,321
Oh, I'm scared.
669
00:49:19,356 --> 00:49:20,523
Oh, what's that?
670
00:49:21,592 --> 00:49:22,992
Oops.
671
00:49:23,027 --> 00:49:24,293
- Hello.
672
00:49:26,530 --> 00:49:28,497
Number one is out, baby...
673
00:49:28,532 --> 00:49:31,667
- Number two.
- ...and number two.
674
00:49:31,702 --> 00:49:34,503
-Babies are super pretty.
-Super healthy?
675
00:49:34,538 --> 00:49:37,640
Super good, baby,
don't worry, all good.
676
00:49:39,643 --> 00:49:41,610
Today I'm a daddy again.
677
00:49:41,645 --> 00:49:45,481
Two more kids, two tiny girls,
678
00:49:45,516 --> 00:49:48,150
two beautiful little pirates.
679
00:49:53,090 --> 00:49:55,124
That was really good
that I was able
680
00:49:55,159 --> 00:49:58,761
to be outside to watch
the twins get born.
681
00:50:00,397 --> 00:50:02,698
You know,
that gave me a lot of energy.
682
00:50:02,733 --> 00:50:06,302
It reminded me
that I really need
to fight for them.
683
00:50:10,641 --> 00:50:12,241
I knew we were innocent.
684
00:50:12,276 --> 00:50:14,543
I knew these
allegations were wrong.
685
00:50:14,578 --> 00:50:18,047
I actually read the indictment
on the day we got arrested,
686
00:50:18,082 --> 00:50:20,049
and I had to laugh.
687
00:50:20,084 --> 00:50:21,784
I said to my co-defense,
688
00:50:21,819 --> 00:50:23,318
this will be over
really quick.
689
00:50:23,353 --> 00:50:25,087
This is such a nonsense.
690
00:50:25,122 --> 00:50:27,122
It will be so easy
to discredit
691
00:50:27,157 --> 00:50:29,658
and show that they got it
all wrong, you know?
692
00:50:34,364 --> 00:50:35,631
While I was remanded,
693
00:50:35,666 --> 00:50:38,233
I got all these
press clippings,
694
00:50:38,268 --> 00:50:40,269
and they were saying
that I was found
695
00:50:40,304 --> 00:50:42,571
with a sawn-off shotgun,
696
00:50:42,606 --> 00:50:45,207
you know, that they had to use
this kind of force
697
00:50:45,242 --> 00:50:47,209
because I had
weapons in the house
698
00:50:47,244 --> 00:50:49,878
and, you know,
the whole description
of the case,
699
00:50:49,913 --> 00:50:54,283
and who I am
was just completely
unrealistic and not true.
700
00:50:54,318 --> 00:50:56,085
-Speak with...
-Mm-hmm.
701
00:50:56,120 --> 00:50:59,455
So I decided that I want
to set the record straight.
702
00:50:59,490 --> 00:51:01,090
Of course, everybody knows
703
00:51:01,125 --> 00:51:03,392
that the Internet
is being used
704
00:51:03,427 --> 00:51:06,628
for legitimate
and illegitimate uses,
705
00:51:06,663 --> 00:51:08,764
and I think every
online service provider
706
00:51:08,799 --> 00:51:12,267
has the same challenges
that we had.
707
00:51:12,302 --> 00:51:15,571
YouTube, Google, everybody
is in the same boat,
708
00:51:15,606 --> 00:51:19,641
and our legal advisers
have always told us
that we are secure
709
00:51:19,676 --> 00:51:22,311
and that we are protected
by the DMCA
710
00:51:22,346 --> 00:51:23,645
which is a law in the U.S.
711
00:51:23,680 --> 00:51:26,381
that is protecting
online service providers
712
00:51:26,416 --> 00:51:29,452
of liability for
the actions of their users.
713
00:51:32,222 --> 00:51:34,690
Kim's legal team would argue
that they're no different
714
00:51:34,725 --> 00:51:36,859
than any other
cloud storage service.
715
00:51:36,894 --> 00:51:38,927
They are not responsible
for what the users do.
716
00:51:38,962 --> 00:51:41,396
They have no liability.
717
00:51:41,431 --> 00:51:43,365
End of story as far
as they're concerned.
718
00:51:43,400 --> 00:51:45,901
What the government alleges,
what the entertainment
industry alleges
719
00:51:45,936 --> 00:51:48,937
is that, well, no,
the website was set up
to give incentives
720
00:51:48,972 --> 00:51:50,773
for people to
upload valuable material,
721
00:51:53,844 --> 00:51:55,844
meaning, you know,
newly released films,
722
00:51:55,879 --> 00:51:57,880
newly released music,
things like that.
723
00:52:05,622 --> 00:52:08,924
That's also
very important to mention.
724
00:52:08,959 --> 00:52:11,693
I shouldn't ever have been
in a situation
725
00:52:11,728 --> 00:52:13,695
to defend myself
against extradition
726
00:52:13,730 --> 00:52:15,764
because there is
simply no basis in law
727
00:52:15,799 --> 00:52:18,234
in New Zealand
to extradite me.
728
00:52:20,437 --> 00:52:22,571
They have to prove
to a New Zealand court
729
00:52:22,606 --> 00:52:24,573
that the treaty between
the United States
730
00:52:24,608 --> 00:52:28,377
and New Zealand,
extradition treaty,
covers copyright.
731
00:52:28,412 --> 00:52:29,745
And from what I've seen,
732
00:52:29,780 --> 00:52:31,914
there's nothing in there
about copyright.
733
00:52:34,585 --> 00:52:35,751
They're concocted,
734
00:52:37,754 --> 00:52:39,788
and they're piling them on
to figure out a way
735
00:52:39,823 --> 00:52:42,958
to make out a case
where none should exist.
736
00:52:45,862 --> 00:52:49,698
But like a house,
you know, like dominoes,
737
00:52:49,733 --> 00:52:53,702
if there is no criminal
copyright infringement,
738
00:52:53,737 --> 00:52:55,604
all the others will fall.
739
00:53:08,652 --> 00:53:10,852
The whole
Dotcom Megaupload process
740
00:53:10,887 --> 00:53:12,721
turned out to be
741
00:53:12,756 --> 00:53:15,457
far more
than New Zealand
ever bargained for.
742
00:53:22,399 --> 00:53:27,536
Anything that
we could get wrong,
we got wrong.
743
00:53:27,571 --> 00:53:32,674
The New Zealand authorities
managed to pretty much
screw up every step
744
00:53:32,709 --> 00:53:34,743
of the process along the way.
745
00:53:34,778 --> 00:53:38,547
The search warrant that was
used to execute the raid,
746
00:53:38,582 --> 00:53:40,983
it has to be directed towards
747
00:53:41,018 --> 00:53:44,586
whatever the alleged
criminal enterprise is.
748
00:53:44,621 --> 00:53:46,555
This document didn't do that.
749
00:53:46,590 --> 00:53:49,592
It was
an incredibly vague document.
750
00:53:55,432 --> 00:53:58,700
The authorities in New Zealand
cloned Dotcom's laptops,
751
00:53:58,735 --> 00:54:01,003
which had been seized
during the raid.
752
00:54:03,340 --> 00:54:05,874
The court had
effectively said
753
00:54:05,909 --> 00:54:07,843
this evidence remains
in New Zealand.
754
00:54:09,746 --> 00:54:12,514
The FBI took the clones
755
00:54:12,549 --> 00:54:15,484
and sent them back
to the United States.
756
00:54:17,120 --> 00:54:18,454
It's extraordinary.
757
00:54:20,557 --> 00:54:25,027
Dotcom's rights, the process
of law had been thwarted,
758
00:54:25,062 --> 00:54:29,031
and there needed to be
some sort of redress for that.
759
00:54:29,066 --> 00:54:31,300
The Internet millionaire
has been back in court
760
00:54:31,335 --> 00:54:33,001
for a three-day hearing.
761
00:54:33,036 --> 00:54:36,338
Police were quizzed about
what level of threat he posed
762
00:54:36,373 --> 00:54:38,507
and whether the elite
special tactics group
763
00:54:38,542 --> 00:54:41,510
was needed to execute
the search warrants
in January.
764
00:54:43,380 --> 00:54:44,713
The police
are not every day
765
00:54:44,748 --> 00:54:47,382
going into domestic houses
766
00:54:47,417 --> 00:54:50,319
armed to the teeth
with automatic weapons,
767
00:54:50,354 --> 00:54:52,120
bashing down doors,
768
00:54:52,155 --> 00:54:56,792
quartering the household
in a paramilitary fashion,
769
00:54:56,827 --> 00:54:58,760
shouting orders
at one another.
770
00:54:58,795 --> 00:55:01,363
That's not ordinary
police practice
in New Zealand, is it?
771
00:55:01,398 --> 00:55:02,698
Or have I missed something?
772
00:55:02,733 --> 00:55:04,733
I think
you've missed something.
773
00:55:04,768 --> 00:55:09,604
If the risk assessment is
that there are firearms
in the property,
774
00:55:09,639 --> 00:55:12,374
the police will not execute
that search warrant
775
00:55:12,409 --> 00:55:14,410
without armed police.
776
00:55:19,883 --> 00:55:24,086
When one reads
the indictment of Megaupload,
777
00:55:24,121 --> 00:55:26,555
I notice that there
were references
778
00:55:26,590 --> 00:55:29,525
to child pornography
and terrorism.
779
00:55:30,927 --> 00:55:33,995
They do not have
any relevance
780
00:55:34,030 --> 00:55:35,597
to a claim
of copyright infringement,
781
00:55:35,632 --> 00:55:37,866
but that is
part of the effort
782
00:55:37,901 --> 00:55:42,037
to paint the defendants
as extremely dangerous
783
00:55:42,072 --> 00:55:44,606
and ugly and nasty persons.
784
00:55:44,641 --> 00:55:47,642
And that, Your Honors,
one that I referred to.
785
00:55:47,677 --> 00:55:48,877
They had a message.
786
00:55:48,912 --> 00:55:50,779
The guy is dangerous.
787
00:55:50,814 --> 00:55:52,447
He has weapons,
788
00:55:52,482 --> 00:55:56,151
and so everybody thought
this Kim Dotcom guy
789
00:55:56,186 --> 00:55:58,687
is not just into piracy.
790
00:55:58,722 --> 00:56:02,424
They gave the impression that
he was much more dangerous
791
00:56:02,459 --> 00:56:04,626
and there were other things
that he might be into,
792
00:56:04,661 --> 00:56:07,596
and of course, that
turned out to be a lie.
793
00:56:10,000 --> 00:56:11,933
One was taken at a resort
794
00:56:11,968 --> 00:56:15,871
called Cape Kidnappers
in Napier,
795
00:56:15,906 --> 00:56:19,574
and I was there
with my family for holiday,
796
00:56:19,609 --> 00:56:22,811
and we had an afternoon
where we had clay shooting,
797
00:56:22,846 --> 00:56:26,815
and the other event
was a similar occasion
798
00:56:26,850 --> 00:56:29,118
in Ireland over 10 years ago.
799
00:56:40,263 --> 00:56:43,065
I was almost
seven months pregnant.
800
00:56:45,068 --> 00:56:48,003
I was having contractions,
but that was not my focus.
801
00:56:48,038 --> 00:56:49,604
I just thought to myself,
802
00:56:49,639 --> 00:56:51,173
"Oh, my God, the kids,"
803
00:56:51,208 --> 00:56:54,209
'cause I could see
the guys with their weapons,
804
00:56:54,244 --> 00:56:55,577
with their guns.
805
00:56:55,612 --> 00:56:57,112
How silly is that?
806
00:56:57,147 --> 00:57:00,148
So I was just like,
"Can you please
let me go to my kids?"
807
00:57:00,183 --> 00:57:01,950
They're like, "No,
you just have to stand there.
808
00:57:01,985 --> 00:57:03,251
You have to stand there."
809
00:57:03,286 --> 00:57:05,187
I'm like, "I need
to go to my kids.
810
00:57:05,222 --> 00:57:06,188
I need to see my kids.
811
00:57:06,223 --> 00:57:07,356
Those are my kids in there."
812
00:57:07,391 --> 00:57:09,925
It's 'cause
I was just worried
that, you know,
813
00:57:09,960 --> 00:57:12,661
they're gonna come in
their room with their guns.
814
00:57:14,197 --> 00:57:15,964
So you were relying upon
815
00:57:15,999 --> 00:57:17,466
the intelligence information
816
00:57:17,501 --> 00:57:20,068
which the FBI
were providing to you?
817
00:57:20,103 --> 00:57:21,503
-Is that right?
-Yes.
818
00:57:23,206 --> 00:57:24,940
The FBI and
the Department of Justice
819
00:57:24,975 --> 00:57:27,075
were involved from
the very outset,
820
00:57:27,110 --> 00:57:29,011
and that's perhaps
not surprising.
821
00:57:30,514 --> 00:57:32,681
What's surprising
is how keen
822
00:57:32,716 --> 00:57:33,982
the New Zealand authorities were
823
00:57:34,017 --> 00:57:36,485
just to adopt
what we assume to be
824
00:57:36,520 --> 00:57:38,620
the recommendations
from the FBI.
825
00:57:40,290 --> 00:57:43,124
When they went in
fast and hard,
826
00:57:43,159 --> 00:57:46,528
it was because the police were
under the impression
827
00:57:46,563 --> 00:57:48,830
that there was
this Doomsday device
828
00:57:48,865 --> 00:57:51,600
that was in the mansion
somewhere that would,
829
00:57:51,635 --> 00:57:53,502
if activated, destroy evidence
830
00:57:53,537 --> 00:57:55,804
of wrongdoing
anywhere in the world.
831
00:57:55,839 --> 00:57:57,572
What destruction devices?
832
00:57:57,607 --> 00:58:00,609
Well, the laptop
and the iPhone
833
00:58:00,644 --> 00:58:02,043
or the PDA, whatever
it was that was found.
834
00:58:02,078 --> 00:58:04,613
They were not
destruction devices, were they?
835
00:58:04,648 --> 00:58:07,048
What do you expect?
A box with a red button on it?
836
00:58:09,819 --> 00:58:13,522
The mission was to arrest me
837
00:58:13,557 --> 00:58:15,590
as quickly as possible
838
00:58:15,625 --> 00:58:17,826
so that I could not use
any Doomsday device.
839
00:58:19,629 --> 00:58:21,997
In actuality,
it took them 15 minutes
840
00:58:22,032 --> 00:58:23,999
to find me in my own house.
841
00:58:26,236 --> 00:58:28,904
There's never been
any such device,
and it was never found.
842
00:58:28,939 --> 00:58:31,006
It was all bullshit.
843
00:58:37,013 --> 00:58:40,549
I think that
the rationale is clear.
844
00:58:40,584 --> 00:58:44,352
It was meant to send
a message around the world.
845
00:58:44,387 --> 00:58:48,356
Don't mess
with the United States
on copyright issues.
846
00:58:48,391 --> 00:58:51,693
The only other raid
that I can think of
847
00:58:51,728 --> 00:58:55,830
that sounds similar
was the raid on
Osama Bin Laden,
848
00:58:55,865 --> 00:59:02,704
and these are
vastly different levels
of importance.
849
00:59:04,908 --> 00:59:06,575
You know, it sort of
looked like
850
00:59:06,610 --> 00:59:08,843
you were taking down
a South American dictator.
851
00:59:10,647 --> 00:59:11,947
I thought it was bizarre,
852
00:59:11,982 --> 00:59:13,348
and I thought it was
also quite symptomatic
853
00:59:13,383 --> 00:59:17,319
of how we've gotten into
such an extreme position
854
00:59:17,354 --> 00:59:18,853
around some of these issues.
855
00:59:18,888 --> 00:59:22,123
Things that I might
not even agree with
856
00:59:22,158 --> 00:59:24,059
that Megaupload was doing,
857
00:59:24,094 --> 00:59:28,196
I think warrant
proper address in court
and so forth.
858
00:59:28,231 --> 00:59:30,031
It doesn't mean
you need to send helicopters
859
00:59:30,066 --> 00:59:33,302
and masses of teams
with machine guns and so on.
860
00:59:44,447 --> 00:59:45,814
That's it.
861
00:59:45,849 --> 00:59:47,950
You just made history, man.
862
00:59:49,252 --> 00:59:52,087
It's fucking huge, man!
863
00:59:55,091 --> 00:59:56,057
Later.
864
00:59:57,394 --> 00:59:58,627
OK, bye.
865
01:00:02,432 --> 01:00:04,933
Oh man, this is good shit.
866
01:00:04,968 --> 01:00:06,101
They fucked up!
867
01:00:06,136 --> 01:00:07,636
They fucked up.
868
01:00:07,671 --> 01:00:09,237
They fucked up.
869
01:00:09,272 --> 01:00:10,672
They fucked up.
870
01:00:10,707 --> 01:00:12,741
They fucked up.
They fucked up.
871
01:00:17,414 --> 01:00:18,780
First tonight,
a ruling in the past hour
872
01:00:18,815 --> 01:00:20,982
on the Kim Dotcom case
873
01:00:21,017 --> 01:00:23,284
as he fights FBI attempts
to extradite him
to the United States.
874
01:00:23,319 --> 01:00:25,186
A high court judge says
search warrants
875
01:00:25,221 --> 01:00:28,757
for the Internet entrepreneur's
Auckland mansion were illegal.
876
01:00:28,792 --> 01:00:30,859
Justice Helen Winkleman
has decided
877
01:00:30,894 --> 01:00:32,727
the warrants used
were invalid.
878
01:00:32,762 --> 01:00:34,329
New Zealand police
seized bank accounts
879
01:00:34,364 --> 01:00:35,930
on behalf of the FBI
880
01:00:35,965 --> 01:00:37,699
and took away property
worth millions.
881
01:00:37,734 --> 01:00:39,734
Now they may have
to give it all back.
882
01:00:39,769 --> 01:00:41,736
It's a damning judgment,
illegal,
883
01:00:41,771 --> 01:00:43,405
unlawful, invalid.
884
01:00:43,440 --> 01:00:45,907
Justice Winkleman
doesn't hold back.
885
01:00:52,949 --> 01:00:54,916
Embarrassed about this?
I am, a wee bit.
886
01:00:54,951 --> 01:00:56,284
Ah, absolutely.
887
01:00:56,319 --> 01:00:59,421
That we appear
to almost be puppets
of the FBI.
888
01:00:59,456 --> 01:01:02,357
There was a feeling that
the machinery of state
889
01:01:02,392 --> 01:01:04,059
had been exercised
against Dotcom
890
01:01:04,094 --> 01:01:07,262
in a way that was
unjust or unfair.
891
01:01:09,999 --> 01:01:11,766
Suddenly, New Zealanders saw
892
01:01:11,801 --> 01:01:13,501
that there was
two sides to the story...
893
01:01:13,536 --> 01:01:15,403
I love you, Com!
894
01:01:15,438 --> 01:01:17,806
...and maybe this was
the U.S. state bullying someone
895
01:01:17,841 --> 01:01:20,275
that was a spanner
in the works of
Hollywood productions.
896
01:01:23,880 --> 01:01:27,248
Suddenly, people wanted to
fight against injustice.
897
01:01:27,283 --> 01:01:30,452
Suddenly, he became
a cause celeb.
898
01:01:33,189 --> 01:01:35,824
The war for
the Internet has begun.
899
01:01:37,193 --> 01:01:40,495
Hollywood is
in control of politics.
900
01:01:40,530 --> 01:01:43,932
There is huge contradictions
in Kim Dotcom.
901
01:01:43,967 --> 01:01:49,137
Even in the face of these
huge legal battles he faces,
902
01:01:49,172 --> 01:01:51,539
he seems to have
a huge sense of humor
903
01:01:51,574 --> 01:01:54,142
and likes to taunt
the U.S. government.
904
01:01:54,177 --> 01:01:57,779
What about free speech,
905
01:01:57,814 --> 01:01:59,547
Say hello to my little friend.
906
01:02:02,452 --> 01:02:05,787
I think that playful attitude
is one reason
907
01:02:05,822 --> 01:02:08,022
that a lot of people
who might otherwise be
908
01:02:08,057 --> 01:02:10,091
really skeptical
of what he's done,
909
01:02:10,126 --> 01:02:13,328
knowing that, you know,
the primary driving force
910
01:02:13,363 --> 01:02:16,364
behind many of these companies
is to make money,
911
01:02:16,399 --> 01:02:19,100
nevertheless, kind of,
can appreciate him.
912
01:02:30,847 --> 01:02:33,081
It's quite interesting
that a lobby group
913
01:02:33,116 --> 01:02:35,183
around entertainment content
914
01:02:35,218 --> 01:02:38,353
can get the White House
to move against
915
01:02:38,388 --> 01:02:41,222
an Internet nerd
with military force.
916
01:02:41,257 --> 01:02:42,457
I mean, think about
that for a moment.
917
01:02:42,492 --> 01:02:45,126
Isn't that--
It's funny.
918
01:02:45,161 --> 01:02:48,496
And none of it
will change anything.
919
01:02:48,531 --> 01:02:51,866
None of what they have done
has changed anything
920
01:02:51,901 --> 01:02:55,203
to alter the way
the Internet works
921
01:02:55,238 --> 01:02:57,505
or the levels of piracy.
922
01:02:57,540 --> 01:03:00,141
When Megaupload shut down,
923
01:03:00,176 --> 01:03:01,977
in the 18 weeks
following that shutdown,
924
01:03:04,247 --> 01:03:08,216
sales through
legitimate outlets
went up six to 10%,
925
01:03:08,251 --> 01:03:09,818
and that's just one site.
926
01:03:09,853 --> 01:03:12,053
It was one
of the major sites
at the time,
927
01:03:12,088 --> 01:03:13,454
but that's just one site,
928
01:03:13,489 --> 01:03:17,892
and you saw an uptake of
use of legitimate sites
929
01:03:17,927 --> 01:03:19,594
by an amount of six to 10%.
930
01:03:19,629 --> 01:03:21,229
So that's a really
significant amount
931
01:03:21,264 --> 01:03:24,833
of impact on
the legitimate market.
932
01:03:36,312 --> 01:03:38,079
You can't really trust
the industry numbers
933
01:03:38,114 --> 01:03:39,214
on that problem,
934
01:03:39,249 --> 01:03:41,916
and you certainly can't trust
935
01:03:41,951 --> 01:03:44,118
the industry's analysis
and understanding
936
01:03:44,153 --> 01:03:46,021
of the operation
of the Internet.
937
01:03:47,290 --> 01:03:49,390
One of the strongest
drivers for piracy
938
01:03:49,425 --> 01:03:50,859
is when people are hearing
all this buzz
939
01:03:50,894 --> 01:03:52,360
about something that
really is fantastic,
940
01:03:52,395 --> 01:03:54,996
but they can't get it legally
in their country,
941
01:03:55,031 --> 01:03:59,234
and then they turn illegally
to download it.
942
01:03:59,269 --> 01:04:01,069
Well, we may disapprove
of that behavior,
943
01:04:01,104 --> 01:04:02,937
but we can't stop
that behavior,
944
01:04:02,972 --> 01:04:04,606
and there's actually
a very simple solution
945
01:04:04,641 --> 01:04:07,508
that doesn't involve
sending out S.W.A.T. teams.
946
01:04:07,543 --> 01:04:10,345
It involves,
"Hey, change
your business policy."
947
01:04:10,380 --> 01:04:12,413
Everything that you are
selling in one country,
948
01:04:12,448 --> 01:04:14,582
sell it in every country,
949
01:04:14,617 --> 01:04:17,351
and if you don't,
don't be surprised if
people are pirating it.
950
01:04:23,192 --> 01:04:24,492
I'm an avid gamer.
951
01:04:24,527 --> 01:04:28,997
I play Modern Warfare on Xbox,
952
01:04:29,032 --> 01:04:34,002
and I noticed that
my speed, my Internet speed,
953
01:04:34,037 --> 01:04:37,205
went down by about
20, 30 milliseconds.
954
01:04:39,309 --> 01:04:41,142
And a normal
Internet user
955
01:04:41,177 --> 01:04:43,711
would never ever
identify that,
956
01:04:43,746 --> 01:04:47,148
but me being
a competitive gamer,
I noticed it,
957
01:04:47,183 --> 01:04:50,251
and only after the raid did
I figure out what happened.
958
01:04:50,286 --> 01:04:52,720
They rerouted all my traffic
959
01:04:52,755 --> 01:04:56,057
in a way that
they could capture all my data
960
01:04:56,092 --> 01:04:58,593
that went through
my connection.
961
01:05:07,403 --> 01:05:09,704
During
the high court hearings,
962
01:05:09,739 --> 01:05:13,141
Grant Wormed
was being cross examined,
963
01:05:13,176 --> 01:05:16,244
and he was being asked
about his notebook,
964
01:05:17,547 --> 01:05:20,548
and he looked
extremely awkward.
965
01:05:20,583 --> 01:05:27,488
On the 14th of December, 2011,
966
01:05:27,523 --> 01:05:29,457
was there a further meeting
967
01:05:29,492 --> 01:05:33,494
that you attended
to plan this operation
968
01:05:33,529 --> 01:05:35,263
where there was
a range of people there?
969
01:05:35,298 --> 01:05:38,566
Someone from
the Justice Department, was it?
970
01:05:38,601 --> 01:05:39,968
Yes.
971
01:05:40,003 --> 01:05:42,537
And was there
another group of people
972
01:05:42,572 --> 01:05:44,472
represented as well
at the meeting?
973
01:05:44,507 --> 01:05:46,507
Yes, there was.
974
01:05:46,542 --> 01:05:54,282
What field of activity
were they involved with?
975
01:05:54,317 --> 01:05:57,185
They worked for
the government.
976
01:05:57,220 --> 01:05:59,187
Right.
977
01:05:59,222 --> 01:06:01,456
Are you not able to
tell us who they were?
978
01:06:01,491 --> 01:06:02,724
I'd rather not.
979
01:06:04,460 --> 01:06:06,227
Reason?
980
01:06:06,262 --> 01:06:10,332
Just because of the nature
of the organization.
981
01:06:24,547 --> 01:06:27,181
It was clear that something
982
01:06:27,216 --> 01:06:29,985
had gone horribly,
horribly awry.
983
01:06:34,323 --> 01:06:36,657
The intelligence agencies
had somehow become involved
984
01:06:36,692 --> 01:06:38,593
in the Megaupload case.
985
01:06:45,301 --> 01:06:49,103
The GCSB, the Government
Communication Security Bureau,
986
01:06:49,138 --> 01:06:52,840
New Zealand's equivalent to
the National Security Agency,
987
01:06:52,875 --> 01:06:54,509
was spying on Dotcom.
988
01:06:57,647 --> 01:06:59,514
It's also a part of
the what's called
989
01:06:59,549 --> 01:07:01,482
the Five Eyes arrangement.
990
01:07:01,517 --> 01:07:06,054
The five eyes between them
spy on the world.
991
01:07:06,089 --> 01:07:08,390
The power that they have
is immense.
992
01:07:09,859 --> 01:07:12,427
Once Kim Dotcom
was in New Zealand,
993
01:07:12,462 --> 01:07:15,463
the U.S. began exploiting
the relationship that they had
994
01:07:15,498 --> 01:07:17,565
with the GCSB
and the New Zealand Government
995
01:07:17,600 --> 01:07:19,500
to ensure that
getting Kim Dotcom
996
01:07:19,535 --> 01:07:21,803
became one of
their principal priorities
997
01:07:21,838 --> 01:07:24,605
to the point
where they engaged
998
01:07:24,640 --> 01:07:26,241
in illegal surveillance
to do so.
999
01:07:29,579 --> 01:07:33,581
The GCSB is controlled by
quite specific legislation
1000
01:07:33,616 --> 01:07:35,750
that says
you're not allowed to spy
1001
01:07:35,785 --> 01:07:38,420
on New Zealand residents
or citizens.
1002
01:07:47,363 --> 01:07:50,264
There's something
I'd really like to point out
that is important for me.
1003
01:07:50,299 --> 01:07:53,468
When they tapped
into my iPhone.
1004
01:07:53,503 --> 01:07:54,902
Because if that
happens to you,
1005
01:07:54,937 --> 01:07:57,672
it alters the way
you think completely.
1006
01:07:57,707 --> 01:08:03,878
You realize that
it wasn't just
my emails that they read.
1007
01:08:03,913 --> 01:08:08,783
They were there when
I was private with my wife.
1008
01:08:08,818 --> 01:08:11,853
They were right there.
1009
01:08:11,888 --> 01:08:15,723
They have no business
doing that, to anybody, at all.
1010
01:08:20,496 --> 01:08:23,398
I find that more than
a little bit disturbing.
1011
01:08:26,402 --> 01:08:28,469
Is that a way
the government
is supposed to act
1012
01:08:28,504 --> 01:08:30,605
with communications monitoring?
1013
01:08:30,640 --> 01:08:33,374
Are you supposed to be
turning the antennas
1014
01:08:33,409 --> 01:08:37,411
that are meant to protect
your country from
outside threats
1015
01:08:37,446 --> 01:08:42,283
back on yourself
for the prosecution
1016
01:08:42,318 --> 01:08:45,219
of what I'm not even sure
in New Zealand
1017
01:08:45,254 --> 01:08:47,155
is necessarily a criminal act?
1018
01:08:54,664 --> 01:08:56,564
Tonight,
the Kim Dotcom affair
1019
01:08:56,599 --> 01:08:59,534
is leaving
John Key's government
increasingly red-faced.
1020
01:08:59,569 --> 01:09:02,870
The boss of
the Intelligence Bureau,
Prime Minister John Key,
1021
01:09:02,905 --> 01:09:06,774
has ordered a probe
into illegal bugging
of the Internet millionaire.
1022
01:09:06,809 --> 01:09:08,476
Of course, I apologize
to Mr. Dotcom.
1023
01:09:08,511 --> 01:09:10,444
I apologize to New Zealanders
1024
01:09:10,479 --> 01:09:12,847
because every New Zealander
that sits within
1025
01:09:12,882 --> 01:09:15,783
the category of
holding a permanent residency
1026
01:09:15,818 --> 01:09:19,887
or a New Zealand citizen
is entitled
to be protected from the law.
1027
01:09:19,922 --> 01:09:24,992
This is really a matter of
mistake and human error,
1028
01:09:25,027 --> 01:09:27,262
not one of a great conspiracy.
1029
01:09:50,886 --> 01:09:52,554
Shutting down the Internet.
1030
01:09:59,462 --> 01:10:00,628
Truth...
1031
01:10:03,566 --> 01:10:05,400
integrity...
1032
01:10:07,970 --> 01:10:09,204
knowledge...
1033
01:10:12,275 --> 01:10:13,474
independence.
1034
01:10:17,780 --> 01:10:20,314
This is a crime scene,
an illegal gathering.
1035
01:10:20,349 --> 01:10:21,749
-You are all being detained.
1036
01:10:21,784 --> 01:10:22,951
Nobody move.
1037
01:10:37,600 --> 01:10:40,501
The four Megaupload accused
did a remarkable thing
1038
01:10:40,536 --> 01:10:42,537
in the year after
they were arrested.
1039
01:10:43,739 --> 01:10:45,607
They built
a business called Mega.
1040
01:10:48,544 --> 01:10:51,546
It is
the launch of Mega.
1041
01:10:56,052 --> 01:10:58,586
-You are all upgraded.
1042
01:11:02,625 --> 01:11:04,325
Dotcom says that
he was motivated
1043
01:11:04,360 --> 01:11:07,094
by a desire to create
an encrypted cloud storage site
1044
01:11:07,129 --> 01:11:09,397
so that nobody could be spied on
1045
01:11:09,432 --> 01:11:11,899
in the way that
he had been spied on.
1046
01:11:11,934 --> 01:11:15,369
The U.S. government
is investing billions
1047
01:11:15,404 --> 01:11:18,105
into massive
spy-clouds
1048
01:11:18,140 --> 01:11:21,976
to capture all your data
and communication.
1049
01:11:22,011 --> 01:11:26,380
By using Mega,
you say no to governments
1050
01:11:26,415 --> 01:11:28,316
that want to spy on you.
1051
01:11:31,053 --> 01:11:32,987
Lord knows what's on there.
1052
01:11:33,022 --> 01:11:35,489
It could be copyrighted files.
1053
01:11:35,524 --> 01:11:39,327
It could be ISIS
planning documents.
It could be child porn.
1054
01:11:39,362 --> 01:11:41,395
It could be
whatever it might be.
1055
01:11:41,430 --> 01:11:44,365
They've built it so that
nobody can see inside.
1056
01:11:47,036 --> 01:11:52,006
That, by the way,
is also what's going
to beat the surveillance state.
1057
01:11:53,909 --> 01:11:57,044
I will be one person
that will be remembered
1058
01:11:57,079 --> 01:11:59,847
as somebody who has fought
mass surveillance
1059
01:11:59,882 --> 01:12:03,785
with technology that gives you
your freedom back.
1060
01:12:06,522 --> 01:12:09,390
The innermost workings
of our top spy agency
1061
01:12:09,425 --> 01:12:12,460
have been exposed
in a damning report.
1062
01:12:12,495 --> 01:12:14,995
Police have found
the GCSB breaks a law
1063
01:12:15,030 --> 01:12:19,834
by spying on Kim Dotcom
and 85 other New Zealanders.
1064
01:12:19,869 --> 01:12:22,403
Prime Minister Key's
solution to the debacle
1065
01:12:22,438 --> 01:12:24,939
is to change the law,
giving more power
1066
01:12:24,974 --> 01:12:27,174
to our top intelligence agency.
1067
01:12:27,209 --> 01:12:30,044
If passed, the law
will permit the GCSB
1068
01:12:30,079 --> 01:12:33,348
to now spy on
all New Zealand citizens.
1069
01:12:40,890 --> 01:12:42,056
Kill the bill.
1070
01:12:42,091 --> 01:12:49,063
Kill the bill...
1071
01:12:55,971 --> 01:12:57,671
Thank you all
for coming today.
1072
01:13:01,777 --> 01:13:07,114
The U.S. government is
the most power-hungry
government out there,
1073
01:13:07,149 --> 01:13:10,151
and GCSB is one of the puppets
1074
01:13:10,186 --> 01:13:14,188
on the strings of
the U.S. government,
1075
01:13:14,223 --> 01:13:17,825
and the biggest puppet
of them all is John Key,
1076
01:13:17,860 --> 01:13:18,859
your Prime Minister...
1077
01:13:22,231 --> 01:13:25,065
...and I will never
settle my case.
1078
01:13:25,100 --> 01:13:28,602
I will fight until
we know the truth,
1079
01:13:28,637 --> 01:13:30,871
until we know
every single detail.
1080
01:13:43,853 --> 01:13:45,820
There were fireworks
today at Parliament
1081
01:13:45,855 --> 01:13:49,690
as the Prime Minister John Key
went head to head
with Kim Dotcom.
1082
01:13:49,725 --> 01:13:52,226
The Internet tycoon was
making a public submission
1083
01:13:52,261 --> 01:13:55,529
on the proposed changes
to the country's spy laws.
1084
01:13:55,564 --> 01:13:58,065
You feel that the--
or do you know or believe
1085
01:13:58,100 --> 01:14:00,501
that the Prime Minister
was aware
1086
01:14:00,536 --> 01:14:03,103
of what you were doing
before the raid took place?
1087
01:14:03,138 --> 01:14:05,506
He knew about me
before the raid.
1088
01:14:05,541 --> 01:14:06,774
I know about that.
1089
01:14:06,809 --> 01:14:07,975
I didn't, no.
1090
01:14:10,813 --> 01:14:12,246
You know I know.
1091
01:14:12,281 --> 01:14:14,048
I know you don't know.
1092
01:14:14,083 --> 01:14:16,750
I know you don't know,
actually, but that's fine.
1093
01:14:16,785 --> 01:14:18,652
Why are you turning red,
Prime Minister?
1094
01:14:18,687 --> 01:14:20,788
I'm not.
Why are you sweating?
1095
01:14:20,823 --> 01:14:22,590
- It's hot.
-Oh, OK.
1096
01:14:22,625 --> 01:14:24,925
-I have a scarf.
1097
01:14:24,960 --> 01:14:28,629
The question was if
the Prime Minister
knew about me before the raid,
1098
01:14:28,664 --> 01:14:30,598
and answer to that is yes.
1099
01:14:33,035 --> 01:14:35,669
They gave me residency
in New Zealand
1100
01:14:35,704 --> 01:14:37,805
for the purpose
of extradition.
1101
01:14:40,109 --> 01:14:42,109
Warner Brothers was
already in talks
1102
01:14:42,144 --> 01:14:43,711
with
the New Zealand government
1103
01:14:43,746 --> 01:14:46,146
to shoot
the Hobbit films here,
1104
01:14:46,181 --> 01:14:49,817
and we're talking about
you know, triple digit
million dollar budgets,
1105
01:14:49,852 --> 01:14:51,185
lots of opportunity
for New Zealand.
1106
01:14:53,989 --> 01:14:59,560
So the Prime Minister
has seen this as
a double strike opportunity.
1107
01:14:59,595 --> 01:15:02,763
Number one, we can make
these Hollywood studios happy
1108
01:15:02,798 --> 01:15:04,598
so they will shoot
more movies here,
1109
01:15:04,633 --> 01:15:06,066
and on top of that,
1110
01:15:06,101 --> 01:15:07,801
we can please the White House,
1111
01:15:07,836 --> 01:15:12,006
because on the highest levels,
they wanted me shut down.
1112
01:15:14,910 --> 01:15:16,644
Certainly,
there's a lot of evidence
1113
01:15:16,679 --> 01:15:20,181
that suggests that that
conspiracy theory is true.
1114
01:15:38,901 --> 01:15:40,734
He was allowed to stay
in the country
1115
01:15:40,769 --> 01:15:43,103
despite having a criminal past
1116
01:15:43,138 --> 01:15:45,706
which would
normally preclude him
from getting residency.
1117
01:15:48,844 --> 01:15:50,711
This occurred at the same time
1118
01:15:50,746 --> 01:15:52,780
that the New Zealand
Prime Minister John Key
1119
01:15:52,815 --> 01:15:54,582
was meeting with
Hollywood officials.
1120
01:15:57,820 --> 01:15:59,687
Can I go through the list
of people we believe
1121
01:15:59,722 --> 01:16:01,088
-knew about Kim Dotcom?
-Yeah, sure.
1122
01:16:01,123 --> 01:16:03,357
-Simon Power
and some officials.
-Yep.
1123
01:16:03,392 --> 01:16:04,992
Jonathan Coleman
and some officials,
1124
01:16:05,027 --> 01:16:06,594
the Solicitor General's office,
1125
01:16:06,629 --> 01:16:10,230
Crown Law,
New Zealand Police,
the Attorney General,
1126
01:16:10,265 --> 01:16:12,733
the Organized and Financial
Crime Agency of New Zealand,
1127
01:16:12,768 --> 01:16:14,768
Nigel Bickle
and an unknown number
of people under him
1128
01:16:14,803 --> 01:16:16,837
at Immigration New Zealand,
your electorate office,
1129
01:16:16,872 --> 01:16:18,606
Hillary Clinton,
the U.S. Department of Justice,
1130
01:16:18,641 --> 01:16:21,208
the FBI,
the U.S. Attorney General's
office,
1131
01:16:21,243 --> 01:16:24,144
senior members of
the U.S. police force,
but not you.
1132
01:16:24,179 --> 01:16:26,714
Correct. I mean, look,
I hate to tell you
the bad news.
1133
01:16:26,749 --> 01:16:27,915
There's no great conspiracy.
1134
01:16:27,950 --> 01:16:31,218
The facts of life
are that Dotcom
1135
01:16:31,253 --> 01:16:33,921
is someone the United States
thinks had broken the law.
1136
01:16:33,956 --> 01:16:35,222
He's somebody that
they're trying
1137
01:16:35,257 --> 01:16:37,191
to extradite to
the United States.
1138
01:16:37,226 --> 01:16:38,693
That's where
it starts and finishes.
1139
01:16:42,231 --> 01:16:44,298
Kim Dotcom has failed
in a last ditch attempt
1140
01:16:44,333 --> 01:16:45,899
to have the 2012 raid
1141
01:16:45,934 --> 01:16:48,068
on his Coatesville mansion
ruled invalid.
1142
01:16:48,103 --> 01:16:50,170
The Supreme Court's
found the search warrants
were legal.
1143
01:16:50,205 --> 01:16:51,739
The police
won't be charging anyone
1144
01:16:51,774 --> 01:16:54,274
at the GCSB
in relation to a complaint
1145
01:16:54,309 --> 01:16:56,410
about spying on Kim Dotcom.
1146
01:17:04,853 --> 01:17:07,121
Every time we win,
they appeal.
1147
01:17:07,156 --> 01:17:08,389
It's a default.
1148
01:17:10,025 --> 01:17:12,926
We win. They appeal.
1149
01:17:12,961 --> 01:17:16,030
And, you know, every time
they appeal, they win.
1150
01:17:19,268 --> 01:17:21,268
It's all very political.
1151
01:17:58,741 --> 01:18:00,174
Hello, good morning.
1152
01:18:01,276 --> 01:18:02,977
Thank you all for coming.
1153
01:18:04,046 --> 01:18:05,212
Today is a big day.
1154
01:18:06,749 --> 01:18:09,983
We're launching
the Internet Party.
1155
01:18:14,890 --> 01:18:16,857
I couldn't believe it.
1156
01:18:16,892 --> 01:18:19,293
I said to Dotcom,
"Are you really gonna
do it, then?
1157
01:18:19,328 --> 01:18:21,295
Are you gonna go
into politics?"
1158
01:18:21,330 --> 01:18:22,930
And he said, "Yeah."
1159
01:18:22,965 --> 01:18:25,933
And I thought,
"God, you've lost it.
1160
01:18:25,968 --> 01:18:27,468
That's completely mad."
1161
01:18:29,938 --> 01:18:32,740
I couldn't care less
about politics.
Are you kidding me?
1162
01:18:32,775 --> 01:18:34,408
Why would I get involved,
you know?
1163
01:18:34,443 --> 01:18:36,443
And then I found out
all these things.
1164
01:18:36,478 --> 01:18:39,012
Firsthand, being abused,
1165
01:18:39,047 --> 01:18:42,082
being subject
to the abuse of power.
1166
01:18:42,117 --> 01:18:45,152
Yeah, of course.
I wanted to replace
the government.
1167
01:18:45,187 --> 01:18:47,922
Why else would
I do it, you know?
1168
01:18:50,926 --> 01:18:53,794
For Mathias Ortmann,
Bram van der Kolk,
1169
01:18:53,829 --> 01:18:56,964
Finn Batato, I think
that Dotcom's involvement
1170
01:18:56,999 --> 01:19:01,168
in politics was a sideshow
and a distraction.
1171
01:19:01,203 --> 01:19:04,138
They struggled to see
how it was going to stop
1172
01:19:04,173 --> 01:19:06,907
an extradition process
that was under way,
1173
01:19:06,942 --> 01:19:08,876
how it was going
to change the charges
1174
01:19:08,911 --> 01:19:10,945
that they might face
in the United States.
1175
01:19:27,596 --> 01:19:31,766
We are a part of
this Five Eyes
global spy network.
1176
01:19:37,206 --> 01:19:38,605
Thank you, guys.
1177
01:19:38,640 --> 01:19:41,241
Kim is always
the super confident,
1178
01:19:41,276 --> 01:19:45,245
and I'm always
the one worrying.
1179
01:19:45,280 --> 01:19:48,849
But still, I'm a woman.
I would worry, of course.
1180
01:19:48,884 --> 01:19:50,984
That's my thing.
I'm a worry wart.
1181
01:19:53,956 --> 01:19:57,224
You're still
kinda, like, left hanging.
1182
01:19:57,259 --> 01:19:59,993
Like, I don't even know
what's gonna happen
six months from now.
1183
01:20:00,028 --> 01:20:01,895
Like, Kim's hearing
is still going on.
1184
01:20:01,930 --> 01:20:03,264
I just don't know.
1185
01:20:05,067 --> 01:20:07,100
I think the whole stress
really got to me,
1186
01:20:07,135 --> 01:20:09,236
and, you know, the raid,
of course, was part of it.
1187
01:20:10,973 --> 01:20:14,275
We were really happy
before, you know. Yeah.
1188
01:20:20,115 --> 01:20:22,583
Mona had great difficulty
dealing with the raid.
1189
01:20:25,220 --> 01:20:26,520
She struggled with it,
1190
01:20:26,555 --> 01:20:29,857
and it affected
our relationship.
1191
01:20:29,892 --> 01:20:32,593
That's probably
the most regrettable outcome
1192
01:20:32,628 --> 01:20:35,329
of this whole case against me,
1193
01:20:35,364 --> 01:20:38,098
that our relationship
fell apart.
1194
01:20:41,336 --> 01:20:43,504
She was the love of my life.
1195
01:20:59,955 --> 01:21:03,090
It became apparent
as the election year of 2014
1196
01:21:03,125 --> 01:21:07,194
was rolling on
that the Internet party
was not going to succeed,
1197
01:21:07,229 --> 01:21:09,263
so Dotcom started
to look around for alliances.
1198
01:21:12,968 --> 01:21:15,569
The party that was willing
to work with him
1199
01:21:15,604 --> 01:21:17,237
was the Mana party,
1200
01:21:17,272 --> 01:21:21,174
which had a more
left wing and activist base.
1201
01:21:21,209 --> 01:21:22,910
Kim Dotcom
has told One News
1202
01:21:22,945 --> 01:21:25,412
he's now forked out
a whopping $4 million
1203
01:21:25,447 --> 01:21:27,247
for the deal
with the Mana party.
1204
01:21:27,282 --> 01:21:30,017
Kim Dotcom has
a particular legal interest
1205
01:21:30,052 --> 01:21:32,486
in not being sent back
to justice elsewhere.
1206
01:21:32,521 --> 01:21:34,922
Everybody knows
that Kim Dotcom
1207
01:21:34,957 --> 01:21:36,957
is putting money behind
the political party
1208
01:21:36,992 --> 01:21:39,627
to try and stop himself
from being extradited.
1209
01:21:44,032 --> 01:21:47,067
Is Kim Dotcom
that big fellow?
1210
01:21:47,102 --> 01:21:48,669
It was important
for the Mana party
1211
01:21:48,704 --> 01:21:52,172
to be able to introduce
its new political partner
1212
01:21:52,207 --> 01:21:54,341
to its constituency.
1213
01:21:58,780 --> 01:22:00,213
Town by town...
1214
01:22:02,017 --> 01:22:03,583
...marae by marae,
1215
01:22:03,618 --> 01:22:05,986
they would go down the country.
1216
01:22:19,234 --> 01:22:23,337
Everyone was quite surprised
at how successful they were.
1217
01:22:23,372 --> 01:22:27,407
People took them seriously
and wondered whether
they would play
1218
01:22:27,442 --> 01:22:29,443
an important part
in a new government.
1219
01:22:31,313 --> 01:22:33,247
And the media reported
everything they did.
1220
01:22:35,317 --> 01:22:39,619
I'm not sure that
Internet Mana handled
that scrutiny very well.
1221
01:22:39,654 --> 01:22:41,154
You work in news.
1222
01:22:41,189 --> 01:22:43,190
You puffed-up little
1223
01:22:43,225 --> 01:22:44,591
You're a thief!
1224
01:22:44,626 --> 01:22:46,693
You're a thief, John Key.
1225
01:22:48,597 --> 01:22:51,598
The Internet Mana road show
had aspects
1226
01:22:51,633 --> 01:22:55,335
that appeared to be targeting
John Key personally.
1227
01:22:55,370 --> 01:22:58,672
Are you ready
for a revolution?
1228
01:23:00,342 --> 01:23:03,410
Are you ready
to extradite John Key?
1229
01:23:06,214 --> 01:23:08,315
Fuck John Key.
1230
01:23:08,350 --> 01:23:10,183
Fuck John Key.
1231
01:23:10,218 --> 01:23:13,153
Fuck John Key.
1232
01:23:13,188 --> 01:23:16,289
Attacks on John Key
have hit new heights
this campaign...
1233
01:23:18,527 --> 01:23:21,661
...this effigy burning
the latest online outrage.
1234
01:23:21,696 --> 01:23:23,230
Fuck John Key.
1235
01:23:23,265 --> 01:23:25,532
It was probably
the nastiest election
1236
01:23:25,567 --> 01:23:29,302
that New Zealand
has seen if not for many,
many decades, then forever.
1237
01:23:29,337 --> 01:23:31,772
Fuck John Key!
1238
01:23:31,807 --> 01:23:34,508
Kim Dotcom
has promised to drop
a number of bombshells
1239
01:23:34,543 --> 01:23:36,610
that could topple
the Prime Minister John Key
1240
01:23:36,645 --> 01:23:40,147
at an upcoming event
billed "The Moment of Truth."
1241
01:23:54,162 --> 01:23:56,263
The day that
the Moment of Truth
was to be held,
1242
01:23:56,298 --> 01:23:59,166
I'd received an email
1243
01:23:59,201 --> 01:24:03,303
which purported to show
1244
01:24:03,338 --> 01:24:09,309
that everything
Dotcom had said
about the conspiracy was true,
1245
01:24:09,344 --> 01:24:12,246
that New Zealand
served him up on a plate.
1246
01:24:13,682 --> 01:24:16,149
So I rang Dotcom,
and I said,
1247
01:24:16,184 --> 01:24:19,352
"Is this what
you're gonna be pulling out
at the Moment of Truth tonight?"
1248
01:24:19,387 --> 01:24:20,654
And he said, "Yes, it is."
1249
01:24:34,436 --> 01:24:37,104
So what kind
of impact could there be
from all this tonight?
1250
01:24:37,139 --> 01:24:39,673
Well, it is-- these are
extraordinary revelations
1251
01:24:39,708 --> 01:24:43,410
to be laid out
five days before a campaign.
1252
01:24:43,445 --> 01:24:45,879
John Key is fighting really
for his political life.
1253
01:24:45,914 --> 01:24:47,914
Remember, he has said
he would resign
1254
01:24:47,949 --> 01:24:50,550
if there was any evidence
to show mass surveillance,
1255
01:24:50,585 --> 01:24:53,720
and of course we also have
this email on
the Hollywood links.
1256
01:24:55,423 --> 01:24:58,325
Come on,
give him a kiss, ladies.
1257
01:25:11,706 --> 01:25:13,640
The Moment of Truth
for John Key
1258
01:25:13,675 --> 01:25:16,343
would've been
a high risk scenario
1259
01:25:16,378 --> 01:25:19,679
because the two things
that Dotcom
had promised to produce
1260
01:25:19,714 --> 01:25:21,781
were things that
he said he was gonna resign
1261
01:25:21,816 --> 01:25:23,317
if they turned out
to be the case.
1262
01:25:29,691 --> 01:25:32,759
Tonight,
we welcome the world
1263
01:25:32,794 --> 01:25:36,396
and to extend
the welcome of Aotearoa
1264
01:25:36,431 --> 01:25:38,798
to Glenn Greenwald...
1265
01:25:46,474 --> 01:25:48,842
Julian Assange.
1266
01:25:55,383 --> 01:25:57,317
Welcome, Edward Snowden.
1267
01:26:05,427 --> 01:26:07,661
Hello, New Zealand.
1268
01:26:09,965 --> 01:26:15,268
The U.S. has this war for
control of the Internet,
1269
01:26:15,303 --> 01:26:17,604
and it is a war.
1270
01:26:17,639 --> 01:26:20,640
They don't feel
that there should be
an organization like Wikileaks.
1271
01:26:20,675 --> 01:26:23,910
They believe that
the spying that they do
should be kept secret.
1272
01:26:23,945 --> 01:26:26,947
They believe that
when it comes to copyright,
1273
01:26:26,982 --> 01:26:29,716
the approach that they have
1274
01:26:29,751 --> 01:26:31,785
should radiate out
across the world.
1275
01:26:33,655 --> 01:26:36,690
What we saw there
in that town hall,
1276
01:26:36,725 --> 01:26:37,758
that was the resistance.
1277
01:26:40,295 --> 01:26:42,862
You've got this network
of sensors around the world,
1278
01:26:42,897 --> 01:26:44,598
so I can see everything.
1279
01:26:44,633 --> 01:26:47,767
I can see what book
you looked at at Amazon.com.
1280
01:26:47,802 --> 01:26:49,436
I can see who you talk to.
1281
01:26:49,471 --> 01:26:51,671
I can see who
your friends on Facebook are.
1282
01:26:51,706 --> 01:26:53,940
I can see
the text messages you sent.
1283
01:26:53,975 --> 01:26:57,811
I can read
the emails you wrote,
and I can set up things
1284
01:26:57,846 --> 01:26:59,846
...exactly the kind of
mass surveillance
1285
01:26:59,881 --> 01:27:03,950
that Prime Minister Key
not only vehemently denied
was being done,
1286
01:27:03,985 --> 01:27:06,253
but which he promised
he would resign
1287
01:27:06,288 --> 01:27:10,591
if it were determined
his government
were actually engaged with.
1288
01:27:11,793 --> 01:27:13,860
Further, intelligence agencies
1289
01:27:13,895 --> 01:27:17,998
by definition
are designed to operate
1290
01:27:18,033 --> 01:27:20,000
outside the law,
1291
01:27:20,035 --> 01:27:22,435
and so they cannot be trusted.
1292
01:27:22,470 --> 01:27:24,938
No matter what Assange
or Snowden were gonna say,
1293
01:27:27,309 --> 01:27:31,645
Dotcom was still
the emperor with new clothes.
1294
01:27:31,680 --> 01:27:34,614
He hadn't produced the thing
that he had pledged
that he would,
1295
01:27:34,649 --> 01:27:36,583
that he had been talking about
for ever so long...
1296
01:27:43,825 --> 01:27:47,327
and that was
a real problem for Dotcom
1297
01:27:47,362 --> 01:27:49,562
and for pretty much anybody
1298
01:27:49,597 --> 01:27:51,765
that had backed him up
until that point.
1299
01:27:54,736 --> 01:27:57,003
What people have been
waiting for tonight
1300
01:27:57,038 --> 01:27:59,406
is when Kim Dotcom
came to the parliament
1301
01:27:59,441 --> 01:28:02,876
and said that he would prove
that John Key was a liar,
1302
01:28:02,911 --> 01:28:05,345
-tonight, we're, excuse me--
- Which he did.
1303
01:28:05,380 --> 01:28:08,515
Which I did, absolutely--
1304
01:28:08,550 --> 01:28:10,684
No, about knowing
about you before the raid.
1305
01:28:10,719 --> 01:28:12,819
And let me
just reply to this, OK?
1306
01:28:12,854 --> 01:28:16,690
I think, and I want to address
all media here tonight.
1307
01:28:16,725 --> 01:28:19,092
You have an obligation
1308
01:28:19,127 --> 01:28:22,462
after what you have
learned tonight
1309
01:28:22,497 --> 01:28:26,766
to take the information
that you were told here
1310
01:28:26,801 --> 01:28:29,336
by Glenn Greenwald
and Edward Snowden
1311
01:28:29,371 --> 01:28:32,072
to the Prime Minister
and this government
1312
01:28:32,107 --> 01:28:34,074
and hold them accountable.
1313
01:28:34,109 --> 01:28:37,377
We have focused on
the much bigger lie,
1314
01:28:37,412 --> 01:28:38,912
which is not about my case,
1315
01:28:38,947 --> 01:28:42,415
which is about
every single New Zealander
1316
01:28:42,450 --> 01:28:45,518
who is subjected
to mass surveillance.
1317
01:28:45,553 --> 01:28:48,021
That is the story that
you should focus on.
1318
01:28:48,056 --> 01:28:49,622
Get your priorities right.
1319
01:28:49,657 --> 01:28:50,924
We will. We will--
1320
01:28:50,959 --> 01:28:52,392
I hope you will,
1321
01:28:52,427 --> 01:28:55,128
because in the past, Patrick,
1322
01:28:55,163 --> 01:28:57,030
you have let
New Zealanders down.
1323
01:28:57,065 --> 01:28:59,999
I don't understand
how you let the Prime Minister
1324
01:29:00,034 --> 01:29:01,935
get away time and time again
1325
01:29:01,970 --> 01:29:03,903
with his lies and his spin.
1326
01:29:03,938 --> 01:29:05,171
You need to do your job,
1327
01:29:05,206 --> 01:29:07,440
and everyone here
needs to do their job.
1328
01:29:07,475 --> 01:29:09,709
I'm doing
my job by asking you.
1329
01:29:09,744 --> 01:29:12,579
Kim Dotcom, what's gone wrong?
Kim Dotcom, what's gone wrong?
1330
01:29:12,614 --> 01:29:14,381
Why couldn't you front
the evidence tonight?
1331
01:29:14,416 --> 01:29:16,716
-What's gone wrong?
-I think that's it.
1332
01:29:16,751 --> 01:29:18,418
Thank you,
thank you very much.
1333
01:29:24,225 --> 01:29:27,594
That email, I know
it comes from hacker circles.
1334
01:29:27,629 --> 01:29:30,163
You know about
the famous Sony hack.
1335
01:29:30,198 --> 01:29:32,999
The same people who were
responsible for that
1336
01:29:33,034 --> 01:29:36,770
were responsible
for this hack.
1337
01:29:36,805 --> 01:29:41,908
I was assured that that
email would contain headers,
1338
01:29:41,943 --> 01:29:46,546
which is what allows you
to identify all the details.
1339
01:29:46,581 --> 01:29:48,548
You know,
what mail server was used,
1340
01:29:48,583 --> 01:29:51,017
the date stamps that
would have allowed anyone
1341
01:29:51,052 --> 01:29:53,420
to verify the contents,
1342
01:29:53,455 --> 01:29:55,121
but unfortunately
the email was not leaked
1343
01:29:55,156 --> 01:29:59,192
with that information, so it
became useless for me. Yeah.
1344
01:29:59,227 --> 01:30:04,030
And I regret that
I could not use it
in the event.
1345
01:30:09,971 --> 01:30:11,738
...and welcome to Decision '14.
1346
01:30:11,773 --> 01:30:13,473
The campaign is over.
1347
01:30:13,508 --> 01:30:17,610
The voting is over,
and the counting has begun.
1348
01:30:17,645 --> 01:30:19,012
Now, politics is
very serious business.
1349
01:30:19,047 --> 01:30:20,747
This has been a fairly serious,
1350
01:30:20,782 --> 01:30:22,782
and at times thoroughly
unpleasant, campaign.
1351
01:30:24,919 --> 01:30:28,154
Now will be hoping that
they've got something
to celebrate tonight.
1352
01:30:31,192 --> 01:30:32,892
Right at the start,
1353
01:30:32,927 --> 01:30:34,961
there was quite a swelling
of support for Dotcom
1354
01:30:34,996 --> 01:30:38,198
because they saw him
as someone
that had been the victim
1355
01:30:38,233 --> 01:30:41,968
of the big Goliaths
of the U.S., FBI,
1356
01:30:42,003 --> 01:30:45,638
the New Zealand Police,
but suddenly he was seen
1357
01:30:45,673 --> 01:30:47,140
as a more aggressive player,
1358
01:30:47,175 --> 01:30:50,177
and it was John Key
that was the underdog.
1359
01:30:54,782 --> 01:30:56,483
The Internet Mana party
is in trouble.
1360
01:30:56,518 --> 01:30:57,951
Oh, my goodness,
in the last 20 minutes,
1361
01:30:57,986 --> 01:31:00,553
it's all completely
changed out here.
1362
01:31:00,588 --> 01:31:04,090
This is phenomenal.
What we are seeing here is
the Internet Mana alliance
1363
01:31:04,125 --> 01:31:06,059
is not in Parliament,
1364
01:31:06,094 --> 01:31:09,295
and Kim Dotcom's
millions and millions
of dollars goes down the drain.
1365
01:31:17,539 --> 01:31:19,706
Good evening, everybody.
1366
01:31:20,808 --> 01:31:24,010
We lost tonight because of me.
1367
01:31:24,045 --> 01:31:26,880
No. No! No.
1368
01:31:26,915 --> 01:31:29,082
I take-- I have to say this.
1369
01:31:29,117 --> 01:31:30,650
I have to say it.
I am sorry.
1370
01:31:30,685 --> 01:31:32,585
It's how
the media portrayed you!
1371
01:31:32,620 --> 01:31:34,821
I'm-- I'm really sorry
I have to say this.
1372
01:31:34,856 --> 01:31:36,623
I have to say this.
1373
01:31:36,658 --> 01:31:38,825
I take full responsibility
1374
01:31:39,827 --> 01:31:41,561
for this loss tonight
1375
01:31:41,596 --> 01:31:47,967
because the brand--
the brand Kim Dotcom
was poison
1376
01:31:48,002 --> 01:31:50,336
for what we were
trying to achieve,
1377
01:31:50,371 --> 01:31:52,972
and I did not see that before,
1378
01:31:53,007 --> 01:31:57,043
and it only became apparent
to me in the last
couple of weeks.
1379
01:31:57,078 --> 01:32:01,981
So to all of you
who have worked so hard,
1380
01:32:02,016 --> 01:32:04,350
I say, thank you very much.
1381
01:32:10,358 --> 01:32:11,991
Three more years.
1382
01:32:41,990 --> 01:32:44,857
The day after the election,
1383
01:32:44,892 --> 01:32:47,627
the Solicitor General
of New Zealand
1384
01:32:47,662 --> 01:32:50,063
has approached
my lawyers and asking
1385
01:32:50,098 --> 01:32:53,066
if I was willing
to leave New Zealand,
1386
01:32:53,101 --> 01:32:55,368
the case would be resolved.
1387
01:32:57,405 --> 01:33:00,106
There wouldn't have
to be an extradition,
1388
01:33:00,141 --> 01:33:03,009
and this whole thing
could go away.
1389
01:33:05,113 --> 01:33:09,015
You don't do a raid like this
1390
01:33:09,050 --> 01:33:14,654
and destroy a man's family
and his business
1391
01:33:14,689 --> 01:33:17,156
and cause so much pain
1392
01:33:17,191 --> 01:33:20,259
and get away with it
with some piece of paper
1393
01:33:20,294 --> 01:33:22,261
that says, "Yeah,
I've done something wrong,
1394
01:33:22,296 --> 01:33:25,131
but now I am free.
Thank you very much."
1395
01:33:25,166 --> 01:33:26,666
Well, fuck them.
1396
01:33:41,115 --> 01:33:43,149
After four
and a half years of delays,
1397
01:33:43,184 --> 01:33:44,851
the extradition hearing
1398
01:33:44,886 --> 01:33:47,887
against Kim Dotcom
and the Megaupload co-accused
1399
01:33:47,922 --> 01:33:49,689
starts in Auckland,
New Zealand today.
1400
01:33:51,926 --> 01:33:53,793
The Judge will determine
whether the four men
will be free
1401
01:33:53,828 --> 01:33:55,228
to remain in New Zealand
1402
01:33:55,263 --> 01:33:58,064
or whether
they will be sent to the U.S.,
1403
01:33:58,099 --> 01:34:00,700
where they could face
decades in prison.
1404
01:34:03,337 --> 01:34:06,806
This is cited as
the largest copyright case
1405
01:34:06,841 --> 01:34:08,842
that our world has ever seen.
1406
01:34:11,045 --> 01:34:14,347
We still think we should win,
and we are hopeful that we will.
1407
01:34:14,382 --> 01:34:15,982
We are.
1408
01:34:16,017 --> 01:34:17,917
Are you worried about
what the decision might be?
1409
01:34:17,952 --> 01:34:20,019
Please don't fall, OK?
Be careful there.
1410
01:34:20,054 --> 01:34:22,255
I am very confident
in my legal team.
1411
01:34:22,290 --> 01:34:24,457
All our submissions
are excellent.
1412
01:34:24,492 --> 01:34:28,995
Any unbiased legal mind
is going to see
1413
01:34:29,030 --> 01:34:30,830
what has happened here.
1414
01:34:41,776 --> 01:34:43,142
The case is really important
1415
01:34:43,177 --> 01:34:45,178
because it raises
important legal issues
1416
01:34:45,213 --> 01:34:49,082
in relation to
the extradition process,
1417
01:34:49,117 --> 01:34:52,151
but first, they've got
to show that the conduct
they complain of
1418
01:34:52,186 --> 01:34:54,887
is, in fact, a crime.
1419
01:34:54,922 --> 01:34:59,826
We say, look, what you allege
on the facts is not a crime.
1420
01:34:59,861 --> 01:35:03,162
And Your Honor will see
that there is
a specific piece of legislation
1421
01:35:03,197 --> 01:35:05,064
called the Copyright Act,
1422
01:35:05,099 --> 01:35:11,304
and it provides protection
for Internet Service Providers.
1423
01:35:11,339 --> 01:35:13,873
Simply providing
that technology
1424
01:35:13,908 --> 01:35:18,344
to its users
does not expose a company
1425
01:35:18,379 --> 01:35:21,114
to civil
or criminal liability.
1426
01:35:23,785 --> 01:35:25,351
They seem very confident.
1427
01:35:25,386 --> 01:35:27,420
They always point
to the same things.
1428
01:35:27,455 --> 01:35:31,190
There's nothing in
New Zealand-U.S. treaty
that covers copyright,
1429
01:35:31,225 --> 01:35:33,526
and they think that
they're gonna win.
1430
01:35:33,561 --> 01:35:36,562
OK. Miss Gordon.
1431
01:35:36,597 --> 01:35:41,100
The dishonesty at the core
of Megaupload's operations
1432
01:35:41,135 --> 01:35:44,270
may be expressed in
straightforward terms.
1433
01:35:44,305 --> 01:35:48,742
The evidence boils down
to a simple scheme of fraud,
1434
01:35:50,044 --> 01:35:54,213
not a passive dumb pipe
service provider,
1435
01:35:54,248 --> 01:35:58,584
but a massive hard drive
of infringing material.
1436
01:35:58,619 --> 01:36:02,855
Christine Gordon represents
the United States of America.
1437
01:36:02,890 --> 01:36:06,225
She has to be, I'm sure,
tutored by the DOJ,
1438
01:36:06,260 --> 01:36:09,295
and the United States
has gotten
1439
01:36:09,330 --> 01:36:13,065
every ounce of
effort out of her.
1440
01:36:13,100 --> 01:36:15,501
We have some good glimpses
of how the respondents
1441
01:36:15,536 --> 01:36:17,970
thought and acted
behind the scenes.
1442
01:36:18,005 --> 01:36:21,508
We have some highly revealing
communications between them.
1443
01:36:23,477 --> 01:36:26,045
As Mr. Ortmann
privately put it,
1444
01:36:27,048 --> 01:36:28,348
copyright owners would find,
1445
01:36:29,650 --> 01:36:32,552
and these are his words
that now follow.
1446
01:36:32,587 --> 01:36:36,856
"We are not the dumb pipe
we claim to be."
1447
01:36:36,891 --> 01:36:40,359
Bram van der Kolk
marveled at the position
they had attained,
1448
01:36:40,394 --> 01:36:43,162
and these are his words:
1449
01:36:43,197 --> 01:36:47,633
"If copyright holders
would really know
how big our business is,
1450
01:36:47,668 --> 01:36:51,037
they would surely try
to do something against it.
1451
01:36:52,473 --> 01:36:55,174
They have no idea that
we are making millions
1452
01:36:55,209 --> 01:36:57,143
in profit each month."
1453
01:36:59,447 --> 01:37:01,981
Ortmann told van der Kolk,
1454
01:37:02,016 --> 01:37:04,050
and these are
Mr. Ortmann's words:
1455
01:37:05,386 --> 01:37:08,454
"We did some things right.
1456
01:37:08,489 --> 01:37:12,025
We allowed fraud
for a long time,
fueling our growth."
1457
01:37:23,604 --> 01:37:25,138
I was startled.
1458
01:37:26,574 --> 01:37:28,341
I mean,
the whole court shuts up.
1459
01:37:28,376 --> 01:37:31,177
Everybody stops
because they're startling.
1460
01:37:32,947 --> 01:37:36,916
On or about
August 16, 2010, via Skype,
1461
01:37:36,951 --> 01:37:41,687
Dotcom told Ortmann in
German, Mr. Dotcom's words:
1462
01:37:41,722 --> 01:37:46,592
"At some point,
a judge will be convinced
about how evil we are,
1463
01:37:46,627 --> 01:37:48,228
and then we're in trouble."
1464
01:37:49,630 --> 01:37:54,066
Objectively translated,
it should read,
1465
01:37:54,101 --> 01:37:55,601
"Because at some stage,
1466
01:37:55,636 --> 01:38:00,339
a judge will be talked into
how bad we allegedly are,
1467
01:38:00,374 --> 01:38:02,975
and then it will be a mess."
1468
01:38:03,010 --> 01:38:06,012
The United States had
the ability to select
1469
01:38:06,047 --> 01:38:08,114
what evidence
it wanted to present,
1470
01:38:08,149 --> 01:38:10,049
and we sat
and cherry-picked it.
1471
01:38:10,084 --> 01:38:12,318
It was very selective and biased
1472
01:38:12,353 --> 01:38:15,955
about the evidence it picked
and placed before our court,
1473
01:38:15,990 --> 01:38:18,291
and a lot of
the conversations were
also in a foreign language.
1474
01:38:18,326 --> 01:38:20,159
They were in German,
1475
01:38:20,194 --> 01:38:22,995
and as a result,
the United States
relied on translations
1476
01:38:23,030 --> 01:38:27,099
which we were able
to show were incorrect
and, in fact, misleading.
1477
01:38:27,134 --> 01:38:31,370
Your Honor should also
have received this morning
1478
01:38:31,405 --> 01:38:33,539
a bundle that looks like this.
1479
01:38:33,574 --> 01:38:38,077
Part of section 101
is set out
in the submissions at page 65.
1480
01:38:38,112 --> 01:38:40,713
It's the 21 October
red bundle, sir.
1481
01:38:43,017 --> 01:38:46,319
And you need to understand
that this judge was spammed
1482
01:38:46,354 --> 01:38:49,622
with thousands of
pages of submissions
1483
01:38:49,657 --> 01:38:51,657
by the U.S. government.
1484
01:38:51,692 --> 01:38:56,662
They basically
drowned him in material,
1485
01:38:56,697 --> 01:39:01,067
and I knew
he didn't understand
anything about the case.
1486
01:39:01,102 --> 01:39:06,072
He had no clue about
the Internet, about copyright.
1487
01:39:06,107 --> 01:39:08,307
At one point in one hearing,
1488
01:39:08,342 --> 01:39:11,477
he asked if Mega
was cow storage?
1489
01:39:11,512 --> 01:39:14,080
Not cloud storage,
cow storage.
1490
01:39:16,817 --> 01:39:19,218
It was
a pretty frustrating hearing.
1491
01:39:19,253 --> 01:39:22,588
We had prepared
over many hours,
1492
01:39:22,623 --> 01:39:27,226
and we had committed
significant human
and financial resources
1493
01:39:27,261 --> 01:39:28,661
into mounting
what we thought was
1494
01:39:28,696 --> 01:39:31,697
a very credible defense
to extradition,
1495
01:39:31,732 --> 01:39:34,100
and most of our arguments
were marginalized
1496
01:39:34,135 --> 01:39:35,735
or not even considered
by the court.
1497
01:39:58,092 --> 01:40:00,126
The overwhelming
preponderance of evidence
1498
01:40:00,161 --> 01:40:01,560
produced by the applicant
1499
01:40:01,595 --> 01:40:03,829
in the Record of Case
and its supplements
1500
01:40:03,864 --> 01:40:05,631
establishes a prima facie case
1501
01:40:05,666 --> 01:40:08,334
to answer for all respondents
on each of the counts.
1502
01:40:10,704 --> 01:40:12,671
The decision has found
that all four respondents
1503
01:40:12,706 --> 01:40:15,274
are all eligible
for extradition.
1504
01:40:15,309 --> 01:40:19,245
Therefore, the sentence...
1505
01:41:06,760 --> 01:41:09,595
Time has passed by Megaupload.
1506
01:41:11,699 --> 01:41:13,399
There's always gonna be people
who wanna pirate,
1507
01:41:13,434 --> 01:41:14,700
and there's always gonna be
these services,
1508
01:41:14,735 --> 01:41:16,102
but are they
gonna be mainstream?
1509
01:41:16,137 --> 01:41:17,570
I would argue no.
1510
01:41:22,176 --> 01:41:24,376
Piracy is in decline.
1511
01:41:24,411 --> 01:41:26,812
But, they told us
all along, the tech side said,
1512
01:41:26,847 --> 01:41:28,380
"Hey, if you make it easy
1513
01:41:28,415 --> 01:41:30,583
to get our hands on
at a cheap price,
1514
01:41:30,618 --> 01:41:32,818
it's easily accessible,
1515
01:41:32,853 --> 01:41:36,388
there's not gonna be
any piracy,"
and that's what they did.
1516
01:41:36,423 --> 01:41:38,191
They've gotten the message.
1517
01:41:41,896 --> 01:41:44,663
What good is it
to throw him in jail now?
1518
01:41:44,698 --> 01:41:46,398
Find out what the guy knows.
1519
01:41:46,433 --> 01:41:48,200
Make a partnership with him.
1520
01:41:48,235 --> 01:41:50,169
You got his money,
1521
01:41:50,204 --> 01:41:52,838
and I'd say
the smart move is, right,
like the godfather.
1522
01:41:52,873 --> 01:41:54,473
Keep your friends close
and your enemies closer.
1523
01:41:54,508 --> 01:41:55,708
They should be doing that.
1524
01:41:55,743 --> 01:41:57,710
While we have
perfectly good reason
1525
01:41:57,745 --> 01:42:00,913
to want to prevent
piracy of content
1526
01:42:00,948 --> 01:42:04,316
and allow artists
and the companies
that support them
1527
01:42:04,351 --> 01:42:06,952
that make a profit
off of what they do,
1528
01:42:06,987 --> 01:42:08,587
the mechanisms
that we're using
1529
01:42:08,622 --> 01:42:10,256
to try
and enforce these things
1530
01:42:10,291 --> 01:42:12,625
are also mechanisms
for censorship
1531
01:42:12,660 --> 01:42:16,362
and for oppression of
freedom of thought,
1532
01:42:16,397 --> 01:42:19,565
and it's a slippery slope.
1533
01:42:19,600 --> 01:42:20,866
That's a dangerous thing.
1534
01:42:31,712 --> 01:42:33,546
It's not about
what's right any more.
1535
01:42:33,581 --> 01:42:36,882
It's about winning
at all cost.
1536
01:42:36,917 --> 01:42:39,919
They wanna drag me down.
1537
01:42:39,954 --> 01:42:42,688
To win, that's all
that matters to them,
1538
01:42:42,723 --> 01:42:44,256
but they picked the wrong guy
1539
01:42:44,291 --> 01:42:45,925
because
you can't drag me down,
1540
01:42:45,960 --> 01:42:46,959
and I will win.
121062
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