Megaupload founder is in hot water
 

The Kiwi Government has delivered Megaupload founder a significant court defeat which could see him extradited to face a trial in a US kangaroo court.

A New Zealand court ruled that the search warrant used in the arrest of Megaupload founder Kim Dotcom on US online piracy charges was legal.

The decision will benefit US prosecutors who say the Megaupload website cost film studios and record companies more than $500 million and generated more than $175 million in criminal proceeds by letting users store and share copyrighted material, such as movies and TV shows.

If Dotcom is extradited, the ensuing copyright case could set a precedent for internet liability laws and, should he win, entertainment companies will have to rethink online distribution methods.

The earlier High Court judgment ruled that the search warrants were vague and enabled police to seize materials irrelevant to the charges against Dotcom. The appeals court said the warrants were adequately worded and should not have caused misunderstanding.

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