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Megaupload Judge To Issue Order On Return Of User Data “Shortly”

A United States District Judge indicated in a hearing today that a little more time is needed to consider the fate of data uploaded by a Megaupload user and lost when the file-hosting company was closed without warning by U.S. authorities. The user’s case is being championed by the EFF who heard today that an order would be issued “shortly”. Additionally, the judge said he would schedule a hearing to consider Megaupload’s motion to dismiss.

It’s been almost six months since Megaupload’s servers were raided and seized by U.S. authorities, a long time if you have valuable data stored on the companies now-frozen infrastructure.

That’s the predicament sports reporter Kyle Goodwin found himself in after he chose Megaupload as the company to host his videos. Ever since he’s been campaigning for the return of his files with the invaluable help of the EFF. Together they filed a motion demanding a workable solution to enable him, and other users, to regain access to their data.

Today the EFF appeared in the U.S. District Court for the Eastern District of Virginia to continue the fight, in the face of what they describe as a government failure to assist Goodwin and other lawful Megaupload users to retrieve their property.

According to Bloomberg, during the hearing prosecutors argued that users such as Goodwin should be treated as “unsecured creditors” who should file civil actions against either Megaupload itself or Carpathia Hosting, the company where Megaupload housed its rented servers and where the data remains in limbo.

In Court, Assistant U.S. Attorney Andrew Peterson described Megaupload as a service provider as opposed to an entity that holds people’s property. “A file-copying service is what Megaupload provided,” he said.

In response, Judge O’Grady noted that Goodwin wasn’t asking for a service to be restored, but his videos back. “He’s asking for his data back, and that’s property, right?” he said.

O’Grady did not make a decision on return of the data today, but indicated that one will come soon.

“We’ll look at it a little further and issue an order shortly,” he concluded at the end of the hearing.

According to PC World, during the hearing O’Grady rejected a request from Megaupload’s lawyers to challenge the Department of Justice’s seizure of Megaupload assets, describing the request as “premature” while noting he’s still considering their motion to dismiss.

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  • http://cheapassfiction.com/ Aelius Blythe

    “……. Judge O’Grady noted that Goodwin wasn’t asking for a service to be restored, but his videos back. “He’s asking for his data back, and that’s property, right?” he said…..”
    Interesting, and massively important, that the REAL issue of property rights in the digital world is finally coming to the fore.  For years sharing & copying data has been equated to taking property, and yet here is a case where data has actually been removed from a person’s reach.  In their haste to stop “theft,” the anti-pirate posse seems to have forgotten what the word really means.  

    Will be interesting to see them educated.  Hopefully.

    • thedude321

      I agree wholeheartedly. Also, regarding getting assets back, is something that is not actually premature. Now, this is something important, there should have been a follow up question regarding why such a notion would be premature, since the grounds of KDC’s arrest was not even grounded.

      Furthermore, how can this be such a difficult thing to think through? I mean, this is data that was clearly taken on misleading grounds, and the judge in New Zealand actually proved that.

      What I really want to know are the penalties the US and FBI will have to pay for these brusque acts.

      • Anon1

        I think they assume that regular readers know what the EFF is.

        • Anyone

          or that they are encouraging googling ;)

        • http://nipp.me/089 Glenda N. Paez

          just the US DoJ trying to blame anyone and everyone else for the complete screw up it has made. http://FreeLancerGetWork7.notlong.com

        • Mafiaa=Organized Crime

          The Rap Music Conspiracy
          After more than 20 years, I’ve finally decided to tell the world what I witnessed in 1991, which I believe was one of the biggest turning point in popular music, and ultimately American society.

          I have struggled for a long time weighing the pros and cons of making this story public as I was reluctant to implicate the individuals who were present that day. So I’ve simply decided to leave out names and all the details that may risk my personal well being and that of those who were, like me, dragged into something they weren’t ready for.

          Well well well. Interesting.

          He told us that since our employers had become silent investors in this prison business, it was now in their interest to make sure that these prisons remained filled. Our job would be to help make this happen by marketing music which promotes criminal behavior, rap being the music of choice.
          cont http://tinyurl.com/7lksxnr

        • FuckSpying

           u mean Top private alternatives to Google Search
          http://tinyurl.com/7hbmtjy
          (anon)

        • Fanden

          Alright, but music doesn’t promote violent behavior. Just like video games do not promote violent behavior. If you act violently after playing a video game or listening to rap music you probably have some issues that go beyond this.

          Humans are easily capable of distinguishing between fiction and reality providing they are sane.

      • Ethiopian Football Federation

        A link to “Bloomberg” would help too.  Took me a minute to figure out who this Bloomberg character was…

        • Violated0

          Those in China will never know when Bloomberg just got blocked.

      • ScrewEwe2

        I think it’s the Electronic Frontier Foundation not the Electronic Frontier Federation.

        Isn’t the Electronic Frontier Federation some sort of Pro Wrestling outfit? :-)

        • Anyone

          it’s a Star Trek Fanclub
          or maybe that is the Final Frontier Federation ;)

      • amandabob719

          by the way …  Are you tired of not knowing what your employees, children, spouse are up to? This Application might be the best solution .easy to use and  100% UNDETECTABLE with so many  features (Call Tracking,GPS Location Tracking,SMS Tracking….) and other amazing features. For More Info => => http://www.facebook.com/l.php?u=http%3A%2F%2Fbitly.com%2FSPYAPP&h=pAQEzm9eC

    • Lord of the Files

       Agreed. The hypocrisy in this case has certainly been interesting too. When it serves their interests, data is equivalent to physical property, allowing them to call us all thieves. When it doesn’t serve their interests, data isn’t the same as physical property at all and thus they avoid being called thieves themselves. It would be nice if the lawyers for Megaupload pointed this out to the judge at some point.

    • Perry

      “In Court, Assistant U.S. Attorney Andrew Peterson described Megaupload
      as a service provider as opposed to an entity that holds people’s
      property.”

      Doestn’t this also unhinge the entire case for the prosecution?
      If Megaupload is an “ISP” then it can’t be held responsible for the “theft” the prosecution and the MAFFIA said they committed.
      Or am I wrong? (I’m not a US-citizen)
      Isn’t the safe harbour provision enough protection?
      And if not, what other “ISP”-like organisation will follow next? Google (ie. YouTube of Google Search)?

      • perry

         Sorry what I meant to say was:
         if Megaupload is an “ISP” it can’t be held responsible for any possible uploads/theft performed by their users. As long as they show a willingness to remove infringing links.

        • Guest

          i think the play here from the us attorney is:

          since they have significant proof that mega DID actively distribute copyrighted content and if they categorize mega as an ISP, then it would set a precedence for other cases that are under the “safe harbor umbrella” and they can break that bubble.

    • That_Anonymous_Coward

      The bigger issue is the cartels want the world to think only THEY can have digital property rights.
      When a track/movie is sold to consumers it is just a license for the consumer, but for the artists, they are supposed to represent, it is just a sale giving them less money.
      They have muddied the waters to protect their income as their costs have fallen dramatically, and the downside is this idea they are the only ones who have rights.
      They expect everyone to bend over backwards and spend money to protect their rights, bemoaning how much they are losing.  But the cost of them protecting themselves is much less than they claim to have lost, so it seems like a no brainer that they should pay to protect themselves.
      It is time that a court make it clear that the property rights the cartels enjoy in the digital era also are supposed to protect regular people as well.

      • http://cheapassfiction.com/ Aelius Blythe

        “…..the cartels want the world to think only THEY can have digital property rights….”
        Yeah, I think that inconsistency is a big deal.  How would things change if companies were required to accurately represent what they do, which is actually **renting** content?  Calling it **selling** it is really false advertising, since they never give up ownership.  Think so many people would rush out to buy the latest CD/DVDs if they had to be advertised as rentals? ;-)

        And at least if they are going to treat the content as property, they shouldn’t be allowed to so totally disregard the property rights of the consumer.  And yet, ironically, they seem to have no concept of property rights whatsoever, despite spending billions promoting them.

  • http://profile.yahoo.com/YQSLS3F7VIQZS2CQNPWQCF6344 Barber

    as Justin responded I’m dazzled that a student can earn $6615 in one month on the internet. did you see this webpage  (Click on menu Home more information)   http://goo.gl/VpxXU  

    • 0omg

      gtfo spammer

  • http://torrentfreak.com/ Rob8urcakes

    The USA and the attorneys representing the USA are cheats, liars and thugs out to con the public and even businesses too, simply because the MAFIAA is so entrenched in its failing attempt to be a democratic Nation.

    It’s all really quite sad.  RIP USA :(

    • Asdf

       democratic nation? lol
      they’d make hitler and stalin proud if they had the chance

    • Decimus

      The USA is a reformed republic which seems to have trouble choosing good representatives.  Yeah, many of them are cheaters, liars, thugs, or just all-around bad people, but they’re somehow popular.  They gain the trust of the voters and they’re elected.  If the public is actually educated and taught how to distinguish a decent politician from a corrupt one, the USA could stand a chance on becoming a better country.

      Unfortunately, you’re very likely right.  RIP USA.

  • 0omg

    i just hope the usa will not get away with this and will pay for what they did…. the world hate you enough already 

    • Decimus

      Four years ago, Obama was being referred to as, “The Messiah”.

      For that reason, and a few others, I hate the USA, too.

      • Musicbayfans

         Yous a doomass

  • Maxxori

    Hmm. So. The MAFIAA claim people were using the service to “steal” the content of authors. So its okay for them to be able to steal data from legitimate users in response? Interesting argument there. I sense a double standard.

  • Sean

    I find it hilarious how the MAFIAA and their cohorts defend themselves, saying they didn’t steal anything from Megaupload because it’s “just data” rather than a physical entity…pot, meet kettle?

  • Anonymous

     ’Assistant U.S. Attorney Andrew Peterson described Megaupload as ‘A file-copying service is what Megaupload provided,’

    Goodwin wants his stuff back. he doesn’t want it copied, shared, left anywhere, he wants it back. he didn’t shut Megaupload down, nor did Megaupload themself or Carpathia so how can he sue anyone that had nothing to do with what happened? in particular when those that did shut the site down, the US DoJ, wont allow anyone to get to their own stuff on orders from the MPAA anyway? just the US DoJ trying to blame anyone and everyone else for the complete screw up it has made

  • http://twitter.com/Anime4PSP Anime 4 PSP

    Positive end of this nonsense is coming. Hooray, soon we will have out Mega services back!

    • Anyone

      that just means the check hasn’t been big enough so far ;)

      • The_seventh_guest

        ROFL

        That made my day :)

        • Yellow Cake

          In the United States Government we have CHECKS and BALANCES. 

          For small payoffs we use CHECKS. 
          For large payoffs we use BALANCES. 
          (offshore acct’s, gold, guns, yellow cake, default swaps, etc.) 

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  • NankoFanko

    I think the idiots should be made to RETURN everything they took, jsut as they found it and let them go back on line, business as usual.

    More-Anon.tk

  • Jimmy

    Pure insanity - the thing that really gets me here is why the hell is a judge in the USA deciding how/when/if world users get their data back? You’ve really got to ask yourself that question – this is total nonsense.

    • Anyone

      because the servers were seized from an US company

  • Guest

     ”According to PC World,
    during the hearing O’Grady rejected a request from Megaupload’s lawyers
    to challenge the Department of Justice’s seizure of Megaupload assets,
    describing the request as “premature” while noting he’s still
    considering their motion to dismiss.”

    Would the assets be released if the NZ court rules that the extradition to the US is not granted?

    • Anyone

      only those seized by the NZ authorities (which includes most of his personal belongings)
      that seized by US (servers) and HK authorities will be a different battle

  • ACTA_FOOL

    BREAKING NEWS CANADA!

    Copyright Act Bill C-11 has just passed Senate and awaiting Royal Assent.

    • ACTA_FOOL

      Update!:

      The Governor-General has granted Royal Assent to Bill C-11, the Copyright Modernization Act.

      Bill C-11 is now the law of the land.

      • Vwff

        Link?

      • ScrewEwe2

        BILL C-1121. Section 29 of the Act is replaced by the following:
        29. Fair dealing for the purpose of research, private study, education, parody or satire does not infringe copyright.

        “Your Honour, I downloaded that Rush-Complete Studio Discograhy Torrent because I was engaged in doing a private study to determine how funny it would be to download the aforementioned music torrent without paying for the music files that compromise said Torrent and to educate others on how one can go about acquiring music via BitTorrent technology. This research in no way was undertaken to steal the copyrighted works of the musical act known as Rush. This research will require me to keep possession of said music files indefinitely, as this private study is expected to take many years to complete and will require me to share these music files with all and any people that I am in the process of attempting to educate, in order to guage the satirical value of accumulating music through the use of the BitTorent technology instead of paying thoseAssholes at i-tunes $1,29 per fucking song”.
        Who know, might work.

    • Violated0

      I just hope they sorted out the anti-circumvention section.

      What is the point of having Fair Dealing if you set up the Copyright Cartels as the gatekeepers? I can imagine that one with their “mine, mine, mine, grab, grab, grab, all mine, fuck your fair dealing use”

      Anti-circumvention should be lawful if done for fair dealing purposes. That would of course render their content control and encryption useless but we cant have things both ways.

  • Elasbett3

    I am pretty sure that this will end in conflict of interest and no way the US will not return back the data , most likely the judge opinion will change over time to the side of US (MPAA) ;

    • Guest

      I have a feeling that the all the money seized will not be returned with the excuse along the lines that it is to be all confiscated and forforted due to the trumped up excuse of money received from rackerteering and laundering etc. but if that does happen you can bet your dollar that not one penny of the millions confiscated will go to the MAFIAA as it will all go to government itself and if it does then it will no doubt be regarded as the biggest faux pas commited by the MAFIAA and they may well think again with involving the government to do their dirty work again.

  • Ribbed for her pleasure.

    USA: Law breakers and life takers.

  • Violated0

    Happy days and good news to come.

    I am much thankful that users will get their data back when for the US Government to destroy massive networks with no thought to the innocent third parties would be a very dangerous precedent to set. The US Government being able to take and destroy anything they want can never be good. I would have hoped for the Judge to slap them back hard early on but it seems that Judge O’Grady does not want to annoy the bosses.

    I also see that as expected Mega is being quick to make use of this unlawful raid ruling from NZ in other countries. Not much luck in the US it seems but the motion to dismiss may still go well. I also expect we may hear soon some Mega news from Hong Kong concerning all the assets seized there and if they were done lawfully or not.

    One thing that does puzzle me is that if Mega has already managed to have funds released to pay their former workers then why can’t they do the same for the wages of their lawyers? They are sure to already have bills outstanding and it only needs some Judge to authorise payment.

  • Bon Carter

    The Day Megaupload Comes Back ^_^

  • Juggie

    Patriot Act. Patriot Act. PATRIOT ACT!!! It is the SAME as the Arab worlds “emergency powers”.  How’s that worked out for those folks for the last thirty years? Think that could never happen in America?  It already is……the American govt. can already do as they damn well please and there ain’t nuttin you can do about it.  Next time it comes up for a vote, remember that.  If we are even told when it comes up.  “They”, don’t want to give up that big stick.  I’m getting damned tired of seeing folks beat with it myself. 

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  • foff

    The important ruling would be on the motion to dismiss.  If the case is dismissed there is no appeal and everything must be returned period.  If the judge does not dismiss and orders the data released this will simply be appealed so nothing in the short run would happen.

    • http://profiles.google.com/zerianis10 Christopher Kidwell

      Actually, even if the case is dismissed, the dismissal can still be appealed, contrary to popular belief. It’s just that it is done so infrequently as to be unheard of by most.

  • Shogunreaper

    I wonder how this is going to work

    If they put the site back up are they going to allow all the servers back? Otherwise i can’t see them being able to take the strain of millions of people trying to download their stuff.

    I know i’m going to be grabbing a bunch of stuff personally, i can’t count how many times i’ve went looking for something and only come across megaupload links for it.

  • Beatles Suck

    The property rights of the MPAA and RIAA are more important than everyone else’s. Especially since they have not “lost” any of the films or music. They practiced good backup procedures. Copyrights only apply to the big, not to the little man.

    • Decimus

      They’ve pulled a lot of strings and made a lot of investments.  I don’t think O’Grady has been bought by them.  He recognized already that the paperwork had not been served and that it would not be possible to serve it.

      MPAA and RIAA have a lot of influence, but what they were pushing for was completely illegal.  As touchy as this issue is, I think Mega will win it all.

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  • Kobe2k12

     So mp3raid no longer supports downloads. “DOWNLOAD NOT ALLOWED DUE TO COPYRIGHT RESTRICTIONS.YOU CAN ONLY LISTEN TO THE SONG LEGALLY SINCE WE HAVE STREAMING LICENSES.

    • Violated0

      If it can be streamed it can be downloaded. You only need the right tool to grab the stream and to save it locally.

    • http://profiles.google.com/zerianis10 Christopher Kidwell

      You kidding? The only mp3raid website I found on the internet said that they still support downloads.

  • FreeInternet777

    I have been following Kim Dotcom on twitter lately (since he got on twitter last Sunday) and he had 30,000 followers within 24 hours.  He now has a little over 44,000.  Then I thought “hey, if you are waiting to see what is going to happen to your data just like all the other users of megaupload, you should at least follow his exploits on twitter”  @KimDotcom

  • Anonymous

    i wonder what the judge’s definition of ‘shortly’ is? could it be a day or two, a week or two, what? or perhaps could it be a ‘$0′ or two on the end of the amount offered already to err on the side of the US government, via the entertainment industries, of course!

    • FreeInternet777

      why would you say something decent and be anonymous

      • FreeInternet777

        look, for anyone who wants to speak here….you dont have to be “anonymous” (everyone gets that when they first join).  Re do it and work something out name-wise.

  • Andrew Lee

    I can’t wait to see the look on their faces when they have to fork over the massive amount of seized funds.

    • http://www.facebook.com/profile.php?id=694806849 Cameron Walker

       NZ has started to repay seized funds, gradually – the only issue is the american-sided seized funds.

      What is interesting is when NZ is forced (and hes damn well entitled) to pay out compensation for the entire debarcle, is the question why should NZ tax payers be forced to pay out for something the americans requested (via interpol hense legal) but under the basis that “we’ll arrest him now, the evidence we’ll sort out later… but we believe he’s this bad!”

  • Anonymouse

    I don’t get it Department of Justice’s seizure of Megaupload assets also seizing Kyle Goodwin’s work they have no intention of returning this work how is this not theft ?

    Why isn’t Kyle Goodwin bringing criminal proceedings against DoJ.

    • Guest

      The doj probably have it into there heads that they have the absolute right to destroy all the eggs (all data) in the basket (Megaupload) just to make absolutely certain that the bad egg (illegal files according to them) does not get eaten (copied/shared) so no one gets poisend (MPAA etc don’t lose out on money from loss of sales). In other words they will maintain that it is necessary to destroy all the data to make sure that the illegal data don’t get shared etc. and will no doubt call this collateral damage. To destroy the few to save the many.

    • Desu1

      His pictures are actually part of MU’s assets. If Kim Dotcom were to decide to delete everything uploaded to MU… he can. 

  • tremor

     Megaoverkill on the Megaupload stories. Couldn’t many of them be consolidated as updates to ongoing articles? Seems to be dominating Torrentfreak on a daily basis. Why so much support for a man who served time in prison for computer fraud and using and selling stolen credit cards? Each day I read comments from people supporting not just the return of data, but the man himself. 
     I agree that any non copyright infringing data should be returned to the rightful owners. As far as the seizure of the domain and servers, and subsequent arrest of Kim, I also question whether it was legal or not. It seems though everyone is quick to place the blame solely on the U.S. The truth is there are multiple countries and agencies involved in this case, including: New Zealand Police, U.S. FBI and Justice Department, Hong Kong Customs and Hong Kong Justice Department, Netherlands Police Agency and the Public Prosecutor’s Office for Serious Fraud and Environmental Crime in Rotterdam, London’s Metropolitan Police Service, Germany’s Bundeskriminalamt and the German Public Prosecutors, the Royal Canadian Mounted Police and the Canadian Department of Justice.
     If you are going to profess your love and support for Kim, and your contempt for the U.S. in this matter, at least do a little research first instead of going about it blindly.

    • http://www.facebook.com/profile.php?id=694806849 Cameron Walker

       well apparently it was done illegally, as a New Zealander I am somewhat embarrassed about the entire thing, but amused at inept last couple of major headline cases the police have generated over the last few years, with “Terrorism Raids” falling down to charges of simple firearms charges…

      But as it goes, the Americans who started the entire case – they fumbled everything – including the evidence that he was a flight risk on the basis that he had a visa back into europe he could take advantage of – apparently someone can’t understand the difference and similarity between NZ & American date formats and formats in other countries. Something Kim took great pleasure in court educating the lawyer about, when he was questioned in court about it.

      As far as it goes, I’m proud to have him live in our country – not a problem at all – just incredibly embarrassing that NZ police ended up listening to what the americans had to say about him…

  • Nick

    Server were seized by your own gov freaking fag wake-up. Stop lying.

    FUCKING LIAR

  • Baba

    Apparently ‘data’ holds no value, that is unless it is data that came from hollywood.

  • RIAAtarded

    i’d like to point out that if it was a file copying service the lawsuit wouldn’t be needed as he’d have his files so how is that even a legitimate argument. Also is inability to access his property is a direct result of the DOJ actions and not megauploads or their host so why even try to shift the blame on that one. Then add in the fact that rights holders claim their digital content is worth 250,000$ and 5 years in jail for a copy but ours has no value and can be ordered deleted without a second thought. In this instance that is the only version in existence so if anything fits the statutes for theft I think this qualifies.

    Must admit I’m getting a little tired of blatant lies being told and the serious double standards that exist.

    • Guest

      I think the DOJ have a case of “If you keep telling lies and and keep repeating these same lies then someone will eventually think hey you know what they may well be telling the truth after all” I think there is a saying along the lines of “There is nothing more blind than someone who can’t see the truth”

  • Another Victim of American Law

    The good thing about electronic data is that it actually exists. Physically. There are many hundreds of places in this world right now where this internet page itself is floating around on an atomic level. As a result, it does have mass, and therefore it is something that can be owned. As a result of it’s undeniable existence, keeping this stuff away from the people that created it is downright sinful. Not just on a level of justice, but on a level of morality too. 

    Yes, there are files on the internet that got distributed through this site that were illegal. But there are so many more elsewhere, and probably always will be. There was probably a lot more being hosted and shared through this site like MY WORK. The work of MY FRIENDS. and the work that MY TEACHERS and MY COLLEAGUES have all uploaded to share with each other. The shut-down of mega-upload has caused so many problems concerning not only my ordinary life, but my school life too, and as I can’t just go to America to ask for my stuff back, I was lucky I had backups, other people I know were not, and as a result this damaged the a-levels they’d worked towards that year. Why should we in other countries sit idly by whilst the big-wigs ruin our lives? I want to see action taken, and I want it to happen bloody well now because it’s already taken to long!I want my stuff back, and I’m not alone in that.

  • Yatti420

    Suprised nobodies yelling class action yet.. I don’t think you can really go after the government in court..

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