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.