I'm starting to like this Dotcom guy. While pending extradition, he's launching a new site which will basically do the exact same thing Megaupload did, except with the incorporation of plausible deniability on his end.
Dotcom said Mega was a different beast to Megaupload, as the new site enables users to control exactly which users can access uploaded files, in contrast to its predecessor, which allowed users to search files, some of which contained copyrighted content allegedly without permission.
A sophisticated encryption system will allow users to encode their files before they upload them on to the site's servers, which Dotcom said were located in New Zealand and overseas.
Each file will then be issued a unique, sophisticated decryption key which only the file holder will control, allowing them to share the file as they choose.
As a result, the site's operators would have no access to the files, which they say would strip them from any possible liability for knowingly enabling users to distribute copyright-infringing content, which Washington says is illegal.
"Even if we wanted to, we can't go into your file and snoop and see what you have in there," the burly Dotcom said.
Dotcom said Mega would comply with orders from copyright holders to remove infringing material, which will afford it the "safe harbor" legal provision, which minimizes liability on the condition that a party acted in good faith to comply.
But some legal experts say it may be difficult to claim the protection if they do not know what users have stored.
I've been fascinated for a while by the US government's intentions with concerns to encryption. As more and more means of sharing/hosting/downloading encrypted data crop up, it seems that The Man is going to have to draw a pretty hardassed line around something that should be perfectly legal. Here we have another log for the fire.
The defense of MU is also pretty interesting, and if it holds to be true, this whole thing will turn out to be pretty sleazy. In a nutshell, Dotcom's defense is claiming that the FBI ordered them through a third party (their US server hosts, Carpathia Hosting) to not remove the illegal files and to not do anything that might hinder the secrecy of their investigation (like prohibiting their download). The FBI then prosecuted MU for not removing of denying access to those files. If true, this puts MU in the position of having to choose between the current charges of facilitating piracy, or getting hit with obstruction of justice charges for blowing the DOJ's investigation.
We have no way of knowing if this is actually true, but our government doesn't seem to be denying it (they're maintaining that they had no communications with MU, but not Carpathia). Furthermore, given what we've seen of how the DOJ operates over the last decade, this seems like exactly what should be expected of them.