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Internet guru Kim Dotcom plans to sue Hong Kong government

Kim Dotcom says raids on his premises in Hong Kong were illegal and forced his firm to close

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Kim Dotcom says his company was ready to list. Photo: AFP

Former Hong Kong resident and flamboyant founder of the now-defunct file-sharing site Megaupload, Kim Dotcom, says he plans to sue the Hong Kong government for the role it played in his company's demise.

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Dotcom, who legally changed his name from Kim Schmitz in 2005, is currently in a legal battle with the United States, which wants to extradite him from New Zealand to face charges of mass copyright infringement, racketeering and money laundering.

He, along with six other co-defendants, has been accused of making US$175 million in criminal proceeds through the site and costing copyright owners more than US$500 million by offering pirated copies of movies, television shows and other content.

In January 2011, his home and the Megaupload office in Hong Kong were raided by 100 customs officers working with the FBI and his assets were frozen.

Dotcom claims Megaupload was protected by the Digital Millennium Copyright Act that provides a safe harbour for sites so they cannot be held responsible for copyright-infringing material as long as the site acts quickly to block or take the content down.

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The raids, along with one in New Zealand where Dotcom and three business partners were arrested, meant plans to float the firm in Hong Kong were dumped.

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