Movie effects pulled in US case - lawyer

Kim Dotcom's online business was compared in a US court to a murderous terrorist army. Photo / File photo

Kim Dotcom's company has been likened to a murderous, cocaine-dealing rebel army.

At the federal court in Alexandria, Virginia, the US authorities also argued a case to freeze Megaupload's assets forever.

Dotcom's lawyer said it was clear American prosecutors watched too many action movies.

Judge Liam O'Grady did not issue a ruling after the hearing but said he would send out a written decision in "days, rather than weeks".

Dotcom's US lawyer Ira P Rothken said the comparison with the Revolutionary Armed Forces of Colombia was a last-minute stunt.

"It's just becoming more and more clear that the Motion Picture Association of America is having influence on the United States, that this prosecution and the raid is looking more and more like a Hollywood production with special effects.

"This stunt, trying to throw up metaphors with a foreign terrorist organisation, or using this case that sits on the periphery of the issue in order to try to influence the judge, we don't agree with that approach."

Rothken said the Virginia 4th Circuit Court of Appeals would be likely to hear the next case.

"As we get past the facade and get to the real evidence, we're finding government illegal conduct and ultimately we that think that Megaupload and Kim Dotcom and the others are going to prevail."

Dotcom's New Zealand lawyer Greg Towers said the Virgina hearing yesterday was about lifting the indictment against Megaupload - because the indictment could never be served.

"Under the US law, it's necessary to serve the papers, and tell them exactly what it is they're charged with," Towers said. "Megaupload, the company, has never had any existence in the US."

Prosecutors said Megaupload's argument led to the "incredible" conclusion that foreign companies could commit crimes in the US and secure immunity from prosecution just by having no American address, USA Today reported.

They also stated the issue could be solved if Dotcom had a new address - at an American prison.