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Thursday, November 20th, 2014

    Time Event
    10:32a
    U.S. Brands Kim Dotcom a Fugitive, ‘Spies’ on Others

    megaupload-logoIt’s been nearly three years since Megaupload was taken down by the U.S. authorities but it’s still uncertain whether Kim Dotcom and his fellow defendants will be extradited overseas.

    Two months ago the U.S. Government launched a separate civil action in which it asked the court to forfeit the bank accounts, cars and other seized possessions of the Megaupload defendants, claiming they were obtained through copyright and money laundering crimes.

    Megaupload responded to these allegations at the federal court in Virginia with a motion to dismiss the complaint. According to Megaupload’s lawyers the U.S. Department of Justice (DoJ) is making up crimes that don’t exist.

    In addition, Dotcom and his co-defendants claimed ownership of the assets U.S. authorities are trying to get their hands on. A few days ago the DoJ responded to these claims, arguing that they should be struck from the record as Dotcom and his colleagues are fugitives.

    In a motion (pdf) submitted to a Virginia District Court the U.S. asks for the claims of the defendants to be disregarded based on the doctrine of fugitive disentitlement.

    “Claimants Bram van der Kolk, Finn Batato, Julius Bencko, Kim Dotcom, Mathias Ortmann, and Sven Echternach, are deliberately avoiding prosecution by declining to enter the United States where the criminal case is pending,” U.S. Attorney Dana Boente writes.

    “The key issue in determining whether a person is a fugitive from justice is that person’s intent. A defendant who flees with intent to avoid arrest is a fugitive from justice,” he adds.

    Since Kim Dotcom and his New Zealand-based Megaupload colleagues are actively fighting their extradition they should be seen as fugitives, the DoJ concludes.

    “Those claimants who are fighting extradition on the criminal charges in the related criminal case, claimants van der Kolk, Batato, Kim Dotcom, and Ortmann, are fugitives within the meaning of the statute, regardless of the reason for their opposition.”

    Megaupload lawyer Ira Rothken disagrees with this line of reasoning. He told TF that the fugitive disentitlement doctrine shouldn’t apply here.

    “The DOJ is trying to win the Megaupload case on procedure rather than the merits. Most people don’t realize that Kim Dotcom has never been to the United States,” Rothken says.

    A person who has never been to the United States and is currently going through a lawful procedure in New Zealand shouldn’t be seen as a fugitive, according to Rothken.

    The recent DoJ filing also highlights another aspect of the case. According to a declaration by special FBI agent Rodney Hays, the feds have obtained “online conversations” of Julius Bencko and Sven Echternach, the two defendants who currently reside in Europe.

    These conversations were obtained by law enforcement officers and show that the authorities were ‘spying’ on some of the defendants months after Megaupload was raided.

    tapped

    “During a conversation that occurred on or about March 28, 2012, Bencko allegedly told a third-party, ‘I can come to Bratislava [Slovakia] if needed .. bu [sic] you know .. rather not travel around much .. ‘ Later in the conversation, Bencko states ‘i’m facing 55 years in usa’,” the declaration reads.

    In addition to the two defendants, law enforcement also obtained a conversation of Kim’s wife Mona Dotcom, who is not a party in the case herself.

    “During a conversation that occurred on or about February 9, 2012 a third-party told Mona Dotcom, ‘Also Julius [Bencko] wants Kim [Dotcom] to know that he will be supportive in what ever way possible that he needs’,”

    According to the U.S. the ‘tapped’ conversations of Bencko and Echternach show that since they are avoiding travel to the United States, they too can be labeled fugitives.

    It’s unclear how the online conversations were obtained, but Megaupload lawyer Ira Rothken told TF that he wouldn’t be surprised if civil liberties were violated in the process, as has happened before in the case.

    Whether these fugitive arguments will be accepted by the court has yet to be seen. Highlighting the motion Megaupload submitted earlier, Rothken notes that regardless of these arguments the case should be dismissed because the court lacks jurisdiction.

    “The United States doesn’t have a statute for criminal secondary copyright infringement,” Rothken tells us. “We believe that the case should be dismissed based on a lack of subject matter jurisdiction.”

    Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

    4:11p
    BitTorrent Preps Sync Pro to Take on the Cloud

    Sharing files across multiple devices used to be laborious and time-consuming affair but with the advent of services such as Dropbox the practice has become a breeze.

    However, while many users remain unconcerned that third-party companies offering ‘cloud storage’ have control of their files, the revelations of Edward Snowden have undoubtedly increased fear of government snooping. With their new product ‘Sync’ in alpha, this data security loophole was pounced upon last year by BitTorrent Inc.

    Released in early 2013, BitTorrent Sync is a tool that allows users to securely sync folders across multiple devices using the BitTorrent protocol. In terms of functionality it can be compared to any number of cloud-based services but with one key exception – Sync does not store data in the cloud but does so on users’ devices instead.

    The software has now reached version 1.4 and the take-up has been impressive. During August, BitTorrent Inc. confirmed that there had been 10 million user installs transferring over 80 Petabytes of data between them.

    Now the company is preparing to debut Sync 2.0 with greater functionality and flexibility while maintaining the privacy of its users. For the first time it will be made available in two editions, ‘free’ and ‘pro’. So what’s the difference?

    “Sync 2.0 free will be an improvement from 1.4 and there won’t be any limits on performance or size of individual folders,” BitTorrent Inc.’s Christian Averill informs TorrentFreak.

    “Pro users simply get premium functionality, catered specifically to individuals with large data needs and business workgroups.”

    Sync 2.0 Free Edition
    ● Feature improvements, to enhance sharing and syncing folders
    ● Updated UI across platforms, new tablet apps on Android/iOS
    ● General performance improvements and bug fixes
    ● 30-day trial period for Sync Pro
    ● No restrictions on performance or individual folder sizes.

    Sync 2.0 Pro Edition
    ● Access to very large folders (TBs): allows for on-demand access to individual files
    ● Control over folder permissions and ownership (see image below)
    ● Automatic synchronization across devices: all your devices are tied via a common identity; moves the relationship from device-to-device to person-to-person
    ● Priority technical support

    sync-pro

    BitTorrent Inc. believes that Sync 2.0 trumps services like Dropbox, Google Drive and OneDrive on a number of fronts. Sync 2.0 places no file-size restrictions on users versus a 1TB limit for rivals. Files are also synced more quickly, up to 16X, since Sync does not rely on uploads to the cloud.

    Finally, in addition to enhanced security Sync 2.0 aims to offer better value for money too. The ‘free’ edition is just that and the ‘pro’ version costs $39.99. Competitors Dropbox, Google Drive, and Microsoft OneDrive charge upwards of $83.99 for comparable services.

    No firm release data has been announced for Sync 2.0 but those interested in becoming an early adopter can do so here.

    Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

    8:56p
    Torrents Good For a Third of all Internet Traffic in Asia-Pacific

    download-keyboardOver the years we have been following various reports on changes in Internet traffic, specifically in relation to torrents.

    One of the patterns that emerged with the rise of video streaming services is that BitTorrent is losing its share of total Internet traffic, in North America at least, where good legal services are available.

    This downward spiral is confirmed by the latest report from Sandvine which reveals that torrent traffic is now responsible for ‘only’ 5% of all U.S. Internet traffic in North America during peak hours, compared to 10.3% last year.

    In other countries, however, this decrease is not clearly visible. In Europe, for example, the percentage of Internet traffic during peak hours has remained stable over the past two years at roughly 15%, while absolute traffic increased during the same period.

    In Asia-Pacific BitTorrent traffic there’s yet another trend. Here, torrents are booming with BitTorrent traffic increasing more than 50% over the past year.

    asia-pacific

    According to Sandvine torrents now account for 32% of all traffic during peak hours, up from 21%. Since overall traffic use also increased during the same period, absolute traffic has more than doubled.

    Looking at upstream data alone torrents are good for more than 55% of all traffic during peak hours.

    One of the countries where unauthorized BitTorrent usage has been growing in recent years is Australia, which has one of the highest piracy rates in the world.

    There are several reasons why torrents are growing in popularity, but the lack of good legal alternatives is expected to play an important role. It’s often hard or expensive to get access to the latest movies and TV-shows in this region.

    It will be interesting to see whether this trend will reverse during the coming years as more legal services come online. Netflix’ arrival in Australia next year, for example, is bound to shake things up.

    Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

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