Earlier this week it was reported that new charges were filed against Kim Dotcom, founder of Megaupload, and his associates.  The new charges stated that “Megaupload reproduced content from third-party websites, including YouTube, with the intent of making it available for reproduction.”  Though the new charges filed were serious, that didn’t stop North Shore District Court Judge Nevin Dawson from granting bail to Dotcom.

In a 13-page decision, Dawson noted that:

• Megaupload’s chief financial officer has filed an affidavit supporting Dotcom’s contention that he has no money to flee;
• He has only two passports (one Finnish and one German), not three, as previously asserted;
• The United States has extradition treaties with Germany and Finland;
• No steps have been taken to re-establish the shuttered business;
• No new evidence has been uncovered

Some of Dotcom’s business associates facing the same charges have been granted bail as well.  An extradition hearing likely will not occur before July, an “effectively punitive” period of time, despite the fact that no criminal conduct has been established.

“The factors against him being a flight risk include that he would live his life as a fugitive, he would be abandoning his expectant wife and three children and he would effectively lose all the considerable assets and bank accounts in a number of countries that have been seized or frozen,” Dawson wrote. “It is submitted that he has a good defense to the charges and that he has every reason to stay and fight for his family’s future and his seized assets.”

As for Dotcom, though he didn’t oblige any interviews, he stated that “I am relieved to go home to see my family, my three little kids and my pregnant wife.  And I hope you understand that that is all I want to say right now.”  He also compared how he was treated by the authorities after his high-profile arrest to auditioning for American Idol.  Dotcom kept his jolly disposition despite his current ordeal.

Dotcom was released without any monetary bail bond, but the conditions of his bail were not publicly discussed by the Ministry of Justice officials.  The Associated Press, which reported of Dotcom’s bail, was informed that they needed to apply to the judge to get more information.

Grooveshark And The Pirate Bay May Go Down The Megaupload Path

Megaupload thought that they were protected under the DMCA safe harbor, they didn’t expect the Feds could easily take them down.  The surprise attack led to other sites, such as Btjunkie, to abandon their operations, since no one is safe from the clutches of the FBI.

And it seems another site will soon take Megaupload’s cue, as a Danish court ruled in favor of a conglomerate of entertainment, companies known as RettighedsAlliancen, to force “3”, a Danish ISP, to block Grooveshark.  The international online music search engine, music streaming service and music recommendation web software application, will no longer be accessible by their subscribers.

“Grooveshark is an illegal site, which is really big and popular. But they have a business model that is based on trickery and fraud,” said RettighedsAlliancen chief Maria Fredenslund commenting on the news.  “Many users believe that when they use Grooveshark payment goes back to the artists and producers. So we think it was important to close off access so the legitimate sites have a chance to recover.”

The Pirate Bay is also being threatened in the UK, a step closer to being blocked by European ISPs.  Come July, the court ruling will be handed down as to whether ISPs should block access to TPB.

TPB responded to the threat by stating that they would be moving to new methods of file distribution at the end of the month.

“The 29th February is the last day we offer torrents in its current form. Then it will be all magnets, which works pretty much the same,” it said on its official Facebook page.

“Please understand that it’s a necessary move in the saga known as The Pirate Bay. Not having torrents will be a bit cheaper for us but it will also make it hard for our common enemies to stop us.”