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Kim Dotcom
Kim Dotcom in 1996
Born
Kim Schmitz

(1974-01-21) January 21, 1974 (age 50)
Kiel, Germany
StatusConvicted, probation served
NationalityFinnish, German
Other namesKimble, Kim Tim Jim Vestor
CitizenshipGermany, Finland
Educationsecondary modern school / junior high school[1]
Occupation(s)CIO
CEO (2005–2011)
Years active2005–???
OrganizationMegaupload Ltd.
Known forFounder of Megaupload.com and sister websites
SpouseMona Verga Dotcom[2]
Children5[3][4][5]
Websitekim.com

Kim Dotcom, born Kim Schmitz[6] on January 21, 1974,[7] also known as Kimble[8] and Kim Tim Jim Vestor,[9] is a German-Finnish[10] businessman who rose to prominence during the dot-com bubble and was convicted of insider trading and embezzlement in its aftermath.[11] He is the founder of Megaupload and its associated websites.[11][12][13] He legally changed his surname to Dotcom in 2005.[14] On January 20, 2012, the New Zealand Police placed him in custody in response to US charges of criminal copyright infringement in relation to his Megaupload Web site.

Early career

Computer hacking

As a teenager, Dotcom acquired a reputation in his native Germany cracking corporate PBX systems in the United States.[15] This would eventually lead to his arrest in 1994 on charges of using and selling stolen calling card numbers.[16][17] Convictions on charges related to these incidents would come in 1998, when he would receive a 2 year suspended sentence from a juvenile court.[18]

DataProtect

Also in 1994, Dotcom parlayed his early hacking experience into a career in the computer security industry, founding a company called DataProtect[19]. In 1999, DataProtect and IVM engineering presented the "Megacar", a Brabus-tuned Mercedes-Benz S-Class W220 which, among other features, had a Windows NT server, a 17.3" SGI flat panel display and combined 16 GSM modules to provide mobile broadband Internet access.[20] Dotcom would go on to sell 80% of the controlling shares of DataProtect to TÜV Rheinland in 2000.[21]

Insider trading and embezzlement

In 2001, Dotcom purchased €375,000 worth of shares of the nearly bankrupt company LetsBuyIt.com and subsequently announced his intention to invest €50 million in the company.[22] Unknown to others, Dotcom did not have the funds available to invest, although the announcement caused the share value of LetsBuyIt.com to jump by nearly 300%.[23] Dotcom sold his shares a few days later for €1,568,000.[22]

Dotcom had also arranged and obtained an unsecured loan of €275,000 from Monkey AG, a company for which Dotcom had served as Chairman of the Board. The funds were to be paid to Kimvestor AG. As a result, both Monkey and Kimvestor went bankrupt. Dotcom expressed remorse, stating that he had been "dazzled" and had not recognized that he would be unable to repay the loans.[24]

In January 2002, Dotcom was arrested in Bangkok, Thailand, deported to Germany, and subsequently sentenced to a probationary sentence of one year and eight months, and a €100,000 fine, the largest insider-trading case in Germany at the time.[25] Dotcom also pleaded guilty to embezzlement in November 2003 and received a two-year probation sentence.[26]

Main article: Megaupload
Megaupload.com

Megaupload Limited businesses

In 2005, Kim Schmitz would legally change his name to Kim Dotcom[27] and form Megaupload Limited, a Hong Kong-based file hosting and sharing business that eventually became the 13th most popular site on the internet[28] with over 150 employees, US$175 million revenues,[29] 50 million visitors daily,[28] and estimated to be responsible at its peak for 4% of all internet traffic.[28][30]

The Megaupload business' domain names were seized and the sites have been shut down by the U.S. Justice Department on January 19, 2012, following their indictment and arrests of the owners for allegedly operating as an organization dedicated to copyright infringement.[31]

Civil litigation and controversies

In January 2011, Dotcom was sued for copyright infringement as owner of Megaupload.[32] A settlement was later filed.[33]

In December 2011, Dotcom's Megaworld (owner of Megaupload, Megavideo, Megalive and more) released its "Megaupload Song" promotional music video, which featured Kanye West, will.i.am, Jamie Foxx, Sean "Diddy" Combs, Alicia Keys, Chris Brown and more praising the service. Universal Music Group (UMG) responded by using the DMCA takedown process to have the clip removed from YouTube and other sites. Dotcom accused UMG of sending "illegitimate takedown notices", since UMG did not own the song in question, and Megaupload went on to file a lawsuit against UMG.[13][34][35] A statement released by UMG claimed that a special arrangement exists between UMG and YouTube which allows UMG to take down any videos featuring their artists, regardless of copyright status.[36] This claim was later explicitly denied by YouTube,[37] which has since reinstated the video.[38]

2012 arrest in New Zealand and seizure of Megaupload's websites

On January 5, 2012,[39] indictments were filed in the United States against Dotcom on criminal copyright infringement charges along with Július Benčko and 5 other associates. On January 20, 2012, Kim Dotcom, Finn Batato, Mathias Ortmann and Bram van der Kolk were arrested in Coatesville, Auckland, New Zealand, by New Zealand Police, following an armed raid on Dotcom's house. New Zealand authorities were cooperating with the United States' FBI and Justice Department, Hong Kong Customs and the Hong Kong Department of Justice, the Netherlands Police Agency and the Public Prosecutor's Office for Serious Fraud and Environmental Crime in Rotterdam, London's Metropolitan Police Service, Germany’s Bundeskriminalamt and the German Public Prosecutors, the Royal Canadian Mounted Police and the Canadian Department of Justice in the investigation preceding the arrests.[40][41]

According to Dotcom's defense, the police operation against Megaupload was unnecessarily grandiose: "... armed officers arrived in helicopters and dropped into the Dotcom mansion courtyard."[42]

On January 25, 2012 (NZ local time) Dotcom was initially refused bail because of alleged risks of his fleeing to Germany,[43][44] but was granted bail on February 22.[45]

On February 6, Dotcom invited New Zealand journalist John Campbell of Campbell Live to visit his Coatesville property and inspect the damage done by police. According to head of security, Wayne Tempero "... the force was incredible ... Had they simply asked us we would have opened the door to any room they wanted to enter." He said Mr. Dotcom seemed shocked by the police action. "I remember him saying "copyright infringement" and shook his head, like he's going "what the hell?". We weren't building bombs in the cellar, we didn't have a meth lab bigger than the South Island here. This was a normal family house.".[46]

On February 22, Kim Dotcom was released on bail under the condition that he remain within 80 km of his Coatesville residence and is barred from Internet access. Bail was granted after considering his flight risk and seizure of assets. Judge Dawson stated Dotcom has “every reason to stay to be with his family and fight to keep his assets.” The condition of bail came with a successful additional measure brought by the US Government to prevent Kim Dotcom's access to the Internet. Despite concerns about the interaction between Kim Dotcom and his legal team, Judge Dawson sided with the US government because Kim Dotcom "(has) the ability to use it for wrong purposes."[47]

On March 1, Kim Dotcom gave his first interview to New Zealand media after his arrest to John Campbell of Campbell Live.[48] He explained the close ties of his case to that of Viacom vs. YouTube; in which the Digital Millennium Copyright Act (DMCA) shielded YouTube from the infringement of its users and described his surprise when he was arrested without trial or a hearing.[49] Kim Dotcom also provided some of the aspects of his defense. Dotcom explains that the Megaupload was responsible for 800 files being transferred every second and that it would be impossible to police all that traffic. In addition, the US has privacy laws, such as Electronic Communication Privacy Act, which prohibits the administrators from looking into the accounts of the users.

On March 4, he released his diary detailing his first week since being out of prison and expressed his concerns that his wife, Mona Dotcom, may be targeted by the US authorities.[50]

On June 28, 2012, New Zealand High Court Justice Helen Winkelmann found the warrants used did not adequately describe the offences to which they were related. "These categories of items were defined in such a way that they would inevitably capture within them both relevant and irrelevant material. The police acted on this authorisation. The warrants could not authorise seizure of irrelevant material, and are therefore invalid."[51] Justice Winkelmann also ruled the FBI’s cloning of the seized hard-drives invalid.[51] This judgment calls the admissibility of the evidence in later extradition hearings into question.[52]

Other activities

Dotcom has taken part in the Gumball 3000 international road rally on several occasions, winning in 2001 in his Mercedes Brabus SV12 Megacar. He also competed in 2004. In a 2004 interview on Belgian Television, he claimed that in Morocco a car was blocking him and "he had to bump him off the road. Nothing happened to him". He claims he subsequently found out it was the Chief of Police in a "civil" car.[53]

Before his arrest, Dotcom was the world's number one-ranked Modern Warfare 3 player. The game has more than 15 million online players.[54] On January 23, 2012 he lost the position and dropped to number two.[55]

Since 2001, Dotcom has received media coverage as a founder of a Hong Kong based investing company called Trendax. The company claimed to use artificial intelligence to maximize investment return and Dotcom tried to find investors for a hedge fund managed by the company.[56] According to media reports Dotcom never had a proper license to start the fund, though no fraud was suspected.[57]

In 2010, Dotcom leased a NZ$30M mansion at Coatesville, near Auckland, owned by Richard and Ruth Bradley, the British founders of Chrisco, and considered the most expensive house in the country. He had an arrangement to buy the mansion when the lease expired,[58] but the New Zealand Government declined his application to buy the land on the basis that he did not meet the "good character" test.[59] Dotcom was granted permanent residency in New Zealand in 2010.[12][60]

An investigative piece found Dotcom in Hong Kong business records with the new name "Kim Tim Jim Vestor", allegedly bearing a Finnish passport, and acting as director of several "Mega-" companies, among them Megaupload Ltd. and Megarotic Ltd.[11] According to Megaupload spokesperson B. Lam, Kim is one of many shareholders at Mega and not involved in most day-to-day business decisions.[11]

Kim Dotcom has spoken out against his negative portrayal in the media, claiming to be a reformed character and a legitimate businessman who has been unfairly demonized by United States authorities and industry trade groups such as the RIAA and MPAA. He contends that the services offered by his Megaupload site were not significantly different from those of comparable services such as Rapidshare or YouTube, and he has just been used as a scapegoat because of his hacker past. Dotcom is also keen to point out his charitable works, including funding the fireworks display for New Year 2011 in Auckland,[61] and donating large amounts of money to the relief fund following the devastating 2011 Christchurch earthquakes, and explains that his property purchases in New Zealand were approved by several other government Ministers before being vetoed at the last minute by Justice Minister Simon Power, after the United States Department of Justice secretly asked his department for help with their investigation of Dotcom.[62][63] In July 2012, Kim announced the launch of Megabox, a new music streaming service to rival Spotify, on twitter.[64]

Dotcom participated in a mock funeral procession for public broadcaster TVNZ 7 in downtown Auckland, on the day of its final broadcast. He had warmed to one of its more notable shows, Media7, for its championing of Internet freedom, and had been interviewed on the show at least once.[65]

Personal life

Dotcom achieved early notoriety by being the subject of an advanced-for-its-time flash animation video called Kimble Special Agent.[66] The name is a reference to Richard Kimble, the main character of the television series The Fugitive.[67]

A large framed man, he is 2 meters (6'6") tall and weighs more than 130 kilograms (290 lb).[68]

Kim Dotcom applied for residence in New Zealand in June 2010.[69]

As of late August 2012, Kim Dotcom is an active user of several social media platforms.

He is married and with his wife Mona has five children.

References

  1. ^ "Weltweiter Wirbel um Kieler Hochstapler Kim Schmitz", KN-online, January 21, 2012
  2. ^ [1]
  3. ^ Dotcom birthday party targeted The New Zealand Herald, January 22, 2012
  4. ^ "Kim Dotcom becomes proud dad of twin girls". Torrentfreak.com. Retrieved May 2, 2012.
  5. ^ "Megaupload's Kim Dotcom Fathers Healthy Twin Girls". 25/3/12. Retrieved March 26, 2012. {{cite news}}: Check date values in: |date= (help)
  6. ^ "The lavish life of file-sharing kingpin Kim Dotcom". news.com.au. January 22, 2012. Retrieved January 23, 2012.
  7. ^ "Der Unfassbare", Berliner Morgenpost, February 12, 2001 Template:De icon
  8. ^ Schmidt, Karsten (January 23, 2002). "Kimble bleibt stumm". Manager Magazin (in Template:De icon). Retrieved February 27, 2012. {{cite journal}}: Unknown parameter |trans_title= ignored (|trans-title= suggested) (help)CS1 maint: unrecognized language (link)
  9. ^ Barakat, Matthew; Perry, Nick (January 20, 2012). "US Internet piracy case brings New Zealand arrests". The Washington Times. Associated Press. Retrieved February 27, 2012.
  10. ^ "Megaupload founder Dotcom likely to get bail". CNN. February 22, 2012. Retrieved February 27, 2012.
  11. ^ a b c d Wishart, Ian (April 2010). "Merry Chrischmitz or Merry Hell?" (PDF). Investigate. Retrieved December 31, 2011.
  12. ^ a b Sandoval, Greg (August 4, 2011). "The mystery man behind Megaupload piracy fight". CNET News. Retrieved January 19, 2012.
  13. ^ a b Megaupload threatens to sue Universal over YouTube video Guardian
  14. ^ Gallagher, Sean (January 26, 2012). "The Fast, Fabulous, Allegedly Fraudulent Life of Megaupload's Kim Dotcom". Wired. Retrieved January 26, 2012.
  15. ^ William Flanagan and Brigid McMenamin “The Playground Bullies are Learning How to Type” Forbes magazine, pp. 182–189, December 21, 1992
  16. ^ Brigid McMenamin, “Fallen hacker,” Forbes magazine, p. 12, June 20, 1994
  17. ^ McMenamin, Brigid (June 20, 1994). "Fallen hacker". Forbes. Retrieved January 21, 2012.
  18. ^ Zugriff in Bangkok Template:De icon, Manager Magazin, January 18, 2002
  19. ^ Pressetext: Start-up der Woche – Megacar Template:De icon
  20. ^ "Tomshardware.co.uk". Tomshardware.co.uk. March 15, 1999. Retrieved January 27, 2012.
  21. ^ Kimvestor bringt den TÜV in Erklärungsnot Template:De icon, Handelsblatt, February 6, 2001
  22. ^ a b Haftstrafe für Schmitz? Template:De icon, Der Spiegel 5/2002, January 28, 2002
  23. ^ "Rekordanstieg bei Letsbuyit" Template:De icon Manager-Magazin, January 25, 2001
  24. ^ "Alle haben mit Geld um sich geworfen" Template:De icon Manager-Magazin, November 11, 2003 – "Ich war dadurch geblendet", sagte sich Schmitz ("I was dazzled by it")
  25. ^ Luring German Investors Back Into The Pool, Business Week, April 12, 2004.
  26. ^ Schnelles Ende im neuen Kimble-Prozess, Heise.de. Template:De icon
  27. ^ "The Fast, Fabulous, Allegedly Fraudulent Life of Megaupload's Kim Dotcom". Wired Magazine. Retrieved August 21, 2012.
  28. ^ a b c "Department of Justice indictment, on Wall Street Journal's website". The Wall Street Journal. Retrieved January 27, 2012.
  29. ^ Anderson, Nate (January 20, 2012). "Arstechnica.com". Arstechnica.com. Retrieved January 27, 2012.
  30. ^ "Google.com". Google. Retrieved January 20, 2012.
  31. ^ Cecilia Kang (February 28, 2011). "Ira Rothkin". The Washington Post. Retrieved May 2, 2012.
  32. ^ "BLM Perfect 10, Inc. v. Megaupload Limited et al". Freecourtdockets.com. January 31, 2011. Retrieved January 19, 2012.
  33. ^ Sandoval, Greg (November 3, 2011). "Megaupload settles copyright suit with porn studio". CNET News. Retrieved January 19, 2012.
  34. ^ MegaUpload Attorney Speaks on Universal Lawsuit Billboard.
  35. ^ Universal: Artists didn't consent to Megaupload video CNN
  36. ^ Masnick, Mike (December 16, 2011). "An Explanation For Why UMG May Be Right That It Can Pull Down MegaUpload's Video". Techdirt. Retrieved January 19, 2012.
  37. ^ "Universal has no special takedown privileges says YouTube". thecmuwebsite.com. December 20, 2011. Retrieved January 19, 2012.
  38. ^ "Megaupload Mega Song HD". YouTube. Retrieved January 19, 2012.
  39. ^ "Justice.gov". Justice.gov. January 19, 2012. Retrieved May 2, 2012.
  40. ^ Sandoval, Greg (January 20, 2012). "FBI charges Megaupload operators with piracy crimes". CNET News. Retrieved January 19, 2012.
  41. ^ "Megaupload founder arrested in Auckland, site shut down". 3news.co.nz. January 19, 2012. Retrieved January 19, 2012.
  42. ^ "3news.co.nz". 3news.co.nz. Retrieved May 2, 2012.
  43. ^ Gay, Edward (Wednesday January 25, 2012), "Bail declined for Kim Dotcom", The New Zealand Herald, retrieved January 25, 2012 {{citation}}: Check date values in: |date= (help)
  44. ^ Johnston, Kirsty; Levy, Danya (Wednesday January 25, 2012), "Kim Dotcom denied bail, to appeal", Stuff, Fairfax New Zealand, retrieved January 25, 2012 {{citation}}: Check date values in: |date= (help)
  45. ^ Theunissen, Matthew (February 22, 2012). "Dotcom 'not flight risk', gets bail". The New Zealand Herald. Retrieved February 21, 2012.
  46. ^ "Campbell Live enters Kim Dotcom's Coatesville mansion". 3news.co.nz. February 7, 2012. Retrieved February 7, 2012.
  47. ^ Saarinen, Juha (February 21, 2012). "Megaupload's Kim Dotcom granted bail, barred from Internet". Arstechnica.com. Retrieved May 2, 2012.
  48. ^ "Kim Dotcom's first interview after arrest". 3news.co.nz. March 1, 2012. Retrieved March 1, 2012.
  49. ^ Anderson, Nate (March 1, 2012). "Megaupload takedown a "death sentence without trial," says Kim Dotcom". Arstechnica.com. Retrieved May 2, 2012.
  50. ^ Cask J. Thomson (March 4, 2012). "[MEGAUPLOAD CASE ] Kim Dotcom Details Life in Prison & His Diary, Now Pregnant Wife Targeted by US Feds". Wordswithmeaning.org. Retrieved May 2, 2012.
  51. ^ a b "Dotcom searches illegal: Judge". nzherald.co.nz. June 28, 2012.
  52. ^ Toby Manhire (June 28, 2012). "Kim Dotcom judge rules mansion raid was illegal". The Guardian. Retrieved June 28, 2012.
  53. ^ "Kim Schmitz (Kimble) Street Racing In Belgium – Part II of Belgium News". YouTube. Retrieved May 2, 2012.
  54. ^ "Arrest fallout: Kim Dotcom drops to No. 2 rank in Modern Warfare 3". VentureBeat. January 23, 2012. Retrieved May 2, 2012.
  55. ^ Rob Waugh (January 24, 2012). "Megaupload CEO Kim Dotcom slumps to No. 2 Modern Warfare 3 player after New Zealand arrest | Mail Online". Daily Mail. Retrieved May 2, 2012.
  56. ^ "Whatever happened to...?; A look at high-tech promises, kept and broken", The International Herald Tribune, November 25, 2002
  57. ^ Dr. Kimbles Wundermaschine Template:De icon, Manager Magazin April 16, 2003
  58. ^ Lewis, Rebecca (February 14, 2010). "Multi-millionaire hacker buys Chrisco mansion". The New Zealand Herald. Retrieved January 21, 2012.
  59. ^ Fisher, David (September 11, 2011). "Ministers slam door on web tycoon". The New Zealand Herald. Retrieved January 21, 2012.
  60. ^ Fisher, David (June 12, 2011). "Flamboyant former hacker to settle in NZ". The New Zealand Herald. Retrieved January 21, 2012.
  61. ^ 27th. "funding the fireworks display for New Year 2011 in Auckland". Blog.couponcodes4u.com. Retrieved May 2, 2012.{{cite web}}: CS1 maint: numeric names: authors list (link)
  62. ^ "From Rogue To Vogue: Megaupload and Kim Dotcom. December 18, 2011". Torrentfreak.com. December 18, 2011. Retrieved May 2, 2012.
  63. ^ "Kim Dotcommando: Life's no game. By David Fisher, New Zealand Herald, Sunday January 29, 2012". The New Zealand Herald. January 29, 2012. Retrieved May 2, 2012.
  64. ^ "Megaupload founder to launch streaming service".
  65. ^ Marika Hill (June 30, 2012). "Kim Dotcom joins TVNZ7 funeral". Fairfax NZ News.
  66. ^ Shanklin, Will (January 20, 2012). "A closer look at Kim Dotcom, the larger-than-life founder of Megaupload". Geek.com. Retrieved January 20, 2012.
  67. ^ Kwek, Glenda (January 23, 2012). "Inside the lavish life of Kim Dotcom". The Canberra Times. Retrieved January 28, 2012.
  68. ^ Perry, Michael (January 23, 2012). "Megaupload boss says innocent, rival stops file-sharing". Reuters. Retrieved January 25, 2012.
  69. ^ Kim Dotcom's money won him New Zealand residency

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