 Welcome to Newsdesk on SiliconANGLE TV for Monday, September 24th, 2012. I'm Kristen Fulletti. In January, the U.S. government took down mega upload, but founder Kim.com is preparing to come back with a vengeance. Coding work for the new mega upload is nearly finished, servers have been ordered and investors are lining up. A return of the file hosting site appears to be looming. We're now joined by John Casoretto, contributing editor at SiliconANGLE with breaking an analysis on the latest installment in the mega upload debacle. Welcome John. Good morning. So what are the charges against mega upload founder Kim.com? Can you summarize those for us? Yeah, basically in summary the charges against them have been in regards to copyright infringement. So a lot of the classic infringement such as movies and music and RIAA, those types of things are the bulk of the case against him and we've seen those types of things. Kim.com has a history of cases that have been brought against him and he's been caught doing a bunch of things. The guy's a bit notorious so the news is pretty big that this service will be coming back. It's pretty interesting. So tell us what can we expect from this new mega upload? What is it all about? Well apparently he's promising bigger, better, faster. He's offering also in the new service, he's talking about one click encryption of all data transfers on the fly. So it's really geared towards keeping the activities that people are doing with file transfers private, fast, whether it's your personal files or you're just transferring files or whatever the case might be, it definitely opens the door to things that are illicit. And I think that's the gist of the case here is the fact that that's how the service has been used predominantly in the past. So with the rebirth of the new site, how can Kim.com avoid running into trouble again? Well he's got a bit of a position right now where one of the stories that emerged today was that there was some unlawful spying and it would appear that they were basically spying on his conversations and using that information in their cases against him. So that invalidates a huge part of his case and anything they try to tie to him would have to be from here on forward. And so he's definitely gearing for the next stage and he's becoming a sort of an activist in a way. So a lot of people are falling in with this cause and it's interesting. But the sad thing is is that even if they shut down these servers, shut down the service again or continue this battle as they do with the Pirate Bay and different hacker sites and different file trading sites, there will always be a different way. So it's almost impossible to shut down piracy in general. It's just how easy are they going to make it and that's where Kim.com is trying to step up and restore his service and bring back his service. He's got a database of users allegedly from the previous incarnation of the service where he could easily bring back the volume of users that he had before to some degree. So it seems that.com has really sort of shied away from the role of hacktivist that he defined for himself in the days following 9-11. Now in this recent defiant return to business, do you see that as an act of capitalism or hacktivism? I think it's more along the lines of hacktivism. Absolutely. I think he's definitely made some announcements and boasted pretty strongly, especially against Barack Obama. He blames President Obama for a lot of the destruction of his business. So he is definitely on a warpath here to get back up here and get his service back up and running and get back into the swing of things as soon as he can. On the basis of public data, did the official actions and the shutdown of mega upload hinder in any way the flow of piracy? No. No. I mean, I haven't looked at specific. It still exists. It continues out there. There's always been alternatives out there. I think we've covered that on the site as far as other file transfers and places to do that kind of thing. But there's always going to be some level of it out there. It's just a matter of how easy it is for people. And I think that it won't be long before somebody steps up to the game and has the organization and the structure to roll that out and make it easily available. I think it's interesting to note that despite the ongoing criminal case, partners and investors are still happy to be involved with Kim.com. Any reason investors aren't hesitant to get involved with the organization? That's a good question and maybe something better for attorneys. Perhaps a history of just being legally above untouchable or just a history of not really being them being able to nail down anything down on Kim.com. I think maybe perhaps that would be the case. It's a good question. So we talked earlier about the ongoing allegations. We should note that it's forbidden by law from conducting surveillance on New Zealand citizens or permanent residents in the country. Government Communications Security Bureau of New Zealand, which is sort of equivalent to the CIA in the U.S., is being accused of illegally intercepting the communications and the individuals in the mega upload case. So what chance do you think mega upload has of winning a case like this? Well, I think that anytime you've got a breach of a policy like that, and they're using that as the bulk of the case against him as how some of the evidence was acquired and being utilized, I think he stands a very good chance of getting out of that. And it's probably the reason why they've gotten to this stage where he's made these bold pronouncements. He's had inside access to what information they have on him. He's fought pretty strongly for that. He spent a lot of money on legal fees. So it'll be ongoing, and this will continue well after this service comes up. And there's a chance that it could crash and burn and never stand. But chances are, with the notoriety and all else, that there will be some time where we'll be hearing a lot in the weeks and months, perhaps years to come. Could the ongoing charges be causing a delay in the new site's launch date at all? No, I don't think so. I think that he's operating in multiple nations and multiple countries around the world. I don't I don't see with the type of resources that he has that really being and something that's really affecting the launch of it. I think that perhaps, at a minimum, again, the whole reason, the whole state that we're at, where he's at in terms of this spying and everything else that's going on, maybe the reason why he's even saying, making these announcements that, hey, we're coming out with this service. Hey, it's going to be bigger and better. And it's going to be encrypted and we're going to be able to do all this. So he's he's definitely a the type of guy who likes to be the center of attention and more and more of these these events give him more and more publicity, which I think is really what he's after and really what makes his business what it is. Well, John, we appreciate your analysis. Thanks for joining us. Thank you. Keep up to date with the latest in tech innovation by joining us daily at the news desk on SiliconANGLE TV.