New Zealand's Web Tycoon Kim Dotcom Will Have To Disclose Assets: Court Rejects Stay Appeal

New Zealand's controversial expat and web tycoon Kim Dotcom will be forced to disclose his assets in the court. The tycoon, who is running the newly launched Internet Party in New Zealand, has lost his appeal to exempt him from disclosing his assets.

The Court of Appeal, while upholding the High Court judgment in this regard, asked the web tycoon to file an affidavit disclosing all his assets. The stay appeal came after the July decision by Justice Patricia Courtney in which the court asked the Mega Upload founder to reveal his assets when speculations were rife that he was trying an asset-dumping by launching the Internet Party that was targeting Prime Minister John Key.

Stay Appeal Rejected

The Appeal Court questioned the legal wisdom of Dotcom and lawyers for pushing for such a stay, in which he questioned the grounds of the decision. However, the Court of Appeal said his legal team has not succeeded in proving that Courtney's decision was flawed. So the court quashed the appeal for stay, reports NZ Herald.

The court also ordered Dotcom to pay the respondent studios' legal costs in relation to the appeal, saying there was no logic in launching such a legal bid.

"There was no need to run that appeal. He could have restricted the application by pleading for curbs in the use and access of disclosure of assets affidavits he has sworn. In such circumstances, Mr Dotcom must pay the respondents' costs", the court said.

Confidentiality Allowed

But the court offered confidentiality about the details of Dotcom's affidavits from going public. The latest jolt from the court order is part of a long-drawn battle going on between Dotcom and Hollywood movie studios, who have sued him for illegal profiteering via copyright violations in the U.S. The respondents included studios such as Disney, 20th Century Fox, Columbia Pictures, Paramount, Universal and Warner Bros. Their grievance was that Megaupload, founded by Kim Dotcom, "facilitated, and profited from massive copyright infringement of movies and television shows" before the venture was shut down in 2012.

There is a civil lawsuit in the U.S pending against Dotcom. Others in the dock are Vester Lt, -the majority shareholder, technical officer Ortmann and the venture's programmer Bram Kolk.

Studios Want Compensation

Studios allege that the accused or defendants have generated more than US$175 million in illicit profits by infringing US copyright laws and incurred loss to owners to the tune of half a billion dollars. The studios are seeking profits and damages from the defendants, and want the High Court in Auckland to issue freeze orders against Dotcom, reported Australian.

The studios are concerned that although Dotcom is subject to orders restraining the sale of assets in New Zealand, it is likely that he may have assets "beyond the scope of the criminal-restraining orders and may be trying to sell them off."