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goodwin2nd

goodwin2nd

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Published by TorrentFreak_

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Published by: TorrentFreak_ on May 25, 2012
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1INTHE UNITED STATES DISTRICT COURT FOR THEEASTERN DISTRICT OF VIRGINIAALEXANDRIADIVISIONUNITED STATES OF AMERICA,Plaintiff,v.KIM DOTCOM,
et al
.Defendants.)))))))))The Honorable Liam O’GradyCase No. 1:12-cr-00003-LO
BRIEF OF KYLE GOODWIN IN SUPPORT OF HISMOTION FOR THE RETURN OFPROPERTY PURSUANT TO 18 U.S.C. § 1963 AND/OR FEDERAL RULE OFCRIMINAL PROCEDURE 41(g)I.Introduction
Movant Kyle Goodwin did not want to bring this motion.However, it has now beenmore thanfour months since he was deprived of access to his property—an important part of hisgrowing small business in Ohio—as a perfectly foreseeableresultof the government’s seizure of the Megauploadservers.Moreover,it is now apparent that the government is not only unwillingto assist with the recovery of Mr. Goodwin’sproperty, it isactively
resisting
Mr. Goodwin’sefforts. Indeed, if the government gets its way, Mr. Goodwin will likelybe deprived of hisproperty for manyyears, if not permanently.That must not be allowed. Mr. Goodwin—who all parties agree is completelyinnocent inthis matter—has already been deprived of access to his propertyfor months,an especiallysignificant deprivation for someone whose business turns, in part,on giving parents timelyaccess to video of their children’s sports activities. The prospect of waiting years for the returnof his property, which is apparently what the government contemplates, is indefensible. Havingattempted to negotiate a voluntarysolution protecting the interests of property owners,and
 
2having concluded thatthe government is unwilling to even contemplate such a solution, Mr.Goodwin brings this motion.To be clear, however, there is more at stake here than Mr. Goodwin’s data.Thegovernmentalso seized the propertyof an unknown but significant number of other people alongwith Mr. Goodwin’s property. If the Court does not act, all of those people also face years of deprivation, if not permanent loss. What is worse,the government’s procedureand legal posturein this caseappears to reflect a broader disregard for the effects its increasing use of domain andother digital seizure mechanisms can have onthe innocent users of cloud computing services.Given that theuse of cloud computing servicesis already widespread and poised to growexponentiallyin the next few years, this Court should establish procedures to ensure that suchinnocent users do not become regular collateral damage.In no area of commercial or personal activityis the government allowed to seize propertywithout taking reasonable measures to avoid unnecessaryharm and loss of commercial value.That should be no less true when the property is information. Thus, if the government is going toget into the business of seizing Internet properties used to host a wide range of content—infringing and not—it must implementprocedures and standards for protecting the property anddue process rights of innocents such asMr. Goodwin who use those services for legitimatepurposes. Since the government seems uninterested in developing those processes and standardsitself, this case shouldserve as a starting point for the judiciaryto do so.
II.BackgroundA.Procedural History
On January19, this Court unsealed an indictmentdated January5. Indictment, Dkt.No.1. The governmentseized 18 domain namesand executed a search warrant and effectivelyseizedthe more than 1,000 servers owned byCarpathia Hosting, which Megaupload had leased
 
3and on which it most likelystoredits customers’ data.
1
Dkt. No.39 at 5; January27 Letter fromJayV. Prabhu (“Prabhu Letter”), Dkt.No. 32. During the execution of that warrant, Mr.Goodwin’s data was indisputablyin the government’s control.
 Id.
On January27, the government filed thePrabhu Letter with this Court, stating that it hadcompleted its execution of the search warrants,that it no longer had any right to accessCarpathia’s servers, and that it no longer exercised control over the data. Dkt. No.32.On March 20, after discussions between the parties failed to produce a plan for handlingthe data or giving innocent customers access to their property, Carpathia sought emergency relief from this Court. Dkt. No. 38. Mr. Goodwin filed a brief in support, asking the Court to fashiona remedy to make him and other innocent third parties whole. Kyle Goodwin’s Brief In Supportof EmergencyMotion for Protective Order byCarpathia Hosting, Inc. (“Goodwin March 30Brief”), Dkt. No. 51 at 15.OnApril 13, 2012, at the hearing on Carpathia’s motion, the Court instructed all parties,including Mr. Goodwin, to negotiate in good faith to two ends: first, to ensure the preservation of the seized material for use both in the defense of the Megaupload defendants in this criminalmatter and in anyrelated civil litigation;andsecond, to devise a plan to allow innocent users of Megaupload to retrieve their property.Dkt. No. 86.
2
 
1
The government, along with foreign law enforcement, also raided the homes of defendants,none of whom resides in the United States,and seized bank accounts, jewelry, cars, and othervaluable goods.Dkt. No. 1 at 66-71
.
2
Mr. Goodwin maintains that byusing a technical technique called “mirroring” or somethingsimilar, access to his information can be allowed while still preserving the corpus and metadataof the data on Megaupload’s server in a form that can be used for Megaupload’s defense or incivil litigation. There is no need to hold Mr. Goodwin’s data hostage simply because a criminalindictment has been unsealed. Indeed, because of the digital nature of the property, protectingthe evidentiaryvalue of the data is even easier than would be the case had the government seizeda hotel or physical storage facilitywith innocent customer propertyin it. It merely requires thatthe information be copied so that it maybe both preserved and accessed.Mr. Goodwin remains

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