Megaupload founder to launch new site

The founder of outlawed file-sharing site Megaupload is back at work.

Already facing charges of online piracy, Kim Dotcom plans to launch a new site, Mega.co.nz, Sunday that he says complies with the law.

(SOUNDBITE) (English) MEGAUPLOAD FOUNDER KIM DOTCOM, SAYING:

"This is not some kind of finger to the U.S. government or to Hollywood. This is innovative people, that have been wronged, taking the time that they have to create something new..."

Last January, an armed New Zealand special forces team seized computers in a dawn raid at his mansion, arresting him at the request of the FBI.

An extradition hearing for Dotcom and three of his colleagues has been complicated by illegal arrest warrants and New Zealand's admission of unlawful spying.

(SOUNDBITE) (English) MEGAUPLOAD FOUNDER KIM DOTCOM, SAYING:

"Ah it's crazy, when you watch these spy movies now and conspiracy theory movies - you think differently about life when you go through what I have been through, that is for sure."

Unlike Megaupload, users of the new site must choose who can access the files they upload via an encryption code.

His lawyer said the launch is compliant with his bail terms, but U.S. prosecutors argue Dotcom originally had no intention of starting a new venture until his extradition case was resolved.