Hong Kong will crack down on 'piracy' following Megaupload takedown

HONG KONG authorities will crack down on internet 'piracy' after the recent takedown of Megaupload.

According to the Financial Times, Hong Kong customs will set up an electronic crime investigation unit this year.

Megaupload was set up in Hong Kong in 2005 and the area's customs has been working with the US Federal Bureau of Investigation on the Megaupload case for more than a year.

The announcement comes after media companies called on the Chinese territory to crack down on so-called 'pirate' web sites following the Megaupload case.

Hong Kong is thought to be a good place to establish a business because it is efficient, has low taxes and imposes few restrictions on capital flows.

Just today, Megaupload founder Kim Dotcom was denied bail in New Zealand because he has been deemed a flight risk.

Dotcom is at the centre of the Megaupload storm that sees him facing a number of charges including racketeering, and extradition to the US. µ