DIGITAL ENTREPRENEUR Kim Dotcom's legal defence has lost an appeal on discovery.
A court of appeal in New Zealand has effectively decided that what prosecuting authorities tell people about their evidence should be down to the prosecuting authority in question.
The evidence relates to the US request to extradite the Megaupload founder to the United States, where he faces criminal charges including money laundering and racketeering.
Dotcom and his three Megaupload colleagues Mathias Ortmann, Bran van der Kolk and Finn Batato wanted access to the evidence in the case against them.
The court of appeal didn't grant that request, and let the state requesting extradition, in this case the United States, withhold the evidence.
An extradition hearing is scheduled for this summer, having been delayed once already.
Dotcom, who launched the digital locker service Mega earlier this year, has a good track record at securing legal discovery.
In June last year the New Zealand High Court ruled that search warrants used to raid the Dotcom empire were illegal, casting uncertainty over the entire Megaupload prosecution.
Since then Dotcom has maintained his innocence, and suggested that the truth about the raid on Megaupload will embarrass the US and New Zealand governments.
In a tweet he said, "The fight goes on. Next is the Supreme Court of New Zealand." µ
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