Judge allows case against Megaupload to move ahead

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"It is doubtful that Congress would stamp with approval a procedural rule permitting a foreign corporate defendant to internationally violate the laws of this country, yet evade jurisdiction of United States' courts by purposefully failing to establish an address here," the judge wrote. 

He added that prosecutors could eventually serve a company executive with the court papers.

Megaupload's founder, Kim Dotcom, is waging a legal battle in New Zealand to avoid extradition to the United States. 

Prosecutors shut down megaupload.com and its related sites in January, and accused the company of criminal copyright infringement. Megaupload, which operated sites such as Megavideo.com and Megapix.com, claimed to receive 50 million daily visitors, accounting for 4 percent of total Internet traffic. According to court documents, Megavideo.com was the world's 52nd most frequently visited website. 

The government said Megaupload's owners generated more than $175 million in criminal proceeds from the sites, which offered streams of movies, TV shows and other copyrighted content.