biggeste is attacked's outlaw, under house arrest after a raid by new zealand. kim dotcom is known for his outrageous personality and has traveled the globe. now the target of the biggest copyright case in history, accused of trafficking pirated as he awaits shows an extradition hearing to hear his fate. joining me on "studio 1.0," megaupload founder and self-proclaimed ruler of the

kimpire, kim dotcom. it has been a year since you have spoken. you have been under house arrest. what are the rules now? kim: i am not allowed to leave the country. i have to report twice a week. emily: you had your freedom until the rate. take me back to the day of the raid. rifles cops with assault , storming the property. some of them arriving in helicopters, some with attack dogs. completely bizarre scene. my staff and i had to face the ground. my little kids crying because they were scared. my wife separated from the children. , they beatot to meet me up. the rest is history.

kim: there is a description of you standing there with a sawed-off shotgun. kim: the police officer that made that story up in the press conference had to admit later in court he made it up. i was sitting there with my hands in the air. emily: unarmed? kim: completely unarmed. emily: what did it take? thousands of servers that had the data of millions of users. emily: most of your assets are frozen. kim: everything they have their same belongs to the u.s. government. emily: would you call yourself broke? kim: we recently had a judgment releasing $4.6 million for living expenses. judgmentoment, if that is not appeal, i am financially in a better position. mean -- it iso

kind of my last stand fighting for my home. i am trying to send a message and show them i am not going to fold over. i am going to fight back or it emily: you are wanted by the u.s. government for charges including racketeering, money laundering, wire fraud, copyright infringement. how much time in prison are you facing? kim: 88 years. emily: they say you oh $175 million. kim: that is the profit that mega love -- upload made. emily: but you have yet to be found guilty of anything. what is the myth of kim dotcom? what is the reality? kim: i am who i am.

i live my life the way i like. i do not limit myself to my thinking. when i have a plan, i see it through. emily: you were born kim schmitz west germany. what kind of kid were you? kim: i was a naughty kid. my mother, i am so sorry. i was a bad kid. as long as i had my first computer, everything changed for me. i stopped questioning everything. why go to school? this is the future. emily: how did you become a hacker? kim: when i was in my team -- , ins and had my first modem was so excited to be able to chat with people halfway around the globe that share the same interests, hacking. it was exciting to go into computer systems and find out things you are not supposed to

see. bit of an adventure. emily: you have to the pentagon, citibank, nasa. obtained documents on saddam hussein, tracked down osama bin laden's bank accounts. kim: 9/11 really affected me. i felt deeply unhappy about the. i was trying to do something, be part of the effort to stop people from ever doing that again. emily: you did all those things? kim: there were other things i did. emily: some people would say there is no proof. kim: there is no proof. emily: why did you change your name to kim dotcom? kim: i bought the domain, kim.com. i thought it would be great if my name were kim dotcom so i do not have to hand them a business card. they can just go to my website. emily: take me back to the start

of megaupload. kim: i was a straight razor. videos, share that in the street racing community. the file sizes kept getting bigger and you could not large files over e-mail. i wanted to solve that problem by creating a server where you can upload a file, get a link, and e-mail a link to the people you know. it is a convenient solution to a problem. emily: how quickly did a growth? kim: instantly. it was massive. within weeks, we had to buy additional hardware, servers. not a penny spent on advertising. it got its own life. emily: at its peak, 50 million daily users, billions of files. is that about right?

4% of internet traffic. kim: in its prime. emily: in its prime, how much mega love -- megaupload comment was legitimate and how much was pirated? kim: the majority was completely legitimate. no difference between megaupload and services like dropbox. you can use it for good things or bad things. you can buy a knife and stabbed someone in the heart or use it to slice your bread. you are not going to throw a knife maker in jail because someone is murdering. so you robrighters them of millions of dollars. kim: i myself never uploaded a single file and shared it. emily: did you try hard enough to stop it? kim: when we got copyright notices, we took them down. holdersr 150 copyright

direct service to delete links they did not like, that were infringing on their copyright. emily: you had a rewards program. you paid users to upload content. they made more money the more popular their content was. what is popular? movies that have not been released, music that is free. in that case, work you complicit? kim: i do not think so. if you look at our rewards rule on the front page, it said you cannot upload stuff that does not belong to you. limit the program to files smaller than 500 megabytes. you upload a movie and do not make a penny. emily: do you believe in copyright? kim: i do not believe in copyright extremism. extremism is if you are a

hollywood studio, and you release your content in one country first and roll it out over a couple of months in other countries around the world and expect the internet community in all these different countries to wait for the release. they have just launched netflix in new zealand. the catalog of content you can download is roughly 10% of what they offer in the united states. that is completely unfair. because people do not get that access, they are looking for the stuff elsewhere. it is a problem created by the content creator. i am not responsible for that. if they had an offering that had all content globally available for a fair price on any device, piracy would shrink into insignificance. and youf it is illegal

are not trying hard enough to take it down or do not take it down? doesn't that mean what you are doing is illegal? kim: i have tried everything. we were a small company in hong kong. we did not catch up with the latest technologies. we were not given an opportunity to do that. emily: do you think the artist who makes the song, tv show, movie, videogame creators, to those people deserve to be paid? kim: absolutely. emily: if those people deserve aree paid but people accessing the content illegally, how do you find a balance? kim: where is the problem? i do not see artists starting. emily: does that mean it is fair that others should access their content illegally? kim: i do not think that is what i am trying to stay -- say. everyone should look at it realistically.

please hollywood moguls have mansions bigger than mine. it is greed. it is not like anyone is starvi ng. the movie industry makes more money year after year. wants to have access to the content, but hollywood does not make it available. i am a tiny piece in the middle of the. i am not responsible for that. emily: do you think the government is trying to make an example out of you? kim: absolutely. emily: president obama is saying the innovation and creativity and stuffed the american people create is our biggest asset. why should we allow it to be stolen? kim: that argument does not question, why don't we make this great product available to everyone in an easy format? if hollywood had some smart them, theying for

would probably have the biggest internet company on the planet. emily: explain how this great internet company out of hollywood would work. kim: it is simple. if you have a content platform owned by all these different studios combined, and they make their content available at a fixed monthly fee for everyone to access around the world, they would have the biggest internet success in history. i can understand the dilemma, but to make me responsible is outrageous. emily: what is your message for president obama? kim: it would have been nice if he delivered the change. it would have been nice if he did not spy on the world population. i'm disappointed in his president c and in the u.s. government for the way they are behaving around the world. this case is a small example of how arrogant the u.s. government

has become around the world. emily: tell me about your relationship with edward snowden. ♪

emily: you are arrested for the first time when you were 18. you were convicted of insider trading. why should we trust you? many people think you are the world's biggest tyrant. kim: i am an easy target. when i was a young man, i made some mistakes. but i never heard anyone. i hacked into systems because i was an adventurer. i wanted to find out if aliens exist. i have grown. i am a family man. i have five kids. i am not a criminal. emily: what is this new business you are working on? i spent a the raid, lot of time thinking about the intrusion of privacy. in my case, they have used in the nsa spy on me.

the prime minister of new zealand has apologized to me. i created a cloud storage website where people can be 100% sure their data is fully encrypted, that no government can access it. that we as a service provider cannot access private data. emily: you cannot see what is in the files? so the nsa could not get it. kim: they would get a lot of garbage. emily: what is to stop this from becoming a bank for criminals? kim: it is your right to privacy. i think that right overrules anything else. emily: is there anything you would have done differently? kim: if anyone from the u.s. government had reached out to us and said, we have a problem here. we never got any warning like that. emily: tell me about your relationship with edwards noted. kim: i think he is a hero. i admire his courage. he will be remembered in history

as one of the great people of our time. emily: what is he up to? kim: he is happy, he is fine. he is in russia. i think he is pleased that the debate has been triggered based on the things he has done. especially to americans. emily: when it comes to china, iran, islamic terrorists, the u.s. government, what are you most worried about when it comes to spying, hacking? kim: i am worried about the situation in ukraine. is someone i would be very careful with. think that obama has done a good thing in negotiating with iran, trying to find a resolution to the nuclear standoff. emily: what about other countries? north korea and sony? should we be concerned about north korea? kim: you do not really believe that north korea -- i do not

believe that for a minute. emily: who did that? kim: some sophisticated group that has an interest in what hollywood is doing. emily: you do not think it is a group with ties to north korea? kim: i do not think so. i do not think north korea has the capability. it is a beautiful story for the u.s. government to put this on north korea. it is more likely it was an insider at sony that was disgruntled. emily: i know you're worried about microsoft. kim: obviously, windows software is the most interesting target for the u.s. government because everyone is using it. if you can just use windows update to install a backdoor on know, that isou the most convenient way to get access to everything that happens on an individual's

computer or on government computers or bank computers. it is just the logical extension of what they have already done. emily: your st. julien assange -- ♪

emily: what about julian assange? what is your relationship? kim: what julian assange is doing is putting spotlights on secret. emily: how often do you talk to him? kim: why is that important to you? emily: i am curious. kim: i like these guys. i look up to them. they are brave. they are going through a hard time. they chose to do that for the betterment of all of us. i love to talk to them. emily: you said you would bring the internet party to the u.s. in 2016. why? what is your goal? kim: i think there is a big group of people out there that disagree with what is going on, you know?

they want to have their privacy back. they want to have internet freedom. emily: you tweeted that you would be hillary's worst nightmare in 2016. how so? kim: i have to say it is probably more julian. but i am aware of some of the things that are going to be roadblocks for her. if i can provide some transparency with these people and make them part of what the internet party stands for, i will be happy to do that. emily: you say julian assange will be hillary's worst nightmare. how so? kim: he has access to information. emily: what information? kim: i do not know the specifics. emily: why hillary in particular? hatesillary hayes -- julian. emily: she signed your

expedition -- extradition request. so you have a bone to pick. kim: i actually like hillary. i like obama. it is crazy that all of this happened. hasy: the internet party not worked out in new zealand, as i understand it. how do you resurrect that? im: a lot of times, when created something new, it was a bit ahead of its time. i think a political party is something that grows over time. emily: if you are not extradited, what is next? kim: i think the case will go on for a long time. i have prepared myself for the -- that mentally. emily: what do you want your legacy to be? kim: i am working on something new that i am really excited about called meganet, an alternative internet. internet create a new that gives people power over the

network rather than governments and corporations. emily: people have the power rather than companies? works, itay meganet turns every mobile device into a router, server and allows devices to create with each other to create a network that still utilizes the internet as a pipe, but fully encrypted. it is an internet completely run by the people, for the people, with all the capacity on your mobile device carrying the network. emily: how do you want to be remembered? kim: at the end, i want my children to look back at whatever there is to learn about me and be proud of me. emily: think they will be? kim: yes. emily: kim dotcom, thank you for joining us. it has been a fascinating conversation. thank you. ♪

and choose world choose, choose, choose. but at bedtime? ...why settle for this? enter sleep number... don't miss the memorial day special edition mattress with sleepiq technology. sleepiq tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow! now we can all choose amazing sleep, only at a sleep number store. save $500 on the memorial day special edition mattress with sleepiq technology. know better sleep with sleep number. mark: with all due respect to

john bolton's decision not to run for president -- >> ♪ how am i supposed to live without you now that i've been loving you so long ♪ mark: i like michael bolton. it's a lot of the stuff that was on the show last night, plus, the simpsons. once again, jeb bush. for the fourth day in a row, he gave an answer about the invasion of iraq. as they say in kennebunkport, the fourth time is a charm.