New Megaupload site not far away: Dotcom

Megaupload founder and internet piracy accused Kim Dotcom says his new file sharing website is 90 per cent complete and it will be impossible for the United States to shut it down.

German-born Dotcom, 38, whose Megaupload website has been immobilised while the US tries to get him and three others extradited from New Zealand to face racketeering charges, also admits the new site, called Megabox, could be seen as a poke in the eye to the US.

Dotcom confirmed in a brief telephone interview this week with Associated Press that he's almost completed work on "new Mega" and "Megabox".

He was not willing to divulge details ahead of a launch later this year, but tweets have revealed some aspects of the site, which will be hosted by servers outside the US.

"Quick update on the new Mega: Code 90% done. Servers on the way. Lawyers, Partners & Investors ready. Be patient. It's coming," he wrote.

Asked by one Twitter user if he was nervous that his new site could be hobbled, Dotcom replied: "That will be IMPOSSIBLE. Trust me!" Dotcom says the Megabox site will allow users to download music for free in exchange for accepting some advertisements.

He says 90 per cent of the revenue will go to the artists, and it will be about "unchaining artists and fans" so they could do business with each other without middlemen.

Dotcom admitted to Associated Press that US prosecutors would "probably" see his plans as a poke in the eye.

The US says Dotcom pocketed tens of millions of dollars while filmmakers and songwriters lost some $US500 million in copyright revenue.

He faces up to 20 years in jail if convicted in a US court. He faces an extradition hearing in March next year.

He has been released on bail since a high-profile raid on his $NZ30-million ($A24.19 million) mansion north of Auckland at the beginning of the year, but his bail conditions do not stop him from launching new internet ventures.

The case has so far proved embarrassing for New Zealand police, who botched the search warrant paperwork, and also the government spy agency, which illegally snooped on Dotcom ahead of the mansion raid.