Prosecutors in New Zealand working at the behest of the F.B.I allege Mr. Schmitz was the ringleader of cabal that benefitted handsomely from the unauthorized distribution of copyrighted material.
Lawyers for Mr. Schmitz and MegaUpload contend the company only offered online storage.
“The warrants did not adequately describe the offences to which they related,” High Court Judge Justice Helen Winkelmann said in her ruling on Thursday. “Indeed they fell well short of that. They were general warrants, and as such, are invalid.”
Judge Winkelmann ordered both sides to reappear in court on July 4 to consider “appropriate remedy or remedies”.
Mr. Schmitz’s lawyers have used the slip-up by the prosecution to go on the offensive.
“One would think, with such a large case, that they would have a higher standard of care in how they conducted themselves,” Mr. Schmitz’s U.S-based lawyer, Ira Rothken, told Radio New Zealand Friday morning.
“In terms of egregious behaviour, this is at the high end of the scale of egregious, wrongful intrusion on privacy.”
Mr. Rothken is currently arguing before U.S courts that case against Megaupload should be dismissed.
“As a foreign corporation with no agents or offices in the United States,” reads the filing, the company is beyond US jurisdiction.
While MegaUpload was headquartered in Hong Kong, the firm did have significant interests in the Untited States because of leased server farms.
Mr. Schmitz has received the support of Kevin Mitnick, the notorious hacker turned security consultant, who as reported by CNET, told Mr. Schmitz, “I hope you win.”