Megaupload owner Kim Dotcom, who has been facing extradition from the US on copyright infringement allegations, is reportedly launching the new MegaChat encrypted video calling service.

Aimed at rivalling Microsoft’s Skype, the launch of video calling service comes three years after Dotcom’s filesharing website Megaupload was shut down.

Dotcom tweeted that the new MegaChat beta will be rolled out step by step, ‘starting with video calling today’.

"Text chat and video conferencing will follow soon." He added.

Similar to Firefox Hello and Skype, MegaChat uses WebRTC to implement video and audio chats within browsers, without requiring a plug-in or app.

Furthermore, Kim Dotcom noted that a bounty would be offered to anyone who finds a security bug in MegaChat.

Upon his arrest, the internet businessman maintained that Megaupload is a legal tool used for illegal purposes by some, claiming to have a 100% record on eliminating copyrighted material.

Dotcom also rolled out a new music streaming website called Baboom, which aims to allow artists to sell music directly to their fans, maintaining 90% of the profits.