Megaupload’s lawyers assert that U.S authorities cannot charge the company with criminal behaviour because they never served the company papers formally and because the company is not based within the United States.
Under U.S. law a company cannot be indicted that is not in the United States.
Megaupload explained its jurisdiction argument in its court filing.
"Wholly foreign corporations, therefore, may not be prosecuted for alleged violations of federal criminal law unless they waive service," MegaUpload wrote. "In short, a corporation such as Megaupload cannot be brought within the jurisdiction of this court for criminal proceedings absent its consent."
In a separate filing the company has also asked for its frozen assets to be released in order to pay for defence fees.
Kim Dotcom and the other Megaupload defendants are currently fighting extradition from New Zealand to the United States.
The U.S. government is seeking their extradition on charges of racketeering, money laundering and copyright infringement.
Megaupload Founder, Kim Dotcom, was arrested in January after authorities, which included the FBI, shut down Megaupload for online piracy.
U.S prosecutors accused the site of inflicting copyright holders with losses over $500m, while the company generated $175m in revenues.
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