Kim Dotcom's US lawyers have filed an application with the US District Court of Eastern Virginia, seeking a dismissal of a copyright infringement indictment against his company, Megaupload.

Megaupload cannot be brought within the jurisdiction of a federal court in Virginia for criminal proceedings without its consent, as federal rules do not contemplate service of a criminal summons on a wholly foreign corporation without an agent or offices in the U.S., its lawyers said in a filing on Wednesday.

A court in New Zealand has granted Kim Dotcom, founder of the Megaupload file-sharing site, access to documents which contain evidence against him, and are held by prosecuting authorities both in New Zealand and the U.S.

Megaupload filed a motion in federal court on Thursday asking to delay a civil suit filed against the file-sharing site while it prepares a defense for its criminal case.

Negotiations over how to preserve 28 petabytes of data from Megaupload are set to begin on Thursday, according to the file-sharing site's attorney.

Lawyers for Megaupload, the U.S. Department of Justice (DOJ), Web hosting provider Carpathia Hosting and other groups fighting over who should maintain 1,100 servers formerly used by Megaupload should sit down and work out an arrangement, a U.S. judge said Friday.

The Electronic Frontier Foundation will head to court on Friday to push the federal government to establish a process that will enable law-abiding Megaupload users to get their files back.

We all know that the data we rely on to run our businesses can be subject to subpoena and other government actions. Such actions create additional risks when that data is in the cloud .