New Zealand's Supreme Court on Thursday granted Megaupload leave to appeal a ruling that denied it access to evidence the U.S. government holds.

The U.S. Department of Justice's copyright infringement case against file storage service Megaupload is "prosecutorial overreach" based on a misreading of U.S. law, the site's lawyers argue in a white paper released Tuesday.

The shutdown of Megaupload caused an increase in digital sales and rentals of movies, according to a study by two researchers, which is likely to give a boost to the movie industry which has typically blamed online cyberlockers and file-sharing websites for fueling piracy.

Megaupload's Kim Dotcom will be allowed to pursue damages against New Zealand's spy agency for illegally spying on him, the country's Court of Appeal ruled Thursday.

Megaupload lost a bid on Friday to see a trove of evidence held by U.S. prosecutors prior to extradition proceedings expected to begin later this year in New Zealand.

Mega will accept the virtual currency bitcoin for subscriptions for more storage space on the file-sharing service, cofounder Kim Dotcom announced on Twitter.

A French website collecting links to content stored on the Mega file-sharing service is experiencing trouble in what may be an effort by Kim Dotcom's latest enterprise to avoid concerns over illegal file sharing.

The file-sharing service Mega has fielded 150 copyright warnings since its recent launch as founder Kim Dotcom grows a risky new business while under indictment by U.S. prosecutors for running Megaupload.