The German founder of file-sharing website Megaupload was granted bail by a New Zealand court today after a month in custody.

Kim Dotcom is fighting US extradition hearings over internet piracy and money laundering charges.

Mr Dotcom (38), who has New Zealand residency and also known as Kim Schmitz and Kim Tim Jim Vestor, was arrested on January 20th on a warrant issued by United States authorities.

Prosecutors say he was the ringleader of a group that netted $175 million since 2005 by copying and distributing music, movies and other copyrighted content illegally. .

His lawyers say the company simply offered online storage and that he strenuously denies the charges.

Earlier this month, the High Court supported a lower court judge's ruling that there was a significant risk Mr Dotcom, who had passports and bank accounts in three names, might try to flee the country.

Judge Nevin Dawson today granted bail on strict conditions, accepting that no new evidence of undisclosed funds have been found.

Helping Mr Dotcom's case was that the other three co-accused had been granted bail and it was unlikely that an extradition hearing could be held before the end of May and possibly as late as July.

Last week, a US grand jury added more charges against Megaupload and its executives, alleging they took copyrighted material from sites such as YouTube for its own service.

Mr Dotcom and three others were arrested after some 70 armed New Zealand police raided his country estate at the request of the Federal Bureau of Investigation.

Reuters