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Kim Dotcom is surrounded by media outside North Shore District Court - Source: Getty Images -
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Child pornography found on Kim Dotcom's Megaupload servers was removed and authorities were alerted, according to his lawyer Paul Davison.
United States law enforcement authorities have confirmed images of child abuse were discovered during an FBI examination of the contents of the internet millionaire's cloud storage system.
But experts say Megaupload is unlikely to be held accountable because the material was uploaded by customers.
Davison told ONE News he is aware the FBI found images of abuse, because it is mentioned in the US indictment.
He said Megaupload, like most large server based operations, has systems in place for identifying child pornography so it can be deleted.
He also said the prosecution plans to argue the company should have responded to pirated material in the same way as it responded to the images of abuse.
But Davison said images of child abuse can be quickly deleted because they are easily identifiable and clearly illegal, whereas pirated material is difficult to identify and delete.
Dotcom, 38, is currently on bail awaiting an extradition hearing. Authorities say he used Megaupload and its affiliated sites to knowingly make money from pirated movies and games, and have charged him with multiple copyright offences.
Dotcom also claims the search warrants used by police to raid his Coatesville mansion were unlawful and is asking for his computers to be returned, because they contain information he needs to defend his extradition case. The judge's decision on that is expected this week.