The High Court has found Kim Dotcom and his three co-accused, Mathias Ortmann, Bram van der Kolk, and Finn Batato, are eligible for extradition to the United States.
The US Government has been seeking extradition of the accused to face trial on 13 counts including conspiracy to commit racketeering, wire fraud, money laundering and copyright infringement.
High Court Justice Murray Gilbert on Monday released the court's findings upholding a District Court decision that Dotcom and his three co-accused could be extradited on some charges.
But he supported an argument put forward by Dotcom's legal team that he couldn't be extradited on copyright infringement grounds because the allegation against him is not a criminal offence in New Zealand.
However the High Court found "a conspiracy to commit copyright infringement amounts to a conspiracy to defraud and is therefore an extradition offence listed in the US-NZ Treaty.
"Further, other extradition pathways are available for all counts because of their correlation to a number of serious crimes in the Crimes Act."
The US claims that the appellants and others were members of a worldwide criminal organisation that engaged in criminal copyright infringement and money laundering on a massive scale with estimated loss to copyright holders well in excess of USD 500 million, which they term the "Mega Conspiracy".
A statement released from Dotcom's legal team said " Whether Kim has committed an offence under New Zealand copyright law has finally now been answered in his favour; he has not."
"Whether our law should still permit him to be extradited to the United States under an Act that has no interest in copyright, is the question that remains now to be answered by our Courts. We say no and we are confident that this must be right."
"The last hurdle to what we say is the correct outcome - no extradition - will now need to be determined by the Court of Appeal."