Description:Megaupload founder Kim Dotcom returns to court. The alleged internet pirate has been in custody since his arrest in a military style raid last month carried out by New Zealand police acting on a U.S. warrant. But on Wednesday an Auckland court granted him bail, freeing him from jail but effectively placing him under house arrest and banning him from using the internet. The verdict was a blow to U.S. crime fighters who had wanted to keep Dotcom behind bars. (1:25)