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This video clip originates in the final episode of the Death Note series which was first aird on Japan in 2007, and this episode is also famous for the well known MAD video/YTP fad Matsuda, you idiot!.
In this scene, the villain protagonist Light (Kira) is driven into a corner, breaks down and laughs like a madman. His creepy laughing was so impressive among viewers in any language version. A video for the original Japanese version on YouTube has over a million views and has gotten a variety of comments including "not even the freaking JOKER can hold a candle to this… and the only other laugh that comes close is the english one… which is still technically Kira's" by roflwoflsGAME and a number of others who simply lol'd and noted the extreme creepiness of the laugh.
Brad Swaile, the voice actor who voiced Light/Kira in the english version, did the Kira Laugh at a convention in 2008 because of the overwhelming popularity of this scene.
Kira's laughter has shown up in many places throughout the internet, with over 1250 results on YouTube, many of them remixes, and even over 1500 ringtones on various websites. It even has a YTMND. Many of them remixed by popular YTP styles such as X In G Major, Sparta Remix and Unfitting Music have had tens of thousands of views, with some even ranging to over one hundred thousand.
Another common fad with the Kira Laugh is to add the voice in over a scene or character from another show or movie, typically an anime, under the name X is Kira.
The earliest instance of the fad found on youtube is the video "Kyouya is Kira" and was uploaded on October 28, 2007, but the fad didn't take off until October 2008, a year later.