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Megaupload.com Shut Down, Founder Charged With Piracy

zacharye writes "Federal prosecutors in Virginia have shut down notorious file-sharing site Megaupload.com and charged the service's founder with violating piracy laws. The Associated Press broke the story on Thursday, reporting that the indictment accuses Megaupload.com's owner with costing copyright holders including record labels and movie studios more than $500 million in lost revenue."

85 of 1,005 comments (clear)

  1. U.S. law is the new international law by elrous0 · · Score: 5, Informative

    The summary doesn't mention it, but none of those indicted or arrested were U.S. citizens or had likely even ever set foot on U.S. soil. Even if you're in another country, you had better make sure you're not violating U.S. law. Here's a full list of those foreigners who foolishly thought they weren't under U.S. jurisdiction (from the DOJ website):

    Kim Dotcom, aka Kim Schmitz and Kim Tim Jim Vestor, 37, a resident of both Hong Kong and New Zealand. Dotcom founded Megaupload Limited and is the director and sole shareholder of Vestor Limited, which has been used to hold his ownership interests in the Mega-affiliated sites.

    Finn Batato, 38, a citizen and resident of Germany, who is the chief marketing officer;

    Julius Bencko, 35, a citizen and resident of Slovakia, who is the graphic designer;

    Sven Echternach, 39, a citizen and resident of Germany, who is the head of business development;

    Mathias Ortmann, 40, a citizen of Germany and resident of both Germany and Hong Kong, who is the chief technical officer, co-founder and director;

    Andrus Nomm, 32, a citizen of Estonia and resident of both Turkey and Estonia, who is a software programmer and head of the development software division;

    Bram van der Kolk, aka Bramos, 29, a Dutch citizen and resident of both the Netherlands and New Zealand, who oversees programming and the underlying network structure for the Mega conspiracy websites.

    Dotcom, Batato, Ortmann and van der Kolk were arrested today in Auckland, New Zealand, by New Zealand authorities, who executed provisional arrest warrants requested by the United States. Bencko, Echternach and Nomm remain at large.

    --
    SJW: Someone who has run out of real oppression, and has to fake it.
    1. Re:U.S. law is the new international law by alphatel · · Score: 5, Insightful

      Most will confuse this with a SOPA action, which will make it that much easier to hype.

      --
      When the foot seeks the place of the head, the line is crossed. Know your place. Keep your place. Be a shoe.
    2. Re:U.S. law is the new international law by Anonymous Coward · · Score: 5, Insightful

      All that with the money he made from piracy.

      Or by running a useful business. Come on, they have an advertisement with a bunch of artists about how useful their site is for their work. Some people using Google to find unauthorized files doesn't mean Schmidt's money is "made from piracy".

    3. Re:U.S. law is the new international law by Anonymous Coward · · Score: 5, Insightful

      Actually, this is a good argument for why we don't need SOPA/PIPA.

    4. Re:U.S. law is the new international law by Skarecrow77 · · Score: 4, Insightful

      and people think Ron Paul is the crazy one for wanting America's fingers out of other country's pies.

      This sort of thing is going to spark widespread international hatred for the United States. No, not the general dislike that many countries have for us now, but honest-to-god hatred. Look what good things came out of that situation in the mideast.

    5. Re:U.S. law is the new international law by poity · · Score: 5, Insightful

      Before anyone gets voted up to the stratosphere or down to oblivion here, we should remind ourselves that there is no way to tell how legitimately or illegitimately he made his money until a breakdown of his income is published.

      --
      your thin skin doesn't make me a troll
    6. Re:U.S. law is the new international law by elrous0 · · Score: 5, Insightful

      I'm just glad it doesn't work the other way around. I could put swastikas all over my website on some server in Germany, confident that the FBI would laugh at Germany if they tried to have an American citizen arrested and deported.

      --
      SJW: Someone who has run out of real oppression, and has to fake it.
    7. Re:U.S. law is the new international law by Anonymous Coward · · Score: 5, Insightful

      Exactly. I have used services like that to move large files between offices. There are plenty of legitimate uses for sites like these. These bastards should be forced to go after the uploaders. But they are too damn lazy, and know damn well there is no payday at the end, and not from common sense, but from EXPERIENCE.

    8. Re:U.S. law is the new international law by ackthpt · · Score: 5, Insightful

      Actually, this is a good argument for why we don't need SOPA/PIPA.

      My thinking exactly.

      Present laws should be shown to fail before new laws, which are effectively wrecking balls to swat mosquitos, are enacted.

      Timing is certainly insteresting. Is this meant to underscore that point? Could be...

      --

      A feeling of having made the same mistake before: Deja Foobar
    9. Re:U.S. law is the new international law by VAElynx · · Score: 4, Insightful

      A man that made his money off "piracy" is any day more likeable than those who make equivalent sums by exploiting workers. Nobody seems to complain in those cases, though.

    10. Re:U.S. law is the new international law by ackthpt · · Score: 5, Funny

      Before anyone gets voted up to the stratosphere or down to oblivion here, we should remind ourselves that there is no way to tell how legitimately or illegitimately he made his money until a breakdown of his income is published.

      And we'll probably be a lot older and following other stories by the time that comes out...

      In today's news, aliens land in Los Angeles ans proclaim L. Ron Hubbard totally slanders them in his Church of Scientology writings and they plan to sue. Tom Cruise was unavailable for comment as he was squashed flat by the alien ship landing.

      --

      A feeling of having made the same mistake before: Deja Foobar
    11. Re:U.S. law is the new international law by mister_playboy · · Score: 5, Insightful

      It's also been "industry" standard to know that Megaupload is very nice for piracy uploaders.

      Megaupload is very nice for downloaders. Unlike most other sites, you were not able to make money by uploading to MU. It was the generous downloading limts that made the site popular.

      MU had unrivalled file retention for a free service. Even when uploading as a free user, files were retained for years, even without any downloads. It's fully possible to find working MU links posted in 2005. The only thing they removed files for was a DMCA takedown. If there was a limit or the files you could upload to a free account, I never hit it. Other sites did not offer anything similar unless you paid for preimum membership.

      Kim make have been a crook, but MU itself was the bastion of free filesharing in the P2P mould from a user standpoint, whereas nearly every other site except Mediafire is based on commerical (payouts to uploaders) filesharing.

      A sad day. Back to the torrents!

      --
      Do what thou wilt shall be the whole of the Law ::: Love is the law, love under will
    12. Re:U.S. law is the new international law by elrous0 · · Score: 4, Funny

      Texas law only requires that you shoot him in season and buy a tag.

      --
      SJW: Someone who has run out of real oppression, and has to fake it.
    13. Re:U.S. law is the new international law by poity · · Score: 5, Insightful

      I'm not calling for his income to be published. I'm saying in the absence of their site statistics and their income breakdown, neither FightFreedomOfSpeach nor the AC who responded to his post can prove their assertions. One claims his money is made illegitimately, the other claims the opposite. What I'm seeing is moderator reaction favoring the AC and punishing FightFreedomOfSpeach in an instance where all we have is speculation. I'm for a neutral stance until facts emerge, and because of that I'm against this one sided moderation. Why are you so defensive?

      --
      your thin skin doesn't make me a troll
    14. Re:U.S. law is the new international law by Daniel_Staal · · Score: 4, Interesting

      Megaupload is also a very good way to share large files that you have created with others, without setting up your own website. An entirely legitimate and legal use.

      What's the balance between the two? Was there a better way to reduce piracy? What unintended effects are present?

      I have downloaded many files from Megaupload and MediaFire - always files uploaded and released by the original authors, who don't want to pay to host files of multi-megabyte (often 10's of mbegabyte or more) size. I know it's an easy target, but I fail to see why this business model is necessarily 'piracy'.

      --
      'Sensible' is a curse word.
    15. Re:U.S. law is the new international law by DinDaddy · · Score: 5, Funny

      Tom Cruise was unavailable for comment as he was squashed flat by the alien ship landing.

      Rendering him several inches shorter.

    16. Re:U.S. law is the new international law by MaskedSlacker · · Score: 5, Informative

      That's what they did. They asked New Zealand to arrest the men involved, and New Zealand police arrested them. Perhaps reading is not your strong suit?

      There are plenty of reasons to be unhappy with this that are based in fact. You should try one of those.

    17. Re:U.S. law is the new international law by StikyPad · · Score: 4, Informative

      Sure, except then you get to experience extraordinary rendition instead of extradition.

    18. Re:U.S. law is the new international law by SomePgmr · · Score: 4, Insightful

      It'll all be in the spin.

      Murdoch* et al. will point at it as, "See! This kind of thing is killing American business!"

      The other side will say, "Doh. You used what legal muscle you already had, which is already abusive."

      * If you didn't see him squirm on Twitter yesterday, you're missing out.

    19. Re:U.S. law is the new international law by Sancho · · Score: 5, Insightful

      I think the "failure" is that the shutdown and arrest couldn't be done without due process. SOPA/PIPA eliminates a great deal of due process for the initial shutdown.

      Just consider how long megaupload's been around. If one could just mail a letter to their DNS provider to get it shut down, you can bet it would have happened long ago.

    20. Re:U.S. law is the new international law by Anonymous Coward · · Score: 5, Insightful

      No, we think Ron Paul is crazy for believing in intelligent design, for voting to defund Planned Parenthood, for supporting a Constitutional Amendment defining a fetus as a human being, and many other things; none of which involve fingers or pies.

    21. Re:U.S. law is the new international law by Princeofcups · · Score: 5, Insightful

      Before anyone gets voted up to the stratosphere or down to oblivion here, we should remind ourselves that there is no way to tell how legitimately or illegitimately he made his money until a breakdown of his income is published.

      Illegally as defined by whom exactly? Printing an image of Mohamed is illegal in Iran. Should we extradite all US offenders to Iran? Most people outside of the US don't see sharing files as illegal in the same way. As a US citizen, I'm appalled and disgusted. How many people were killed by Megaupload? How many made to starve? This is a sickening abuse of power in the name of corporate profits.

      --
      The only thing worse than a Democrat is a Republican.
    22. Re:U.S. law is the new international law by Hentes · · Score: 5, Insightful

      It is a very good argument why people outside the US should still care about SOPA/PIPA.

    23. Re:U.S. law is the new international law by Anonymous Coward · · Score: 5, Interesting

      I'm still too afraid to post this pseudonymously, but if they're extraditing these people I can't be much further down the list :-( I figure they already have their sights on me if they're hunting down MegaUpload's graphic designer.

    24. Re:U.S. law is the new international law by Grishnakh · · Score: 4, Informative

      I hope they weren't important files... you were basically trusting your data to a guy who has been convicted of credit card fraud, insider trading, and embezzlement.

      Have you never heard of encryption?

    25. Re:U.S. law is the new international law by ilsaloving · · Score: 4, Funny

      *raises hand*

      Anyone else hear the voice of Yakko Warner (from the Animaniacs cartoon) as they read that?

    26. Re:U.S. law is the new international law by genjix · · Score: 5, Insightful

      Do not stand for this flagrant abuse of our farcical democracy!

      Megaupload has been forcibly closed by the FBI. In a sickening undermining of the people’s will, they are making an example out of an historic, legitimate, useful and well-known website. This is a prophetic glimmer of the coming war against pure free speech- the internet.

      This happened once before. Here in the UK, the IWF (Internet Watch Foundation) is a censoring system for the internet. In 1996, the Metropolitan Police started requesting the banning of illegal content by ISPs in the UK. With veiled sly threats they asked that ISPs engage in ‘self-enforcement’ rather than forcing them to enforce the law on them.

      Most of the ISPs complied except Demon internet. Demon was a British ISP that contributed to the Open Source community, ran several IRC servers and were pioneers of their time. They objected on the grounds of it being “unacceptable censorship”. A few days later, a tabloid expose appeared in the Observer newspaper alleging that the director of Demon was supplying paedophiles with photographs of children being sexually abused.

      Then the police let it be known that during that summer, they were planning a crack-down on an unspecified ISP as a test-case (translation: making an example of them). Between the threats and pressure, the IWF was formed- a supposedly voluntary organisation but in fact a fake-charity and a quango. The IWF is a disgraceful secretive group with an awful corrupt history and no public oversight.

      Now we see the same tactic has been used against Megaupload. They are using the threat of violence to coerce companies, how the British police did to create their own laws. The SOPA legislation did not go their way, so they have resulted to immoral tactics of repression.

      From ACTA which is decided behind closed European chambers, the DEA which was pushed through undemocratically at alarming speed before elections, evil La Hadopi and now SOPA/PIPA in the US, there is nowhere to run. The nepotists are determined to push through these legislation. At all costs. This is not about piracy- it never was and will not do a thing. It is about control.

      We have built a tool. For all their false talk of democracy we have for the first time in history reached this epochal moment. Self determination. If they truly believed in democracy, we could have a direct-democracy tomorrow. The tools exist. Instead we see this flagrant deception. It has become acceptable for politicians to cater to the greatest common denominator. We let them off the hook on the truth like Cameron pretending to be pro-NHS or Obama pretending to be Christian because it is for voters. Since when did it become acceptable to lie! Now today we see this limp-wristed hand wringing by the US president about how he will veto SOPA. Oh shut up.

      Was it Gordan Brown who said that voting levels were dangerously low in the below-30s because youngsters today are apolitical. He wanted mandatory attendance for voters. No, we are not apolitical, we are sick of your lies and deceit. This generation is probably more political than any generation in history. In the 80s, only 5% of people in the US were members of organisations. In the 90s, 70% of Americans belonged to some kind of organisation. People are mobilising and prescient of issues.

      Libel law is atrociously bad in the UK. Payouts are 10 times greater than in main-land Europe and you get a situation where billionaires use law firms like Carter-Ruck to keep news publishers (which are poor) in court and bleed them dry. Time magazine did an undercover piece of reporting and was sued for libel. They won the case but it ended up costing them $1 million. That’s effectively a fine of $1 million for undercover journalism.

      Of course when the law is broken, what do we do? Make more laws! That is why California has brought in anti-SLAPP legislation.

      Patent law is so stupid and I won’t even go there.

      Copyright is fascist. I find it revolting that

    27. Re:U.S. law is the new international law by Synerg1y · · Score: 4, Interesting

      I'd love to hear how megaupload made money from piracy when uploading / downloading from the site has always been free. Only thing you'd have to pay for is if you wanted faster download speeds, irrelevant to the user generated content on the site. Megaupload couldn't exist under SOPA / PIPA laws irregardless for that reason.

      Also, I am very curious as to what they (the arrested) can / will argue. A lot of lesser arguments have been shut down by courts (ex. I didn't know it was on my server), but megaupload is a little different and unique of a RIAA/MPAA victim isn't it?

      If the above can get the US government to consider SOPA though, I don't like their chances considering lobbyists trying to buy a guilty verdict from the judge.

    28. Re:U.S. law is the new international law by viperidaenz · · Score: 5, Insightful

      If no one can prove either way, isn't he innocent until proven guilty?

    29. Re:U.S. law is the new international law by Anonymous Coward · · Score: 5, Insightful

      Previous similar sites (Napster, Kazaa) have been handled through civil cases. Why a criminal case for this one? Megaupload was a very different site than Napster/Kazaa/mp3.com, and it is not at all clear under current law that megaupload is illegal.

      Megaupload is a file locker service that has many legal uses purposes. Should a landlord be liable when a tenant infringes copyrights? Then why should a file locker provider be liable when a user uses the service to infringe copyright?

      If this is the law of the land, then the founders of the next youtube will be locked up and thrown in jail before their site can ever take off. Of course, that may be what the RIAA/MPAA are shooting for.

    30. Re:U.S. law is the new international law by cpu6502 · · Score: 5, Insightful

      I think the timing had less to do with SOPA, and more to do with last month's brou-haha over Megaupload's yanked video on youtube.

      After the judge slapped down Universal Music(?) and said they can't censor ads just because they don't like them, the lawyers probably called the politicians and threatened not to fund their upcoming 2012 campaigns. The politicians called Justice Department and demanded action.

      Thus action happened. And megaupload was shutdown. And now Universal is celebrating with glee because they' lost the initial battle, but won the war.

      --
      My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
    31. Re:U.S. law is the new international law by geekoid · · Score: 4, Funny

      I, for one, welcome our new Tom Cruise smashing alien overlords.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    32. Re:U.S. law is the new international law by Cederic · · Score: 4, Insightful

      I'm pretty sure that this wasn't simply a case of the United States throwing it's weight around.

      I'm pretty sure it was.

      (Slashdot: It's 13 seconds since you hit reply. Yes, that's because I'm not typing out an entire fucking essay and even after a bottle of vodka I can type five fucking words in under a minute. Come on Slashdot editors, fix this shit.)

    33. Re:U.S. law is the new international law by Eravnrekaree · · Score: 5, Insightful

      I strongly agree, that, if especially, megauploads owners have been arrested due to material that users of the site had uploaded, this is a very ominous sign, really. If this is so, it will mean that it will be basically impossible to run a user generated content service such as youtube in the USA. it is impossible for site owners to police their sites, to arrest people for what others out of their control have done really brings us to a new letter of fascist insanity and is deeplyu worrying and concerning, it is clearly an outright attack on free speech in the US and will make operating any kind of site that allows for free speech, legitimate content, virtually impossible, as it would take only one illegal post which site owners have no way of being able to prevent, to give the feds a pretext to carry out their gestapo type sweep.

      We should all be very concerned and worried about this ominous and dark development.

      It seems like they are already trying to enforce SOPA before it has even been passed.

    34. Re:U.S. law is the new international law by fishbowl · · Score: 5, Informative

      They didn't just want to shut down the site! They wanted to prove that the operators knew that what they were doing was illegal, and that they were taking deliberate steps to hide the money! That is central to the indictment, that they knew (because they were told!) that they hosted infringing content, and that they did not comply with removing (very specific) items from a (very specific) server. There's a lot more to the indictment, which I encourage everyone to read before they take an activist position.

      http://online.wsj.com/article/SB10001424052970204616504577171180266957116.html?mod=WSJ_hp_LEFTTopStories

      --
      -fb Everything not expressly forbidden is now mandatory.
    35. Re:U.S. law is the new international law by symbolset · · Score: 4, Interesting

      It should be pointed out that this was a business, with servers in the US - presumably with staff who had jobs. So if it turns out that this was not illegal, that's going to blow up in their face. Not everyone who is accused is actually convicted.

      --
      Help stamp out iliturcy.
    36. Re:U.S. law is the new international law by ScrewMaster · · Score: 4, Insightful

      Speaking of one of those "people" I can say that it isn't so much a matter of not "caring" about SOPA/PIPA, it's more a matter of having not a whole lot we can do about it. Seriously, what is the advice given to US citizens who care? "Contact your congresscritter". Unfortunately, those of us in the Rest Of The World don't get to have one of those. We *could* bitch to our own government about how we disapprove of some not-yet-passed legislation that's being debated by a foreign government, but I'll let you take a guess how much effect that's going to have.

      Actually, there's nothing preventing you from sending emails, written letters or phoning our Congresspeople. It's apparent to me (as an American) that Congress still has this U.S.-centric attitude towards the Internet, and I believe that needs to change, quickly. Hearing from a fifty or sixty million thoroughly incensed foreigners might very well be a good first step. Yeah, okay, we started the Internet ball rolling almost forty years ago, but this baby has gone global now. Time for Congress to accept that fact, and stop threatening to corrupt a piece of Internet infrastructure (e.g., the DNS root servers) that the economies of many other nations are now dependent.

      --
      The higher the technology, the sharper that two-edged sword.
    37. Re:U.S. law is the new international law by ScrewMaster · · Score: 4, Insightful

      It's a better argument for why we don't need the USA.

      Comments like that serve no purpose. Citizens of this country are up in arms about what our government (at the behest of certain large foreign corporations, I might add: Sony and several European media outfits can take most of the heat for SOPA, after all, they paid for it.) wants to do with these stupid laws. If you want us to continue to fight to respect you and the freedoms you currently enjoy on the Internet (whatever your own government permits you in that regard, if anything) you should show a little respect in return.

      And you got a +5 Insightful for that. Remarkable.

      --
      The higher the technology, the sharper that two-edged sword.
    38. Re:U.S. law is the new international law by BrianH · · Score: 4, Insightful

      The position of the U.S. government is that these are foreign nationals operating a criminal enterprise within the United States. From a legal standpoint, it's no different than issuing warrants for foreign drug kingpins who ship drugs to the United States. They're not prosecuting foreigners for their actions overseas, but they are charging foreigners for the actions they are initiating within the borders of the United States itself.

      Osama bin Laden never set foot in the U.S. either. We still had arrest warrants out for him, even before 9/11, for acts of terrorism he initiated on U.S. soil (the '93 WTC attack) and on foreign U.S. locations (embassies, Khobar, etc). While we're talking about two vastly different types of crime, the legal principle behind the charges is the same. If you direct criminal actions within the United States from a foreign location, you become subject to U.S. law because you are committing activities within the country.

      By placing a datacenter within the borders of the United States, MegaUpload's management placed itself within the jurisdiction of U.S. law for any actions occurring within that datacenter. This isn't a purely U.S. thing either...pretty much every country on the planet recognizes this same legal principle. When you choose to operate a business within a nation, you are also making a choice to subject yourself to that nations laws.

      There's only one way around this that I know of, and that's to insulate via foreign subsidiaries. Many multinational corps use subsidiaries to avoid this exact problem. In Megaupload's case, I don't see how they could have fit that into their business model.

      If there's one lesson to take away from all of this, it's simply that you should check a nations laws before opening up a business there. If something is legal in your home country, and illegal in the country next door, it's probably a BAD IDEA to start opening offices in the neighboring country. MegaUpload was stupid to open a datacenter in the United States, the MPAA/RIAA's home turf.

      --

      There is nothing so pathetic as seeing a beautiful young theory roughed up by a tough gang of facts.
    39. Re:U.S. law is the new international law by symbolset · · Score: 5, Insightful

      And in the meantime they won't be competing with the record labels, connecting direct to artists and paying 90% like they proposed. Which is what this seems to be about.

      --
      Help stamp out iliturcy.
    40. Re:U.S. law is the new international law by Kalriath · · Score: 5, Informative

      Then read the actual Indictment. It looks pretty bad for MU. Especially since the government keeps calling Megaupload "The Conspiracy". You can't support a Conspiracy can you? That's just downright criminal!

      --
      For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
    41. Re:U.S. law is the new international law by Xest · · Score: 4, Insightful

      "I strongly agree, that, if especially, megauploads owners have been arrested due to material that users of the site had uploaded, this is a very ominous sign"

      It's worse than this, this is a bunch of non-US citizens, situated outside America, running a business from Hong Kong, having their international domain names hijacked.

      Worse, MegaUpload is even used by some businesses, I know a handful of companies first hand, but I suspect there are thousands, who use it as a method to distribute large, legitimate files.

      This goes beyond any US action that has ever happened before as the US in this case has effectively just shut down a legitimate foreign business that it simply does not like, and has had arrested everyone who works at that business.

      This can now only be resolved by the following two things:
      - Countries must start ignoring US requests for arrest of their citizens where the crime has happened outside the US and/or is not illegal in the country of arrest

      - The US must lose all control of the internet, it must now be internationally controlled by something like the ITU where majority consensus is needed globally for this kind of thing to be possible such that no single country or small group of countries can impose their will on the rest of the internet

      America is now effectively just unilaterally deciding which businesses are allowed to do business on the internet, and the worst part, foreign sovereign nations are allowing it to happen.

  2. right. by geekoid · · Score: 5, Insightful

    "holders including record labels and movie studios more than $500 million in lost revenue."
    my ass.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    1. Re:right. by Anrego · · Score: 5, Insightful

      I was actually surprised by that figure. It actually seems low given the people who came up with it.

      Considering the past history of ludicrously high damage claims and the huge amount of infringing content they probably actually have, I figured they'd be making up new words to describe the number they came up with...

  3. Dick Morris by bonch · · Score: 5, Insightful

    It almost comes off as intentional that this occurred the day after the SOPA protests. It looks like the battles over copyright infringement are finally coming to a head. This will all get resolved one way or another.

    Dick Morris is a former Clinton advisor and a regular Fox News commentator, but he actually wrote what I think is a rational, well-worded message about everything that's been happening:

    ---

    Dear Friend,

    The Stop Online Piracy Act (SOPA) is just the kind of bill that could cripple Internet freedom in the name of a good cause. Everybody agrees that we need to battle online piracy of movies, books, TV shows and such. If piracy spreads, nobody will create anything because their work will be pirated as soon as it is finished.

    But...this legislation, with its draconian enforcement powers, uses an atomic bomb to solve a problem best left to educated action by responsible individuals and normal litigation. The collateral damage from this bill could destroy Internet freedom.

    The bill would let the Justice Department and copyright holders to get court orders against websites they accuse of enabling or encouraging copyright infringement. It could stop search engines from linking to such sites and require service providers to block access to them.

    It should be called the Camel's Nose In the Tent Act (CNITA). It would criminalize the Internet and make search engines the enforcers of copyright laws. It opens the tent to federal regulation and judicial activism that could drive search engines and internet service providers into bankruptcy through excessive court judgments and liability.

    There is a remedy: Public education. None of us wants to kill off artistic creation. Each of us realizes that by abusing the system to get the goodies for free, we risk eliminating the goodies. We don't litter because we don't want to ruin our environment. We don't run red lights because we don't want traffic chaos. We wear seatbelts because we want to live. Law enforcement plays a role, but the greater influence is an educated public.

    Copyright infringers can't make it if we don't buy it. Consumers need to realize that we will kill the golden goose if we steal his eggs! The way to regulate the internet is to use it sensibly and wisely and not to let Congress and the Justice Department in the door.

    Thanks,

    Dick Morris

    1. Re:Dick Morris by CRCulver · · Score: 4, Interesting

      If piracy spreads, nobody will create anything because their work will be pirated as soon as it is finished.

      I don't find the support of figures who say things like this entirely welcome. It shows a great ignorance of history. Copyright is a fairly recent concept, popping up only 500 years ago and mainly limited to the West. So much of the Western canon -- the Greek and Latin classics, Dante, Chaucer, even Shakespeare, arose in a time when content creators were not compensated for each and every copy (and non-Western traditions contain further riches).

      And there was a lot of copying going on. In ancient Rome, it was common for audience members to transcribe poetry recitals, have many copies generated by amanuenses, and then sold in the marketplace with no money going back to the original author. As far as I know, the sole example of someone complaining about this was Martial in one of his epigrams, and he only had a problem with people passing off his work as their own -- so plagiarism, not "copyright infringement". Content creation flourished without copyright, and even in recent times, when copyright was in full force, so many classic films and musical compositions were produced with a boatload of private patronage or state arts subsidies, so the ability to be paid royalties for each copy made didn't really factor into their creation.

      In order to quicken the rise of an inevitable new economy, it's better that people just say straight out that copyright is an untenable concept and not a moral universal. No more of this wishy-washy "Piracy should be fought, but this law goes too far."

    2. Re:Dick Morris by Fned · · Score: 4, Insightful

      Everybody agrees that we need to battle online piracy of movies, books, TV shows and such. If piracy spreads, nobody will create anything because their work will be pirated as soon as it is finished.

      That's rational and well-worded? I disagree. It's boldly irrational, arrogant, and false.

      Movies, books, TV shows, and music all are still operating on a business model that depends wholly on copies being worth something. But copies of data inside computers AREN'T worth something. They are worth nothing, they have no intrinsic value at all.

      Access to the work has value. The creation of the work has value. But copies no longer have value. So bascially we have whole industries that are trying to pay for valuable things by selling their customers something valueless. Econ 101: this is a stupid idea.

      Don't get me wrong, it didn't used to be a stupid idea. It used to be a GREAT idea. But then computers got smart enough and connected enough to make copies of common media worthless, and as if by magic it became a stupid idea, almost overnight. It will remain a stupid idea until the computers aren't smart enough and aren't connected enough.

      Shit like SOPA is not some sort of accident on the road to trying to prop up this broken business model; it's an inevitable side effect of trying to create a chimeric beast called "intellectual property". It's what happens when you try to force the limitations of physical copies onto a virtual object, inevitably fail to do so in a technical way, and are left with no recourse but draconian measures to prevent people from doing the obvious. It's what happens when you try to apply copright-as-written to computers: it breaks the computers.

      Copyright needs to change. Business models need to change. If they don't, running arbitrary code will become a crime, and countries with digital freedom will leave the rest of us scrabbling in the dust.

  4. Who needs SOPA/PIPA? America, F**K YEAH by dkathrens77 · · Score: 5, Insightful

    The timing of this move is surely intended to send a message to anyone who opposes SOPA/PIPA. And that light to the free world, the USA has made it clear "we don't need no steenkin laws"

  5. The Government responds... by JaZz0r · · Score: 4, Insightful

    The People expressed their opinion about SOPA/PIPA. The Government responds with a resounding, "We don't give a shit."

    --
    "Careful! We don't want to learn from this!" -Calvin & Hobbes
    1. Re:The Government responds... by demonbug · · Score: 4, Insightful

      The People expressed their opinion about SOPA/PIPA. The Government responds with a resounding, "We don't give a shit."

      This has nothing to do with SOPA, beyond showing that the government doesn't need it in order to take down (alleged) pirates in other countries. If anything this is the government throwing a bone to the (pissed off) media industry, saying look - we can get these guys without crippling the internet.

    2. Re:The Government responds... by shentino · · Score: 5, Insightful

      "We don't give a shit" would be them passing it anyway.

      This is far closer to "how DARE you stand up to us!"

      This is not apathy, this is retaliation for contempt of our corporate overlords.

  6. Wow, what amazing timing! by kheldan · · Score: 5, Funny

    The very day after uncounted internet sites shut down to protest SOPA/PIPA (which had a profound effect), and some website gets shut down for piracy on the order of a half billion dollars? Darn, if I would've known, I would've had my popcorn and soda ready. Such theatre!

    --
    Are YOU using the TOOL, or is the TOOL using YOU? Think about it!
  7. Fuck RIAA/MPAA by esocid · · Score: 5, Insightful

    The $500 million figure is based on speculation by the MAFIAA. Looks like we didn't even have to wait for SOPA/PIPA. It's already here.

    I also don't understand how they got the Netherlands to raid their servers...

    --
    Absolute power corrupts absolutely. indymedia
  8. This is what happens... by Anonymous Coward · · Score: 5, Insightful

    ...when corrupt laws don't get passed, or even do get passed.
    Not as if they care, they will deal with the backlash later.
    This will get worse if SOPA or anything like it passes.

    I can't wait for the media industry to collapse. Maybe then content creators will realize they don't need the shit labels.

    See you on Tor everybody. It is the only safe place now, but only if everyone gets in on it.
    Hope the media companies love helping terrorism get even more secure, because that is all this will do as they push more and more people to encrypted networks.
    Oh, wait, that won't be a problem, FBI will just get those backdoors and have control of millions of nodes for free.
    Time to blackhole America. Bye.

  9. Something fishy by shentino · · Score: 5, Insightful

    Interesting that megaupload got nailed so soon after they tried to fight back against UMG's frivolous youtube takedown.

    I smell a rat and suspect someone's trying to avoid giving megaupload an edge in their lawsuit.

  10. Why do they need SOPA again? by DickBreath · · Score: 5, Insightful

    If they can shut down Megaupload without SOPA, then why do they need SOPA again?

    --

    I'll see your senator, and I'll raise you two judges.
    1. Re:Why do they need SOPA again? by Bovius · · Score: 5, Insightful

      With SOPA, they can take your site down if you link to (or, presumably, mention) megaupload.com. Think about that one for a minute.

    2. Re:Why do they need SOPA again? by parlancex · · Score: 5, Insightful

      The goal of SOPA is to make everyone guilty. Not everyone will be prosecuted, but once everyone is guilty selective prosecution can be used at the discretion of those who wish to silence any unwanted criticism, opposing viewpoints, etc.

    3. Re:Why do they need SOPA again? by Colonel+Korn · · Score: 5, Insightful

      With SOPA, they can take your site down if you link to (or, presumably, mention) megaupload.com. Think about that one for a minute.

      Exactly, or even worse, SOPA lets them take your site down if one of your user-generated comments mentions of links to megaupload.com. Remember when it was popular to post the bluray key (if I'm remembering this correctly) on slashdot to spite Sony? Those posts are still accessible. There's no reason Sony couldn't or wouldn't use SOPA to shut down Slashdot. And hey, Google caches those posts, too!

      --
      "I zero-index my hamsters" - Willtor (147206)
    4. Re:Why do they need SOPA again? by Bishop923 · · Score: 4, Insightful

      MPAA Parenting Tip:

      If your dog makes a mess on the floor, remember to punish your children for feeding him.

  11. Ban the use of faucets! by betterunixthanunix · · Score: 5, Insightful

    How dare people drink their tap water! After all, how are bottled water companies expected to turn a profit when people can just turn a knob on their faucet and get water on their own?

    --
    Palm trees and 8
    1. Re:Ban the use of faucets! by shentino · · Score: 5, Insightful

      Sadly, if bottled water companies had enough lobbying power this would probably be a viable reality.

      Time and time again big business has proven that it will do whatever it can get away with to make money, and ethical and sometimes even legal impediments prove to be no real obstacle.

    2. Re:Ban the use of faucets! by betterunixthanunix · · Score: 4, Insightful

      We pay for Internet service, and the RIAA/MPAA do not claim ownership over your bandwidth. We do not punish people for drinking their tap water, even though bottled water companies exist specifically to sell drinking water. Every fluid ounce of tap water that you drink is a fluid ounce you did not pay a bottled water company to drink.

      The only difference is that right now, nobody has a concept of "drinkingrights" but we do have a concept of "copyrights."

      --
      Palm trees and 8
    3. Re:Ban the use of faucets! by niado · · Score: 5, Insightful

      Illegally copying/viewing/enjoying copyrighted content is not stealing, by any widely accepted definition of "stealing". Violating copyright is illegal in many jurisdictions, and it could very well be considered wrong (depending on your personal morals) but it is not theft.

    4. Re:Ban the use of faucets! by hedwards · · Score: 5, Interesting

      That's already happened in Bolivia. The IMF insisted that they privatize their water supply and eventually it got to the point where no water in the country was legal to collect or drink unless it had been bought from the cartel that controlled it.

    5. Re:Ban the use of faucets! by artor3 · · Score: 5, Insightful

      Apples and oranges. The bottled water companies didn't invent water. The media companies did make the media you're pirating. If you don't want to buy their product, there are plenty of alternatives. You can buy indie music, some of which is freely distributed. You can watch free OTA television. You can read a book from the library. And so on.

      Taking something without paying just because you can is selfish and wrong.

    6. Re:Ban the use of faucets! by SuricouRaven · · Score: 4, Interesting

      In parts of the US, it is illegal to own a water butt. States sell exclusive water catchment rights to various water companies.

    7. Re:Ban the use of faucets! by gnick · · Score: 4, Insightful

      Hardly a fair comparison - Stealing water from the bottling company deprives the company of water that they paid for. This is more like a canned air company that pulls air (in this case literally) out of the air and cans it. And then suing you for breathing what they could have otherwise canned and sold to you resulting in a "lost sale."

      The only real difference (albeit a big one) is that music/movies/games have to be created before being distributed. It's illegal copying or piracy, not theft as the company is deprived of nothing other than a potential or more likely imaginary lost sale.

      --
      He's getting rather old, but he's a good mouse.
    8. Re:Ban the use of faucets! by Fned · · Score: 5, Informative

      Megaupload have no system in place to stop people uploading material they don't own. Simple as that.

      There is no such system.

      Simple as that.

    9. Re:Ban the use of faucets! by SuricouRaven · · Score: 4, Informative
      A little googling, and.... http://en.wikipedia.org/wiki/Rainwater_tank

      In the State of Colorado, USA, the installation of rainwater collection barrels is subject to ... state statutes. The movement and holding of rainwater is inextricably linked with ownership of water rights and is enshrined in the constitution of the State of Colorado. The use of water in Colorado and other western states is governed by what is known as the prior appropriation doctrine. Since all water arriving in Colorado has been allocated to "senior water right holders" since the 1850s, rainwater prevented from running downstream may not be available to its rightful owner. In 2009, legislation in Colorado was enacted that permits capture of rain water for residential use subject to strong limitations and conditions.[14] To be permitted, a residence may not be connected to a domestic water supply system serving more than 3 single-family dwellings. The permit must be purchased from the State Engineer's office and is subject to water usage restrictions.

      Or, more briefly: The state already sold that rain to the water company while it was still in the air. If it falls on your land and you collect some for yourself, you are stealing water from that company.

  12. Re:The Internet should be P2P by sirlark · · Score: 4, Insightful

    Tell that to my ISP, who won't let me run a 'server' as part of my terms and conditions...

  13. Rationale from the article by kiwimate · · Score: 4, Interesting

    The indictment was returned in the Eastern District of Virginia, which claimed jurisdiction in part because some of the alleged pirated materials were hosted on leased servers in Ashburn, Va.

    To play devil's advocate here: most Slashdot readers contend that music and movie industries should stop complaining and instead "adapt their business models", because their world has been irrevocably changed by technology. You could also say that that same technology has very much changed the way criminals do their dirty work, by allowing a person in one country to administer a server or hack a system on the other side of the world, and law enforcement officials need to adapt accordingly.

  14. ONLY 500 Million? by DarthVain · · Score: 5, Funny

    Why not 500 Trillion? They're not even trying hard enough anymore...

  15. Only $500M in damages? by Gavin+Scott · · Score: 4, Insightful

    $500M? That's like, what, one .mp3 file these days?

    G.

  16. Good by ugen · · Score: 4, Interesting

    Megaupload was one of a few (3-4) sites where a cracked copy of my software product was uploaded. They were extremely slow in responding to DMCA request and clearly had interest in continuously providing an obviously illegally obtained copy of the software (because they make money from download fees, essentially re-selling content without paying me). I don't care much for Hollywood, but I do care about software I spend 24/7/365 writing and supporting.

    1. Re:Good by Anonymous Coward · · Score: 5, Interesting

      what's the name of your software?

    2. Re:Good by raynet · · Score: 5, Interesting

      How long it took for them to respond to your DMCA takedown letter and was the response time within what the DMCA specifies?

      --
      - Raynet --> .
    3. Re:Good by microbee · · Score: 5, Funny

      Apparently not 24/7/365 since you are posting on slashdot

    4. Re:Good by QuasiSteve · · Score: 5, Insightful

      I, too, would like to know - but I can understand why he wouldn't want to reveal that (in any of his posts to date).

      I don't think he would be branded an 'enemy of the people', however.

      It's just that any follow-up discussion is far more likely to be used to attack him in these comments than it is to sympathize or offer genuine assistance.

      Let's say he did mention the product's name and its name was NetCommand (if a product with that name exists it's coincidental.. he has mention his product has to do with IP (the networking variant) and server vs desktop stuff, and the name works).

      The very first thing people will do is figure out what NetCommand is, and suggest that it's not worth the money he's asking anyway. Whether that's $1 or $100.
      Next come alternatives that are free (as in beer and/or speech).
      Next come links to other sites where the cracked copy is and telling him "See how much good your DMCA request has done in curtailing its piracy? Doing it is just a waste of your time and money".
      Then come the friendly suggestions on how he should just offer incentives to those who do buy it. Features not available to the pirates (at least until a few days later when the new pirated copy is released). Access to a support forum (which he probably can't staff and personally I know I get more support from random forums than official forums any time of day - so that's pointless anyway). Make his money instead with contract work and charge big for that (but maybe there's very little interest in that). Make his money by selling merchandise (because who doesn't want the NetCommand mug, right?). Suggest that he needs to find something else to do if he wants money because clearly his trade is dead and he needs to just accept it.

      That of course alongside out-of-the-behind figures on how much money he has already made and that he shouldn't whine and moan about supposedly 'lost' sales - he's rich already. And the pirates wouldn't have purchased anyway.

      etc. etc.

      Unfortunately, the flip side is that he doesn't mention the name of the product and so he gets modded down (because hey, where's the proof?) and the AC who wants to know the name (whether genuinely curious or just looking to incite exactly the kind of 'debate' I sketched above) gets modded up.

      All in all, however, he stands far more to lose in revealing the name than in not revealing it. So his karma may get dented - big deal, better than people parading around after pummeling his product into the ground.

  17. Safe Harbor by Adrian+Lopez · · Score: 5, Interesting

    Is there some reason why the DMCA's safe harbor provisions don't apply to Megaupload, or has the Federal Government decided those provisions are too inconvenient and therefore do not apply? Will Dropbox become the US Government's next target?

    --
    "In prison you just have to shut your eyes and take it. Here you have to shut your eyes and give it."
  18. Next, YouTube by Animats · · Score: 4, Insightful

    Youtube may be next. Once they started putting ads on pirated content, they became an active participant.

  19. And what about the legitmate content? by tekrat · · Score: 4, Insightful

    And what about the legitmate content that Megaupload was holding? No mention of that by the media... Nope, shut down, no trial, no jury, just executioner.

    Isn't that nice?

    That's like taking down Flickr because some of the photos are copyrighted... Of course, those photos are worth a billion dollars (wink,wink), so it's perfectly OK then to inconvenience the other 34 million people who had legitimate stuff on the site.

    If any of you were hosting legitimate material on Megaupload, and you've now lost access, I suggest immediately filing class action against the government.

    --
    If telephones are outlawed, then only outlaws will have telephones.
  20. And in related news by Weaselmancer · · Score: 5, Funny

    The United States Department of Justice also filed indictments against Western Digital and Seagate for making hard drives that are capable of holding everything from copyrighted works to child porn. "They should have some mechanism in place to make sure illegal content isn't stored on these devices," an agent representing the DOJ said in a prepared statement today.

    --
    Weaselmancer
    rediculous.
  21. Do you now see that these people are your enemy ? by unity100 · · Score: 5, Interesting

    Megaupload was not violating any copyright laws - they had a pretty solid dmca takedown procedure that was quite fast. Most of the 'pirated' stuff you would see that were uploaded were users, you wouldnt be able to see a few days later. They were good at taking down stuff.

    But they were also the biggest. this meant that for every dmca takedown, a few went unnoticed or slowly processed. aaaaaaand fast forward to this - they shut it down and charged for piracy.

    This should tell you EXACTLY what will happen when sopa passes - imagine the sheer violations of sopa law, when entire user generated content, including comments and links have to be reviewed. NO outfit on the internet will be able to do that. NO outfit. if google, microsoft, apple, rackspace, softlayer, verizon, at&t came together to do it, set up facilities covering half of texas for it and in addition and threw the echelon listening array (belongs to nato) and all its worldwide facilities at it, still they wouldnt be able to manage an effective removal of such 'infringing' stuff in acceptable time.

    even china is not able to do it with a huge budget spent on surveillance farms and - mark that - 240,000 employees employed for censoring - quite a lot of them embedded as 'users' in internet cafes and whatnot, to snitch on the users even.

    so it is certain that there is no way in hell any outfit on this planet will be able to NOT violate sopa. every outfit will live in a constant state of varying level if infringement as per sopa.

    what does that mean ? it is a sword of Damocles, hanging over the head of EVERY internet outfit and website out there. if you go out of line in ANY way against the interests of any established private party, - whoa - a sopa complaint. MUCH more effective than suing for endless durations.

    now you see why this sopa thing is useful for censorship, and why it was intended in the first place ?

    these people do not seek to profit over anything. they are making sufficient profits. they know they can make even more profits if they adapted to the internet.

    the problem of these people is CONTROL. internet is uncontrolled. it bothers them. they need the same kind of control they exercise over cable news channels, radios and whatnot. and all these shit are intended precisely for that duration.

    these people want to control you for their own minority's profit. it is no different than dictatorship or enslavement - just the facade in front is different. they are NO longer your compatriots, they are no longer your countrymen, they are no longer your country's citizens. they are your enemies. even if you dont see them as your enemy, they DO see you as their enemy and act accordingly.

    and you are playing in their home ground - as long as you keep all the game rules that allow them to control, ranging from copyright to patents, they will keep being in the advantage - for you will be playing in THEIR home.

  22. What this is really about by symbolset · · Score: 5, Informative

    Found an interview. Apparently Mega was looking to go head-to-head with the big record labels, and give artists 90%. And pay them for free downloads too.

    It's here.

    --
    Help stamp out iliturcy.