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Megaupload Shutdown: Should RapidShare and Dropbox Worry?
An anonymous reader sends in an article discussing whether other commonly used file storage sites are in danger of being shut down now that Megaupload has been closed. Quoting: "In the wake of the crackdown on the file-sharing website Megaupload, sites offering free content-sharing, file linking and digital locker services, such as RapidShare, SoundCloud and Dropbox, could be next in the crosshair of anti-piracy authorities. ... RapidShare and MediaFire are two of the biggest services left after Megaupload's exit. However, these sites have undergone a revamp, and now ... no longer host pirated content that could lead to a permanent ban. Others in the line of fire are DropBox, iCloud and Amazon S3, which support hosting any file a user uploads. Though their intention of supporting open file-sharing is legitimate, there is really no control over the type of content being uploaded."
You're correct, and there's big difference between RapidShare and the likes of Dropbox. MegaUpload, RapidShare etc is clearly profiting from copyrighted content. They pay users to upload popular files, and in 99% of cases it is pirated content. In turn they profit when users want to access those files. It's a huge "industry", and there will most likely be many more arrests when the list of affiliates that directly made money by uploading copyrighted content without permission goes public.
So, for the sake of the argument, let's assume that 'pay for downloads' program is still running on Mega.
And decides to upload a new song that (s)he just made.
And 50 million people download it.
And (s)he gets paid by Mega.
Would you have any objections to that?
Program in itself is not a problem. Problem is that most popular downloads were those that infringed copyright and were uploaded by random people.
If you find the closure of Megaupload troubling, just read the indictment. I won't consider the legal matters here, but the emails cited in the indictment paint a pretty clear picture of intent. They show that:
A) In many cases, Megaupload employees knew that *specific* files on the site were in violation of copyright, but they took no action to remove the content
B) Knowing specific files were copyrighted, megaupload still paid out rewards to those files' uploaders
C) In a few instances, staff members shared links to copyrighted content with eachother and with the internet at large.
Those are just the most egregious points, which basically demolish their claim of safe-harbor. But there's more: The claim of conspiracy at first sounds ridiculous and overblown, but it begins to make sense when the indictment describes all the ways Megaupload is alleged to have actively worked to conceal piracy. Claims of DCMA compliance are shot to pieces by an allegation that certain links were the subject of takedown notices, but remained active for over a year. I could go on, but just read the thing yourself, it's actually pretty interesting for a while.
The guys at Megaupload sound hella guilty. The only other explanation is a massive conspiracy involving the FBI and the Justice Department, but I have trouble believing that.