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Megaupload Drops Lawsuit Against Universal Music

bs0d3 writes "Not so long ago, a legal video was taken down by repetitive DMCA requests to YouTube. In response, Megaupload filed a lawsuit against Universal Music. This past week, Megaupload was raided by U.S. authorities and forced offline, which is costing Megaupload millions of dollars in damage. Today; while employees are in U.S. custody, Megaupload has mysteriously dropped their lawsuit against Universal Music."

24 of 439 comments (clear)

  1. Not Surprise for MegaUpload by FreeCoder · · Score: 5, Informative

    With the ton of information about the multi-year investigation about MegaUpload and all the evidence gathered they practically have zero possibility of winning the case. They really got it handed down on them and are most likely looking for a long time in jail.

    Not only did MegaUpload not delete the actual files when sent DMCA notices (but did when sent abuse letters about illegal content like child porn), they also paid the uploaders cash in exchange to send downloaders to their site. This was almost all the times used for spreading copyright infringing material and MegaUpload was notoriously known for being good site for such use. As the internal emails show they were also fully aware of this fact. It also seems like the feds are now in possession of the top affiliates on the site which most likely will lead to more arrests for criminal copyright infringement, as they made lots of money by doing it.

    Also another fact: not only did MegaUpload staff know about this activity and try to get around DMCA notices and laws, they did copyright infringement themselves. For example they used to populate their MegaVideo site by downloading and adding videos from YouTube. This was also videos created by people like you, not only mega-corps. This and much more was revealed in the arrest and their internal emails.

    1. Re:Not Surprise for MegaUpload by j35ter · · Score: 5, Insightful

      But only if NZ actually extradites them. Please also note the DMCA is valid for the US only., the rest of the world (rightfully) wipe their asses with this piece of legal sh**.

      --
      Delta-Mike November Bravo Tango
    2. Re:Not Surprise for MegaUpload by symbolset · · Score: 5, Interesting

      It would seem very unusual for a nation to permit extradition of a person for acts which are not in that country illegal - even if they're unquestionably illegal in the country requestion extradition. Since violating the DMCA is the foundation of all the other acts in the indictment (if there is no other crime, financial transactions cannot be money laundering; there cannot be some conspiracy to not break the law) and NZ doesn't have the DMCA it seems to me they're unlikely to grant extradition. But I could be wrong.

      --
      Help stamp out iliturcy.
    3. Re:Not Surprise for MegaUpload by Anonymous Coward · · Score: 5, Informative

      RE the removal of the file.

      Mega upload used a hashing function so if a file was uploaded 5 times, they only stored it once. When CP was flagged the file is removed because CP is always CP. Copyright however is only a violation when the person uploading it does not have authority to do this. EG if I make a song and upload it, and you upload it too. Then I can send a DMCA to take down your upload, with the expectation that mine will be the only one there.

      Here is the kicker, we aren't talking about hypothetical or edge cases here. Artists were uploading their own tracks since they would get 90c in the dollar of the advertising revenue: http://rapfix.mtv.com/2012/01/20/swizz-beatz-megaupload-case-diddy-busta-rhymes-tweet-support/

      If you want to know why big media hated megaupload so much re read that link. Artists were by-passing their publishers. Add to that the announcement of licensed media streaming and purchases being available on megaupload from February, and you can see why action had to be be done swiftly before hand.

      Cheers
      Kactus

    4. Re:Not Surprise for MegaUpload by Barbariandude · · Score: 5, Informative

      I'll just leave this here for you. http://cato.org/pubs/pas/pa564.pdf

    5. Re:Not Surprise for MegaUpload by BlakJak-ZL1VMF · · Score: 5, Informative

      Any Extradition from NZ will be under the terms of the Extradition Treaty and won't be for DMCA violations, but for other charges - such as the Money Laundering and so on which is indeed covered by the Treaty.

      Some interesting reads:

      Provision Warrants: http://www.legislation.govt.nz/act/public/1999/0055/latest/DLM26216.html
      Extradition Offenses http://www.legislation.govt.nz/act/public/1999/0055/latest/DLM25681.html#DLM25681
      How Extradition Request must be made http://www.legislation.govt.nz/act/public/1999/0055/latest/DLM26211.html?search=ts_act_extradition_resel&p=1#DLM26211
      Minister may request warrant http://www.legislation.govt.nz/act/public/1999/0055/latest/DLM26215.html?search=ts_act_extradition_resel&p=1
      The Extradition Treaty Itself http://newzealand.usembassy.gov/uploads/images/o16y8MOyHW2l-jJTxaMpeQ/ExtraditionUSNZ.pdf

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      -.-. --.-
    6. Re:Not Surprise for MegaUpload by Anonymous Coward · · Score: 5, Informative

      First, let's not confuse the recent raid with MegaUploads lawsuit against Universal. Universal took down MegaUpload's advertising video from YouTube by abusing YouTube's system for DMCA takedows. When faced with the fact that MegaUpload's ad contained no infringing material, Universal turned around and denied that it was a DMCA takedown. Clearly, Universal does not want to take responsibility for its actions.

      Second, MegaUpload is right to keep the actual files when being sent DMCA takedown notices, since some of the copies may belong to non-infringing users. In many countries, it's legal to download and share media files for private use. Contrary to what the American media corporations want us to believe, American law does not decide what a Swedish user can do when they upload files to a Dutch server owned by a New Zeeland company. Their greedy corporations have no right to delete my perfectly legal files, just because an American user happened to upload the same files illegally.

      Third, the internal e-mails mentioned in the news so far only prove that MegaUpload knew about the existence of infringing material on their servers. They cooperated fully with the media corporations to delete the infringing links as they were made aware of them (while keeping he non-infringing links, as they should).

    7. Re:Not Surprise for MegaUpload by icebike · · Score: 5, Insightful

      The lightweight framework of copyright enforcement it created kept huge workloads away from the courts without creating unworkable levels of abuse

      Lightweight framework of enforcement? You mean like having the entire DOJ work for the media giants leaning on every country in the world to violate their own laws and arrest people and surrender them to US authorities?

        No unworkable levels of abuse? You mean like millions of take down notices filed every day against thing that have no pirated content what so ever, beyond simply mentioning a word in the title?

      Tell me, what hole have you had your head in for the last 5 years?

      --
      Sig Battery depleted. Reverting to safe mode.
    8. Re:Not Surprise for MegaUpload by K.+S.+Kyosuke · · Score: 5, Insightful

      Promoting copyright infringement is a crime in quite a few countries (hence one reason why MegaUpload was blocked in a few countries even before this happened). The DMCA is just a specific law that attempts to set rules for US citizens for what is and isn't copyright infringement on the Internet.

      There, fixed that for you.

      --
      Ezekiel 23:20
    9. Re:Not Surprise for MegaUpload by Old+Wolf · · Score: 5, Insightful

      This SOPA thing must be really awful if it's making people say the DMCA is good!

    10. Re:Not Surprise for MegaUpload by metacell · · Score: 5, Insightful

      Note that Dotcom is not originally New Zealander. Countries sometimes refuse to extradite people born in their country, but such usually isn't the case with foreign nationals.

      Doesn't matter - the alleged act still needs to be a crime in the country granting the extradition.

      And I'm pretty surprised you would support him either

      I'm not supporting the person, I'm supporting a company that provided a valuable service to the public. MegaUpload helped people all over the world to exercise their fair use rights.

      For example, in my country, I could rip my music CDs and put them on MegaUpload, and then listen to them anywhere, since format shifting is legal here.

      Of course, the American media companies didn't like that, so they demanded that MegaUpload delete all copies of a file, even the copies that were uploaded legally.

      I'm pretty tired of American corporations who like to pretend American law applies to the whole world. They have no right to ask a New Zeeland company to delete a Swedish users files, just because the files happen to be illegal for Americans.

    11. Re:Not Surprise for MegaUpload by shaitand · · Score: 5, Informative

      Sorry but you are mistaken. Money laundering is BY DEFINITION processing funds from a criminal activity and making them appear to come from a legal activity. Here is one of many sites giving a legal definition and ALL of them agree that the funds must be illegal or illicit. If you engage in the same process but with the intent of committing the crime on the other end, like for tax evasion then that is just tax avoidance not money laundering.

      http://definitions.uslegal.com/m/money-laundering/

    12. Re:Not Surprise for MegaUpload by Kalriath · · Score: 5, Informative

      MegaUpload is a Hong Kong company. One subsidiary (MegaStuff) is a New Zealand company.

      And for the love of all that's holy can you learn to spell our country's name right.

      --
      For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
    13. Re:Not Surprise for MegaUpload by Anonymous Coward · · Score: 5, Insightful

      I'm pretty tired of American corporations who like to pretend American law applies to the whole world. They have no right to ask a New Zeeland company to delete a Swedish users files, just because the files happen to be illegal for Americans.

      A thousand times this. It's about time the rest of the world stands up and tells the Americans to go fuck themselves.

    14. Re:Not Surprise for MegaUpload by Ihmhi · · Score: 5, Insightful

      I'm pretty tired of American corporations who like to pretend American law applies to the whole world..

      As an American, I'd like you to know that most of us are tired of this, too. The same goes for our government.

      Unfortunately far too few of us have yet to make the connection that we put those assholes there in the first place and maybe we should do something about it. But we're working on it, really. A lot of us are trying very hard.

    15. Re:Not Surprise for MegaUpload by nedlohs · · Score: 5, Insightful

      There are lots of people under the jurisdiction of US law who aren't US citizens. So no you didn't fix it.

  2. A link in the article by symbolset · · Score: 5, Informative

    A link in this article goes to a rather thoughtful discussion of the MegaUpload indictment. To tell it short, although the indictment sounds bad, almost none of the alleged activities are in fact illegal. The few that are require "state of mind" which is a rather difficult thing to prove, and harder to get a jury to convict on.

    Since in America we have trial by jury, if it goes to court it seems unlikely there will be able to find a jury willing to convict.

    Together that seems to make the whole thing very scary.

    --
    Help stamp out iliturcy.
    1. Re:A link in the article by Kjella · · Score: 5, Interesting

      Since in America we have trial by jury, if it goes to court it seems unlikely there will be able to find a jury willing to convict.

      Ahhahahahhaaha... when you've got juries willing to convict people to $1.5-2 million in damages for sharing 24 files as a plain normal P2P user, then the Megaupload guys will be lucky to not see the death penalty.

      --
      Live today, because you never know what tomorrow brings
  3. You are ignorant. by pavon · · Score: 5, Insightful

    Megaupload paid to create a video promoting/defending their site and posted it on YouTube. Universal Music (who had no legal claim to the video) abused the take-down agreement they had with Google (and possibly the DMCA) to pull this video off of YouTube simply because they didn't like it. That is a cut-and-dry case of censorship if I have ever heard it.

    If the information in the indictment is true then Megaupload is guilty of copyright infringement and should be held accountable for it. However, Universal Music should also be held accountable for their abuses of the law.

  4. Not in US custody by drmofe · · Score: 5, Informative

    Employees are not yet in US custody. They are currently being held by New Zealand authorities (in court as I type this) pending extradition hearings. The extradition is not automatic and is being contested.

  5. which has absolutely 0 to do with megaupload, by decora · · Score: 5, Informative

    or with pirate bay, or with any of these other sites.

    beyond that, when Geohotz and failoverflow got attacked by Sony for jailbreaking the PS3, he was accsed of the following:

    Violating the Digital Millenium Copyright Act (17 U.S.C. 1201)
    Violating the Computer Fraud and Abuse Act (18 U.S.C. 1030(a)(2)(c))
    Contributory copyright infringement (17 U.S.C. 501)
    Violating California Comprehensive Computer Data Access and Fraud Act ( 502)
    Breach of Contract (related to the PlayStation Network User Agreement)
    Tortious interference
    Misappropriation
    Trespass

    ----

    the Computer Fraud and Abuse act is far worse - its what they are using against Bradley Manning, its what they used against Thomas Drake, its basically criminalizing 'anything we dont like, when done on a computer'.

    but since it has almost nothing to do with some 25 year old man-childs ability to download free copies of Transformers 8, the moronic fat assholes of the warez-o-sphere dont give a shit about it, and they wouldnt dream of writing endless tirades against the CFAA or its provisions.

  6. Re:Not Censorship! by snowgirl · · Score: 5, Insightful

    Because the original legal case was about censorship.

    Only in the eyes of misguided fucktards like yourself Princess. The original legal case was about illegal use of the DMCA to take down material. It had nothing to do with "censorship" nor "free speech", despite what you and the tinfoil hat brigade may like to think. Why don't you leave the legal and technical discussions to the men who know what they are talking about instead of getting your pretty little head confused about such basic concepts?

    BTW, shouldn't you be in the kitchen baking?

    Oh see, it's funny, because it's intentionally sexist. Now, ignoring all the sexist bullshit, because it's just not worth getting into, because it's a total tangent to the real issues at matter...

    Illegal use of the DMCA is considered a form of censorship in colloquial speech. I noted in my post that it wasn't about "pure" censorship, which is a government making specific speech illegal. However, it is colloquial censorship in that it is someone blocking access to someone else's content with or without legal authority.

    Also, the original filing of the suit commented that it were an abuse of the DMCA, but Universal Music Group the original defendant in the case, pointed out that not only were they not actually responsible for the offending action, (it was UMG which is a subsidiary company of Universal Music Group, but not jointly-liable) but as well, it wasn't even an abuse of the DMCA, as UMG was making use of the tools that they were granted access to by contract with YouTube, that allowed UMG to bypass even the DMCA process. Thus, the whole situation was chalked up to, "YouTube granted UMG that access, and the only injured party in this abuse of tools provided was YouTube, and thus MegaUpload has no valid standing to file suit in the first place in a breach of contract between UMG and YouTube."

    But getting back to the point, colloquially "censorship" is used by the general public, and in this case the slashdot categories to refer to anything where a non-first-party effects the removal of speech of another person without their consent. But you know, enforcing legal definitions of words on an informal forum such as slashdot seems like a way much better idea than using the same jargon, dialect and register as the audience of that forum.

    --
    WARNING! This girl exceeds the MAXIMUM SAFE standards established by the FDA for BRATTINESS
  7. no it isnt enough. by unity100 · · Score: 5, Insightful

    Schmitz' globulous ego

    i prefer schmitz's globulous ego. because, schmitz's globulous ego is not buying laws to restrain MY freedoms for HIS profit. schmitz can queue up to 100 mercedes, bmws if he wants to. as long as he doesnt interfere with my freedoms for the sake of his own profit.

  8. Re:Good luck with that... by Cruciform · · Score: 5, Insightful

    2 weak neighbors?
    No. You have a neighbor to the north which is not an imperialistic war machine.
    There is a difference. We don't have to pour an insane amount of money into our military budget because we don't practice insane foreign policy just to line the pockets of the men that own the politicians.