EFF Seeking Information of Legal Users of Megaupload
The Electronic Frontier Foundation, with the assistance of Carpathia Hosting, has issued a call for information on users who lost legitimate data as part of the Megaupload takedown. No promises are made at this point, but Carpathia at least notes: "We have no immediate plans to reprovision some or all of the Megaupload servers. This means that there is no imminent data loss for Megaupload customers. If this situation changes, we will post a notice at least 7 days in advance of reprovisioning any Megaupload servers."
MegaUpload's shutdown didn't need SOPA to pass... it's just a simple DMCA escalation that says if you ignore DMCA Takedown letters, your server farm will be ordered to down your server. The DMCA is still missing the provision for a penalty for an invalid takedown request but that's what we should be telling Congress to work on.
MegaUpload's problem is that they never implemented a DMCA Takedown system like YouTube has had for years now. If they do that, they can likely have their servers back quickly... if they don't and nobody steps in to pay the bills then the data is already lost.
The big problem here is that piracy probably _was_ a huge part of megaupload.
Not saying their wern't lots of legitimate users, but lets not ignore reality here.
MegaUpload's assets have been frozen, so they can't pay their hosting bills. Carpathia Hosting has several terabytes of web-facing storage that are no longer earning revenue. Eventually, they will sell that capacity to someone else, and the data will be overwritten. This has to be one of the most misunderstood, misquoted, and misdirected stories of the year so far.
There's no FDIC for data, and the bank just closed. Caveat Emptor.
I reviewed an academic paper (which unfortunately the others on the PC didn't like, so it wasn't accepted) which examined the economic model of Megaupload, related services, third-party links to Megaupload, and the popular files, especially the "Uploader Rewards", and concluded that the company's business model really was about "Profit from Piracy".
Combined with the email trail that the feds apparently got (eg, emails concerning scraping of Youtube for the creation of MegaVideo, emails about reward payments including clear descriptions of the types of uploads), and the RICO indictments etc are not a surprise. (the indictment)
For example, if its true that their takedown is by URL, but they duplicate based on hash (so one can have multiple URLs for the same file), thats clearly attempting to game the system, as any legitimate takedown system would take down all separate URLs which point to the same file. (Paragraph 23 on the indictment). Especially if this is related to the creation of a "dummy lifetime premium user" to "to prevent the loss of source files due to expiration or abuse reports" (from a Megaupload email).
Also, at least according to the indictment, there really should be very few legitimate files lost in this: Anonymous uploads needed to be downloaded every 21 days or they were deleted, and even free named accounts required 90-day downloads, which is very different from Dropbox and other systems, where persistence, rather than popularity-of-download, is the goal.
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