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US Gov't Wants Megaupload Users To Pay For Their Data

angry tapir writes "U.S. federal prosecutors are fine with Megaupload users recovering their data — as long as they pay for it. The government's position was explained in a court filing on Friday concerning one of the many interesting side issues that has emerged from the shutdown of Megaupload, formerly one of the most highly trafficked file-sharing sites. Prosecutors were responding to a motion filed by the Electronic Frontier Foundation in late March on behalf of Kyle Goodwin, an Ohio-based sports reporter who used Megaupload legitimately for storing videos. The government argues that it only copied part of the Megaupload data and the physical servers were never seized. Megaupload's 1,103 servers — which hold upwards of 28 petabytes of data — are still held by Carpathia Hosting. Goodwin's options, prosecutors said, are either pay — or sue — Carpathia, or sue Megaupload."

22 of 203 comments (clear)

  1. Go Cloud! by toygeek · · Score: 5, Funny

    My data is safe. Its in the cloud!

  2. never seized, but frozen by order by gl4ss · · Score: 4, Interesting

    but would carpathia give data to anyone who paid? doubt that. how would they even know how to get the data. are they even allowed to access the data? doubt that too.

    seems like just washing of hands - amazingly fucked up investigation though. next they'll try to argue that they never did any legal action?? (which is actually true, "haha"). it's increasingly evident that the fbi tactic was that they assumed dotcom would settle for some prison time right away(thus not needing evidence or due process).

    --
    world was created 5 seconds before this post as it is.
  3. Nice new business model by NetDanzr · · Score: 5, Insightful
    1. Take people's data, hold it hostage
    2. Tell people to pay if they want to see the data ever again
    3. Profit!

    All this, of course, is contingent of the hostage taker having access to the data storage. Solution is simple: don't store your data in a country with such practices, or with a company with ties to said country. The Internet should finally recognize the US as damaged area and route around it.

    1. Re:Nice new business model by Anonymous Coward · · Score: 5, Insightful

      This is but the 2.0 "cloud" variant of classic ransomware.

      Fuck the US MAFIAA!

    2. Re:Nice new business model by gnasher719 · · Score: 4, Insightful

      1. Take people's data, hold it hostage
      2. Tell people to pay if they want to see the data ever again
      3. Profit!

      It's not quite like that. Megaupload paid Carpathia for hosting user's data. Carpathia doesn't care what data, they just supplied the storage and took money for it. Megaupload stopped paying Carpathia. So what is Carpathia going to do?

      I would think it would be completely legal for them to just re-use all their servers that Megaupload is paying for, with total destruction of all the user data. Probably a matter of contract and contract law: For how long would a hosting service be required to keep your data if you stop paying? And I don't think Carpathia has any legal obligations to Megaupload's customers. On the contrary, I doubt that Carpathia has any right to give anyone other than Megaupload access to those servers without some court order, even Megaupload customers who want to access that data.

    3. Re:Nice new business model by NetDanzr · · Score: 5, Insightful

      This would be true, if Megaupload willfully stopped paying Carpathia. However, they expressed the willingness to continue paying them for the servers, if they had the funds available. These funds, however, were frozen by the US government, who is thus responsible for Carpathia not getting paid, and as such has taken over the duty to maintain the data integrity. It's actually nothing new - authorities in the US have been doing similar things with physical property for a while, via asset forfeiture; the only difference here is that it's digital property. And that can be much more easily routed outside the authorities' reach in the future.

  4. Re:Long story short... by Calos · · Score: 4, Insightful

    That's one part of it. Single point of failure is always bad, and trusting someone else to manage it is worse.

    But then... It's fricken' MegaUpload. It's always seemed sketchy. Who trusts important stuff to them?

    --
    I vote based on politicians' actions, unless contrary to my preconceptions. Often wrong, never uncertain. #iamthe99%
  5. Government is the 1% by Shivetya · · Score: 4, Insightful

    the 99% can take a hike.

    Get your rights trampled while they pursue someone or something, well too bad. Its called collateral damage and the little people simply have no say.

    As the saying goes, "A government big enough to give you everything you want is a government big enough to take from you everything you have"

    It also goes without saying a government big enough to give you everything want could care less what you want or what it takes from you.

    --
    * Winners compare their achievements to their goals, losers compare theirs to that of others.
    1. Re:Government is the 1% by Anonymous Coward · · Score: 5, Informative

      It's couldn't care less. Couldn't care less.

  6. Re:Long story short... by ccguy · · Score: 5, Insightful

    But then... It's fricken' MegaUpload. It's always seemed sketchy. Who trusts important stuff to them?

    People who don't know better. This doesn't make them idiots, they just make them ignorant in a specific field.

    The same thing could be said about many, many people that are quite knowledgeable in IT yet happened to deposit their money in the wrong bank. And well, they lost a lot of money, not just some digital picture or whatever.

    I think before criticizing the victims here we should give it some thought: Do we have *all our own assets* (physical and otherwise) in the right place? Maybe we have our health insurance in the megaupload equivalent of insurance and we don't know about it? Or our funds?

  7. Re:Or... by philip.paradis · · Score: 4, Informative

    The funny thing about that idea is that the government actually gets to choose whether a suit against it has merit and can go forward. Good luck with that in many cases.

    --
    Write failed: Broken pipe
  8. Some very interesting issues by chrb · · Score: 5, Insightful

    According to the MPAA, U.S. government, etc. these digital files are the same as physical property, and under the Fifth Amendment "No person shall be... deprived of life, liberty, or property, without due process of law". Note the wording - it doesn't state that the government must actually have seized the property in question (which the government argues they did not do) - it must merely have caused a person to be deprived of their property. By their own logic, through the actions of the government, Mr. Goodwin has been deprived of his property, and without his right to a jury trial.

    But the government argues that they aren't liable because they only copied certain servers, and a forensic expert could retrieve the original files with access to the servers and hard disks. This is like arguing that the government can seize your car from the garage and dismantle it into thousands of parts, but that they haven't deprived you of your property, because you are free to hire a mechanic (at great cost) to put it all back together again.

    On the other hand, suppose you leave some property in the safe of your lawyer, who is subsequently arrested for committing some serious crime. You have now been deprived of your property, but it still exists in the safe. In this case, the government would not have a liability to release a criminal in order to let him open his safe and retrieve your belongings. I think that the government might win this one - if they are willing to let Mr. Goodwin have access to the servers, which they say they are. The Fifth Amendment does not require that the government ensure that you have access to your property that you have left in the care of another person, it only requires them to not be the ones depriving you of it.

    The other big issue from the article is that the U.S. government plans to extradite Kim Dotcom and the employees of Megaupload (including web developers etc.) so that they can be charged with criminal copyright infringement in the U.S. Can you imagine what the outcry would be like if any other nation tried to extradite Americans working for a U.S. based file hosting company? What if British prosecutors decide to extradite the developers of {Dropbox,Google Drive,etc.} because some users were sharing episodes of Doctor Who? Most people support extraditions for serious offences like murder, but when it starts to be used for frivolous things like copyright infringement, that support is going to disappear.

    1. Re:Some very interesting issues by Anonymous Coward · · Score: 5, Insightful

      I would like to see what happens if Iran decided to extradite some U.S.A. citizen involved in Flame or Stuxnet, what would this look like?? Whats the difference? The money and power of U.S.A.?

    2. Re:Some very interesting issues by rhook · · Score: 4, Interesting

      This is like arguing that the government can seize your car from the garage and dismantle it into thousands of parts, but that they haven't deprived you of your property, because you are free to hire a mechanic (at great cost) to put it all back together again.

      This actually happens all the time. Happened to a friend of mine more than once even. So long as the police were acting in "good faith" you have no legal recourse.

    3. Re:Some very interesting issues by necro81 · · Score: 4, Informative

      "No person shall be... deprived of life, liberty, or property, without due process of law". Note the wording - it doesn't state that the government must actually have seized the property in question (which the government argues they did not do) - it must merely have caused a person to be deprived of their property. By their own logic, through the actions of the government, Mr. Goodwin has been deprived of his property, and without his right to a jury trial.

      Don't equate "due process of law" with a jury trial. A jury trial is an example of due process, but it's not the only one. There are all manner of legal processes through which you can lose, have taken away, be temporarily deprived of, or otherwise forfeit property without going through a jury trial. As a most simple example: property gets seized as part of a search warrant all the time, as has happened in this case. Sometimes it is eventually returned, sometimes it is permanently retained as evidence. None of that requires a jury trial, even though it's often involved.

    4. Re:Some very interesting issues by poetmatt · · Score: 5, Informative

      Which sounds nice and all, except that this is New Zealand and the judge is not at all convinced by our government's antics here. If they declare sovereign immunity (which they might) we are going to have some serious issues in new zealand - rightly so for our government's overreach.

      And in contrast, when police do investigations and presume you may be suspicious (for things such as damage to your house incurred while they falsely investigated something) they absolutely are required to pay that back - you can easily win in small claims court for those damages. This is no different, since megaupload has not been found guilty of anything.

    5. Re:Some very interesting issues by tapspace · · Score: 4, Informative

      This is like arguing that the government can seize your car from the garage and dismantle it into thousands of parts, but that they haven't deprived you of your property, because you are free to hire a mechanic (at great cost) to put it all back together again.

      The government DOES seize vehicles without due process.

    6. Re:Some very interesting issues by cusco · · Score: 5, Informative

      And if drugs are even rumored to be some peripheral part of someone thought to be related the case in some way the cops will generally sell the property before the owner gets a chance to try to recover it. NORML reported a few years ago that half of the assets seized and sold in drug cases didn't even belong to anyone charged with a drug crime.

      --
      "Think about how stupid the average person is. Now, realise that half of them are dumber than that." - George Carlin
  9. Gangsters by Wowsers · · Score: 4, Insightful

    So the US steals legitimate users data, and now holding these people to ransom for money to get their data back. Sounds like a mafia gangster mob scheme, or is that what the American government has become, because that's what it looks like to non-US citizens. Land of the free!!!

    --
    Take Nobody's Word For It.
  10. Re:Or... by rhook · · Score: 5, Informative

    You cannot sue the federal government if they do not let you.

    http://en.wikipedia.org/wiki/Federal_Tort_Claims_Act

  11. Re:TOS Says NO! by PGC · · Score: 5, Insightful

    Indeed, the gym tells you they are not responsible for my stuff. The person who steals my stuff from my locker however, is.

    If my stuff is in a locker at the gym and a foreign government decides to open all the lockers and takes the content, I will not sue the gym: I will sue that government.

    --
    The Dutch will inherit the earth. If not, we'll settle for a bit of ocean. Beta delenda est!
  12. Re:Or... by WrongSizeGlass · · Score: 5, Funny

    Sue the Government. Might not work, but there is no reason why they can't be sued.

    Yes [ ] - I would like to sue the US Government, endure a lifetime of tax audits, have my life turned upside-down & inside-out by the FBI, lose my job and family, and be laughed out of court by a Federal Judge for seeking reasonable redress for the bad acts of my government.
    No [ ] - I was only filling out this form as part of a high school civics assignment.