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FBI Asked Megaupload To Preserve Pirated Files, Then Used Them Against Dotcom

avxo writes "According to an article on the New Zealand Herald, Kim Dotcom says his team has evidence showing that the Department of Homeland Security served a search warrant on Megaupload in 2010, forcing it to preserve pirated movies. According to Mr. Dotcom, those preserved movies are the center of the latest legal battle. 'When the FBI applied to seize the Megaupload site in 2012, it said the company had failed to delete pirated content and cited the earlier search warrant against the continued existence of 36 of the same 39 files.' He added: '[t]he FBI used the fact the files were still in the account of the ... user to get the warrant to seize our own domains. This is outrageous.'"

33 of 241 comments (clear)

  1. Nowhere fast by ExecutorElassus · · Score: 5, Insightful

    That's where the FBI's case is going to go. Everything I've read tells me that the FBI, their Australian exponents, and the other parties involved broke too many regs to be able to bring a real case against Megaupload. This is just one more nail in the coffin.

    1. Re:Nowhere fast by MichaelSmith · · Score: 5, Informative

      That's where the FBI's case is going to go. Everything I've read tells me that the FBI, their Australian exponents, and the other parties involved broke too many regs to be able to bring a real case against Megaupload. This is just one more nail in the coffin.

      Don't you mean NZ? Australia doesn't really have a role here. Which is not to say that the australian security services wouldn't jump at the chance to help the FBI in a case like this.

    2. Re:Nowhere fast by Jeremiah+Cornelius · · Score: 4, Insightful

      "Grasshopper always wrong in argument with chicken"
      - Book of Chan

      This is the new American Century. Get used to it.

      --
      "Flyin' in just a sweet place,
      Never been known to fail..."
    3. Re:Nowhere fast by ExecutorElassus · · Score: 5, Funny

      whoops. I got Dotcom mixed up with, uh, Julian Assange (who I believe is an AU citizen, yes?). I'll just go back to nursing this booze now.

    4. Re:Nowhere fast by Black+Parrot · · Score: 4, Insightful

      This is the new Corporate Pwned Century. Get used to it.

      FTFY

      --
      Sheesh, evil *and* a jerk. -- Jade
    5. Re:Nowhere fast by MichaelSmith · · Score: 3, Funny

      whoops. I got Dotcom mixed up with, uh, Julian Assange (who I believe is an AU citizen, yes?). I'll just go back to nursing this booze now.

      Yeah Julian is one of us. In fact I know a guy who had the pleasure of having his system broken in to by Mr Assange. For a geek he is strangely concerned about what people say about him. Most of us don't give a shit.

    6. Re:Nowhere fast by Lisias · · Score: 4, Insightful

      This is just one more nail in the coffin.

      What coffin? X-(

      We're speaking about the country that declared war and invaded Iraq under false accusations to kill Saddam, and violated Pakistan's sovereignty with a cover up operation to kill Bin Laden, all of that without any consequences.

      (And I will not touch this Assange mess).

      What make you think that the FBI should be worried for a so "small case"?

      --
      Lisias@Earth.SolarSystem.OrionArm.MilkyWay.Local.Virgo.Universe.org
    7. Re:Nowhere fast by Runaway1956 · · Score: 3, Informative

      It appears that your horizons might be expanded by visiting the New American Century site. www.newamericancentury.org/

      What GP posted, and what you posted, are synonymous. In the past twelve years, the site has softened their sales pitch, sort of almost disguising it, but there is no secret that they represent corporate powers. It's only a thinly veiled secret that they intend to buy out the United States government to make their dream come true. The only secret is, how far they have progressed toward ownership of the government.

      For the past five presidential elections, both candidates were owned by the corporations. If I really dug, I could probably demonstrate the same for elections further back in history.

      --
      "Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
    8. Re:Nowhere fast by tftp · · Score: 3, Funny

      If everyone did this, the game would change.

      Here is the formula for an average, per-citizen, rate of consumption of entertainment, in movies per year, as a function of geek rage:

      cons(rage) := 0.999*10 + 0.001*(1/rage)

      What is the limit of this function with rage going to infinity?

    9. Re:Nowhere fast by Mitreya · · Score: 5, Insightful

      That's where the FBI's case is going to go. Everything I've read tells me that the FBI, their Australian exponents, and the other parties involved broke too many regs to be able to bring a real case against Megaupload. This is just one more nail in the coffin.

      What makes you think they are trying to bring a real case? Megaupload is gone and buried. Servers are confiscated. Even the legitimate paid users have lost access to the files and are getting no compensation. Mission accomplished

      You think there will be any penalties assessed against anyone once this case predictably falls apart? I wouldn't hold my breath (though here's hoping he will at least sue someone...)

    10. Re:Nowhere fast by VortexCortex · · Score: 4, Funny

      If everyone did this, the game would change.

      Here is the formula for an average, per-citizen, rate of consumption of entertainment, in movies per year, as a function of geek rage:

      cons(rage) := 0.999*10 + 0.001*(1/rage)

      What is the limit of this function with rage going to infinity?

      OVER 9000!

      You failed to realize rage is an irrational number roughly equivalent to 0.0001111111111 (repeating).
      The limit of your function expressed in the bironic form (Internet Math Notation), is approximately equivalent to: 1!!!11!!11!!!1one111111!11
      (whereby "!" replaces zeros, "one" is the fractional separator, to the right of which is the binary exponent).

      Protip: There is always a smarter smartass. Get on my level.

    11. Re:Nowhere fast by Zontar+The+Mindless · · Score: 5, Funny

      Just download LOIC and you're sorted (considered part of the Axis, that is..)

      Anything that requires you to use Mono is certainly Axis-worthy.

      --
      Il n'y a pas de Planet B.
    12. Re:Nowhere fast by Zontar+The+Mindless · · Score: 4, Insightful

      I find it a bit challenging to feel any great remorse over Pakistan's violated honour, given that they (a) said "Yeah, yeah, UBL is teh evil, we want him dead, too" and then (b) harboured him, possibly for years...

      --
      Il n'y a pas de Planet B.
    13. Re:Nowhere fast by tlhIngan · · Score: 3, Insightful

      That's where the FBI's case is going to go. Everything I've read tells me that the FBI, their Australian exponents, and the other parties involved broke too many regs to be able to bring a real case against Megaupload. This is just one more nail in the coffin.

      Even so, that's all they need to do. Even if they drop the entire case, they've shut down MegaUpload for a year and put an incredible scare on everyone else. And former MU customers have files of much less value.

      Digital data loses its value quick - if you're working on the next version of something and a competitor can get your computers seized for a year, that basically puts you out of business for that year, and probably completely out of business.

      Likewise, all of MU's customers have been stuck without their files. All the legit files are a year older and probably not as relevant today as it was a year ago, thus worth a lot less.

      Basically all that's happening is all of the MU assets are getting rapidly devalued, and a year or two down the road, even if it's returned untouched, plenty of irreparable harm has occurred. And that's all that matters.

    14. Re:Nowhere fast by rtb61 · · Score: 3, Insightful

      You have just listed the beginning of damages, basically the US in-justice system will end up being the ones paying to create the newer, bigger and better MEGAUPLOAD, ohh the irony. Seriously what were the FBI thinking, this is so far beyond entrapment, it is conspiracy to pervert the course of justice. Catch is number one in the line of fine of a multi-million dollar even hundreds of million dollar lawsuit is the New Zealand government, for New Zealands hope you enjoyed sticking your rear hooves into the US in-Justice System gumboots, baah baah because you'll be the one paying the price. Of course now Kim Dotcomm can have fun dragging the US through the WTO for obstructing trade through criminal acts.

      --
      Chaos - everything, everywhere, everywhen
    15. Re:Nowhere fast by Anonymous Coward · · Score: 5, Funny

      I think you'll find the Australian authorities had nothing to do with it, since New Zealand is a completely separate country to Australia! ;)

      Yes, the ignorance around here is disgraceful. While New Zealand hasn't covered itself in glory here, that pales in insignificance next to Australia's crime of having given Adolf Hitler to the world. Not to mention Arnold Schwarzenegger...

    16. Re:Nowhere fast by MysteriousPreacher · · Score: 3, Funny

      Ehhh - someone will come along directly to tell me that I've lost all credibility with the word sheeple. Whatever . .

      Sounds a bit like you're ready at a moments notice to don spandex and take to the rooftops of Gotham, to setup a laptop and tweet. The sheeple thing, while bring trite, isn't the main reason I'd suspect you of being just another armchair revolutionary. Telling us what you make happen is a start, and why you're different from the legion of V/Neo wannabes who lurk in the shadows, ever vigilant and poised ready to write a blog post or something similar.

      --
      -- Using the preview button since 2005
    17. Re:Nowhere fast by Anonymous Coward · · Score: 5, Informative

      If I read correctly the information on that page (i'm not familiar with the US election founding system), Super PAC for Obama is 7% of total while being 15% of total for Romney, so Obama got in total less donations above 1M than Romney.

      Almost 40% of it's total founding came through small donations under 200$, for Romney that percentage is 10%.

      if you do your homework, do it properly.

    18. Re:Nowhere fast by MysteriousPreacher · · Score: 4, Funny

      Changed the name. Don Hitler wasn't playing very well in my career writing erotic fiction for overweight women.

      --
      -- Using the preview button since 2005
    19. Re:Nowhere fast by MartinG · · Score: 3, Interesting

      Having kids is no excuse. I do have kids and admittedly its more tempting to "give in" but I still manage not to support the MPAA or RIAA at all.

      --
      -- MartinG To mail me: echo kewyjlcxyzvjfxbqwh | tr bcefhjklqvwxyz .@adgimnoprstu
  2. And? by Anonymous Coward · · Score: 5, Informative

    The goverment bought and paid for by hollywood over the last decade would pull out every illegal dirty trick to get there way once again?

    I'm not shocked. That's normal now.
    Best get used to that kind of shit. This is the path we have chosen. Or someone did...

  3. Re:Actually.. by erroneus · · Score: 5, Insightful

    Speculate much? Imaginative speculation anyway.

    No. The content industry has a continuous campaign against internet companies which help to distribute material. The same players have gotten other country's law enforcement to act on their behalf even when what they were doing wasn't actually illegal. Getting the US enforcement agencies (note I did not call them law enforcement... just 'enforcement') to break the law in such an overt way is proof of the power and influence these content providers carry.

    I will not miss them. They are a cancer on progress. Volunteer entertainers are popping up everywhere just to get a million likes instead of a million dollars. They can't compete against that kind of currency.

  4. How can this happen in "The nation of Laws?" by bogaboga · · Score: 3, Insightful

    'When the FBI applied to seize the Megaupload site in 2012, it said the company had failed to delete pirated content and cited the earlier search warrant against the continued existence of 36 of the same 39 files.' He added: '[t]he FBI used the fact the files were still in the account of the ... user to get the warrant to seize our own domains. This is outrageous.'"

    So is this how things are run in "The Nation of Laws?" If whatever was done is lawful, then I rather stay put.
    Someone will have a lot of work to convince me to immigrate to the USA.

  5. Newcrime by Anonymous Coward · · Score: 5, Insightful

    The trial is the punishment.

  6. Re:It's evidence. by queazocotal · · Score: 4, Insightful

    Legal requirements on technology companies are often poorly written, and not actually sensible, as the lawyers involved may not properly understand the internet.

    It's quite plausible that they used standard boilerplate 'Do not delete, modify, or ...the file at http://.../ which could not reasonably be read as allowing them to be pulled offline, as that would be a modification.

  7. Re:correct me if i'm wrong? by asmkm22 · · Score: 4, Insightful

    Possibly. It depends on how much truth there is behind both sides claims. Neither the Feds nor Kim have much credibility here, and both have a history of distorting as much truth as possible to get their way. I don't envy the ones who have to try and cut through the bullshit and figure out exactly what needs to be done.

  8. Re:correct me if i'm wrong? by girlintraining · · Score: 4, Insightful

    But there is something in the law that protects megaupload from this kinda BS. They complied with a search warrant and held the files on their system like FBI asked, now they are being shut down cause they kept them.

    There is nothing in the law that protects them. The law is there to protect the FBI and enable it to do whatever it wants. For example, it's been legal for the past several years for evidence collected from a search warrant to be used even if the search warrant is later found to be invalid. Evidence collected without a search warrant is also admissable; The so-called "poisoned fruit" laws were struck down by our new, ultra-conservative, supreme court. And establishing probable cause has gotten a whole lot easier thanks to expansion of police powers -- for example, let's say your tail light is busted, your criminal record is totally clean, but the officer suspects you may have drugs in the vehicle. That suspicion alone is a reason to call over the K-9 unit and allow it to crawl all over, under, and around the vehicle. If it barks, that's cause to search the vehicle. And by search, I mean completely dismantle and leave on the side of the road in pieces. Oh... and you're responsible for the tow. Even if they still find nothing. Bonus: Dogs were found to only be effective about 2/3rds of the time in a recent study... and had a false positive rate of 1 in 8. In other words, 15% of the time, the dog indicated the presence of drugs when none were found (even in trace amounts).

    Don't kid yourself... procedural mistakes won't derail the case. Maybe, in bygone days, the police were required to follow all laws and procedures and if they screwed up the guy walked, but not anymore. Getting tough on crime means that we now don't let little problems like a lack of evidence, or tainted evidence, get in the way of justice. And of course, then there's confessions... -_- Many of which are forced out of suspects.

    The police don't care who their guy is; They just need a guy. There are no innocent people in the world anymore... there's just guilty, and not yet guilty.

    --
    #fuckbeta #iamslashdot #dicemustdie
  9. Misleading. Hidden at the bottom of the story ... by raymorris · · Score: 4, Informative

    Hidden at the bottom of the story, in internal emails Mega said they had 2,000 users with those 39 infringing files. They weren't supposed to delete the NinjaVideo account, but what about the other 1,999? If you believe one side is right, why not tell the truth about why that side is right? Why the need to mislead and lie? (Answer - writers try to mislead users users like tnat when they know the truth isn't on their side.)

  10. Re:Wow. by Tastecicles · · Score: 4, Informative

    they're the Federal Bureau* of Investigation. They are an office of the Government. Ergo, they are the Government.

    *From the French, literally office.

    --
    Operation Guillotine is in effect.
  11. Re:Wow. by Anonymous Coward · · Score: 5, Interesting

    No, over 2000 users uploaded these files. Mega is trying to use the structure of their site where they hashed an upload and only kept one copy of the file to say that because there was only copy and because NinjaVideo had uploaded 36 of these files at some point (because NinjaVideo uploaded thousands if not hundreds of thousands of files), they couldn't delete those files because the order from the DHS instructed them not to. But that's a ridiculous assertion— even if they were told not to delete the files (really they were just told not to delete the NinjaVideo account, so they're using a liberal interpretation to include these files) they had an obligation to prevent the files from being used for further illegal purposes.

    Phrased another way, a court order requiring preservation does not mean Mega is allowed to continue to allow others access to those files and continue to break the law. Those 36 files were accessed, downloaded, and shared illegally after the point at which they were required to be preserved, and access removed under the DMCA.

    Mega cannot use a design component of the site which was done for cost purposes, as a defense against criminal liability.

  12. Re:Misleading. Hidden at the bottom of the story . by Baloroth · · Score: 3, Informative

    You expect me to believe that Megaupload couldn't not-link those other 1,999 people to those files? Really? Maybe they had to keep the files, but they certainly didn't have to allow a bunch of other people to create links to and download it.

    --
    "None can love freedom heartily, but good men; the rest love not freedom, but license." --John Milton
  13. Re:correct me if i'm wrong? by rtfa-troll · · Score: 3, Insightful

    Entrapment? OK, maybe there was entrapment, but why would the FBI even need to do that? Megaupload was swamped with freely downloadable copyrighted material. Users paying for premium access to download that stuff was Megaload's cheif source of income.

    Most likely because, any time someone gave them a correct notice, Megaupload would delete that stuff on demand. This means that what they were doing was legal under the terms of the DMCA and equivalent rules all around the world. The FBI needed a way to interfere with that process so that Megaupload would behave "illegally" so that by the time they found out about the trick, the FBI would have got some dirt on them (on the principle that everybody is guilty; they just don't know it yet).

    --
    =~ s,(.*),<sarcasm>$1</sarcasm>,g if any_point_you_wish();
  14. Re:Wow. by Anonymous Coward · · Score: 3, Interesting

    It isn't. MegaUpload DID make infringing links nonfunctional promptly upon report.

    The indictment (have you read it?) is that they didn't take down the underlying files which were still accessible via other links which had NOT yet been reported as infringing.

    I'm not sure how this gels with the language of DMCA 512(c) which states "remove OR DISABLE ACCESS TO" [emphasis mine], but that demonstrates bad faith on the part of the FBI.