Megaupload Drops Lawsuit Against Universal Music 439
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."
Not Surprise for MegaUpload (Score:5, Informative)
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.
Re:Not Surprise for MegaUpload (Score:2, Informative)
Yes, but when you operate servers you have to comply with the laws in the countries you have servers. In this case Megaupload had equipment in the US and as a result falls under American law. They most certainly should be extradited as that's the only way in which it can be determined if they broke the law.
We don't do in absentia bullshit in the US like they do in some other parts of the world, so this is really the only way that it's going to be resolved. They could easily have avoided this by not having any servers in the US.
Filesonic next in line? (Score:2, Informative)
Message from their site:
"All sharing functionality on FileSonic is now disabled. Our service can only be used to upload and retrieve files that you have uploaded personally.
If this file belongs to you, please login to download it directly from your file manager."
Raided or just scared?
A link in the article (Score:5, Informative)
A link in this article goes to a rather thoughtful discussion of the MegaUpload indictment [techdirt.com]. 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.
Re:Not Censorship! (Score:4, Informative)
I love how slashdot chose to classify this megaupload story as "censorship". How about putting this in the piracy section?
Because the original legal case was about censorship. That megauploads was also engaged in piracy and such is besides the point. UMG used YouTubes tools to take down a video supporting megauploads without proper due process or anything like that. It was totally about "censorship" (in the wider notion beyond just governments chilling free speech).
Not in US custody (Score:5, Informative)
Re:Not Surprise for MegaUpload (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
Re:Not Surprise for MegaUpload (Score:5, Informative)
Re:Not Surprise for MegaUpload (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 [legislation.govt.nz]
Extradition Offenses http://www.legislation.govt.nz/act/public/1999/0055/latest/DLM25681.html#DLM25681 [legislation.govt.nz]
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 [legislation.govt.nz]
Minister may request warrant http://www.legislation.govt.nz/act/public/1999/0055/latest/DLM26215.html?search=ts_act_extradition_resel&p=1 [legislation.govt.nz]
The Extradition Treaty Itself http://newzealand.usembassy.gov/uploads/images/o16y8MOyHW2l-jJTxaMpeQ/ExtraditionUSNZ.pdf [usembassy.gov]
Re:Not Surprise for MegaUpload (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).
Re:its not a piece of legal shit (Score:5, Informative)
This is not true. The DMCA has a few flaws.
As I posted previously..
The simple fact that a DMCA notice is submitted automatically causes content to be removed immediately and subject to lengthy proceedings regarding the rights of that content.
Various members of the RIAA have been notorious in submitting DMCA takedown letters for content that is very clearly covered by things such as fair use and sometimes even for content they don't even remotely have the rights to. But the creative individuals creating these parodies, or even original material, have limited recourse and the recourse they do have is time-consuming, difficult and sometimes expensive, not to mention it destroys their business (if the content is related to a business).
There is little argument for a business conglomerate having the power to shut down smaller competitors for a short period by simply writing a letter.... and for there to be no recourse for these smaller competitors from it happening repeatedly other than lengthy legal arguments and possibly litigation. That's absurd and anti-competitive.
But the remainder of the DMCA... well, it's not terrible, but I'm not sure it accomplishes a ton either. Going after kids on YouTube seems to be the greatest use of it and repeated studies have shown it doesn't help (and may hurt) their business model and revenues.
which has absolutely 0 to do with megaupload, (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.
Kim Schmitz goes down and we should be glad for it (Score:4, Informative)
Kim Schmitz is a German serial fraudster and wouldn't be allowed to open a business in Germany again. The "millions of damages" are a stately home in NZ with a ton of expensive cars, a golf course and of course Schmitz' globulous ego. This is not the fight you want to fight. If that scumbag gets sent back to prison then that's good. He knows the drill. He'll feel right at home. Only this time he will not get probation and a 100000 Euro fine for making 1.5 mil in fraud.
He's been convicted for a pump&dump racket involving his company Kimvestor and letsbuyit.com. Made a cool 1.5 mil on that. Then there was that thing with monkey.com. And with Megaupload there was that Mega Manager that was a ripoff of some other software(forgot the name), the "premium service" and other highly shady things he did from his golf-course attached villa in NZ that he wasn't allowed to purchase himself because he didn't pass a most basic character test.
there was that Mega Upload song thing that was unjustified. Copyright law still needs reform. There is the problem of US caliming jurisdiction in NZ, but frankly NZ gladly handed him over since he shouldn't have been there in the first place.
Re:Not Surprise for MegaUpload (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/ [uslegal.com]
Re:Not Surprise for MegaUpload (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.