Megaupload Founder Claims Many U.S. Government Users

Andy Chalk

One Flag, One Fleet, One Cat
Nov 12, 2002
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Megaupload Founder Claims Many U.S. Government Users


Megaupload founder Kim Dotcom says many of the site's users were U.S. government officials and he's hopeful they'll all soon be able to regain access to their perfectly legitimate data.

The hammer fell on Megaupload in January [http://www.escapistmagazine.com/news/view/115362-UPDATE-Feds-Take-Down-Megaupload], when U.S. government officials unsealed an indictment against its founder, Kim Dotcom, and other employees, claiming that copyright infringement through the service had cost rights holders more than $500 million in lost revenue. Dotcom himself was taken into custody by way of an anti-terrorism style raid on his New Zealand home and of course Megaupload and its related sites were all seized by the U.S. government.

There's no denying that copyright infringement was the bread and butter of Megaupload but it's equally true that the site also had its fair share of legitimate users who lost access to their files as a result of the takedown. The Megaupload legal team is trying to come up with a way to reconnect these users with their data, according to Dotcom, which has led to the discovery that many of them are actually members of the U.S. government.

"We found a large number of Mega accounts from U.S. government officials including the Department of Justice and the U.S. Senate," he told Torrentfreak [http://torrentfreak.com/kim-dotcom-many-megaupload-users-at-the-us-government-120312/]. "I hope we will soon have permission to give them and the rest of our users access to their files."

It's hardly surprising that Dotcom would try to muddy the waters as he fights extradition, but the Electronic Frontier Foundation [https://www.google.ca/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cts=1331666097046&ved=0CDQQFjAA&url=https%3A%2F%2Fwww.eff.org%2F&ei=sZxfT4WuBoXK2AXoxPCqCA&usg=AFQjCNENF_8C2hKkGQe0yFCDXAZC9gOqqg&cad=rja] says the loss of legitimate data caused by the sweeping takedown is a real concern. "EFF continues to identify more people who have lost access to legitimate personal files. Our goal is to help them get their files back as quickly and efficiently as possible," EFF attorney Julie Samuels said.

"In general we are very concerned about the implications the 'Mega conspiracy' indictment has for the future of cloud computing and file-hosting services, and innovation more generally," she continued. "It's hard to imagine how the nature in which this went down won't have a chilling effect going forward. We hope to come up with processes for future cases that will counteract that."

Dotcom's extradition hearing is currently scheduled for August 20.


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UnderGlass

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Jan 12, 2012
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NZ's rolling over on this makes me ashamed of my country's government. While I don't support copyright infringement and the owners of the site undoubtedly profited from these activities, Dotcom should NEVER have been extradited from NZ to appease the business interests of American media conglomerates.

The increasingly invasive and authoritarian policies of my government are beginning to become scary. The latest one is a proposed <a href=http://www.stuff.co.nz/national/politics/6526793/Surveillance-bill-to-target-privilege>legislative change to systematically undermine <a href=http://en.wikipedia.org/wiki/Reporter%27s_privilege>Repoter's Privilege by putting it at the mercy of a judge during legal proceedings! WTF NZ!!
 

Something Amyss

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Dec 3, 2008
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But I'm sure it's totally different and they weren't doing anything illegal. It's only when us filthy plebes do it that it's wrong.

poiumty said:
Wait, his name is Kim Dotcom? Seriously?


...that is kinda badass
Legally changed it to Dotcom, but yes.
 

Baresark

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Dec 19, 2010
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It's all so ridiculous. As was stated time and time again by many people. The majority of Megaupload's users are legitimate users. I'm not talking about people who download things either. I'm talking about people how pay to use the service to store their files and share them.
 

Notsomuch

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Apr 22, 2009
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They shut the business down before the trial which doomed him to a loss before he was proven guilty. His mistake was buying luxury cars when he should have been using the cash to Lobby (Read:bribe) American politicians. The entertainment industry doesn't care about the due process, they just want to harm and destroy this person's 'business'. They pay the government agencies and the agencies do their bidding. It's dirty and it works.
 
Feb 13, 2008
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Notsomuch said:
The entertainment industry doesn't care about the due process, they just want to harm and destroy this person's 'business'. They pay the government agencies and the agencies do their bidding. It's dirty and it works.
Haakong said:
I always find conspiracy theories amusing, but this doesnt actually sound so far fetched.
As I've said before...awfully convenient timing...

http://www.digitalmusicnews.com/permalink/2011/111221airvinyl

What's that you say Timmy? Megaupload was going to allow artists to keep 90% of its profits, effectively crippling big music firms? And that it was taken down just before Megabox was going to go live?

 

Albino Boo

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Haakong said:
Notsomuch said:
They shut the business down before the trial which doomed him to a loss before he was proven guilty. His mistake was buying luxury cars when he should have been using the cash to Lobby (Read:bribe) American politicians. The entertainment industry doesn't care about the due process, they just want to harm and destroy this person's 'business'. They pay the government agencies and the agencies do their bidding. It's dirty and it works.
I always find conspiracy theories amusing, but this doesnt actually sound so far fetched. The whole arrest was over the top silly, and for what Ive collected, hes only guilty of having shitty admins (not removing "illegal" files fast enough).

If your employees rent out a car and the guy who rent it uses it as a getaway car after a crime, youre not to blame.

What was the excuse when he was convicted of insider trading, embezzlement, fraud, handling stolen goods and computer fraud? Bad admins?
 

FredTheUndead

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Aug 13, 2010
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He'd have been able to avoid most of this if he just did it the way youtube does: let whoever post whatever, but remove things when requested to do so. Would have let him safely deny personal involvement and keep the service up.
 

Realitycrash

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Dec 12, 2010
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Few things can be as scary as to be handed over to the US in order to be made a statement of.
"Oh, we finally caught another one of those horrible software pirates. Time to bring out the hammer and nails.."
I can only think of that poor woman who got hit with a multi-million dollar fine for running a private WoW-server.
 

Realitycrash

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The_root_of_all_evil said:
Notsomuch said:
The entertainment industry doesn't care about the due process, they just want to harm and destroy this person's 'business'. They pay the government agencies and the agencies do their bidding. It's dirty and it works.
Haakong said:
I always find conspiracy theories amusing, but this doesnt actually sound so far fetched.
As I've said before...awfully convenient timing...

http://www.digitalmusicnews.com/permalink/2011/111221airvinyl

What's that you say Timmy? Megaupload was going to allow artists to keep 90% of its profits, effectively crippling big music firms? And that it was taken down just before Megabox was going to go live?
If that is true, then there's a lot of money to be made, and someone is going to pick up on it sooner or later, someone that the "big business" can't legally squeeze in the same way.
I hope it just doesn't end up with the "big business" going forwad and somehow patenting the idea.
 
Jun 23, 2008
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Once again The Escapist resorts to hyperbole to inflate the great threat of piracy [http://www.techdirt.com/blog/innovation/articles/20120210/03382117728/how-do-we-know-that-piracy-isnt-really-big-issue-because-media-companies-still-havent-needed-to-change-as-result-it.shtml] and toe the copyright-maximalist line.

There's no denying that copyright infringement was the bread and butter of MegaUpload
Indeed, Mr. Chalk, that is what the MPAA and RIAA would have you believe, but as the traditional gatekeepers of content, they're more interested in chilling competition on the web than they are in seeing a reduction in piracy. One of the more significant revenue sources of MegaUpload was independent content being released free [http://www.techdirt.com/articles/20120120/15060817494/busta-rhymes-backs-megaupload-says-record-labels-are-real-criminals.shtml] to users, paid for by advertising. And while songs didn't gross as much as they did on discs, the artists netted much more of it.

Keep in mind that Mr. Dotcom has been convicted of nothing so far (regarding the Mega bust), and the rap sheet of which he was accused is so Mega's legitimate clientele weren't even considered until the EFF stepped in [http://www.techdirt.com/articles/20120120/00373617487/megaupload-details-raise-significant-concerns-about-what-doj-considers-evidence-criminal-behavior.shtml] (Really! The DoJ was really just going to let the seized data, on which many a business and government depended, get erased. And this is despite the fact that it would be a source of evidence for the trial!) is telling of the DoJ's regard for the rest of us.

In the meantime, Jonathan Coulton [http://www.techdirt.com/blog/innovation/articles/20120216/03595717776/how-megaupload-shutdown-has-put-cloud-computing-business-plans-risk.shtml] didn't make the gagillions he was promised.

So, so far, all the Mega takedown has done is stomp all over the already overtrodden economies of the US and Europe. Perhaps the folks at The Escapist might want to do a bit more research while they continue to vilify content piracy as the worst plague ever to infect the world. And especially before they decide that a given company is evulz because Big Corporate America says it is.

Incidentally, Mr. Dotcom has decided to tell his side of the story [http://www.techdirt.com/articles/20120302/01273817941/kim-dotcom-gives-tv-interview-where-he-insists-charges-against-him-are-joke.shtml] rather than let his lawyers speak for him, partially because the amount of legitimate business done on MegaUpload was considerable and probably exceeded unlicensed content. The truth is, we don't have those statistics yet, and probably won't until well after his trial.

238U[footnote]Imagine no possessions
I wonder if you can
No need for greed or hunger
A brotherhood of man
Imagine all the people
Sharing all the world...[/footnote]
 

wammnebu

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Sep 25, 2010
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i would like to know if those were official DOJ accounts or some middlemanegement fellow who made an account w/ his work email
 

LZeroK

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albino boo said:
Haakong said:
Notsomuch said:
They shut the business down before the trial which doomed him to a loss before he was proven guilty. His mistake was buying luxury cars when he should have been using the cash to Lobby (Read:bribe) American politicians. The entertainment industry doesn't care about the due process, they just want to harm and destroy this person's 'business'. They pay the government agencies and the agencies do their bidding. It's dirty and it works.
I always find conspiracy theories amusing, but this doesnt actually sound so far fetched. The whole arrest was over the top silly, and for what Ive collected, hes only guilty of having shitty admins (not removing "illegal" files fast enough).

If your employees rent out a car and the guy who rent it uses it as a getaway car after a crime, youre not to blame.

What was the excuse when he was convicted of insider trading, embezzlement, fraud, handling stolen goods and computer fraud? Bad admins?
Even if he did all that, what relation does it have with the MegaUpload fiasco?
 

Notsomuch

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Apr 22, 2009
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Haakong said:
Notsomuch said:
They shut the business down before the trial which doomed him to a loss before he was proven guilty. His mistake was buying luxury cars when he should have been using the cash to Lobby (Read:bribe) American politicians. The entertainment industry doesn't care about the due process, they just want to harm and destroy this person's 'business'. They pay the government agencies and the agencies do their bidding. It's dirty and it works.
I always find conspiracy theories amusing, but this doesnt actually sound so far fetched. The whole arrest was over the top silly, and for what Ive collected, hes only guilty of having shitty admins (not removing "illegal" files fast enough).

If your employees rent out a car and the guy who rent it uses it as a getaway car after a crime, youre not to blame.
The trial is about whether or not the boss encouraged the crime. Which is fine. But if a CEO of one of the major US banks was suspected to have encouraged employees to engage in illegal practices (Unlikely, I know. Har.) it would be absolutely unthinkable for the government to shut down the bank and freeze all of the transactions and funds in every part of that bank's business before the trial even took place. They wouldn't even arrest the CEO.