The Corporate Law Group

Megaupload

Megaupload was established in 2005 in Hong Kong to allow cloud based file sharing.  But the domain was seized in January by the US Government allegedly for copyright infringement.  When that happened, users lost access to their files and $330 million in assets were frozen.  The owners, including New Zealand resident Kim Dotcom, were indicted.  Megaupload had enjoyed 50,000,000 visitors per day, 180,000,000 registered users, was the 13th most visited Internet site, and hosted 12 billion unique files taking up 25 petabytes (25 million gigabytes).  Dotcom’s house was intentionally raided on his birthday by New Zealand authorities at the instigation of the US.  It turned out that the company was never properly served with the property seizure notice nor the underlying federal case.  The Department of Justice has apparently been writing to lawyers taking on the defense, and warning them off the case, threatening to call their clients as witnesses.  Santa Clara University Law School Professor Eric Goldman described the Megaupload case as, “a depressing display of abuse of government authority.”   He claimed that seizing Megaupload’s site had created the “deeply unconstitutional effect” of denying users their data.  The Electronic Frontier Foundation has taken on cases on behalf of users denied their data.  We say, “Go for it!” 
Paul Marotta

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