On the heels of the SOPA failure, it was to be major victory for the FBI MPAA and their lobbyists. The (allegedly) evil Kim Dotcom (yes, he legally changed his name to Dotcom) was brought down in a cooperative effort by the United States Federal Bureau of Investigation and New Zealand’s police force.
Because Kim (I refuse to continue using that last name) was a resident of New Zealand, the NZ government had to be brought in. It couldn’t just be an FBI thing. And because the MPAA … I mean the FBI wanted to extradite Kim to the US for legal action, it had to be a federal criminal matter. A simple civil lawsuit was insufficient “justice”.
What is this all over? Well Kim and Co. operated the dastardly service called MegaUpload, a gigantic file storage / sharing website. Upload your file, and anyone can download it.
You can see the problem here. Plenty of naughty file sharers would upload their ripped DVD, Blu Ray, songs, and what have you copyrighted materials to which they did not own the distribution rights thereof. And because MegaUpload didn’t enforce or validate those copyrights, plenty of pirates used their service.
The MPAA alleges that the damage caused by MegaUpload reaches $500 million. I don’t know about you, but that seems like an awfully improbably number of DVD sales to me.
Now, one could argue whether MegaUpload didn’t enforce copyright law because they didn’t care, or because they didn’t actually have to, or even because there was no feasible way for any such business to reasonably and effectively do so, especially on such a large scale. (Others, like YouTube, have tried, failed and eventually given up with solutions like agreeing to just pay a blanket infringement fee to avoid litigation.)
And one could further argue whether or not that alleged lack of care actually makes a case for coercion of criminal behavior.
There’s a lot of supposition there that legal talkers may be hard pressed to actually prove.
There’s also that little matter of MegaUpload not being hosted in the US.
But these arguments hardly matter at this point. Because the FBI came, they saw, and they took MegaUpload down. (Well, at least the NZ police did.) Kim and Co. were all arrested. Assets of questionable value (reports range from $20 million to $50 million) were seized, servers were brought down, etc.
Assets were then juggled because the court order used to seize the assets was the wrong one. The police commissioner tried to correct the error by applying for a second seizure order, but it may have been too little, too late. The NZ high court determined that the first order was in fact null and void, and was to decide whether or not the assets would be returned or if the attempt to fix the problem was sufficiently legal to keep the assets, but strangely, I couldn’t find word on whether or not the assets were ever released back or not.
Meanwhile, two of Kim’s Co. made bail and went back to their cushy lifestyles. Kim however was forced to remain in the clink on the theory that he would be a flight risk.
Also up in the air is the question of what happens to everyone’s legal files. It’s a dispute that is conveniently neglected. Many people who used MegaUpload did so to share pictures, home movies, personal projects, and all sorts of files which they had the legal right to redistribute. In fact, this legal use would be the actual purpose of the file sharing website.
But the MPAA contends that there are no innocents, and that in spite of the legality of the usage, no one should get access to their files. Ever. Regardless of legality and any lack of copyright infringements. They also want access to that data for their own pursuit of piracy.
The courts have what they need, and so are no longer paying the storage fees of Carpathia, the hosting site contracted to hold the data. Kim is obviously no longer paying Carpathia’s fees either. Carpathia of course, want to free this 25 petabytes of data, claiming that it is costing them around $9000 per day to store it on their servers. And if they do, every legitimate and legal file would be lost.
The Electronic Frontier Foundation (EFF) is trying to help people get their files back, but there are absolutely no guarantees. So legitimate businesses like that run by Kyle Goodwin, who did perfectly legal things using MegaUpload such as online reporting of local high school sporting events, using MegaUpload as a file backup service for his completely legal files, are suffering financial losses because of the MegaUpload takedown. And if all of those legitimate files were permanently lost…
It’s a major cluster flock.
But it gets even more ludicrous. From the beginning various professionals of law have argued that the whole case is legally flawed. Not the least of which is the argument that going back to US case law of the infamous “Betamax case”, where a precedent was set that if a product is widely used for legitimate purposes then it is not responsible for the illegitimate purposes performed by its users. (At least so long as it does not coerce, condone, support, etc. those illegitimate purposes.)
Something that the FBI MPAA was perfectly willing to overlook.
And yet the ignominy isn’t finished there either. Because it now appears unlikely that the criminal conspiracy charges in America will even make it to trial because the FBI forgot to serve any papers to MegaUpload in the US. Well, “forgot” may be a bit rash, I suppose. They allege the reason for this is that, oh wait, MegaUpload isn’t located within the United States’ jurisdiction. Oh yeah. I guess there is that. Something also heavily argued by many a law-speaker.
During a pre-trial hearing in Virginia it has been reported that judge Loam O’Grady expressed if, “we are ever going to have a trial in this matter.”
And without those criminal charges, there’s no legal ground to extradite Kim from NZ to the US.
Also a loss on the criminal front further weakens the corresponding civil case.
Meaning that Kim may just get away scot-free. And may be getting his assets back. And may have grounds for a countersuit that could net him even more money.
So what was hailed as a MegaVictory against file sharing sites like MegaUpload has degraded into a MegaDisaster, and could become the year’s Epic Fail.
But then, what do you expect when you let lobbyists run the government.