In essence the Government is attempting to use "civil law" claims in a criminal prosecution context which is not permitted. Harvey on Application for Disclosure, May 29, The alleged money laundering charge and the rest of the criminal claims are devoid of merit because Megaupload's and the rest of the defendants' earnings were from businesses providing lawful cloud storage services and not from criminal copyright infringement.
These claims appear to be concocted as flimsy support to freeze defendants' assets, to try to support DOJ public relations in taking down the entire Megaupload site which resulted in unprecedented harm to consumers , and to improperly pile on additional arguments for extradition. Innocent consumers lost access to their cloud files from wedding photos to spreadsheet files.
Consumer data access issues are currently being heard by the US Court. Notwithstanding the basic civil rights axiom that one is innocent until proven guilty, the Government has impaired Megaupload's and Defendants' defense by freezing all of its worldwide assets, then refusing to agree to unfreeze one penny to fund defense efforts - not even funds to preserve or analyze the digital evidence.
The Government, in short, has destroyed Megaupload without bothering even to serve the company and is now bent on preserving its advantage by disabling efforts to challenge the lawfulness of its actions.
Megaupload processed takedown notices swiftly and efficiently. Megaupload went beyond the ordinary and used technology to speed up the take down process. For example trusted parties including major Hollywood entities received access to an innovative real-time direct takedown web tool. Megaupload negotiated with major copyright holders or their agents—including the Recording Industry Association of America, Disney, Warner Brothers, NBC, and Microsoft—to allow them access to take down directly, in an automated manner, an active link to material they believed infringed their copyrights.
Megaupload was commended by Hollywood organizations for its take down processes. While Megaupload made efforts to curb abuse of its service, it recognized a competing obligation to its users who legitimately use[d] the service to store their own copies of copyrighted material.
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As the minutes tick by, the chances of Megaupload regaining its former position diminish, according to Bowman. Follow Nancy on Twitter at idgnancy. Nancy is a freelance journalist who started writing about mobile phones just in time to cover the transition to digital. Here are the latest Insider stories.
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