| Thanks for asking this question. To help understand what's being alleged by the DOJ, you'd probably want to know what they found in Mega's email; for instance: On or about April 23, 2009, DOTCOM sent an e-mail message to VANDER KOLK, ORTMANN, and BENCKO in which he complained about the deletion of URL links in response to infringement notices from the copyright holders. In the message, DOTCOMstated that “I told you many times not to delete links that are reported in batches of thousands from insignificant sources. I would say that those infringement reports from MEXICO of “14,000” links would fall into that category. And the fact that we lost significant revenue because of it justifies my reaction.” * "We have a funny business... modern days pirates", said one Mega- employee to another. "We're not pirates", he responded. "We're just providing shipping services to pirates." * When an outsider complained that MegaVideo's hosting of the Showtime pay-tv series "Dexter" had desynchronized audio/video, instead of taking down "Dexter", Kim Schmitz fired off mail saying that fixing the AV problem was a priority. * Mega employees themselves uploaded copies of major motion pictures to the service, such as Luc Besson's _Taken_. * There are Mega emails, on which Kim is apparently CC'd, in which employees enumerate the specific files uploaded to certain high-performing affiliate members, noting (approvingly) that they include copyrighted movies and TV shows. For instance, one line item in an accounting mail: 100 USD [USERNAME DELETED] 10+ Full popular DVD rips (split files), a few small porn movies, some software with keygenerators (warez) Remember: there are two sides to claiming "safe harbor": complying with takedowns, and not operating your service with actual knowledge of infringing activity on the service. Mega obviously operated with extensive actual knowledge of infringement. The operators of Youtube obviously knew that piracy was rampant on the Internet, and even on their service, but no prosecutor or litigator was ever able to show that Youtube's operators knew of specific, actual infringing activity on the site. I found it easier to cite my comments from the last big Mega thread here than to go back to the indictment, which you can find easily on Google. The indictment is hilarious. The craziness at Mega just goes on and on. If you can think of something a lawyer would tell you not to do if you were going to run a file sharing service, Mega probably found a creatively terrible way to do it. |