MegaUpload Shut Down by the Feds, Founder Arrested

[Diangelo88]

Good thing about this gigant going down is that it has caused so much uproar, Anonymous's attacks have proven that people is not willing to accept SOPA in the end.

 

[Stoic]

Hmm how the hell did they get those personal emails stated in the indictment?

Anyway here's another news for the day:

Looks like Fileserve is cancelling its affilate program!

 

[Stoic]

Megaupload lawyer Q&A on DOJ criminal case:

washingtonpost.com/business/technology/megaupload-lawyer-qanda-on-doj-criminal-case/2012/01/20/gIQA3HJhDQ_story.html

 

[gb2000ie]

Good thing about this gigant going down is that it has caused so much uproar, Anonymous's attacks have proven that people is not willing to accept SOPA in the end.

It would be a mistake to assume that an objection to SOPA implies support of professional piracy.

Wikipedia and Google are against the over-reach of SOPA, but not against the enforcement of copyright law. The same is true of many of the ordinary people who also supported the protests against SOPA.

B.

 

[BrazilBoysBlog]

Must confess that I have mixed feelings about this having worn 'both hats' in this debate... Yeah everyone loves 'free' porn.... But what is it doing to the industry? Do straightguys (my favourites) get their kit off and show all for 'free'? Or do the adult websites that feature them have to pay out fortunes in wages?

Having made this investment, someone buys ONE membership to their site, then uploads it to some file-sharing site where everyone downloads it for free... How long do you think this great site can continue?? Many many of my friends running small, niche gay adult websites have gone under... They just cannot make enough money to keep going... So, what happens? No new porn... The only sites remaining are the 'big boys' of the industry and even their sites have much lower revenues. The smaller and (for me) better websites just cannot afford to continue when other people make their content available for free.. (sometimes even on the very day it is released!)

And lets not turn it into some 'Robin Hood' scenario either.... 'Poor' guys stealing 'rich' studios content to make it available to everyone... Oh yeah, how very public-spirited. Did you see any of the news reports of the arrests of the MegaUpload directors in New Zealand??? Dis you see the obscene number of high-end luxury cars confiscated and the amount of cash etc.... ?? This was like raiding a mafia don's home! So lets not pretend it's a 'public service' of some description.... It's people making VAST amounts of cash (the directors, their service providers and YES.... the affiliate UPLOADERS also!) and all from other peoples content.... Yeah, a GREAT business if you can get into it.... Get someone else's product....do nothing for it, pay nothing for it, leave THEM will all of the production expences.... and make a fortune from it...

Make no mistake.... ALL of the other online file-sharing 'services' will be bricking-it this morning.... They will ALL be considering their positions very carefully this morning.. I would suspect that a lot of their affiliate schemes will be closed (as this is just encouraging people to upload content that does not belong to them)... and I would suspect that the directors of EVERY other file-sharing service will be just waiting for the 'knock on the door' now....

Then, (think about it).... After the courts have closed these sites, confiscated domain names, confiscated servers and the other proceeds of crime.... What is to stop the logs of uploaders being checked also? They will have all the evidence they need to go after the UPLOADERS of stolen porn videos also!

FINALLY there might be a price to pay for all this stolen content????

I really do think that once the authorities in the US start to go through the logs and see the amounts being paid to some affiliate uploaders.... there WILL be a price to pay.... and producers will be going after some of these illicit earnings.... and there IS a very clear trail from MegaUpload/other file sharing sites to peoples bank accounts!!!

 

[joycey]

How are they bullying?

Have you read the details of this? It's not a unilateral act, or an over-reach of authority.

B.

Innocent until proven guilty...plus, the swiftness in which it was done. It was done when the entertainment industry, with Rupert Murdoch as it's mouthpiece, knew SOPA and PIPA were lost in their current drafts. How Megaupload was closed by the FBI in such a manner begs the question why they need SOPA and PIPA anyway?

 

[Stoic]

^ I agree. There's something fishy here - I mean how can they have possession over company emails/exchanges between staff/founders? Where did they get it? Maybe a disgruntled employee of MU trying to get back at them? Or maybe FBI had to just dip its hand inside the cookie jar and do some 'big brother' moves - there's your over-reaching

@ BrazilBoysBlog
I like the sentiment of your post, and sometimes I feel that way too. But i had to point out one thing: Is piracy bad only when pirates profit from it? What I mean is that studios are loosing $$ regardless of what Kim bought. Even if MU didn't exist, people would still find a way to download stuff with or without cyberlockers and studios would still be charging for losses - its just the way technology grows.

 

[gb2000ie]

Innocent until proven guilty

Of course, but what has that to do with anything I said? All arrests are on that basis. I really don't get what this red herring has to do with anything I said.

...plus, the swiftness in which it was done. It was done when the entertainment industry, with Rupert Murdoch as it's mouthpiece, knew SOPA and PIPA were lost in their current drafts. How Megaupload was closed by the FBI in such a manner begs the question why they need SOPA and PIPA anyway?

This was not done by the FBI, this was a big international operation, and involved a federal grand jury. Saying the FBI shut it down is misleading.

As for your conspiracy theory, this shudown is the WORST thing that could have happened for the pro-SOPA side! It shows SOPA up as a needless power-grab!

Also, I don't believe for one second that the police forces in the Netherlands, Germany, Hong Kong and NewZealand are all part of a conspiracy with rupert murdock, that, frankly is ludicarous!

B.

 

[BrazilBoysBlog]

I like the sentiment of your post, and sometimes I feel that way too. But i had to point out one thing: Is piracy bad only when pirates profit from it? What I mean is that studios are loosing $$ regardless of what Kim bought. Even if MU didn't exist, people would still find a way to download stuff with or without cyberlockers and studios would still be charging for losses - its just the way technology grows.

Hi Stoic... No, piracy isn't bad only when someone profits from it... It just makes it worse... My point was that people who delude themselves into thinking their are some 'modern day Robin Hood' and that they are providing (other peoples property) to the masses for nothing are incorrect. There IS big money being made out there and unfortunately it's NOT by the producers of the content!

I am a member of quite a few adult industry trade bodies as I was the webmaster of a couple of smaller 'niche sites'... Many of my friends are adult webmasters and (increasingly) FORMER adult webmasters...

It's amusing in an ironic sort of way when I see posts on here... where someone has made a substantial amount of a small, niche website available for 'free' download.... (though we know it's not completely free... they encourage you at every turn to 'upgrade' your membership).... When I see these posts.... I find it ironic when another forum member then posts something like.... "Oh I LOVE this site!" (the small niche website).. "Have you got any more?" or request so and so film..... LOVE this site? How long do they think it will go on for?

I have a friend who has run a gay adult website for years.... specialising in teen straightboys of the black/latino persuasion.... Getting them to model and perform for his site has NEVER been 'easy'.... travelling to various countries, paying for accom, spending a fortune finding these new boys... then paying the boys enough to persuade them to do gay porn... (and the cost of that has gone up sharply the last few years).. The marketing, server rental etc etc etc.... the costs go on and on...

Then ONE person buys a subscription to his site and plasters his new models all over the internet for free?? (or even profits from them as an affiliate uploader, storage locker provider etc) How long do you think he can continue to run this great site? ..... He can't... It got to the point where his costs were greater than his income ... so another one bites the dust!

I really cannot put a figure on the number of fantastic sites that have now gone offline...

It just leaves the gigantic groups who run large amounts of websites ... and even these (often boring) websites are running on dramatically reduced income.

You said that IF MegaUpload didn't exist, people would still find a way to download stuff and studios would have to pass on the costs etc...

Well, if these file-locker sites didn't exist, a lot of people wouldn't be as tempted to spend all their waking hours in front of a computer, uploading other peoples content to them in order to earn as much as they can from their affiliate schemes... Then.... providing them (genuinely) for free??? But where would they STORE these files for free download? As you will know, a large collection of VIDEO files takes up a HUGE amount of storage space on a server... then you have to have a server good enough to cope with all the downloads/bandwidth etc.... It's the STORAGE that is one of the biggest costs to most adult webmasters. I wonder if people would be SO public-spirited as to provide free downloads of other people's stuff if THEY were having to pay to host it?

As for some of the other comments on this topic.... It's NOT the 'FBI' that is after anyone... The whole content provider industry wants it... (and this includes a very active and very vocal ADULT entertainment industry)... Many many studios are now actively prosecuting storage sites/tube sites etc when they are found hosting their content... Even sites that 'only' provide 'links' to other peoples copyrighted content are being prosecuted!!! (There's a lad in the UK who has found this to be the case....He's currently awaiting extradition to the USA).

Honestly.... If I were running one of these 'locker' type sites, a tube site, a blog or anything deliberately linking to pirated content.... I would immediately close any affiliate payment schemes I was running....and then I would be in fear of the (inevitable) knock on the door...

...and as for people on here saying "oh so-and-so site has now closed...or closed it's affiliate scheme....They owe me money! How can I get my money?" Good grief... Unless you can PROVE that they owe you money because people have been downloading YOUR content...(and not stolen films), then they owe you NOTHING.. And frankly, I'd be MORE concerned about the possibility of the companies affiliate records eventually falling into the hands of the authorities! ;-)

 

[HotDougBunz]

The only thought I have to this is that technology is evolving so fast that old school thoughts of copyright infringement are archaic at best. This is a new world and the old methods just can no longer hold out. The wiser approach would be for copy owners to find a way to adapt the the advances of new world commerce and find more creative ways to make money. Example: If MU was making huge money via downloads, why can't a movie company own such a site for their own gains? Of course that is overly simplistic but it shows that rethinking of modern day commerce.

Remember a few years back when there was a video/DVD rental store about every 100 feet? Many of those business people left or lost the biz only move on to some other more profitable investment. It is time for the big studios to figure out a way to do the same and quit trying to nurture a dinosaur. All SOPA is, is asking for their business savvy to be placed on a ventilator to keep it going. Get with the ages "Be kind rewind" is dead.

 

[Stoic]

...and as for people on here saying "oh so-and-so site has now closed...or closed it's affiliate scheme....They owe me money! How can I get my money?" Good grief... Unless you can PROVE that they owe you money because people have been downloading YOUR content...(and not stolen films), then they owe you NOTHING..

I know right, I'm still amazed how some people think like this. But I guess when you're doing it for so long, investing time and $$ on your uploads, it starts to feel that way - but never will you own something you didn't have in the first place :/

Well, if these file-locker sites didn't exist, a lot of people wouldn't be as tempted to spend all their waking hours in front of a computer, uploading other peoples content to them in order to earn as much as they can from their affiliate schemes... Then.... providing them (genuinely) for free???

I don't know. I believe there are just two things: either piracy is too much or too little. There's no middle ground for it. You can't say well if these cyberlockers didn't exist then piracy would be on an acceptable level. I mean what is acceptable? Back in the days when P2P (and another method which I can't say here) are the only ways you can get a movie/video/clip, people were up in arms saying piracy has gotten out of hand - that in those days studios are loosing $$ because of it. And what about now? What I'm saying is that studios should face the fact that piracy would always be there, you might hampen its growth for a time (like this MU case), but it will constantly evolve.

But where would they STORE these files for free download? As you will know, a large collection of VIDEO files takes up a HUGE amount of storage space on a server... then you have to have a server good enough to cope with all the downloads/bandwidth etc.... It's the STORAGE that is one of the biggest costs to most adult webmasters.

I wonder if people would be SO public-spirited as to provide free downloads of other people's stuff if THEY were having to pay to host it?

People have been doing that for years with P2P - the burden of providing bandwidth and storage is shared among users.

Then ONE person buys a subscription to his site and plasters his new models all over the internet for free?? (or even profits from them as an affiliate uploader, storage locker provider etc) How long do you think he can continue to run this great site? ..... He can't... It got to the point where his costs were greater than his income ... so another one bites the dust!

I can't argue with that. Piracy does destroy businesses/jobs/creativity and it really gets ugly no matter how you paint it. Sure it can also create other businesses/jobs for the cyberlockers and hosting companies, and downloaders are thankful for your share but at what cost? It destroys an industry and builds another. So my suggestion to webmasters/content owners is this: make sure you understand the intricacies of piracy first before you invest. Change your strategy and evolve your content protection schemes - its your responsibility to protect your rights. I'm not saying its your fault when your business falls down, but you have to not undermine the anti-consumerism spirit that created file sharing in the first place.


@ HotDougBunz
My point exactly

 

[badzena]

Let's hope rapidshare doesn't go the same way!

 

[BrazilBoysBlog]

I can't argue with that. Piracy does destroy businesses/jobs/creativity and it really gets ugly no matter how you paint it. Sure it can also create other businesses/jobs for the cyberlockers and hosting companies, and downloaders are thankful for your share but at what cost? It destroys an industry and builds another. So my suggestion to webmasters/content owners is this: make sure you understand the intricacies of piracy first before you invest. Change your strategy and evolve your content protection schemes - its your responsibility to protect your rights. I'm not saying its your fault when your business falls down, but you have to not undermine the anti-consumerism spirit that created file sharing in the first place...

Not sure about the last part of your post... But a great reasoned argument... At last someone who tries to see that there are TWO sides to every story!

It's difficult to come up with a completely NEW business model.... You make a product and sell it... 'anti consumerism' or not, thats the way the world operates... Anti-consumerists make me p-ss at times really.... I see them on their demo's ... complaining about 'big business' etc whilst sending out for a Starbucks coffee and Big Macs!!! What they want is to not have to PAY for anything... Yet make them all unemployed because there are no jobs left and they'd be protesting all over again! People make things, people sell things... it's the way of the world...

The problem comes because more and more people do not see a film (adult,mainstream) or any other artistic work as being 'work'... a creation, someone's property.... somones business of livelihood. They think that ALL films/music etc should be available for 'free'... (Yet THEY exect to be paid for THEIR work and labours?)

So what's the solution? (IF you accept that film makers/musicians/actors/PORN actors deserve to be paid for their labours).... If not, then it's simple....we won't have any.... or very very few.

Of course, some people say that the people who download FREE porn would not pay for it anyway... (therebye implying that the film industry isn't losing anything) RUBBISH.... Yeah that MIGHT be true of a very few people.... But take myself for example... If it were NOT available for free, and I WANTED to see it, then I'd HAVE to pay for it... Simple.

I must say that I DO blame my own industry in part at least for the problems we currently face.... DRM was introduced and the industry did'nt run with it... That was for two reasons... 1, the technology needed to DRM-protect all of your films was very expensive and 2... aparently the 'customers' didn't WANT it. TOUGH is my answer to that one...

Again, IF they wanted to see the content, and it was ONLY available in DRM format, and EVERYONE was using DRM, then they wouldn't have a choice would they? The whole industry should have banded together, shared the cost of DRM encoding if needed, and made sure that EVERYONE used it... Yeah, people are always coming up with ways around new technology... but again, the industry should have done the same.... kept up with keeping the encoding tight and useless to pirates...

This is no good to the smaller guy/webmaster.... but again the industry (could) have made it affordable for small sites to use... (in the interests that ALL porn films would be protected from piracy)... By NOT using it, and by even making the proud BOAST on websites that their content was DRM-FREE, the industry screwed itself by making it really easy to pirate anything!

As you said, times are a changin'.... But either the wholesale piracy, encouraged by these file locker sites is going to be brought down... OR the industry is gonna be even smaller than it is now.... The smaller sites/webmasters just cannot afford to keep these sites going as an ever more expensive 'labour of love'..

To everyone posting things like 'I wonder if Rapidshare (etc etc) will keep going?" They WONT... (at least not in their present format)... If I were the director of a MegaUpload 'clone' site today.... I'd be bricking it waiting for a knock on the door... I would certainly bin any affiliate schemes immediately.... and start going through stored files looking for copyright breaching content... I'd put very strong 'take-down' measures in place that were serious and not just paying 'lip service' to the law. Either that, or I'd be thinking "OKAY, I've had a good run... maybe now it's time to completely pull the plug on the whole thing and start trying to hide my money away.....Before it's too late!"

 

[absalom]

Some random thoughts:

DRM would have been cracked, even if all porn companies faithfully had implemented it. The reason why companies were hesitant to use it was because legitimate buyers had real problems with DRM encoded material.

There is more gay porn made today than there was 5 or 10 years ago, even with all the mass piracy going on. I won't deny that piracy hurts the gay porn business but I also think that there is too much gay porn being made. The relative ease with which you can film a scene and put it on the internet led to a strong growth of small gay porn internet websites. But even if there was no piracy not all of these companies can endure simply because the demand is not there for the product. The internet is a relative young phenomenon and it is natural that many people set up enterprises but you have to realise some will not make it. I think you will see the same development in the gay porn idusty as in the car industry: some names will disappear and companies will merge and cooperate.

Will people start buying more gay porn when it becomes impossible to free download material? It is a difficult question. My view on it is that some people will but the vast majority problaby not. There is an entire generation that has never paid for porn and that will see no reason to do so now. Remember that for most people porn is not an absolute necessity of life. And there is enough legitimate free material to be found on the internet to satisfy some basic needs. OK, the quality may be lower but if your thirsty and you can't have champagne you will settle for water. Also: many people who download gay porn at present simply do not have the money or opportunity to buy or rent gay porn. Do gay porn companies really think that an 18 year old gay student in China, Latvia or Columbia is going to pay for gay porn? Or that an young American gay guy who lives with his parents in a conservative state will become a member of Sean Cody instead of downloading a short clip every week? Many people in Europe (with the exception of the UK) don't have a credit card and with many American gay porn sites you can only pay with a credit card so even if they want to pay for it they simply can't. Would a Swedish gay guy who lives on income support start buying gay porn? I think the answer to these questions is negative and that therefore the chances that gay guys are going to buy gay porn en masse are rather small.

 

[BrazilBoysBlog]

Good post Absalom....

Some more observations though....

Yeah sites will close and sites will merge to become parts of much bigger networks.... owned by companies who don't give a toss generally and just see the sites (and their customers) as a comodity..

Lost are the smaller sites which just cannot get the revenue needed to continue... The kind of sites that people on here so often say they LIKE... (without recognising the irony in saying they like/love the site, but requesting it's content for free)

...and really... whilst there IS a legitimate debate about the free 'sharing' of other peoples property.... This thread really is about the wholesale 'piracy for profit' system that these file-locker, MegaUpload 'clone' sites create...

Whatever your views on 'sharing' films and other people's content.... I would recognise that there is a VAST difference between a few friends 'sharing' a film that one of them has bought.... and the wholesale rape of websites by people being PAID to do it by the MegaUpload clones.... Not bothered by WHAT they share... just uploading and uploading as MUCH as they can in order to earn affiliate payments on content they have no right to be earning money from....

By the way..... Research clearly shows that the majority of purchased gay porn is an 'impulse purchase'.... I SEE someone/some situation/some particular model that takes my eye and fancy.... I subscribe... (Unless I can feel fairly assured that this film will be available for FREE, usually within days of it's release..but sometimes on the DAY of release.... thanks to MegaUpload and others encouraging mass piracy for profit that is...)

Some people appear to be really sorry that MegaUpload and (believe me)... the rest of these types of sites are closing or closing their 'payment for piracy' affiliate schemes..... But actually, these sites have just screwed the traditional 'file sharing' argument... Namely... what's wrong with sharing a film amongst a few friends? (for free)... I'm NOT saying that's right... but it has MORE legitimacy in it's argument than 'sharing' someone else's content, purely for PROFIT.