
Originally Posted by
Buyasta
Youtube is actually involved in a case on pretty much the exact same grounds - making money off users pirating content. They were sued by Viacom back in 2007, won the case in 2010, but then had that win overturned in appeals court earlier this year, so Viacom can now go for a jury trial, although I don't think they've actually announced whether or not they're continuing the legal action or not.
As for why Megaupload, it's because they were a whole lot more dangerous to the media companies than any of their rivals. They were on the verge of launching a legal free music site called MegaBox, which was pretty much aimed at putting traditional record companies out of business and providing a new music publishing paradigm more in line with modern technology. Basically it works by giving music for free, with ads on the page, and 90% of the income goes straight to the artist, rather than the record companies taking the lions share, as is the case at the moment. Dotcom has actually just said a day or two ago that he still plans on launching this service, so they haven't managed to kill that potential competition off yet.
He'd also just seriously embarrassed the media companies, having released a song a month before featuring some big name artists like Kanye West, Alicia Keys, will.i.am, P Diddy, and Snoop Dogg, basically coming out in support of Megaupload. When you spend a good portion of your time decrying Megaupload for being a haven of piracy because it harms your artists, it's pretty embarrassing when some of your top talent then comes out in support of them. To make matters worse, some moron at UMG then illegally had the video taken down using a DMCA request, which turned the whole thing into even more of a shitstorm - being caught abusing the piece of legislation you've just spent years complaining doesn't offer you enough power to take down infringing content doesn't really help your cause any.
That wasn't the first case of media companies abusing the DMCA and illegally having content removed using bogus DMCA requests, but it was much higher profile than most other cases, and attracted a whole lot more attention on the issue.
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