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Autor Tema: EEUU media industry panic, the fbi takes down megaupload  (Leído 2708 veces)

Machetazo

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EEUU media industry panic, the fbi takes down megaupload
« en: Enero 20, 2012, 01:33:11 am »
Yesterday one could read a new about how hollywood hates obama for not supporting SOPA

http://news.cnet.com/8301-31001_3-57362089-261/payback-did-sopa-cost-obama-hollywood-donors/

now i see the feds closing megaupload, one has to remember megaupload was going to fuck hard Universal about the megasong youtube scandal

http://arstechnica.com/tech-policy/news/2011/12/umg-we-have-the-right-to-block-or-remove-youtube-videos.ars


Citar
The Internet Strikes Back: Anonymous Takes Down DOJ.gov, RIAA, MPAA Sites To Protest Megaupload Seizure
from the doj-does-not-understand-what-has-been-unleashed dept

I'll have a more detailed look at the Megaupload indictment tomorrow (there are some really ridiculous claims in there, but also some evidence of bad actions on the part of Mega, which isn't too surprising). However, even if you're 100% positive that Megaupload was a bad player in the space, you have to question both the timing and the process of completely taking down the site/company the day after practically the entire internet rose up to protest the threat of similar takedowns under SOPA/PIPA. For them not to think the reaction would be fast and furious shows (yet again) just how incredibly, ridiculously, out of touch with the internet the DC establishment is.

Within minutes of the site being shut down, and DOJ releasing its statement, Anonymous sprang into action and started taking down a ton of sites -- including websites for the DOJ, the US Copyright Office, Universal Music, the RIAA, the MPAA and a bunch of other sites. They're apparently still targeting more.

Think of this as the flipside of yesterday's protests. Yesterday the internet folks went dark to protest things. Today... following the government's decision to show off its existing censorship powers -- mocking yesterday's protests -- it appears that the industry/government supporters of online censorship are going dark involuntarily... in a different form of protest.

When will the government learn: don't muck with the internet?


http://www.techdirt.com/articles/20120119/14494917475/internet-strikes-back-anonymous-takes-down-dojgov-riaa-mpaa-sites-to-protest-megaupload-seizure.shtml

Citar
MegaUpload, one of the largest file-sharing sites on the Internet, has been shut down by federal prosecutors in Virginia. The site’s founder Kim Dotcom and three others were arrested by the police in New Zealand at the request of US authorities. MegaVideo, the streaming site belonging to same company, and a total of 18 domains connected to the Mega company were seized and datacenters in three countries raided.

megauploadJust a few weeks ago, MegaUpload founder Kim Dotcom told TorrentFreak that his Mega ventures have nothing to worry about, as they operate within the rules of the law.

“Mega has nothing to fear. Our business is legitimate and protected by the DMCA and similar laws around the world. We work with the best lawyers and play by the rules.

“We take our legal obligations seriously. Mega’s war chest is full and we have strong supporters backing us,” Dotcom said.

But behind the scenes powerful forces were at work, plotting the forceful demise of MegaUpload, one of the world’s biggest websites.

An indictment unsealed today by the Department of Justice claims that MegaUpload has caused the entertainment industries more than $500 million in lost revenue and generated $175 million “in criminal proceeds.”

Two corporations – Megaupload Limited and Vestor Limited – were indicted by a grand jury in the Eastern District of Virginia on January 5th, 2012, and charged with “engaging in a racketeering conspiracy, conspiring to commit copyright infringement, conspiring to commit money laundering and two substantive counts of criminal copyright infringement.”


http://torrentfreak.com/megaupload-shut-down-120119/

This will be fun cause the timing, now the media industry has enraged all the paying customers of megaupload (you sure know someone), just the day after the sopa blackouts...


« última modificación: Abril 12, 2012, 18:48:39 pm por Machetazo »

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Re:EEUU media industry in panics, the fbi takes down megaupload
« Respuesta #1 en: Enero 20, 2012, 23:24:12 pm »
This is an unforeseen (by me) and impressive development.  I expect a big popular reaction. 

Because you just can't rely on Bread and Circus and then cut off the Circus.


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Re:EEUU media industry in panics, the fbi takes down megaupload
« Respuesta #3 en: Febrero 29, 2012, 14:00:43 pm »
Megaupload Founder Defeats US Govt Attempts To Put Him Back In Prison


After being granted bail last week, Kim Dotcom went home to spend some quality time with his family. The Megaupload founder had been in prison for little over a month after his arrest in January. Upset at the decision to grant Dotcom freedom, the US Government, argued yesterday in an appeal hearing that he should be put back in jail. Today they failed in that attempt and Dotcom remains a free man – at least for now.

On February 22nd, Megaupload founder Kim Dotcom was released on bail by North Shore District Court Judge Nevin Dawson.

Dotcom had been held in custody since an anti-terrorist police squad raided his Coatesville mansion in January following a lengthy FBI investigation.

The prosecution, acting on behalf of the US Government, argued that Dotcom had hidden resources that would enable him to flee the country should he be granted bail. Although four additional bank accounts in the Philippines were discovered, all of them were empty, and the Judge concluded that there was no evidence of significant funds elsewhere

As a result the Megaupload founder was released from prison, free to continue the fight against the US authorities who want him extradited to face racketeering, copyright infringement and money laundering charges.

When TorrentFreak spoke with Dotcom yesterday he was in high spirits but the Crown, acting on behalf of the US Government, had already appealed the decision to free the Megaupload founder.

Crown prosecutor Anne Toohey told the court yesterday that since Dotcom’s release last week two further banks accounts had been discovered – one in the Philippines and another in the British Virgin Islands containing $2000.

She said that this, along with allegations that Dotcom might have access to forged travel documents, was enough to have the 38-year-old put back in prison.

Representing Dotcom, Paul Davison QC argued that it made no sense for his client to try and flee the country, not least because his wife Mona will shortly give birth to twins.

Today Judge Tim Brewer agreed, denying the prosecution’s appeal and allowing Dotcom to remain a free man pending an extradition appeal in August.

Also in court today, Dotcom and his wife had asked for access to around NZ $220,000 (US $185,130) to cover their living costs including rent of their mansion, security guards and other household staff. The amount would also cover substantial telephone costs incurred as Dotcom prepares his defense, fuel and tutoring for Dotcom’s children.

Previously, Judge Judith Potter agreed to release NZ $74,000 from one of Dotcom’s seized bank accounts to pay creditors left out of pocket after the shutdown of his companies.

It also emerged that US authorities are now investigating Mona Dotcom on suspicion of being involved in Megaupload.

http://torrentfreak.com/megaupload-founder-defeats-us-govt-attempts-to-put-him-back-in-prison-120229/

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Re:EEUU media industry in panics, the fbi takes down megaupload
« Respuesta #4 en: Marzo 14, 2012, 03:45:44 am »
Megaupload Founder Claims Many U.S. Government Users
Andy Chalk | 13 Mar 2012 19:18
20
image

Megaupload founder Kim Dotcom says many of the site's users were U.S. government officials and he's hopeful they'll all soon be able to regain access to their perfectly legitimate data.

The hammer fell on Megaupload in January, when U.S. government officials unsealed an indictment against its founder, Kim Dotcom, and other employees, claiming that copyright infringement through the service had cost rights holders more than $500 million in lost revenue. Dotcom himself was taken into custody by way of an anti-terrorism style raid on his New Zealand home and of course Megaupload and its related sites were all seized by the U.S. government.

There's no denying that copyright infringement was the bread and butter of Megaupload but it's equally true that the site also had its fair share of legitimate users who lost access to their files as a result of the takedown. The Megaupload legal team is trying to come up with a way to reconnect these users with their data, according to Dotcom, which has led to the discovery that many of them are actually members of the U.S. government.

"We found a large number of Mega accounts from U.S. government officials including the Department of Justice and the U.S. Senate," he told Torrentfreak. "I hope we will soon have permission to give them and the rest of our users access to their files."

It's hardly surprising that Dotcom would try to muddy the waters as he fights extradition, but the Electronic Frontier Foundation says the loss of legitimate data caused by the sweeping takedown is a real concern. "EFF continues to identify more people who have lost access to legitimate personal files. Our goal is to help them get their files back as quickly and efficiently as possible," EFF attorney Julie Samuels said.

"In general we are very concerned about the implications the 'Mega conspiracy' indictment has for the future of cloud computing and file-hosting services, and innovation more generally," she continued. "It's hard to imagine how the nature in which this went down won't have a chilling effect going forward. We hope to come up with processes for future cases that will counteract that."

Dotcom's extradition hearing is currently scheduled for August 20.

http://www.escapistmagazine.com/news/view/116301-Megaupload-Founder-Claims-Many-U-S-Government-Users

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Re:EEUU media industry in panics, the fbi takes down megaupload
« Respuesta #5 en: Marzo 19, 2012, 01:42:02 am »
i can smell something coming

http://yro.slashdot.org/story/12/03/18/155246/kim-dotcoms-assets-seizure-order-ruled-null-and-void


"Cnet's Greg Sandoval reports that New Zealand police filed for the wrong kind of restraining order--the kind that didn't allow for DotCom to have a court hearing prior to the seizure--and that was a mistake, according to a report in the New Zealand Herald. A court has now ruled that the restraining order that enabled police to seize his assets is 'null and void,' and a review of the mistakes made will soon be conducted by New Zealand's attorney general, according to the Herald. The paper noted that there's no guarantee that DotCom will prevail. His lawyers must prove the absence of good faith when the procedural error was made."

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Re:EEUU media industry in panics, the fbi takes down megaupload
« Respuesta #6 en: Marzo 31, 2012, 14:37:21 pm »
An Ohio man is asking a federal judge to preserve data of the 66.6 million users of Megaupload, the file-sharing service that was shuttered in January following federal criminal copyright-infringement indictments that targeted its operators.

Represented by civil rights group Electronic Frontier Foundation, Kyle Goodwin wants U.S. District Judge Liam O’Grady, the judge overseeing the Megaupload prosecution, to order the preservation of the 25 petabytes of data the authorities seized in January. Goodwin, the operator of OhioSportsNet, which films and streams high school sports, wants to access his copyrighted footage that he stored on the file-sharing network. His hard drive crashed days before the government shuttered the site Jan. 19.

“What is clear is that Mr. Goodwin, the rightful owner of the data he stored on Megaupload, has been denied access to his property. It is also clear that this court has equitable power to fashion a remedy to make Mr. Goodwin — an innocent third party — whole again,” the group wrote the judge in a Friday legal filing.

The legal filing, the first representing a Megaupload customer, follows a similar move by the Motion Picture Association of America, whose desire to save the data is very different from Goodwin’s. Last week, it asked Carpathia, Megaupload’s Virginia-based server host, to retain the Megaupload data, which includes account information for Megaupload’s millions of users. The MPAA said it wants that data preserved because it might sue Megaupload and other companies for allegedly contributing to copyright infringement.

Megaupload allowed users to upload large files and share them with others, but the feds and Hollywood allege the service was used almost exclusively for sharing copyright material — which Megaupload denies.

A hearing on the data issue is set for next month.

Federal authorities have said they have copied some, but not all of the Megaupload data, and said Carpathia could delete the 25 million gigabytes of Megaupload data it is hosting.

Carpathia said it is spending $9,000 daily to retain the data, and is demanding that Judge O’Grady relieve it of that burden. Megaupload, meanwhile, wants the government to free up some of the millions in dollars of seized Megaupload assets to be released to pay Carpathia to retain the data for its defense and possibly to return data to its customers.

The criminal prosecution of Megaupload targets seven individuals connected to the Hong Kong-based file-sharing site, including founder Kim Dotcom. They were indicted in January on a variety of charges, including criminal copyright infringement and conspiracy to commit money laundering.

Five of the members of what the authorities called a 5-year-old “racketeering conspiracy” have been arrested in New Zealand, pending possible extradition to the United States.

The government said the site, which generated hundreds of millions in user fees and advertising, facilitated copyright infringement of movies, often before their theatrical release, in addition to music, television programs, electronic books, and business and entertainment software. The government said Megaupload’s “estimated harm” to copyright holders was “well in excess of $500 million.”

http://www.wired.com/threatlevel/2012/03/megaupload-seized-content/

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Re:EEUU media industry panic, the fbi takes down megaupload
« Respuesta #7 en: Abril 12, 2012, 18:49:30 pm »
US Govt. Objects To Megaupload Hiring Top Law Firm

Last week it was revealed that Megaupload had retained the services of Andrew Schapiro, the lawyer who led YouTube to a summary judgment in its copyright trial against Viacom. But now the US government has filed papers objecting to Schapiro’s law firm working on Megaupload’s defense, citing conflicts of interest involving Google, YouTube, Disney, Fox and other movie, TV show and software companies.

Following the raids on Megaupload in January, tens of millions of dollars in assets and funds belonging to the company were seized.

Initially a law firm called Sidley Austin LLP had been negotiating on Megaupload’s behalf for the return of such assets and funds held in Hong Kong, New Zealand and Canada. Funds were indeed released from Hong Kong in February (to pay Mega employees) and from New Zealand in March (to pay for Kim Dotcom’s living expenses).

At the end of last month, Sidley Austin LLP and Rothken law firm filed a motion in the US to have more funds released to cover Mega’s legal fees. Later Sidley Austin withdrew and a new law firm called Quinn Emanuel Urguhart & Sullivan took their place.

The addition of the Los Angeles-based company to Megaupload’s legal team was widely considered a great asset for Kim Dotcom and his co-defendants to exploit. Andrew Schapiro, a partner at Quinn Emanuel, had previously represented several technology and media companies including Google and YouTube, leading the latter to a summary judgment in its $1 billion lawsuit against Viacom.

In a new court filing the US government complains that Schapiro’s past record in copyright cases, and that of Quinn Emanuel as a whole, present a series of conflicts of interest.

The government says the first conflict concerns YouTube. Last week the U.S. Court of Appeals in Manhattan reversed a lower court’s decision to issue summary judgment in the Viacom v YouTube case, so now that battle is back on. YouTube is also listed as a victim and potential witness in the criminal indictment against Megaupload. Quinn Emanuel can’t have interest in both cases, the government says.

The second claimed conflict concerns Google, a company represented by Quinn Emanuel on a number of occasions including some involving the company’s AdSense advertising service. According to the Megaupload indictment, Google withdrew its Adsense service from the now-defunct file-hosting service in part due to copyright infringement concerns. The government intends to call Google as a witness in the Megaupload case.

But it doesn’t stop there. The government goes on to list several companies that have been represented by Quinn Emanuel in copyright matters who are also alleged victims in the Megaupload case and who could be called as witnesses.

The list includes a who’s-who of Hollywood and TV companies including Disney, Fox, Time Warner, Warner Bros. and HBO, in cases dating between 2006 and 2009. Another, a trademark dispute involving the company Danjaq LLC (holder of copyrights and trademarks relating to James Bond) and Sony dates back to 1998.

Software companies make an appearance too. Quinn Emanuel represented Brøderbund Software back in 1986, Intuit (the company behind Quicken) in 1997, and at some point Bulletproof Software. It is claimed that all of these companies had their products distributed unlawfully via Megaupload and could be called to give testimony.

“It is unclear how Quinn Emanuel intends to zealously represent defendants Megaupload Limited and Kim Dotcom while also protecting confidential attorney-client information gained in the course of representing other clients [...] particularly where those clients’ interests are directly opposed to those of the defendants,” the government writes.

But according to the government the conflicts go even deeper, particularly since Quinn Emanuel are now applying for funds seized from Megaupload to be released in order to pay legal fees.

“The possibility of a conflict of interest raised by Quinn Emanuel’s proposed representation of Megaupload Limited and Kim Dotcom is not limited to mere subject matter. The assets seized by the government from defendants may eventually be restored to victims – including possibly the current and former Quinn Emanuel clients listed above – as restitution,” the government adds.

In any event, the US government believes that the amount of money already released by New Zealand to Kim Dotcom ($240,000 to be released in monthly installments of $32,000 until the funds are depleted then indefinite monthly payments of $16,000) will not prove restrictive when it comes to hiring a “competent” legal team, “..even if such funds prove insufficient to pay Quinn Emanuel’s billing rates.”

The government’s complaints pose a real problem for Megaupload. Will it ever be possible for Kim Dotcom and his co-defendants to recruit a high-quality copyright specialist law firm that hasn’t ever represented any of the potential witnesses in the case? It seems unlikely.

Meanwhile, the fight for legitimate users of Megaupload to get their data back continues.

“The Electronic Frontier Foundation (EFF) will ask a federal judge on Friday to establish a process that would allow lawful users of Megaupload’s cloud storage service to get their files back,” the EFF reports.

http://torrentfreak.com/us-govt-objects-to-megaupload-hiring-top-law-firm-121012/

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Re:EEUU media industry panic, the fbi takes down megaupload
« Respuesta #8 en: Abril 29, 2012, 04:06:00 am »
http://torrentfreak.com/megauploads-kim-dotcom-gets-750-000-back-120428/

The New Zealand High Court has decided to return several items of property belonging to Kim Dotcom.

The Megaupload founder is allowed to keep his $20,000 a month spending budget and regains use of his Mercedes-Benz G55AMG, a luxury car worth $250,000 that sports “Police” on its license plate. A bank account containing $301,000 was also returned.

Dotcom’s wife Mona will have her expenses covered and can have use of a Toyota Vellfire.

Despite the partial success, Stuff reports that the High Court chose to uphold the majority of the US District Court seizure order. This means that most of Dotcom’s cars and other goods will remain with the authorities until further notice.

Dotcom’s attorney Willie Akel had asked the court to return all properties because the New Zealand authorities didn’t investigate the US request, but Judge Potter said that the Attorney General is not required to evaluate the legitimacy of the US order.

A significant portion of the new funds will be used to pay for legal expenses, both in New Zealand and the United States.

Among other things, the legal team will try to prevent Dotcom’s extradition. A court will review whether the Megaupload founder has committed an extraditable offense that violates New Zealand law. Earlier this week Dotcom’s US lawyer Ira Rothken said they are confident that this is not the case.

“According to our New Zealand counsel we don’t think that would be the case so we’re optimistic that Kim Dotcom will have a good result in New Zealand,” Rothken said.

The extradition hearing is scheduled for September. In the meantime Megaupload’s defense team is preparing a response to the US indictment, which is expected to be filed in the coming weeks.

Dotcom believes that they have a strong case against an indictment he describes as “nonsense.” The Megaupload founder previously shared several issues that the defense team will bring up in their reply, and he characterized the whole case as a political move.

“This Mega takedown was possible because of corruption on the highest political level, serving the interests of the copyright extremists in Hollywood,” he said.

Whether Megaupload will have to defend itself is still uncertain though. Last week Judge O’Grady informed the FBI that a trial in the United States may never happen because it is impossible to serve a foreign company with criminal charges.
« última modificación: Abril 29, 2012, 04:07:55 am por Machetazo »

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Re:EEUU media industry panic, the fbi takes down megaupload
« Respuesta #9 en: Mayo 25, 2012, 03:57:22 am »
"High Court chief judge Helen Winkelmann has told the Attorney-General's lawyer, Mike Ruffin, he has until Monday to explain why FBI agents were allowed to take 135 cloned computer and data storage devices to the United States."

http://hardware.slashdot.org/story/12/05/23/2210245/kim-dotcom-demands-access-to-seized-property-to-defend-himself

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Re:EEUU media industry panic, the fbi takes down megaupload
« Respuesta #10 en: Mayo 25, 2012, 03:58:13 am »
Seriously go read the indictment, it has money laundering, it has fraudulent take down procedures, it have fictitious users. Copyright infringement was just an underlying thing, they have him banged to rights which is why he's trying for the "excessive force" side defense.

Mega Indictment [scribd.com]

Hahaha. Did you actually read this whole document? You really should.

It also has child pornography, terrorism propaganda, and many other neat things.

It also has things taken out of context, examples of Kim uploading his legally purchased songs to his private account on Megaupload (which is perfectly legal, but presented as if he was distributing the music by uploading 2 songs to his own account).

It has many many assumptions. Assumptions that Megaupload was a 'personal cyberlocker service', then 2 paragraphs later DoJ complains that Megaupload did not have a search function - therefore, they were up to something.

No, you really should read the document. It is not an indictment, it is a propaganda document

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Re:EEUU media industry panic, the fbi takes down megaupload
« Respuesta #11 en: Junio 15, 2012, 16:26:32 pm »
FBI told to copy seized Dotcom data

Attempts by Kim Dotcom's legal teams to have criminal charges against him in the US thrown out have been unsuccessful. Photo / Brett Phibbs

The FBI has been ordered to start copying 150 terabytes of data - including 10 million emails - contained on the seized computers belonging to internet mogul Kim Dotcom.

In her ruling released today, chief High Court judge Justice Helen Winkelmann ordered that the copying process begin as soon as possible.

But whether or not the information will then be passed to Dotcom's lawyers as they prepare a defence against his extradition to the US will be the subject of a future legal argument.

Judge David Harvey in the North Shore District Court ruled last month that Dotcom's lawyers could receive copies of information held by the US authorities in the US and in New Zealand.

That would include more than 130 computers and hard drives seized in the raids on Dotcom's multi-million dollar mansion in Coatesville, north of Auckland.

Crown lawyers on behalf of the US Government sought a judicial review of that decision on the grounds the District Court could not make a ruling under the Extradition Act.

The lawyers for the US Government argued Dotcom and his associates have access to some documents, including emails and their bank account records.

They said that under US law, disclosure is only granted once the accused appears in a US court.

Lawyers on behalf of the US Government also said they would not be able to disclose all the information in the 21-day period required.

They told the court there were over 10 million emails seized and "voluminous'' financial records.

FBI agent Michael Postin said in an affidavit that the items seized in New Zealand alone are estimated to contain more that 150 terabytes of data.

To give an idea of how much work was involved, he said it had taken 10 days to copy 29 terabytes.

Mr Postin said copying all of the data could take two and a half months. He said some of it could not be copied because it has been encrypted.

However, Justice Winkelmann ordered that the authorities begin making copies of all the information.

She said that the US Government had "ample means'' to do the work. '' ... [T]he expense involved in copying must be dwarfed by the other costs of an investigative and prosecutorial operation of this size.''

The judge went on to say that if Dotcom is extradited to the US then the work will not have been a waste of time.

But she said it was not possible to determine yet whether or not the US Government had an obligation to release the information to Dotcom's lawyers.

Justice Winkelmann ordered that a further two-day hearing be held to determine that matter.

Dotcom and associates Finn Batato, Mathias Ortmann and Bram van der Kolk face an extradition hearing in August which will determine whether or not they are to fly to the US to face charges including copyright infringement and wire fraud relating to the file-sharing website Megaupload.

Prosecutors allege a "mega conspiracy''; Dotcom denies the charges and says his website was legitimate.

Dotcom request to drop charges a waste of time - US Attorney's office

Meanwhile the the US Attorney's office has rubbished Kim Dotcom's plea to have criminal charges dropped, saying the request is a waste of court time and resources.

The Auckland-based Megaupload founder claimed earlier this month that America had no jurisdiction over his Hong Kong-based cloud-storage service.

But according to court papers filed by Neil MacBride, US Attorney for Eastern District of Virginia, and reported in CNET News, Dotcom's request to dismiss criminal copyright charges should be denied.

In a 20-page document, lawyers for the American government also argued that Dotcom's request to dismiss the charges was "premature" because none of the defendants have refused to appear before the court.

Yesterday a former New York federal judge Abraham David Sofaer joined the Dotcom drama.

He claimed it was "outrageous" that the US government was refusing to return 66.6 million files of data to Megaupload users.

The ex judge told wired.com: "I was thinking the government hadn't learned to be discreet in its conduct in the digital world. This is a perfect example on how they are failing to apply traditional standards in the new context."

- APNZ

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Re:EEUU media industry panic, the fbi takes down megaupload
« Respuesta #12 en: Junio 15, 2012, 16:33:35 pm »
http://torrentfreak.com/u-s-govt-equates-megaupload-to-bank-robbers-120614/

U.S. Govt. Equates Megaupload to Bank Robbers


The U.S. Government has responded to Megaupload’s request to dismiss the criminal proceedings, and to return the money that was seized by the authorities. The U.S. attorney argues that it’s not a problem that Megaupload was not served and notes that it would be unprecedented to dismiss the case at this time. The Government further objects to returning any funds to aid Mega’s defense, as this money was “stolen” from the entertainment industries.

Two weeks ago Megaupload’s lawyers filed a motion to dismiss the criminal case on the basis that the company was never properly served.

This issue was previously acknowledged by Judge O’Grady, who had doubts that the case would ever go to trial due to this procedural matter.

However, the Government believes that the case should continue. In a response filed today, US Attorney Neil MacBride argues that the notion that a non-U.S. company can’t be served should be rejected by the court.

“This line of reasoning leads to the incredible conclusion that foreign corporations can commit crimes in the United States without risk of being brought to justice here,” McBride writes, adding that it would be unprecedented to dismiss the case at this time.

According to the Government the federal rules shouldn’t be interpreted so narrowly. A company should only be served on a U.S. address if they have one, it is argued.

“The provision should be interpreted to require mailing a copy of the summons to the organization’s address or to its principal place of business in the United States, only where such an address or place of business exists.”

Moving on to the money side, the U.S. asks the court to reject Megaupload’s request to return seized funds so these can be used to aid the company’s defense. Previously, the company pointed out that the Government’s argument that all revenue the site ever made came from “infringements” is flawed.

However, the U.S. stands by this assessment and tells the court that returning Megaupload’s assets is no different from handing back stolen money to a bank robber.

“The Government’s interest in forfeiture is virtually indistinguishable from its interest in returning to a bank the proceeds of a bank robbery; and a forfeiture-defendant’s claim of right to use such assets to hire an attorney, instead of having them returned to their rightful owners, is no more persuasive than a bank robber’s similar claim,” MacBride writes.

In addition to the above the Government points out that Megaupload’s motions should be rejected, because the court hasn’t yet decided whether defense lawyer Andrew Shapiro of Quinn Emanuel Urguhart & Sullivan is subject to conflicts of interest.

Shapiro’s law firm previously defended media companies that may be called in as witnesses in this case.

Attorney General MacBride concludes by asking the court to strike Megaupload’s requests. It is now up to Judge O’Grady to come to a decision on the various issues that were raised.

It is clear that the Megaupload case is heating up, even before getting into the factual allegations of the indictment. While it’s too early to conclude anything, the above suggests that the Government is uneasy with the strength of Megaupload’s defense.

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