Feds shut down Megaupload.com

**pwaldo** · 01-19-2012, 08:13 PM

http://thehill.com/blogs/hillicon-va...ite-megaupload

The Justice Department seized Megaupload.com, one of the world's most popular file-sharing sites, and several of its related sites on Thursday.

Prosecutors charged seven employees of Megaupload with criminal copyright infringement, conspiracy to commit racketeering and other charges.

Each faces up to 55 years in prison.

Megaupload, which operates sites such as Megavideo.com and Megapix.com, claimed to receive 50 million daily visitors, accounting for 4 percent of total Internet traffic. According to court documents, Megavideo.com was the world's 52nd most frequently visited website.

The crackdown comes just one day after a massive Web protest against legislation to expand the power of law enforcement and copyright holders to go after infringing websites.

Prosecutors accuse Megaupload's owners of generating more than $175 million in criminal proceeds and more than half a billion dollars in harm to copyright owners.

The authorities seized 18 domain names related to Megaupload and $50 million in assets.

Web companies argue the bill would stifle innovation and censor speech by forcing sites to police user-generated content.

Sen. Patrick Leahy (D-Vt.), sponsor of the Protect IP Act, applauded the crackdown but said new tools are needed to go after foreign sites.

“Today’s action by the Department of Justice against the leaders of MegaUpload.com shows what law enforcement can do to protect American intellectual property that is stolen through domestic websites. Unfortunately, there are no tools in the arsenal to protect that same American intellectual property from theft by websites hosted and operated overseas," Leahy said in a statement.

"Why should we give greater protections to criminals engaging in the same conduct overseas? Meaningful legislation to stop online infringement and piracy by foreign rogue websites will protect American workers, American consumers and America’s economy.”