Megaupload, one of the world’s largest file-sharing websites, has been shut down by federal prosecutors on charges of violating piracy laws, Fox News is reporting. The charges came a day after such popular websites as Wikipedia and Google drew national attention to the new proposed laws Protect Intellectual Property Act (PIPA) and Stop Online Piracy Act (SOPA).
The Justice department issued a statement about the indictment, saying “This action is among the largest criminal copyright cases ever brought by the United States.” The indictment has been brought against seven individuals, as well as Megaupload Limited and Vestor Limited. It states it has cost copyright holders more than $500 million in lost revenue from pirated films and other content.
Megaupload was popular because of its massive size and the volume of downloaded content. It also attracted attention for the high-profile support from celebrities and content producers, who are often the victims of copyright infringement and piracy. Kim Kardashian, Alicia Keys and Kanye West were among the celebrities who endorsed Megaupload. Keys’s husband, musician Swizz Beatz, has been listed as Megaupload’s CEO, but he has declined to comment on the indictment.
The individuals named in the indictment each face a maximum penalty of 20 years in prison on racketeering charges. They also face five years for conspiracy to commit copyright infringement, 20 years on money laundering charges and five years on related charges.
The indictment comes after the Protect Intellectual Property Act has been under consideration in the Senate, and the Stop Online Piracy Act (SOPA) in the House, both of which are backed by the motion picture and recording industries. The bills are intended to eliminate online theft, and would require ISPs to block access to foreign websites that infringe on copyrights.
So, the question is who’s next? Some might speculate that companies that not only distribute pirated software like MegaUpload.com will be the main target, but those that distribute P2P & file-sharing software, such as LimeWire which are commonly used to distribute pirated material, could also be in danger. Time will tell.
