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Why was MegaUpload really shut down?
(UPDATE: Forbes covered this story a day after this was posted. ( As did Prison Planet ( Awesome, guys! )

In December of 2011, just weeks before the takedown, Digital Music News reported on something new that the creators of #Megaupload were about to unroll. Something that would rock the music industry to its core. (

I present to you... MegaBox. MegaBox was going to be an alternative music store that was entirely cloud-based and offered artists a better money-making opportunity than they would get with any record label.

"UMG knows that we are going to compete with them via our own music venture called, a site that will soon allow artists to sell their creations directly to consumers while allowing artists to keep 90 percent of earnings," MegaUpload founder Kim 'Dotcom' Schmitz told Torrentfreak

Not only did they plan on allowing artists to keep 90% of their earnings on songs that they sold, they wanted to pay them for songs they let users download for free.

"We have a solution called the Megakey that will allow artists to earn income from users who download music for free," Dotcom outlined. "Yes that's right, we will pay artists even for free downloads. The Megakey business model has been tested with over a million users and it works."

(Also available in Spanish ( )
Shauna Myers's profile photoMatt Jenkinson (Crowbar)'s profile photoColton Cherry's profile photoAidan O'Hora's profile photo
Someone please tell me I'm crazy
It straightforward true and honest. With era digital, why would we take up fee more than 5%?
This really wouldn't surprise me if it was the real reason.
This is quickly becoming the United States of China!!!!
No wonder the raid on Kim Dotcom was a coincidence. He had tons of criminal charges already on him, why didn't they go after him earlier? Something is real fishy here. Wonder if the Feds are flirting with Universal Music Group, because it sure seems so.
Dad Davis
Maybe it was because you and I were screaming "NO WAY JOSE" about the SOPA and PIPA bills in Congress . It was done to prove to the world that there were "Baddies" out there that they wqanted to shut down to protect us.
Protect us? Haha, protect Hollywood and Record Labels.
You saw my point precisely!
and it's not even in the USA it's in NZ - now hollywood can change the laws of any nation OMG.
Doesn't it make you feel like the reach of a money making industry through our government makes us look like tools to the rest of the world? Shouldn't we be better than this?
+Thomas Conway IV being in Australia it makes me a little angry that our government has also sold out to hollywood - Assange, the IInet ISP case, new US bases on Australian soil, changing laws to comply with the free trade agreement. Don't get me wrong I love the USA and it's people but your Govt has got a hide!
It was theatre, pure and simple.

If this idea is workable, it'll happen regardless. Probably already is happening somewhere.
Yeah.. I don't think so. Kim Schmitz is a known fraudster (check wikipedia).
No more so than any of the major corporations who are trying to destroy the internet.

If an individual tried to pull that rootkit bullshit that Sony did, they'd go to prison for fucking decades. As it is, Sony gets to lobby the US govt, and pass laws attacking the civil rights of every one on the planet.
so all this happend because they dont want the artist have 90%!!! damn.. but the idea is there !!! just wait for execution!
And we now see what the music industry has become. Our government.
So now we just need someone clean to implement the plan and business model, and Bing-Bang-Boom: Fair music industry might start to take form?
Things are clarified now. like to see the faces of those artist who supported the shutdown
A post by a random person with no sources. Claims that "the Megakey business model has been tested with over a million users" yet no one has heard of it. Yes, Dotcom mentioned the idea to Torrentfreak months ago, but it never went anywhere, so I think it's save to say that the MPAA went after them for precisely the reasons they mentioned in their lawsuit.
Is this article really true
If this was a good idea then, what's stopping it from being a good idea now? Who has money for server space and can open a dialogue with musicians?
I'm probably in the minority because I still buy CDs. Call me old fashioned, but I still like something tangible that I can hold onto.
Oooh, a conspiracy... I don't see how MegaBox would have been any different from all the other "independent" online Music stores that sell stuff from artists who are not affiliated with the Major labels. Artist who have signed with a major would not be allowed to sell their stuff on MegaBox, nor would MegaBox have been allowed to do it in their name either. So, it would have been a bigger CD Baby, but not a major threat...
+Xeross UMADBRAH In that case, whoever wants to disrupt the major labels, now has a clear path to follow, all that is needed is a lot of cash - preferably not obtained by aiding piracy :)
Is MegaBox killed now? Or it was frozen along with MegaUpload?
I'd says it was hosted on the same servers and thus is equally dead
I really suggest reading this..

*For instance, the “abuse tool” allegedly does not remove the actual file being complained about by a rightsholder. Instead, it only removes a specific Web address linked to that file—but there might be hundreds of such addresses for popular content.

In a 2008 chat, one employee noted that "we have a funny business... modern days [sic] pirates :)," to which the reply was, "we're not pirates, we're just providing shipping servies [sic] to pirates :)."

Employees send each other e-mails saying things like, “can u pls get me some links to the series called ‘Seinfeld’ from MU [Megaupload]," since some employees did have access to a private internal search engine

Employees even allegedly uploaded content themselves, such as a BBC Earth episode uploaded in 2008.

Other messages appear to indicate that employees knew how important copyrighted content was to their business. Content owners had a specific number of takedown requests they could make each day; in 2009, for instance, Time Warner was allowed to use the abuse tool to remove 2,500 links per day. When the company requested an increase, one employee suggested that "we can afford to be cooperative at current growth levels"— implying that if growth had not been so robust, takedowns should be limited. Kim Dotcom approved an increase to 5,000 takedowns a day.

Employees also had access to analytics. One report showed that a specific linking site had “produce[d] 164,214 visits to Megaupload for a download of the copyrighted CD/DVD burning software package Nero Suite 10. The software package had the suggested retail price of $99.” The government's conclusion: Megaupload knew what was happening and did little to stop it.*
How can anybody believes anything said by mr Dotcom aka Kimble ? Do a bit of reseach this guy is a mythomaniac crook. I won't be very popular but Megaupload was always about unfair sharing and pirating.
+Peter Kjeldsen If you store via deduplication, the same content can be linked to illegitimate and legitimate. If you remove the content (both links are dead), you risk damaging a legitimate rights holder (your personal back up copy of something, legitimate under fair use).

If the Postal Service employee tells another: "I think we are shipping drugs in some of envelopes - we are modern day drug traffickers" - time to shut down the Postal Service?

Private internal search engine - OK, at fault. Breaks privacy laws as well. That goes also for your last argument. They should not know the content, but analytics and the amount of indiscriminate takedowns they allow are clearly business decisions.

tl;dr: lots of small stuff which account for a minor misdemeanor in my book. Grand Jury is clearly political, Shauna Myers right.
+Xeross UMADBRAH In that case, they would have just deleted all the infringing content and shut down the service and kept the money...
You've been linked to on Reddit and I commented there, and since I'm as lazy as anyone else on the web, I'll shamelessly paste my comment here too:

The MegaKey was featured in a documentary I watched months ago, so MegaUpload had been working on this for a while and was probably about to launch it.

The only issue is that, as much as I can remember off the top of my head, the MegaKey was basically a browser add-on that would replace the advertising on any website with MegaUpload's own advertising inventory.

They were basically piggybacking the entire web's main revenue stream. You gotta give it to them, the guys had balls and a grand vision. This would have been a gigantic legal clusterfuck.

As much as I hate the media conglomerates, I think MegaUpload equally didn't give a shit about anyone else, and I'm at least glad the MegaKey will never see the light of day.
+Cyril Doussin I didn't look too much into what else the MegaKey actually did, but why would that be any worse than, say, AdBlock if it changed ads instead of removing them? Equal ad viewing is lost.
This make sense. It's like free2play videogames, but with music.
This article was written by a high schooler.
Simon - There are none, just some kids interpretation.
Wow and just WOW!, because this, I'm gonna worship you, as it clearly reveals how the lobbyist wanted MU dead Q_Q
Why would they take down MegaUpload for this if the Artist was still going to get paid regardless of who the content went to?
It takes months to line up the legal process in order for an operation like that to take place. It is highly unlikely that either the introduction of MegaBox or even the protest against SOPA were what precipitated this; however, it is possible that it/they had some effect on the timing (i.e. the 19th vs the following week) and that this was done to send a message.
Conspiracy Theorists of the world unite.

Clearly a lot of you have not seen Google Music, 70% to the artist 30% to Google. So based on all your theories we can expect to see Google closed down can we?
So now UMG/RIAA/MPAA etc. are waging war not just on pirates, but on anyone who tries to compete with their unfair, outdated business model. FFS guys, we have the Internet now. Move with the times or get out of the way.
+Lachlan Bates because, if they do so, sony music, universal, and others, will lose 100% of their income, as no artist will sign with them, for the record, they earn about 1% of the profit for each sale on their albums. (not the lobbyist, but the artist get the 1% I mean)
+mike quinn Google Music is only available in the USA so I can't check it out - what are the prices like, and are downloaded files DRM-free?
Wait, so the theory here is that, due to an announcement made a few weeks ago, the music companies caused the FBI two years ago started an investigation that led to an arrest this week? If that's the case then the news should be about the music company's secret crystal ball that allowed them to start this conspiracy two years before is supposed cause. Or is the suggestion that the FBI actually did their entire investigation in a few weeks, and are lying in saying it's been underway for a long time? I really don't know which is less plausible.
+David Edney I think it's impossible to be sure whether or not this is coincidence. I certainly think it's plausible that an existing investigation could be accelerated to have Mega shut down before their new product could go live.
Who knows if Google will be taken down because of that, they only mess with one part of their business after all, also, if what I read was true, that Google changed something in the Chinese government that no one else could, then they have more power that we know of, but who knows..... who knows.........
someone else should just introduce megabox.
+Shauna Myers From the point of view of the web master/designer it modifies the site as it was intended. For all you know they could insert ads that screw with your site in terrible ways. These ads could even try to phish data from the users, or replace other content on the site might get replaced.

Adblock lessens the revenue generated by some sites, but overall everyone can live with it. This on the other hand, if it got popular, which it probably would, would be terrible for the users and the web in general.
Not sure about the authenticity of this, but certainly interesting.
This is why we can't have nice things....
If you believe anything the guy behind Megaupload/Megabox tells you, i have a nice used car i would like to sell you.
Martin Seeger - megabox did exist and it did work. I doubt this was the real reason behind the take down but Dotcom did not lie in this regard.
+Will York - As you say, there's absolutely no way of knowing there's any corruption here, and no real evidence of any corruption. Saying "We don't know there was corruption, but you never know, there could have been" is beyond absurd, and at the very least not evidence of anything. And I'd also point out that this arrest has shut down all of Megabox's operations, so it's not like putting it off until after the launch would have made any real difference.

Plus, beyond this retrospective wishing to try to make the facts fit this conspiracy theory, there's no serious reason to think that Megabox's music service would have taken off like some kind of iTunes. As people have pointed out on Reddit, the service isn't even anything new, CDbaby has been doing the same thing for ages.
Ollie K
TPB is equally useful in all countries @emias yorkie
decent music thing pal its shit trying hard to beat itunes fucking failure die of aids
WOW please spread this to relevant and significant people/organisations to get this moving! Reddit is a great one, but get it on more!
Bandcamp looks quite global, and quite awesome also!
+Emias Yorkie Sadly bandcamp consists of smaller artists at the moment but it's free to join. They don't pay for free plays but they allow free plays and a "pay what you want" model. Artists can set minimums for albums (which allows those who truly appreciate the music to give more). It's a great place for music but the selection is definitely limited.

The reason most "A list artists" don't use alternative services is they are locked in egregious contracts with labels that hold a large part of the music industry in the states hostage. However, if artists continue to find success on bandcamp, I don't doubt new artists will join as well.

The real problem here is the insane extension of copyright beyond the original 14 year time window. Works never become public anymore and it creates powerhouses that control all content. If copyright had never been lobbied to be extended, you wouldn't have to pay for music prior to 1998 as it enter into the public domain. Wrap your head around that...
Actually MegaBox had already launched. I tried it last week, looked neat but I only found 30 second streams, and in order to upload your own music collection you had to download some kind of desktop client, which I didn't really trust in.
Seems legit. Pirates making millions by stealing from everybody will care for the artists. Sure.
This reminds me of all the conspiracy people that say there was a guy that made a car engine that ran on water but he was killed by the auto and oil industry, or another about a guy that has a cure for cancer but was silenced by big pharmaceutical companies.
aehhhm a similar thing already exists... that's called SPOTIFY. it's perfectly legal and it lets you stream music in GOOD QUALITY, which is something we couldn't say about megavideo...
Hmmm...People are getting VERY angry VERY quickly!!!
+Gabriele Catalano I wish Spotify didn't require you to specify the exact tracks you wanted to listen to. So be more like Or to have re-enabled in my country would be nice too.
Not sure about your unfounded theory.

I like idea of this shared revenue 'pot':
1. Make majority of ad revenue on the most popular content.
2. Spread that revenue more evenly to all content producers.
3. Everybody happy...

Is it media socialism?
If 'government' weren't in the way, would it be a fair model?
I guess Hollywood producers might have to sell their mansions, but they'd still have a decent income!
Neo Lix
Haha forget it. Kimble never made anything successful AND legal. He always wanted to be famous and rich - but never was qualified enough to do it for himself and in the right way, even back then when he was in school (some old acquaintance of mine went to school with him, here in Munich / Germany).
Perfect reason to shut it down... they put their foot on the old man's tail :)
Bandcamp doesn't pay for free downloads, but you can offer a limited number of them. The more you actually sell, the more free downloads you can get. You can set any price you want, including "pay what you want" so people can pay $1 or $100, if they'd like. Artists get 90%. PayPal also takes a small amount, but it's still much better than even Amazon or iTunes for artists. Also, free streaming and lots of other tools. Honestly, I don't work for them! But I've sold a ton of music through them and it's been nothing but wonderful. There are indeed many artists who live off of what they make through Bandcamp and other outlets. As for Spotify, yes, artists DO get paid, maybe, but it's very VERY little. Paid streaming is a terrible revenue stream for artists. It's a cool service for the listener, though.
Why was he even taken by the FBI? He is not even an American citizen(?) and he is not even living in America. Maybe because megaupload is hosted in USA?
Apart from the outrageus claims about making money out of thin air (also known as free downloads), there is nothing in this service that doesn't exist already on the net (let people sell their music themselves). Someone needs to loosen up their tinfoil hat...
Hey, if it weren't for the feds we wouldn't have Universal Studios...
+nicolay Simmerlund The United State has claimed jurisdiction over all domains ending in .com or .net, so no matter where servers are hosted or owners are located, they can seek extradition
I too enjoy a nice cup of coke with my soup. errr I mean sopa.
Don't really see how that explains why Megaupload was shut down. Doesn't explain anything at all, actually.
Sounds like a bullshit. The described model is close to ad-supported music streaming, which is used by spotify, pandora etc etc. Do you know how much artists scream about low revenues from spotify? The desire to make a disruption is not sufficient to actually make it. You need artists on your side, you need content, heck you need to make all these work to attract artists. And even in that case you'll miss most of the recorded music since it is controlled by labels. So how exactly Megaupload guys wanted to solve that? Unknown. If anybody who claims he'll disrupt music business and make all music free for listeners would be brought to prison, probably they had already ran out of cells there.
Here I thought the big problem was that Kimble was about to post naked pictures of himself.
Long live Spotify who really does pay artists and its labels.... this megaupload stuff was just pure piracy.
I need to mute this post. No doubt most of you also think man didnt set foot on the moon.
Is this true and how can you prove it?
Holy guacamole. So revealing. Like a tiger hanging by a tree branch over a deep abyss, the phonographic industry delays its final blows with poisonous fury. It's about time this cartel ended.
Artist support or not, i bet you MegaBox was purely nothing more than legal\PR manuevering from Kim Schmitz knowing something like this was going to happen. I love how a 'expert hacker' didn't even know the FBI had copies of his company emails for years. All this guy has been over the years is full-of-shit.

If you read the FBI MegaUpload indictment (which I bet 99.9% of people commenting on this haven't bothered to read), over $1.4 million dollars was also paid directly to the CFO of Carpathian hosting (page 59). Last time I checked, when you pay your hosting bill you don't pay it directly to the CFO.. dodgy, dodgy, dodgy.

A hacker\scammer\insider trader with numerous identities, shell companies, dozens of accounts in many different companies - on one hand facilitating stolen goods and on the other hand somehow going to 'revolutionise' the same industry his sites steal content from? Give me a break.

I guarantee you also, just as in any advertisment, those people "declaring their support for Mega Upload" were paid. Name me one 'celebrity' or recording artist that would do that for free. It lends no support to the authenticity, or legitimacy of the company paying them to shill for it. They're not 'declaring their support' for Mega Upload, they were being paid to advertise it, and from the looks of it, they each gave about 5 seconds of their time for a sound bite that was used repeatedly in the video.

Seriously, does anyone think that video is full of music artists "declaring their support" for Mega Upload? FFS, get real it's a f**king ad, nothing more, nothing less.
Neo Lix
FYI: Kim was NOT taken by the FBI, but the Newseeland police. Also he was NOT handed over to the USA yet. He is NOT to be charged for normal copyright infringement, but for organized crime and money laundering, therefore the international warrant.

I'm sure the content lobby had to do with it. But after all, Kim is not "the good guy". His first business was selling (!) copied software at school, later he claimed to have hacked several high security systems (he never was capable to do this...) and was adjudged for insider trading, after selling his totally worthless "security company" for a far too high price. After that he submerged and tried to get million dollars of inverstor money to create some obscure luxury club, which was a complete fail. Some years later the german portal Gulli (which started as news portal for the warez scene) found out that he was the man behind Megaupload and didn't like it (warez is about being FREE, not about making millions selling premium accounts and stuff).
We need to get money out of politics, all of you have a voice. Follow +Buddy Roemer and #getmoneyout
So artists would have the chance to make 90% of nothing? Thanks again, mister Dotcom!
+Christopher Zehr No, its makes perfect sense why MegaUpload was shut down. They were going to start a music service that takes the studios out of the loop and lets artists sell directly to their fans, and lets them keep the majority of the profits.

Basically, the RIAA had a potential competitor killed using "copyright violations" as a smoke screen to get away with it. Corporate overreach and greed like this needs to stop. Enough is enough.
Maybe this could lead the way for companies offering the highest percentage back to the artist. Competition helping the artist eh, who would have thought
Sadly, I haven't been preparing my surprised face.
The word "revolution" may be amusing or off-putting to the modern reader, convinced as he is that effective resistance to the status quo is impossible and therefore not even worth considering. Gentle reader, I ask that you suspend your disbelief long enough to at least contemplate whether or not such a thing might be worthwhile if it were possible; and then that you suspend it further, long enough to recognize this disbelief for what it is—despair!
So presumably artists are paid via advertising revenue generated from the page visited to download the song? I suppose it's possible. Literally anything is more profitably for the artist than the current record label system.
Well stated. As always, the RIAA only cares about preserving their monopoly and thus revenue stream.

For sure, Kimble has done some bad stuff over the years. But, I met him once years ago at a conference, and he seemed like he was actually a pretty nice guy. While I don't support his less then above-board actions, this seems (on the surface) like a legitimate business model. This MegaBox concept seems like a direct threat to RIAA revenue, hence why this happened.
There are already music stores that can take studios out of the loop. One of which is Google Music. I suppose Mega would have been multinational though. Despite that, the evedence in the cases against MegaUpload were rediculously specific. They sent emails about known copywritten material on their servers between eachother and did not delete files that they knew were supposed to be taken down. Honestly, they were just caught red-handed.

So this is a good theory, but doesn't appear to be relevant to the case. Also, as +Shane Bryan says, this would be extremely easy for them to keep in their pocket in case to make people cry conspiracy. Is there anything other than PR for this service? Also, they pay for free music downloads? That's not even sustainable! Look at other "Free" music services. What they are saying is basically Spotify or Grooveshark. Neither of which has killed the music industry standard of buying music. The RIAA (as much as I hate them and actively boycott them myself) had nothing to fear by their "new service".

Let's call this what it is.
Sorry , but i am a bit skeptical about this. The authorities would have to get a warrant , and the above mentioned reason would not fly. I am going to wait until i hear more about this....
Is it true that Megaupload was being used for money laundry? if so, it's a pity. This sounds like a really interesting business model and I would love to see it implemented.
I think it's a matter of time before it happens though. If not them, someone else might do it.
Threat to an established industry, one rife with corruption. Warrants can be bought, for a price.
I don't know if this is 100% the reason... but it sure sounds like it could be part of it.
I won't say they kept their noses clean but I will say that their accusers where probably fueled by less than noble causes
wouldn't be the first time something like this has happened. Especially when the artist's who create the content currently take about 1 percent or something, the rest is given to management basically
My suspicion was that it was punishment for the activism against sopa and pipa. This is a great idea.
The government with SOPA wanted to hide as much as they can but the internet is too strong, information can spread quicker than a virus here they fear it, what do you do with something you fear when you're backed into a corner? You kill it haha
I dont get it why so many activists support megaupload and especially Kim Schmitz. Before founding mu Schmitz worked together with the infamous German lawyer von Gravenreuth and sold out the greater part of the German "Scene"...all for the money and the "reputation"... So not much sympathy for him from my side.
So all the other stuff they found on them; like keeping files on servers that where supposed to be deleted, emails saying to rip youtube videos to fill up megavideo, and paying users for copyrighted stuff is just an added bonus? I'm all about conspiracies and stuff, but I know there has to be other companies doing the same venture as Megabox.
i thought was the alternative to megaupload
Also think that Megavideo was much more of a threat to the USA IP industry than Megaupload.
That's a sexy conspiracy theory. But here's the thing. Regardless of how good of idea MegaBox is, and regardless of how badly the recording giants probably didn't want additional competition, and regardless of how deep the media industry may or may not have politicians in their pockets, the fact of the matter is this:

MegaUpload was in clear and blatant violation of the law. It was an industry that made ginormous amounts of money on illegal (no don't argue, it was illegal) practices. Sure, the MegaBox sounds like a great idea: consumers get free music, artists get paid, only the evil record companies take a hit. But MegaUpload didn't play by the rules, and now they're rightfully closed down. Which sucks, cause this sounds like a cool business model that could potentially be the future of music distribution. Unfortunately, due to Megaupload's blatant disregard of the law, we're gonna have to wait a bit longer. And you only have Dotcom and Co. to blame in this case.
So thats why all those artist were featured in the song.
+David Ford It's based in Hong Kong not NZ... Kim was simply in NZ when they arrested him.
The plot certainly thickens....
+Cyril Doussin Thank you for this!!! People please realize that megavideo was shut down because they were fully aware of copyrighted material being shared, actively encouraging it and not following requests for take down. Also the owner of pirate bay was/is a scumbag who gives roughly the same amount of fuck about his users as RIAA does...
It's..... George W. Bush fault!
c g
I thought it was because the head of MPAA said on January 18th he was gonna cut off Obama's election money if he didn't do something. On January 19th the feds raided Megaupload and Obama gave a speech at Disney about how he was going to increase their tourism.
Coroporate Espionage.
Just as the Music industry was about to be revolutionized for the better, and true artists were going to be paid for their work, this shit's shit like this, US Government.
That is the very definition of a pyramid scheme, besides musician contracts like that are the current model. Record producers sign artists and worry less and less about the music, they promote their tours and products instead. Look at Bieber, who sucks, his albums sales are around only $4 million, but his name earned him around $350 million of which he recieved about $295 million about 85%. I am pretty sure that the fact that the US was able to arrest him was fraud and copyright infringement.

Explanation of the new contracts is here.
Oh this is bullshit, you're just crying because you lost your piracy source. The owners of MegaUpload admitted they were pirates and facilitating piracy. They've never been shy about it, and there's other cloud music services that pay the artists just as well.
Nice one, Shauna ! Thanks for the link (as in "link between two apparently unrelated things")
This is so poorly thought out. The concept of MegaBox already exists. It's called Bandcamp and it is used by majority of record labels and independent artists. And they give you a whole hell of a lot more than 90%. This is not competition to the Big 4. They could sell their music that way. They own the masters. How would this is in ANYWAY steal from them? Because independent artists are enabled? Gimme a break, they already are! This isn't new!
If the USA has taken ownership of all .com and .net's ( How the world let this happen is another thing ) then lets hope Switzerland can claim its own and everyone use that. As in Switzerland it was ruled pirating can be done as it in NO WAY affects the industry. Lets all move to Switzerland because it seems there government are the only ones with any common sense.
That would have been a death blow, perhaps MU are just regrouping and preparing to launch this from another site though!
It's amazing no one has mentioned that MegaUpload was suing Universal Music Group just last month over illegitimate takedown notices. 40 days later; the FBI takes them down like a terrorist organization.

I've read the entire indictment. Arrested a programmer because he worked for the 'conspiracy' and allegedly downloaded 'at least' one copyrighted work -- not mentioned anywhere else. Last quarter MegaUpload was in talks with many artists including Usher & 50 Cent, paying them to endorse the site, as well as in the process of selling the company to Swizz Beatz. They didn't regard MegaUpload as obviously illegal... much like the feds are painting.

Regardless of what can be proven there are many micro inconsistencies and balogna. For example; the media claimed Dotcom had a loaded gun with him at the time of arrest. Failing to mention it was in a locked safe. Another example; the indictment cited the 72-minute limitation on daily viewing as a method of having users pay for copyrighted works because 'most are greater than 72 minutes'. Yet I'm pretty sure Youtube imposed their 10-minute limit to crack down on copyright infringement. How can this go both ways and be used legitimately in an indictment?

Dotcom was a troll and is a notorious hacker in Germany. Dotcom is also innocent until proven guilty. I see no reason why the federal government found it necessary to kill the entire business as opposed to taking them to court and fining them like anyone else. This based on personal emails between employees no doubt obtained via the Patriot Act mind you. 4% of the internet, sites nearing the top 100 websites by traffic, based in another country, and gone in an instant.

No doubt Dotcom was up to no good. The criticism is of the execution and the priorities involved. The IP crusade is only scaring businesses, motivating hackers, and bringing us one step closer to a police state.
Am I the only one who doesn't believe this guy saying it NOW? Let's see proof of these plans in progress... if he was working on them as he says, there'd be plenty of business analyses, proposals, emails, design docs...
Good call on playing the skeptic, Philip. But still, I wouldn't be surprised if it were entirely true. Though what was Megaupload doing before all of this?
where are the quotes from? some support would be nice, my friends are asking for evidence on facebook after my tagspam
I can do nothing but shake my head at conspiracy theories like this. Honestly, this comment sums it up nicely:

To quote:

"Right. As opposed to the numerous other pure garbage business scams Kim has pulled off in the past, completely fucking over investors, this one was going to be all about the 'artists.'

Give me a break. Whatever you think about copyright issues or whatever, this guy has been peddling pure bullshit for quite literally decades. I remember one of his business schemes was called 'Trendax' the "money making machine" that he claimed could automatically make cash in the stock market via some handwavium software analysis. I feel sorry for the gullible suckers who fell for sinking cash in that one.

Also there was all the insider trading, embezzlement, and credit fraud. Yeah, THIS was the guy that was going to revolutionise the music industry, a fat scumfuck coke and hooker consuming feind for the millionaire lifestyle whose main talent was a nigh unlimited ability to believe his own self serving lies.

Look for a better scapegoat, this guy was a tosser.

Also, if you want music distribution that does exactly what his 'megabox' claims to do, just go the fuck to Bandcamp. It's fucking huge. It already exists. This is conspiracy outrage is just stupid."
+TruXterJones well, media IS considered to be the fourth branch of government..
Adam M
+Shauna Myers You're crazy. But I'm only calling you that because you asked someone to call you that.
+Jem McA youtube doesn't have original content. The content is the people who created it. And most things on youtube are under some very general license. it doesn't matter if he was using the content or not if its out there.
Paul W
Megaupload was still taken down BECAUSE of the illegal content. PLEASE some one else needs to start a megabox-like service up, and without anything illegal so it doesn't give our government any excuses to take them offline!
Let's just be honest with each other, by downloading free music you are supporting terrorism! Crack and Herion do all you want we will only half ass look for you.....but by god you download free music we will rape your freedom!
So sad to observe that mostly people only see what they want to see, believe only what they want to believe, and completely ignore common sense, not to mention that they rarely read more than first (or last) sentence. That's why they believe that Megaupload and its founder were innocent :)
That sounds too good to be true! Probably because it was...Kim's not the most trustworthy of people. LOOK IT UP!
I dont think the point is if he is innocent or not it is that there was no trial or fine that happened they just shut them down and they werent even in the US.
>>>>>>> MAC GUY HERE <<<<<<
If it's such a good idea, what it hasn't been done before or why no-one else is doing it right now? Too good to be true? I think there were more solid reasons than that to stop MegaUpload. Kim Dotcom and his friends don't have better intentions or look better than the record companies fat cats!
IMHO the main reason was his top rank in CoD: Modern Warfare 3...
+Jay Stanley, no, it was not "they just shut them down" - dig around and read all details, don't simply trust in headlines. What you are saying is like - "No, sorry, we couldn't arrest that thief before a trial" (even knowing that he is a thief) - and of course, he will conceal (or will get rid of) all evidence until the trial :)
I have serious doubts about your theory. I like it, but i doubt. That business model already exists, but with low revenues. And nobody wants to kill spotify, for example. And I don't think that with millions of free donwloads and a bunch o premium users, you could create an universal, fair, paid catalogue of music. The business model of MU was based also in the downloads of Video, Software, book, and other stuff. So, I don´t think that the would stop offering that material or creating a catalogue of "free movies" too.
Also, Dotcom is charged for money laundering. I want to believe that this is a false charge made up by the evil corps and FBI. But Dotcom- Scdhmitz has a long record in Germany for finnancial fraud and other crimes like that, He is not a martyr.
Kim Schmitz, most honest, humble and trustworthy person in the internet.
I suppose this is fun to bluster on about, but it fails a simple logic test: Is a disruptive business model illegal?

No, it is not, and as such, your theory doesn't hold water.
And yet again Kimble is able to scam this many people. He really IS good at the art of deceiving people, not even a hater as myself can deny that. Sad but true.
Pretty sure there was nothing legitimate about MEGA-anything
+Alexander Demenshin The internet cannot be ruled in the same context. You are trying to compare this with a home burglar for example. The internet is a different beast. If someone is shut down for a week, a month or longer then the company loses a hell of a lot of money. What happens if someone is then found innocent it wouldnt matter they would effectively have been shut down anyway because of the loss of revenue. I am not saying Megaupload are innocent but if this can happen to any site wherever in the world they are just on the FBI's say so then it is a bad day for the internet.
+Mike tocco If your going to try and be smart at least spell correctly what is "EACH SHIT REDDIT" ?
Wait this doesn't make sense to me. So before they took it down the music industry just assumed that because they offered better deals that all major artists would flock over to Megaupload? Do you remember how long it took major artists to switch over to iTunes and that had apple marketing money behind it. The fact is that megaupload had to blow up in popularity before any artist would switch to it, so it wasn't an immediate threat. Also, don't forget that record labels don't just offer a way to sell recordings anymore they handle marketing, touring, merch, publishing, ect, all while giving major artists a large cash advance. Plus I would like to see more of this business model of Megaupload that this article decides not to delve into.

So, in short, this was no threat to the major labels, and I do not think there was a conspiracy by them to take it down. Even CD baby offers a better deal for your recordiing royalties than the majors offer but you didn't see that site get taken down. Not to mention Mega upload wasn't popular enough to warrent major artist to switch.
Any form of media entertainment can be marginalized by cheaper, direct forms of distribution. The goal of most media companies is to aggregate content, and maximize the most profitable forms of distribution.
So wait. MPAA and RISE have been bribing officials secretly and also all mega sites got taken down.

Sounds like someone got paid to take it down if you ask md
hmmm i knew there was something more to it !
Rob Cox
I'd feign surprise, but I'm so unsurprised I can't even fake it.
Ugh I don't want to live on this planet anymore.
record companies wont like that and will do everything in their power to stop it
But the idea is brilliant! Megabox will happen, sooner or later.
And the best thing is no one will miss that crap we watch today on tv...
Regardless, everybody knows this would be amazing. YAAAARGHHH CONSPIRACY!!!
But seriously, R.I.P. MegaUpload. Sad times.
Shutting down Megaupload actually proves that SOPA/PIPA are not necessary, as the takedown happened under existing laws.
Human society is constantly evolving based on technology. This improves the ability to use tools and machines. Mass production allowed for copying products. By selling products manufacturers and their employees received income. The products are affordable for all.

Long time ago people "copied" stories so that they are remembered and re-told once more or played by actors on the streets or in the theaters. Songs spread by singing and concerts. This method provided for survival or poems, concerts and theater.

The invention of the printing press made it possible to copy stories on more massive scale. The invention of the phonograph made it possible to copy music. The invention of film enabled copying of movie fiction stories. Production of copies based on the same principle as the production of other tangible products. It created a new industry - the entertainment industry.

WIth development of technology - text, audio and video can be recorded digitally. Computers and the Internet also increased the ability of man, and became instruments of the digital age. Now producers of copies are not needed. Every computer owner can easily produce a copy for himself. Industrial manufacturers of copies / duplicators cannot compete with everyone who owns a computer today.

This new situation is hard for the former manufacturers to accept. So they invent copyright monopoly. Promoting copyright monopoly at the time of Internet is not technologically possible, so they lobby for creation of new laws, intimidation and disconnections from the Internet. But their struggle is entirely futile, because the count of Internet users is now in billions.

It's like if the restaurant owners tried to prevent people to cook at home (perhaps copying a recipe does not violate the monopoly, if you prepare Wiener Schnitzel). Copyright monopoly was created at a time when people could not copy anything without expensive and complex equipment.

The authors, who, thanks to the entertainment industry got rich, face complicated new situation that affects their livelihoods. New income & livelihood is certainly a problem for them, but the soliution can only be solved by the fact that their works will be used without copyright monopoly. They will have to acknowledge that a malfunctioning copyright industry monopoly, who once asserted, must reconcile with progress and technological advancement. Just as the old authors who produced stories and songs had to come to terms with the fact that people remember them and tell, singing alone (although now, one has to pay for it if singing a song which has a copyright). Today, people have a voice, and improved memory (extended) computer and the Internet. Now we have to decide. Either stop technological development and return back (unpublished Internet) or cancel copyright monopoly.

Without copyright monopoly artists can make a living, even though it might not be as easy as before. Copyright monopoly exists about 100 years but art is much older. Problems of conservative artists are not a good reason to stop progress. Shoemakers also had to accept the fact that their work was replaced by machines. Who can not survive without copyright monopoly, will have bad luck. Many people already understand this and are adapting to it.

Entertainment industry is only the first victim of technological change. Internet will soon affect other sectors. Internet will gradually displace traditional trade. Mobile phone operators also feel the changes. The invention of new technologies (eg LTE) transfers all communication to the mobile Internet, which is a voice communication and messaging that smartphones have in use today. Telephone numbers and billing minutes of calls lost logical sense to sell will be replaced by Internet (data). Adaptation will be for the "old" operators a matter of survival.

Entire industry will be affected in time. Usage of 3D printers in the near future, domestic production of products will start based on data downloaded from the Internet. Now we are only at the beginning of the digital revolution that will change the world. (I will not name all the industry fields which will be affected)

Internet and computers are just a continuation of the tools by which a person extends their capabilities. The progress & development will not be stopped by copyright and monopoly, which tries to prevent the use of new tools, as well as the other obsolete laws of the past. However, we will always see people who hinder progress and have nostalgic longing for a past that suits them. Trying to reverse the course of history will alway fail, eventhough they could sometimes put it on hold.
Asi que esto ha sido.... esos de las disqueras...... !!!!!!
There IS hope. Hope it happens for real and it works everywhere
First I'm hearing about this are far too coincidental to dismiss. Sickening.
Considering it's been around for this long, I wouldn't doubt that DMG got jealous and fought to close them for this.
Damn, Nikola Tesla all over again.
Traitorous bastards are using our own government to keep us on a leash. Though, I don't guess it's "our" government anymore.
I do believe it was an advertising based model and installed on all users computer with their understanding that if they share personal details for targeted ads they can download free music. Hardly a Harvard School of Business solution to the music industry.
Correct me if I am wrong but it this is about the "Music" for the Artists. Where they can get their "Music" out to where they don't have to go to the record companies then they already have that. You have places like the iStore and Amazon to where you can buy the songs for .99 cents. This has been around for a while and they just tired to copy it from someone else and get caught at it. Also the artist can make the MP3's and sell them directly to the customer with out the record companies. They would have to go through a company like amazon or apple for that. The only thing that they would need to do is set up a business account to be able to sell through. I know this because I am starting out with sell works of art and apps through some of these places.

If the reasons for the top it true then why are they re-launching the project and saying that we are using "Cloud" based technology. ICloud has been out since June of last year and I am sure that "Cloud" based technology is copyrighted by Apple. So the government has every right to take them down because of that. That is just one of the many things that took them down The company and the users also have to make sure that the stuff that they put up is not illegal. The company owes it to the users so that they run a legit business so that they don't get shutdown, arrested and or sued.

I have no pity on these people but more over I am mad because I have stuff on MegaUpload that I will never be able to get back. The back up's for my Website and everything else that I built are up there that I now can't get back. Now here is the funny part about what I see of this out come. I am going to school and we talked about when we do reports to properly cite our sources so that we do get caught for "Plagiarism". If you don't and you get caught you fail the class and would have to retake it. The same goes to what you put something out there. You have to respect the persons copyright's in what they put on it. If it is a free copyright then any one can use it but if not then you need the person's permission to be able to use it and you have to get them involved. Why because it it there stuff.

Well I am done ranting and I stated my opinion about it.
I thought Megaupload made a good faith effort to remove copyrighted material The case against him is based on a criminal copyright violation. I dont see how that is going to stick. I would love to have been on that Grand Jury. The whole thing stinks of pandering by the Obama Justice Dept to the Entertainment Lobby, even more so because it is an election year. You would think that there are more pressing matters for our Justice Dept to focus on. Considering Gunwalker, the Eric Holder Justice Dept has ZERO legal legitimacy and credibility. Gotta love that "Change".
Megaupload was one of the most visited site, this kind of content would have quickly outpassed the thiefs of music industry ruining them all.
+Sultros Drunknsage As far as I was aware, websites were not supposed to be held accountable for user-uploaded content as long as there was a "Report" function and they made some effort to control copyrighted content being posted on their site.

That being said, it has been put into evidence that there were emails sent between Kim and other coworkers discussing copyrighted content being hosted on MegaUpload that they had knowledge of and did not remove.
Here is the problem with that. It was one of the most visited site on the net. A lot of people would upload the same stuff and not ever one would catch it. Also people would just re-upload it under a different name and relink it to there site. They're Manga's that I have come to read from Japan that are up on to the site that never were taken down. Also they would be able to overwrite the copyright by changing a few things on it. I can place a digital copyright on a image or on my website and you would no know. But some can also change what I did to a image for example depending on what type of copyright I place on it.
It's more than just the Music world. They also had Books, Computer Programs, Images, and other stuff on it too. If you follow the correct copyright laws then you are in clear. The problem with the Mega company is that people abused the file-sharing and the company did not crackdown on copyright laws. So it is there own fault on why they are in this boat.
You realize that this probably wont be that popular because people will probably already pre-hate this before it comes out.
I'd like to explain the issue of MegaUpload allegedly not deleting copyrighted content. First of all; MegaUpload/MegaVideo did indeed delete copyrighted content quickly when it was reported. How can this be when everyone says the opposite? I'll explain...

A couple years ago Mega implemented a caching layer for their files. When a file was to be uploaded, their script would generate a hash -- a short code attempting to uniquely identify the data -- from each file. The hash would be sent to the server, and if a file matching that hash was already uploaded in the past, the server would retrieve that file instead of requesting the file you intend to upload. The result; 99.99% bandwidth saved and an hour of cpu-time for videos (Yeah, that's a lot).

To a good programmer or any rational human being -- this only makes sense. You save resources, users save time, almost infallibly accurate. Of course, to an ignoramus or someone with the wrong priorities; this system translates to promoting piracy. The only effect it has however is making the uploads of nearly identical files relatively instant. With the indictment's logic; Mozilla is promoting piracy because Firefox caches content on your computer.

Another thing; the indictment referred to the hashes as identification numbers. That's inaccurate and the entire thing should be void for that fact alone. Our judges and politicians are seriously lacking in logical intelligence. Mind you, I'm not calling them dumb. Kim Dotcom is an eccentric genius; his primary mistake was having too much respect for the USA. No hacker sees hacking as morally wrong -- they see the victim as wrong for allowing it to happen.
The one problem I have with this is that it is being promoted by a man who has some crazy charges behind and if SOPA was any indicator, some companies don't know what they are supporting, but I like the idea of artists making money off of their songs and not year long tours (actual way they make money bc their labels don't pay shit)
Comment removed by the US government
Here are some points I'd like to make on copyright/DRM.

1. The entities pushing for more internet/computing DRM controls, are the SAME entities who've been pushing free filesharing software for a decade. For eg see that annoying guy's video about the SOPA backers. From this it's clear that for the money interests, copyright is only a means to an end - which is more control over the Internet. And that's ALL it's ever been.

2. Ditto with 'closing the box' of general purpose computing. The pretended purpose of imposing hardware DRM controls is only a secondary objective. The primary objective is to control how people are able to use computers. (This is a whole different topic, I didn't include any links.)

3. The original concept of copyright allowed only seven years 'profit taking' and that was in the time of exclusively physical paper books, printed music, etc. Since then the copyright period has been 'infinitely re-extended', while on the other hand the digital technology revolution has thrust the intrinsic nature of data in our faces.

4. Data has no 'copyright' colour, or flavour. It doesn't matter HOW much our present economic system wishes data did have such a property, or tries to force data to behave as if it did. It simply doesn't. Consequently our present legal system based on 'ownership' of 'created works' (data) is flatly delusional.
Sure, you can create a digital work. You can keep it a secret, in which case no one else has it. Or, you can allow others to obtain it. Once you no longer have actual exclusive possession, you can politely ask other people holding the data to give you some money for it, and they might even do that, if they like it and feel like being generous.

But the moment you start trying to contrive ways to FORCE people to pay for data (which by its intrinsic nature can be copied forever and ever without any loss), then you are pitting yourself against the nature of the universe. You WILL have to attempt to completely control ALL forms of knowledge and communication, since data is infinitely mutable, and you can never be sure what is being passed from one person to another. Unless you control every single tiny step everyone can make with computers and passing things between them. Ultimately, fundamentally, there's no other way to prevent the free exchange of data.

But data and knowledge are effectively the same thing. So by trying to control the exchange of 'your data', you are inevitably forced to try to control all exchange of knowledge.
This puts you in direct confrontation with the deepest purpose of the Universe, which is to develop and disseminate knowledge.

There's no better definition of fundamental evil, than one who wishes to control and restrict knowledge.
And that's what you MUST become, by logical extension, if you support ANY form of DRM.

The people who are pushing DRM in all its forms, including closed box computing, have no problem with this reasoning. Because 'controlling all knowledge' is actually their primary objective. They don't give a shit about 'starving musicians or writers' or whatever.

You know the background music on that "You wouldn't steal a car" un-skipable warning that's on so many DVDs?
Guess what. The people who made that clip STOLE that music.

Here's a list of references:!_copyright_DRM_links.txt
"Jordon McCurley - Just as the Music industry was about to be revolutionized for the better, and true artists were going to be paid for their work, this shit's shit like this, US Government."


You do realize there are numerous services that exist like what MegaBox was supposed to be???

You do realize said artists and bands signed to major labels wouldn't be able to post their music on MegaBox unless the label allowed it, then the labels would still be earning their money, right???

That Bandcamp also pays out 90%?

That free streaming services a la Spotify, Pandora and already exist?

And that the 'pay for free downloads via Mega Key' crap is highly unethical? Mega Key is literally a browser plug in that stops advertisements from loading (think AdBlock to an extent) except it then loads in ads that generate money for Megaupload instead.

Or that his entire music business front was funded by ad revenue generated from piracy and taking money from premium accounts people bought to download files without restrictions?

Yes, this was going to be the thing that killed the music industry. Even though it's announcement was after the FBI started their investigation into Megaupload. Totally, you're entirely correct.

< / sarcasm >
I am an independent producer of experimental Industrial Dubstep / Electro music--- I put a lot of work into all of my music, and have always given it away for free.

The possibility of this business model being robbed from me for no better reason than to protect the monopolizing paradigm that is already in place repulses me. I am personally offended, and feel cheated.

I sincerely hope another startup out there picks up this business model, or even better--things blow over for the MEGA owners.

Here's to a better future--Cheers.

--Kevin Stanislawski / JustLikeAmmy
You guys realize that there are places like TuneCore that give artists the ability to put content on iTunes with nearly 80% profit going back to them. This high profit going to artist thing is nothing new...just release your own stuff then you don't have a label. Also labels sign artists and all of the artists tracks belong to that label during the agreed timeframe...artists just can't take their tracks and run to some new product..

If you believe this article you are retarded.

Megaupload was the target because Kim DotCom was a previous felon (credit card number theft!) and would be an easy conviction and potential lead to other crimes he was involved with.
well. this is pointless. who put this up need do there homework. i dont buy it. not at all!
All sharing functionality on FileSonic is now disabled. Our service can only be used to upload and retrieve files that you have uploaded personally.
This is what they should have done with megaupload if they wanted to end piracy, and not shutdown the entire website and arrest the owner.
Ok, simple question: why can't the artist make himself a personal blog or website to post and sell his music? He would have the full price of his works.
I like the sound of MegaBox I hope they find a way to make it still happen!
This is completely mad!! *Making tin foil hat now.
Amazing Media from the UK has been doing this for 4 years.

Artists get 100% of download revenues from -

PLUS national radio play (on DAB digital radio throughout the UK, online at, time-shifted to all US timezones at and on iPhone/Android Apps) -

PLUS streaming fees from B2B licensing to shops & business premises, which has made the company profitable this month for the first time. So there's no need to rely on Ads.

It grew 500% in 2011 and is still growing at growing double-digits every month. Track uploads in January are 300% up on December. There's musicians and music fans all over the world using it in ever-increasing numbers. Last Monday 35% of traffic came from the States. In a week, the first US-based DJs go on the air. The other presenters are expert curators with track records as taste-makers at e.g. the BBC.

This is a real thing, doing the kind of stuff you guys are talking about. It cost a fortune to build, but was all funded by a small number of (very patient) British private investors. It's legal, revolutionary, and it works. Apparently 90,000 streams on Spotify give an artist £8: the same on amazing gives them £1,000.

We've been a bit shy about it until we knew it would work: we didn't want to talk about hot air. Now we know for sure it does work, and we're incredibly proud of it.

I'm the founder, an ex-BBC Producer, entrepreneur and musician. (I don't live in a house with 35 cars like Kim Dotcom. Although I do have four drum kits). I apologise for jumping on this thread to promote it, but I feel fantastically passionate about how we can help musicians and promote great new music. I'm very happy to answer openly any questions about it here, or via and @drumpaul (Also follow @amazingradio and @amazingtunes)

Yes, the music industry can be reinvented for the digital age, can be fair and ethical, can make money for artists without stealing anything. Honest. We just did it.

Paul Campbell
amazing founder
+Radu Olaru Artists can do things like that, but its very hard for them to get noticed without any help.
+Manav Khattri enjoy bankruptcy?

There's no business advantage in that model. Your cowardice, believing in the unlikely outcome the United States becomes a police state, is nothing but a sheep's choice. Now is the time to do the opposite; take advantage of your competitor's failure, and damn the consequences. Get big enough and you'll be getting a multi-billion dollar offer from one of the monopolies.

They indicted Kim DotCom based on personal emails between employees. That's not going to hold up in any fair court, and it's an easy mistake to avoid.
VERY INTERESTING! There's always the 'Sheeple' reason for things going on and then there's the REAL reason which is never reported by the mainstream. This possibility makes a LOT more sense to me then the ones we've been given.
And the SEO inside me just thinks about the 13million+ backlinks(to that are now all broken xD
Original post has been updated with a link to a recent Forbes article :)
Well I met my now to be fiance on a free dating website, I guess i owe them my first born baby too.
Sometimes people try to read between the lines and ignore the actual text. This is comparable to a Mexican drug lord deciding to launch a new service to send every young Mexican to school... ONE week before he gets arrested for trafficking boatloads of cocaine. Oh but no, he was taken down because he wanted to educate everyone charitably and not because he is a crook that flaunts his ill-gotten wealth and has for many years now.

Plus Kim Dotcom is an aimbot user. You guys are gutless if you love aimbot users.
why is the rating +,are we in a math test or what
This already exists as It blows my mind that it's been barely mentioned in this comments thread at all. You people have hurt my faith in the Internet. has been running like this for years, mainly for artists you don't hear about but there's some bigger names as well, it's like (listen to everything like the radio) and then you can buy/download/donate to the artists.
@Justin Rosselet thats why u download and burn u dummyand u have something tangible for you
HEY FBI!!! Shut the fuckin' down Google, Bing and arrest all the M$ founders and owners like the Mountain Views ones...
They DELIBERATE not take off links to PROTECTED content linking to torrents, ED2K, DDownload sites ands stuffs...

Once again the United States of Oppression force their views both political and financial down the throats of the rest of the world.
This shouldn't be just about MU but the freedom we all face losing if certain entities get their way
And who's calling the shots really, well the money men of course.
More power to Anonymous i say!!
How about this, us Canadians host something similar to megabox and start from the top. Someone who hasn't had a criminal record. What now? As a Canadian, I will say this proudly, The US Government can go to hell :) << ps. This is an opinion, A STRONG ONE.
your fucking stupid theres already multiple companys that do exactly what u said this company was going to do
Seb K
Why am I not surprised?
Seb K
I doubt there is another company with nearly the same brand name as Megaupload doing this...
+Shauna Myers
Well, the information is not really accurate: Megabox already existed (i used it in December 2010). You could upload your music from your computer and play it anywhere through a web browser and I think I remember that you also could listen to the music you had bought from iTunes Store, and to fragments of popular artists' songs (and decide if you wanted to buy them - but I don't know if it was a link to buy them through iTunes and then be able to play them in Megabox :S - ).
The fact is that they were going to implement that site to offer the services that you (Shauna) mentioned (the ability for the artists to upload and sell their music, being given a 90% of the earnings, and being paid for the downloads got by the songs they offered for free) with the help of Megakey (a program which already allowed free users to get premium services and speed in exchange of personalised advertisements - and I don't remember if "personal" information, too -).
In this website (in Spannish) it's explained:

The theory of this being a major threat to the record companies can be considered, since even if there were other websites like Bandcamp doing it (though I think Bandcamp doesn't pay artists for their free content), because Mega was something really BIG. With millions of users all around the world every day, there is a considerable possibility that if they advertised Megabox in a proper way everytime someone used Megaupload, Megavideo, Megaporn, Megapix or Megalive, the site would have grown quickly and soon become one of the main music websites, attracting some of the famous artists (that may have started using mainly Megabox and similar services when their current agreements with ordinary record companies finished) and letting most of the beginning artists know that they didn't need the record companies to sell and promote their music (many of them already know it, but there is not a "standard", centralised and really profitable way of doing it).

The thing is that if there really was a conspirancy (I have not enough information to decide if I deny or agree with this theory :P) and they suspended the services of Megabox once it had become popular, most people would already know of that idea (this doesn't happen now, because the other websites like Bandcamp aren't that popular yet - I don't think any of my friends know about Bandcamp, but almost all of them have used the Mega services -). After the closing, those people would have looked for alternatives to it, and THEN probably the other fair music websites would have become really popular, like it happened with Grooveshark, Jango and when Spotify restricted its services.
That would have been terrible for the record companies (even worse if one of them would have become the main one and most popular, because of the standard and centralised thing I said before), but wonderful for the artists. Furthermore, if they had forced to suspend the Mega services once Megabox was popular, there would have been millions of threads like this one, and I don't think that the FBI wanted to add "widely known (or thought) corruption" to the list of immoral things that people know/think they do ;)

Thanks to the people who attacked Dotcom in this "thread": I didn't know of anything illegal done by him other than hosting copyrighted files (thing that I think is hard to avoid when you are the 1st online storage company in the world with billions and billions of files stored in your database), but knowing that I am a little more sceptical about the real purpose of that change in Megabox, even though I think that would have been positive for the artists, since even if that project was a kind of trap, it would have helped to spread the idea of this kind of music "justice".

P.S.: Sorry for my bad English; I haven't practiced it for a while.
+Nicolas Ferrer Your English was fine, but you may want to add some line breaks between thoughts to make it easier to read. You make some great points though!
Dang it I can't get a earthbound zero rom that's working and all becase of a stuped music service I mean its not fare
Why is the U.S. district court deciding what websites the whole world is allowed to use?
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