plaintiffs take issue with many facets of Megaupload's business, including its "Uploader Rewards" program, where the defendants allegedly paid its users money to upload popular movies and TV
shows. In the past, Dotcom and others associated with Megaupload have argued that their liability should be limited because they were merely in the cloud storage business. A white paper for the
company argues that Megaupload "enabled tens of millions of users around the world to upload and download content of the users own choosing and initiative. The spectrum of content ran from (to
name just a few) family photos, artistic designs, business archives, academic coursework, legitimately purchased files, videos and music, and as with any other cloud storage service some
potentially infringing material." The studios respond. "Contrary to some of defendants' public assertions, Megaupload was not designed to be a private data storage provider," says the complaint.
"By design, Megaupload functioned not as a private online storage locker, but rather as a hub for uploading and downloading infringing copies of popular movies and television shows, including
plaintiffs' copyrighted works." celebrity The lawsuit could be stayed pending the resolution of the criminal prosecution first, but once it
proceeds, it is likely to take a slightly different flavor. To make its own case, government prosecutors will need to show the defendants willfully committed copyright infringement.
Full story: http://www.hollywoodreporter.com/thr-esq/hollywood-studios-launch-lawsuit-megaupload-694245