Megaupload rivals clamp down on piracy - but should they worry?

ONLINE DATA storage website FileSonic has disabled its file-sharing capabilities in the latest indication that the FBI's controversial raid on Megaupload is having the desired effect on websites that facilitate online piracy.

Users of social bookmarking site Reddit were the first to notice FileSonic's change of policy yesterday, apparently a direct result of Thursday's raid against Megaupload, which is accused of internet piracy.

Other file-sharing sites, such as Fileserve, FileJungle and UploadStation (which is owned by FileSonic) are reportedly deleting files they believe infringe copyright, while still more are suspending the accounts of users who have uploaded pirated material.

Whether these websites are overreacting is a moot point. So-called 'cyberlockers' are perfectly legitimate and allow people to transfer files that are too large to be emailed.

At the moment, Megaupload appears to be a one-off brought down by its own hubris and a modus operandi which allegedly aimed to make the company the top destination on the internet for downloading pirated material. Gizmodo believes the company invited the attention of law enforcement agencies because of its sheer size; it was thought to boast 50 million daily visitors, accounting for four per cent of global internet traffic.

After it was singled out, building a case against the company was fairly straightforward. Megaupload's policy of paying users who uploaded the most popular files was for many people a flat-out encouragement to piracy. Megaupload employees are also alleged to have uploaded many infringing works themselves. The US Department of Justice describes the alleged crimes as a "mega conspiracy" in its 72-page indictment.

As for the hubris, Kim 'Dotcom' Schmitz had a penchant for very conspicuous consumption: among the items seized from his New Zealand mansion were a collection of luxury cars worth £3m, according to 3 News. Some of them had personalised number plates that read: 'Stoned', 'Hacker', 'Police and 'Mafia'.

One of the most outrageous publicity stunts perpetrated by Megaupload was an advert it posted on YouTube in December which featured artists such as Kanye West, will.i.am and P Diddy admitting they used the file-sharing site. Earlier this month, Universal, which owns some of the labels to which these artists are signed, persuaded YouTube to remove the ad, despite having no obvious legal grounds to object to it. At the time of writing, the video was once again available on the video sharing website.

Not all the cyberlocker websites are panicking. As (Swiss-based) RapidShare, which since Thursday has been the largest cyberlocker on the internet, told Ars Technica: "We're not concerned or scared about the [Megaupload] raid. File hosting itself is a legitimate business."

The message appears to be simple: take down pirated content when the copyright owner complains and otherwise keep raking in the money. ·