Tag Archive: Cyberlockers


Since the unexpected shutdown of Megaupload in January there has been significant realignment in the cyberlocker market, with many sites changing their business models and some pulling out of the business altogether.

For RapidShare, one of the market leaders, taking either of these actions wasn’t an option. The company has long insisted that it does business legally and has been trying extra hard in recent times to tackle infringement. Its scale means that closing down was never on the cards.

What RapidShare has been doing for some time now is promoting itself as a good digital citizen prepared to go that extra mile. A company appreciative of copyright holders’ needs but one that balances those requirements against subscribers’ rights.

This week RapidShare went even further when it published an anti-piracy manifesto containing guidelines on how responsible cyberlocker and cloud hosting sites should conduct their business going forward.

“RapidShare continues to work with all parties and wants to serve as an industry ‘best practices’ leader in accountability and transparency,” RapidShare CEO Alexandra Zwingli told TorrentFreak.

But while RapidShare’s proposals go far beyond file-hosting services’ responsibilities under the law, the response from rightsholders has been tepid at best.

In a comment to CNET a spokesman for the top four record companies made it clear that although RapidShare’s overtures represent a “commendable step forward”, the company will have to go even further if it is to meet the standards required by the labels.

“Unfortunately the new measures announced fall short if the goal is indeed to meaningfully and effectively reduce the massive amount of copyright theft occurring on [RapidShare's] service,” the unnamed spokesman added.

When comparing these comments and a statement given to us by RapidShare CEO Alexandra Zwingli, there is clearly a mismatch between the RIAA’s assessments and those of the Swiss-based file-hoster.

“Contrary to unverified ‘studies,’ RapidShare believes that by any practical measure, online piracy on its servers is very small,” says Zwingli. “Nevertheless, RapidShare has committed nearly one-third of its staff to policing and responding seven days a week to copyright infringement. DMCA take-down notices are instituted within one hour during regular business hours.”

But despite their efforts on takedowns (1 hour response is very impressive indeed), the RIAA still has issues and it’s interesting where their spokesman draws a line in the sand. The implication is that on one side are sites that provide personal storage lockers where users place their own files for their own use. On the other are sites that allow users to upload files for sharing with anyone online.

“RapidShare allows unlimited distribution of copyrighted files among millions of anonymous strangers without taking adequate steps to prevent this illegal activity,” the labels’ spokesman added.

Perhaps not surprisingly, RapidShare believes the measure of a responsible hosting site lies elsewhere.

“RapidShare fully agrees that the file hosting marketplace provides opportunities for providers and seekers of copyright protected files,” Zwingli told TorrentFreak.

“However, RapidShare believes that a distinction must be made between legitimate companies providing above-board services to users, the vast majority of which are engaged in lawful activity, from illegitimate entities for whom revenue is linked to the purveyance of illegal, copyright infringing activity.

“Unlike other file hosting sites, RapidShare maintains no incentive programs whatsoever, the likes of which reward users for the number of times their files are downloaded. The RIAA and Policymakers need to create distinctions between those companies, such as RapidShare, that are cracking down on abuse and ‘shadow actors’ that tacitly encourage copyright infringement.

“RapidShare welcomes an open dialogue with the RIAA as RapidShare believes they share goals to combat piracy and foster technology,” Zwingli concludes.

Source: RapidShare Overtures Snubbed, “Must Do Better” Say Labels

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Since the unexpected shutdown of Megaupload in January there has been significant realignment in the cyberlocker market, with many sites changing their business models and some pulling out of the business altogether.

For RapidShare, one of the market leaders, taking either of these actions wasn’t an option. The company has long insisted that it does business legally and has been trying extra hard in recent times to tackle infringement. Its scale means that closing down was never on the cards.

What RapidShare has been doing for some time now is promoting itself as a good digital citizen prepared to go that extra mile. A company appreciative of copyright holders’ needs but one that balances those requirements against subscribers’ rights.

This week RapidShare went even further when it published an anti-piracy manifesto containing guidelines on how responsible cyberlocker and cloud hosting sites should conduct their business going forward.

“RapidShare continues to work with all parties and wants to serve as an industry ‘best practices’ leader in accountability and transparency,” RapidShare CEO Alexandra Zwingli told TorrentFreak.

But while RapidShare’s proposals go far beyond file-hosting services’ responsibilities under the law, the response from rightsholders has been tepid at best.

In a comment to CNET a spokesman for the top four record companies made it clear that although RapidShare’s overtures represent a “commendable step forward”, the company will have to go even further if it is to meet the standards required by the labels.

“Unfortunately the new measures announced fall short if the goal is indeed to meaningfully and effectively reduce the massive amount of copyright theft occurring on [RapidShare's] service,” the unnamed spokesman added.

When comparing these comments and a statement given to us by RapidShare CEO Alexandra Zwingli, there is clearly a mismatch between the RIAA’s assessments and those of the Swiss-based file-hoster.

“Contrary to unverified ‘studies,’ RapidShare believes that by any practical measure, online piracy on its servers is very small,” says Zwingli. “Nevertheless, RapidShare has committed nearly one-third of its staff to policing and responding seven days a week to copyright infringement. DMCA take-down notices are instituted within one hour during regular business hours.”

But despite their efforts on takedowns (1 hour response is very impressive indeed), the RIAA still has issues and it’s interesting where their spokesman draws a line in the sand. The implication is that on one side are sites that provide personal storage lockers where users place their own files for their own use. On the other are sites that allow users to upload files for sharing with anyone online.

“RapidShare allows unlimited distribution of copyrighted files among millions of anonymous strangers without taking adequate steps to prevent this illegal activity,” the labels’ spokesman added.

Perhaps not surprisingly, RapidShare believes the measure of a responsible hosting site lies elsewhere.

“RapidShare fully agrees that the file hosting marketplace provides opportunities for providers and seekers of copyright protected files,” Zwingli told TorrentFreak.

“However, RapidShare believes that a distinction must be made between legitimate companies providing above-board services to users, the vast majority of which are engaged in lawful activity, from illegitimate entities for whom revenue is linked to the purveyance of illegal, copyright infringing activity.

“Unlike other file hosting sites, RapidShare maintains no incentive programs whatsoever, the likes of which reward users for the number of times their files are downloaded. The RIAA and Policymakers need to create distinctions between those companies, such as RapidShare, that are cracking down on abuse and ‘shadow actors’ that tacitly encourage copyright infringement.

“RapidShare welcomes an open dialogue with the RIAA as RapidShare believes they share goals to combat piracy and foster technology,” Zwingli concludes.

Source: RapidShare Overtures Snubbed, “Must Do Better” Say Labels

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dotcom freeEarlier today the news broke that a Megaupload trial may never happen because the US Government failed to serve the now defunct file-hosting company.

While some defendants might respond with relief upon hearing such news, Megaupload founder Kim Dotcom is only becoming more furious at the people who destroyed his businesses.

“The US government has terminated Megaupload, Megavideo and 10 other subsidiaries, including a company called N1 Limited that was developing a clothing line,” Dotcom told TorrentFreak.

“They destroyed 220 jobs. Millions of legitimate Mega users have no access to their files.”

If Judge O’Grady is to be believed all this damage could very well have been for nothing because the authorities simply can’t serve foreign companies. This could lead one to wonder whether the whole setup was to simply destroy Mega’s businesses.

This is certainly a theory Dotcom subscribes to, and it’s not the only dirty trick Megaupload’s founder believes the US Government is playing. The US is structurally denying Megaupload the chance to put up a fair fight.

“We are refused access to the evidence that clears us, we are refused funds to pay our lawyers, we are refused to pick the lawyers we want to represent us and have any chance for a fair trial,” Dotcom says.

For Megaupload the worst part is that the damage can’t be undone. The site has been completely destroyed as well as the plans to become a publicly traded company.

“We have already been served a death sentence without trial and even if we are found ‘not guilty’ which we will, the damage can never be repaired,” Dotcom says.

And why?

According to Megaupload’s founder it is quite clear that the Mega investigation was a ‘gift’ to Hollywood, facilitated by corrupt forces.

“This Mega takedown was possible because of corruption on the highest political level, serving the interests of the copyright extremists in Hollywood,” he says. “Mega has become a re-election pawn.”

Dotcom is confident that these forces will eventually be exposed.

“It is just a matter of time until the truth comes out. We are working on that and we are making good progress,” Dotcom concludes.

Source: Kim Dotcom Lashes Out Against “Corrupt” US Government

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dotcom freeEarlier today the news broke that a Megaupload trial may never happen because the US Government failed to serve the now defunct file-hosting company.

While some defendants might respond with relief upon hearing such news, Megaupload founder Kim Dotcom is only becoming more furious at the people who destroyed his businesses.

“The US government has terminated Megaupload, Megavideo and 10 other subsidiaries, including a company called N1 Limited that was developing a clothing line,” Dotcom told TorrentFreak.

“They destroyed 220 jobs. Millions of legitimate Mega users have no access to their files.”

If Judge O’Grady is to be believed all this damage could very well have been for nothing because the authorities simply can’t serve foreign companies. This could lead one to wonder whether the whole setup was to simply destroy Mega’s businesses.

This is certainly a theory Dotcom subscribes to, and it’s not the only dirty trick Megaupload’s founder believes the US Government is playing. The US is structurally denying Megaupload the chance to put up a fair fight.

“We are refused access to the evidence that clears us, we are refused funds to pay our lawyers, we are refused to pick the lawyers we want to represent us and have any chance for a fair trial,” Dotcom says.

For Megaupload the worst part is that the damage can’t be undone. The site has been completely destroyed as well as the plans to become a publicly traded company.

“We have already been served a death sentence without trial and even if we are found ‘not guilty’ which we will, the damage can never be repaired,” Dotcom says.

And why?

According to Megaupload’s founder it is quite clear that the Mega investigation was a ‘gift’ to Hollywood, facilitated by corrupt forces.

“This Mega takedown was possible because of corruption on the highest political level, serving the interests of the copyright extremists in Hollywood,” he says. “Mega has become a re-election pawn.”

Nevertheless, Dotcom is confident that these forces will eventually be exposed.

“It is just a matter of time until the truth comes out. We are working on that and we are making good progress,” Dotcom concludes.

Source: Kim Dotcom Lashes Out Against “Corrupt” US Government

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kim dotcomThe US Government accuses Kim Dotcom and the rest of the “Mega Conspiracy” of running a criminal operation.

Charges in the indictment include engaging in a racketeering conspiracy, conspiring to commit copyright infringement, conspiring to commit money laundering and two substantive counts of criminal copyright infringement.

While the prosecution is hoping to have Megaupload tried in the US, breaking news suggests that this may never happen.

It turns out that the US judge handling the case has serious doubts whether it will ever go to trial due to a procedural error.

“I frankly don’t know that we are ever going to have a trial in this matter,” Judge O’Grady said as reported by the NZ Herald.

Judge O’Grady informed the FBI that Megaupload was never served with criminal charges, which is a requirement to start the trial. The origin of this problem is not merely a matter of oversight. Megaupload’s lawyer Ira Rothken says that unlike people, companies can’t be served outside US jurisdiction.

“My understanding as to why they haven’t done that is because they can’t. We don’t believe Megaupload can be served in a criminal matter because it is not located within the jurisdiction of the United States,” Rothken says.

Megaupload’s lawyer adds that he doesn’t understand why the US authorities weren’t aware of this problem before. As a result Judge O’Grady noted that Megaupload is “kind of hanging out there.”

If this issue indeed prevents Megaupload from being tried in the US, it would be a blunder of epic proportions. And it is not the first “procedural” mistake either.

Last month the New Zealand High Court declared the order used to seize Dotcom’s property “null and void” after it was discovered that the police had acted under a court order that should have never been granted.

The error dates back to January when the police applied for the order granting them permission to seize Dotcom’s property. Rather than applying for an interim restraining order, the Police Commissioner applied for a foreign restraining order instead.

The exact ramifications of the failure to serve will become apparent in the near future.

Update: Megaupload founder Kim Dotcom responds, and he’s not happy.

Source: Megaupload Trial May Never Happen, Judge Says

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