Megaupload Case Study


Megaupload was a file sharing site that, until recently, allowed people to upload and share files, including material subject to copyright such as music, movies and other content.

According to The Daily Mail (2012) and The Guardian (2012), the FBI arrested three men, including founder of Megaupload Kim Dotcom, whom have alleged to have facilitated millions of downloads of illegal content and distribution of music, movies and other copyrighted content without authorisation, which cost film-makers and song-writers $US500million in lost revenue. The official charges as stated by the Department of Justice (2012) are charged with engaging in a racketeering conspiracy, conspiring to commit copyright infringement, conspiring to commit money laundering and two substantive counts of criminal copyright infringement”.

However the US may not be within their jurisdiction to extradite the New Zealand citizen Kim Dotcom and other over the alleged charges as the US and New Zealand extradition treaty does not list the charged of copyright infringement. The US claims jurisdiction over the charges of copyright as, according to Winterford (2012), Megaupload had storage and services leased in US data centres and further leased services from a US-based company.

Examination of the US and NZ Extradition Treaty (1970) shows that “persons who have been charged with or convicted of any of the offences mentioned in this Treaty committed within the territory of the other agree to extradite to the other”. However as the charges of online privacy and conspiring to commit copyright infringements are not listed, the US might have difficulty providing extradition for Kim Dotcom and others arrested.

The closure of Megaupload may be futile as the company has come out stating that copyright holders had access to Megaupload and to delete material which infringed their copyright. The company has stated that it had more than 20 staff dedicated to taking down material and links that were not legally owned by its users, according to The Courier Mail (2012).

Moreover the US may be grated jurisdiction under the Dow Jones & Co Inc v Gutnick (2002) 194 ALR 433 case, which can determine whom may have jurisdiction over the Megaupload case. In the case the ‘hurt’ lies world-wide as the copyrighted material may originate anywhere and the pages containing copyright could have been downloaded anywhere. Based on that multiple jursidictions may apply to the Megaupload case. However the US may be granted jurisdiction based on the large number of film studios and record company which reside in California and whose revenue was affected.

Further readings:

Department of Justice. (2012, January 19). Justice department charges leaders of Megaupload with widespread online copyright infringement. Retrieved from: http://www.justice.gov/opa/pr/2012/January/12-crm-074.html

Dotcom says US ‘can’ win case. (2012, March 1). The Courier Mail. Retrieved from: http://www.couriermail.com.au/ipad/dotcom-says-us-cant-win-case/story-fn6ck55c-1226286753235

Fifth arrest in Megaupload case as FBI continues to hunt for two men involved in $175m piracy ring. (2012, January 25). The Daily Mail UK. Retrieved from: http://www.dailymail.co.uk/news/article-2091428/Megaupload-case-5th-arrest-FBI-continues-hunt-2-men-involved-175m-piracy-ring.html

Kim Dotcom granted bail in Megaupload case. (2012, February 22). The Guardian UK. Retrieved from: http://www.guardian.co.uk/technology/2012/feb/22/kim-dotcom-granted-bail-Megaupload

Treaty on extradition between the United States of America and New Zealand. (1970). Retrieved from: http://newzealand.usembassy.gov/uploads/images/o16y8MOyHW2l-jJTxaMpeQ/ExtraditionUSNZ.pdf

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