In this paper we analyze how one such anti-piracy intervention, the shutdown of the popular Megaupload site, affected the digital sales of movies for two major studios. Our analysis across 12 countries suggests that, in the 18 weeks following the shutdown, digital revenues for these two studio’s movies were 6-10% higher than they would have been if not for the shutdown. Thus our findings show that the closing of a major online piracy site can increase digital media sales, and by extension we provide evidence that Internet movie piracy displaces digital film sales. (via IP Finance.)
In an attempt to make itself less desirable to copyright infringers, starting November 27, RapidShare will begin capping non-paying users at 1 gigabyte of outbound downloads per day. (Paying users will have 30 gigabytes.) Meanwhile, controversial Megaupload founder Kim Dotcom is planning a January debut for his new Mega service - which plans to insure itself against litigation by having all hosted material encrypted by the uploader's browser before transmission.
Three months after file sharing site Megaupload was shut down (previously), and charged with criminal copyright violations by the DOJ, the judge has expressed doubt that the case will go to trial because the company has not been served with criminal papers. US-based lawyer for Megaupload Ira Rothken: "We don't believe Megaupload can be served in a criminal matter because it is not located within the jurisdiction of the United States." [more inside]
Megaupload has been shut down. Four people, including the founder Kim Schmitz, have been arrested for violation of piracy laws. Two more are named as defendants in the indictment. 18 domain names have been seized, warrants have been issued in 9 countries. Given that Megaupload took the fight to Universal Music Group in December and is on record as being vehemently against SOPA, one wonders if this crackdown is a retaliation of some sort. Given that industry insiders accuse MegaUpload of being responsible for at least $500 Million in lost revenue for the music industry, it's ironic that its current CEO is Swizz Beats, noted major-label rapper and hip-hop producer.
MegaUpload is currently being portrayed by the MPAA and RIAA as one of the world’s leading rogue sites. But top music stars including P Diddy, Will.i.am, Alicia Keys, Snoop Dogg and Kanye West disagree and are giving the site their full support in a brand new song. TorrentFreak caught up with the elusive founder of MegaUpload, Kim Dotcom, who shrugged off “this rogue nonsense” and told us he wants content owners to get paid. “It works like an ad blocker but instead of blocking ads we show ads coming from Megaclick, our ad network,” says Kim. “This way we will generate enough ad revenue to provide free premium services and licensed content so that our users can have it for free.”