Quote:According to the indictment, MegaUpload is responsible for at least $500 million in losses for the owners of the copyrights in question.
The indictment calls the company "a worldwide criminal organization whose members engaged in criminal copyright infringement and money laundering on a massive scale.''
Investigators estimate that MegaUpload's piracy business has earned them more than $175 million, according to the indictment.

(01-23-2012 10:41 PM)RueGorE Wrote:  SOPA PASSED AND WE'VE ALL BEEN HAD

Quote:Why was MegaUpload really shut down?

In December of 2011, just weeks before the takedown, Digital Music News reported on something new that the creators of #Megaupload were about to unroll. Something that would rock the music industry to its core. (http://goo.gl/A7wUZ)

I present to you... MegaBox. MegaBox was going to be an alternative music store that was entirely cloud-based and offered artists a better money-making opportunity than they would get with any record label.

"UMG knows that we are going to compete with them via our own music venture called Megabox.com, a site that will soon allow artists to sell their creations directly to consumers while allowing artists to keep 90 percent of earnings," MegaUpload founder Kim 'Dotcom' Schmitz told Torrentfreak

Not only did they plan on allowing artists to keep 90% of their earnings on songs that they sold, they wanted to pay them for songs they let users download for free.

"We have a solution called the Megakey that will allow artists to earn income from users who download music for free," Dotcom outlined. "Yes that's right, we will pay artists even for free downloads. The Megakey business model has been tested with over a million users and it works."

(01-24-2012 05:51 AM)Gohan Wrote:  MediaFire too? Damn...that's the only place I have a bunch of my college work stored. Well, better get downloading and back-up-ing.

TechDirt.com Wrote:There's a key point in all of this that we missed in our earlier analysis about paid accounts at Megaupload. In the indictment, the government seems to assume that paid accounts are clearly all about illegal infringing works. But that's not always the case. In fact, plenty of big name artists -- especially in the hip hop world -- use the paid accounts to make themselves money. This is how they release tracks. You sign up for a paid account from services like Megaupload, which pay you if you get a ton of downloads. For big name artists, that's easy: of course you get a ton of downloads. So it's a great business model for artists: they get paid and their fans get music for free. Everyone wins. Oh... except for the old gatekeeper labels.

In fact, this is part of the ecosystem, especially in the hip hop world. It's why the artists also support those hip hop blogs that the RIAA insists are dens of pure thievery. The artists release their tracks to those blogs, knowing they'll get tons of downloads -- and actually get money. If they do deals with labels, they know they'll never see a dime. Putting music on Megaupload is a way to get paid. Working with a gatekeeper is not.

And yet... Megaupload is the criminal operation? Seems like the actual artists know otherwise.

What Busta is pointing out is that services like Megaupload -- while it may be run by some sketchy individuals and probably crossed the legal line in some cases -- are actually a great new business model for artists, while also being the future of distribution. It's a great way to distribute, make money, and let fans get the works for free. And that's why the major labels are so freaked out by cyberlockers. It's not because there's so much infringement on there, but because it's a system whereby artists can get paid and can better distribute their own works to fans... without signing an indentured servitude contract with a label, which never pays any royalties.