What is Megaupload's stance towards abuse?
Recently, we have drawn some flak over our sites allegedly serving the sole purpose of mass copyright breach. Since some of the allegations are grotesquely overblown, we would like to put things into perspective.
Megaupload is a so-called "cyberlocker" and allows its users to conveniently store and transmit any kind of data from anywhere, to anywhere. We provide connectivity between end users and storage capacity in the cloud, but no content - just like e.g. ADSL providers and hard drive vendors. As such, Megaupload provides a multi-use tool, just like an e-mail account, a USB stick, or the Internet as a whole - it can be used for legitimate and illegitimate purposes alike. In fact, most public Internet services, including backbone carriers, could not exist if the law did not protect them from liability for abuse committed by their users, as long as they fulfill specific requirements, such as the timely processing of abuse notices. Furthermore, legal (ECPA) and technical (encryption, obfuscation) provisions exist that make it both illegal and pointless for a service provider to eavesdrop on the communication traversing their facilities.
On the legal side, we are setting very clear guidelines to our users. Activity that violates our terms of service or our acceptable use policy is not tolerated, and we go to great lengths to swiftly process legitimate DMCA takedown notices. We also cooperate closely with rightsholders and their copyright enforcement agents and provide them with direct realtime takedown access, bypassing the DMCA process entirely. Because we strictly conform to all legal requirements, nobody has successfully sued us over copyright infringement, and cases brought forward against our competitors have a long history of being unsuccessful.
We operate one of the world's largest storage clusters, securely hosting billions of user files totaling over 100 petabytes, and our per-file download counters indicate that the vast majority of uploads are accessed less than 10 times during their lifetime - this hardly justifies the accusations of "mass infringement" that our users have recently come under. Of course, abuse does happen and is an inevitable fact of life in a free society, but it is curbed heavily and efficiently by our close cooperation with trusted takedown partners. It is just unfortunate that the activities of a small group of "black sheep" overshadows the millions of users that use our sites legitimately every day.
Mega has over 150 million registered users and over 50 million daily unique visitors. Employees of over 70% of the world's Fortune 500 companies have accounts with us. We have become the de-facto standard for sending files that are too big to email. We are the most popular hard disk in the cloud. We host more backups than any other company. If Mega is a rogue operator as we have been unfairly labelled by the MPAA and RIAA, then what about Google? What about Yahoo? And every single ISP? At any given time, they all host pirated, illegal or even criminal content for which they are not liable nor legally obliged to prevent their users from posting. They are, like Megaupload, online service providers who are in no position to monitor or restrict their users. activities. There are technical, practical and legal reasons why these entities as a whole enjoy safe harbor protection all over the world. Service providers like Megaupload are simply better off focusing on providing a better service to their customers than fending off lawsuits from third parties unhappy about content.
That said, all service providers have to deal with the challenge of online piracy, just like us. Google probably hosts the world's largest index of pirated content and yet no one has characterized them as rogue. Why not sue the manufacturers of external USB hard drives or burnable DVDs? They can be used for illegal purposes, too. Microsoft's Windows operating system is the world's largest enabler of piracy. Windows is used to transfer and consume pirated content on a massive scale every day. And yet Microsoft is not rogue. This double standard should not be imposed on Megaupload since it finds no basis in either logic or the law. All we want is equal treatment.
The fact is that the vast majority of Mega's Internet traffic is legitimate, and we are here to stay. If the content industry would like to take advantage of our popularity, we are happy to enter into a dialogue. We have some good ideas. Please get in touch.