Megaupload's closure threatens the Web 2.0 internet
Following the closure of the file-sharing service Megaupload, many owners of similar resources have ceased operations or restricted user access. Experts note that the attack on Megaupload could threaten the functioning of the modern internet, where user-generated content is a fundamental element.
Late last week, the founders and employees of the file-sharing site Megaupload were arrested. They were accused of orchestrating a criminal scheme that earned them $175 million. Furthermore, the charges included illegal copying and distribution of copyrighted content.
Megaupload provided users with a place to host their files. Many services operate similarly, including Dropbox, FileSonic, RapidShare, and others.
The closure of Megaupload led to functionality limitations for a number of file-sharing services. For example, FileSonic.com administration banned file sharing between users. Users of this service were now only able to download files they had uploaded to the site themselves.
The Uploaded.to administration refused to serve users with American IP addresses in order to protect itself from such lawsuits.
RapidShare representatives noted that they currently have no problems with copyright holders or law enforcement agencies, but the situation with Megaupload could impact all market participants, including them.
A similar statement was made by the owners of file hosting service Mediafire, who emphasized that their service in no way encouraged piracy and was a legitimate business.
The arrest of Megaupload's founders comes amid protests against the controversial SOPA bill on internet piracy.
Today, the Megaupload and SOPA cases have prompted a response from EU authorities, who have always been more lenient toward piracy, or more precisely, more sensitive to individual freedom and privacy.
In particular, EU Commissioner for Justice Viviane Reding emphasized the EU's official position: "protecting authors' rights should not come at the expense of internet freedom." "Europe will never block the internet—that's not a European solution," she added.
The Megaupload incident has once again brought to light a key issue in the modern internet, which relies on user-generated content: the liability of website owners for the content posted by their users. Questions about how to regulate this situation have been raised repeatedly, but remain unresolved. The most important question is: what is the extent of liability for website owners if users violate laws using their websites? Clearly, these questions will continue to be raised repeatedly, both in the business community and at the legislative level.
