The entertainment industry cites Megaupload, a cyberlocker that did more than $100 million in business (e.g., from membership fees), as an example of piracy. Megaupload operated from Hong Kong and New...

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The entertainment industry cites Megaupload, a cyberlocker that did more than $100 million in business (e.g., from membership fees), as an example of piracy. Megaupload operated from Hong Kong and New Zealand, with servers in several countries, and had 180 million registered users. It claimed that its terms of use prohibited copyright infringement and that it took down infringing material when notified to do so.


Determining whether a particular business illegally contributes to copyright infringement depends on consideration of the factors that are required for safe harbor protection and how seriously the business complies. The US government shut down Megaupload (by legally seizing its domain names), and police in New Zealand arrested its founder and several employees. A study found that online sales and rentals of movies were 6–10% higher in the weeks after Megaupload and Megavideo, a similar sharing site, were shut down, suggesting that the cyberlockers affected the market for the movies.


Kim Schmitz “Dotcom” was the founder of the now-defunct megaupload.com, alleged by US authorities to have “generated more than $175M in criminal proceeds and caused more than $500M in harm to copyright owners.” In 2010, Dotcom fled Hong Kong for New Zealand, where he has been fighting attempts to extradite him to the US. In 2013, he launched mega.nz, which offers what it characterizes as secure, encrypted, anonymous cloud storage.





Address the topic in an essay of 1200 -1300 words.In your essay:



  1. Bring the update of the current situation with Kim “Dotcom” and his business.

  2. Identify the negative and positive rights involved.

  3. Try to stake out a position, but be sure to discuss arguments for both sides.

  4. Answer the following questions:


    • Is "Dotcom" a hero, a criminal, or something in-between?

    • To what extent should governments (in the US or elsewhere) hold people responsible for facilitating illegal activity?


  5. Find non-cyber analogies (examples of legal businesses that may cover illegal activities).


Please read and useEssay RequirementsandWriting Tips(available inAssignment Area) while working on your essay. Remember, you need to cite at least two sources besides the textbook or lecture materials. Submit your work as a Microsoft Word file.





Answered Same DayApr 05, 2021

Answer To: The entertainment industry cites Megaupload, a cyberlocker that did more than $100 million in...

Kuldeep answered on Apr 05 2021
151 Votes
Running Head: Kim Dotcom
Kim Dotcom
TOPIC: KIM DOTCOM
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Kim Dotcom    3
References    6
Kim Dotcom
Controversial internet entrepreneur Kim Dotcom has launched his final call for his extradition from New
Zealand to the United States for copyright-related costs. The FBI has always claimed that by facilitating the illegal sharing of files, the Megaupload website Kim Dotcom has made millions of dollars (Rogers 46). However, at the 2019 trial, Kim Dotcom's lawyer told the New Zealand Supreme Court that this was in no way in favour of copyright infringement. Since 2015, King’s defendants have filed invalid appeals to the New Zealand Supreme Court and the Court of Appeals, which ultimately led to a final Supreme Court appeal in 2019 (Fowler 2021).
In a recent lawsuit, Kim Dotcom sought compensation after the illegal termination of Dotcom’s private communications. In this Court of Appeal, Kim Dotcom stated that the special pro-procedure procedure was flawed. However, the Court of Appeal denied the support of the Government Communications Security Bureau (GCSB). Dotcom then sought to refer the appeal to the Supreme Court of New Zealand. In January 2020, the Supreme Court ruled to overturn Dotcom’s right to appeal and required Dotcom to pay GCSB $ 2,500. The current situation is that if Kim Dotcom, who has always refused to sue him, is extradited and subsequently convicted, he could face long-term imprisonment in the United States (Kennedy and Warren 6). This is evidenced by the fact that the US Department of Justice has been extraditing so-called cybercrime offenders since 2012, and in 2015 the New Zealand District Court granted the extradition.
By identifying the positive and negative rights associated with the Kim Dotcom case, it should be noted that Kim Dotcom created the Megaupload network lock in 2005 and earned millions of dollars from rewarded subscriptions to its website and promotions. At its peak, Dotcom was the thirteenth most popular website on the Internet, accounting for about 4% of global online traffic. However, in 2012, the FBI continued to sue the owners of the Dotcom website, alleging that they had infringed copyright extensively within the scope of their information and by placing illegal movies, music, and software files (Rogers 2015). The FBI further claimed that Dotcom had caused about $ 500 million in damage to music and film producers. Kim Dotcom and his business associates claimed that the Dotcom website, which was shut down in 2012, was built only as a network lock to share and store large files. This is a fact that Kim...
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