Kim Dotcom Defends Mega

By Hilda Scott email: , Jan 31, 2013 05:31 PM EST

Kim Dotcom is defending his newly launched file sharing site known as Mega. The legitimate file sharing service has already fielded 150 copyright warnings which contains 250 files, since it was launched on Jan. 19. The site allows visitors to store 50GB of free encrypted data. The content can then be shared by using a link and if the user shares the encryption key, it can be decrypted. Mega cannot determine the content of the files stored on the service since the content is encrypted.

Kim Dotcom is currently under indictment by U.S. prosecutors for running Megaupload, which was shut down a year ago. Prosecutors allege that the Web site generated more than $150 million from subscriptions alone and advertising revenue accounted for another $25 million all from while illegally trading copyright protected content. When creating Mega, Dotcom purposely developed it with encryption capabilities to avoid being accused of copyright infringement in the same way Megaupload did. 

As reports indicate, a French Web site has linked content to "Django Unchained," Microsoft's Office software and Elton John's tune, "Bennie and the Jets", all of which are links of content stored on Mega. The site made the user stored files on Mega files searchable by indexing the media content. The searchable database included legal files, but also illegal files that violated copyright. "#Mega is now hosting almost 50 million files. Only 0.001% have been taken down by content owners. MASSIVE non-infringing use!" said Dotcom in a Twitter status update posted today.

"Mega doesn't want folks to use its cloud storage services for infringing purposes.",  said Ira P. Rothken, one of the attorney's representing Mega and Megaupload said on Wednesday. In the event that United States service providers receive notices of copyright infringement as defined under the Digital Millennium Copyright Act (DMCA), removing or blocking the content is mandatory.

Rothken compares Meda to cloud storage providers similar to YouTube and that it should not be considered as infringing on copyrights. The lawyer said that file storage services can be used illegally and legally and is a "dual-use" technology. "Copyright extremists will usually heckle such dual-use technologies focusing on the bad uses while ignoring the socially beneficial uses," he said.

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