Fed Drops Bomb on Megaupload, Assets Seizure Pictures etc

The media spotlight on the internet company Megaupload by the International media has been significant for a reason. The FBI has charged seven people and two corporations associated with the site, Megaupload with copyright infringement.

According to a statement released on the website of the Federal Bureau of investigation, the company was “allegedly responsible for massive worldwide online piracy of numerous types of copyrighted works [music and movies]through Megaupload.com and other related sites, generating more than $175 million in criminal proceeds and causing more than half a billion dollars in harm to copyright owners.”

The FBI official statement further reads, “The individuals each face a maximum penalty of 20 years in prison on the charge of conspiracy to commit racketeering, five years in prison on the charge of conspiracy to commit copyright infringement, 20 years in prison on the charge of conspiracy to commit money laundering, and five years in prison on each of the substantive charges of criminal copyright infringement.”

This story is reminiscent of Sean Parker, the multi-billionaire who holds a significant shareholding in Facebook. Parker, along with Shawn Fanning founded Napster, a music sharing company that was litigated against for music piracy, the company was forced to declare bankruptcy and was purchased post bankruptcy court (presumably by a record company). Record companies along with big acts such as Dr.  Dre and rock band, Metallica were responsible for the filing of those civil law-suits. Now the Feds have waltzed into the trend, and come with a bang they did, according to one publication, the FBI has dropped a “nuclear bomb” on Megaupload.

American law enforcement is doing this at a time when American people have successfully protested against a law that was going to limit internet freedom inclusive of music downloads. The Stop Online Piracy Act (SOPA) and Protect Intellectual Property Act (PIPA) are two self-explanatory laws that were recently defeated by fierce opposition from blue-chip American tech companies such as Google and Wikipedia, and eventually, due to strong public outcry, from the country’s lawmakers.

However, that didn’t hamper the FBI from arresting several owners and employees of Megaupload and seizing assets such as their cars, houses and other assets. According to arstechnia.com describing some of the property seized, “The indictment goes after six individuals, who between them owned 14 Mercedes-Benz automobiles with license plates such as “POLICE,” “MAFIA,” “V,” “STONED,” “CEO,” “HACKER,” GOOD,” “EVIL,” and—perhaps presciently—”GUILTY.” The group also had a 2010 Maserati, a 2008 Rolls-Royce, and a 1989 Lamborghini. They had not one but three Samsung 83″ TVs, and two Sharp 108″ TVs. Someone owned a “Predator statue.” Motor bikes, jet skis, artwork, and even 60 Dell servers could all be forfeit to the government if it can prove its case against the members of the “Mega Conspiracy.””

For the official FBI statement, go to the Bureau’s website

For the Arstechnia story, check their website

Pictures of some of the seized property are below: