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As such, the Megaupload prosecution is not only baseless, it is unprecedented. Although the U.S.
government has previously shut down foreign websites engaged in direct infringement, such as the
sale or distribution of infringing material, never before has it brought criminal charges against a
cloud file storage service because of the conduct of its users. Thus, the Megaupload case is the first
time the government has taken down a foreign website – destroying the company and seizing all of
the assets of its owners (and the data of its users), without so much as a hearing – based on a crime
that does not exist.
To make matters worse, in order to persuade other countries to cooperate with the take-down, the
U.S. government misled them into believing that Megaupload was involved in direct infringement.
One of many such examples involved applications for warrants to search and seize Megaupload
computer servers in Canada. In those applications, the U.S. government misled the Canadian
authorities by stating that the U.S. was prosecuting Megaupload for operating and administering
websites that “reproduce and distribute” infringing material. Even if the U.S. government had
believed Megaupload was reproducing and distributing infringing material (which it was not), the
government was certainly aware that the criminal charges it was prosecuting were not based on
any such allegations. Further, the U.S. government made those misrepresentations to Canadian
authorities without any advance notice to Megaupload, meaning that nobody was present to refute
them.
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