Megaupload.com Gets Hit by Mega Piracy Indictment; Hackers Attack Feds, Entertainment Industry

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The federal indictment returned by a grand jury in Virginia against megaupload.com alleged, "In exchange for payment, the Mega Conspiracy provides the fast reproduction and distribution of infringing copies of copyrighted works from its computer servers located around the world. Premium users of the site ... are able to download and upload files with few, if any, limitations."

Describing the operation of the site and relations with users the indictment noted, "For much of its operation, the Mega Conspiracy has offered an 'Uploader Rewards' Program, which promised premium subscribers transfers of cash and other financial incentives to upload popular works, including copyrighted works, to computer servers under the Mega Conspiracy's direct control and for the Conspiracy's ultimate financial benefit."

The seven suspects have been charged with participating in a racketeering conspiracy, conspiring to commit copyright infringement, conspiring to commit money laundering and two substantive counts of criminal copyright infringement.

If convicted they could face a maximum of 20 years in prison.

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