Nobody wanted MegaUpload busted more than MPAA

Contrary to recent media reports, the FBI did not arrest MegaUpload founder Kim DotCom after being pressured by managers at the four major record companies, who supposedly feared DotCom would launch an unlicensed music service, sources close to the investigation told CNET.

Numerous film and music industry sources have discussed some of the events that preceded the January 19 raid in New Zealand on DotCom's home. What becomes clear is that two years ago, when the FBI began investigating the cyberlocker service, the film studios were far more intent on taking down MegaUpload than their counterparts at the music labels.

In addition, records show that when the FBI began its investigation, MegaUpload had yet to approach the music labels about MegaBox. Meanwhile, over at the Motion Picture Association of America (MPAA), the trade group representing the six top Hollywood film studios, MegaUpload "was at the very top of the piracy pyramid," said Kevin Suh, the MPAA's senior vice president of content protection, in an interview this week with CNET.
The Recording Industry Association of America (RIAA), the trade group for the four largest record labels, also spoke to the FBI about MegaUpload but provided little information outside of listing the pirated songs available on the site, sources said. At the time, the RIAA was much more focused on its court fight with file-sharing service LimeWire, which it eventually won. LimeWire was forced to shut down operations in 2010.

Hollywood had more motivation to try to get the federal government to crack down on MegaUpload, say film industry sources.

MegaUpload was for a period the 13th most-trafficked site on the Web. In the company's five-year history, it claims to have seen more than 1 billion visitors. The U.S. government alleges that the company banked more than $175 million in criminal proceeds and cost copyright owners more than $500 million in damages.

Source: http://news.cnet.com/8301-31001_3-57369825-261/nobody-wanted-megaupload-busted-more-than-mpaa/?tag=mncol;editorPicks