US Government shuts alleged pirate site

Picture of the White HouseThe American authorities have closed a website called MegaUpload down amid allegations that it has encouraged $500m worth of piracy. The company's attorney is denying this, suggesting that the business responds immediately to complaints of piracy on the file sharing site, but for the moment it remains closed.
This appears to be one of the biggest copyright cases in the US and comes days after Wikipedia and others did a blackout in protest at forthcoming US legislation. The taking down of this site has to beg the question of whether further laws are necessary.

History
The site was started in 2005, effectively offering an online locker for people to store their content. This is the crux of the defence; that the company was offering a secure space and if customers stored items they didn't own that wasn't the organisation's fault.

The Authorities, meanwhile, claim users were incentivised to upload copyright material and that all of the company's profits are illegal. The FBI has shut the site down and seized 18 associated Internet addresses plus $50m in assets.
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