The U.S. government shut down popular file-storage service, Megaupload, in a 2012 criminal raid, and is still seeking to extradite the site’s CEO, Kim Dotcom, from New Zealand. Now, Disney and five other movie studios have piled on with a civil lawsuit over unauthorized downloads of films like Harry Potter and Transformers.
In a complaint filed in Virginia this week, the studios claimed Megaupload and its owners rewarded users for uploading copyrighted content, and ran a hub where users could obtain a large library of popular movie and TV shows. It said Megaupload systematically ignored evidence of infringement:
For example, even though defendants received more than 85 notices regarding a particular user’s infringing uploads, defendants paid that user $3,400 pursuant to the Uploader Rewards program.
The studios didn’t name a specific damage amount, but the claim could run into tens or hundreds of millions of dollars because the studios are seeking the statutory maximum of $150,000 per infringement. An exhibit to the…
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