The distinction I want to make here is that Megaupload itself was not directly infringing any copyright. The problem you have with them is that they sided with

The distinction I want to make here is that Megaupload itself was not directly infringing any copyright. The problem you have with them is that they sided with their customers instead of copyright holders, doing what they believed the bare minimum to comply with the law. I'm not saying that is not an immoral practice, or that Megaupload was completely following the law. I just want to make the distinction clear. There are three parties: 1. Megaupload 2. Users 3. Copyright holders What has happened is that copyright holders had a dispute with users, and demanded Megaupload handle that dispute in a way benefiting only the copyright holders. Since when are data hosting services police? We have seen the problems caused by that mentality at YouTube, where fair use content is censored. My opinion is that it should not be the burden of a data hosting service to police copyright infringement.