Megaupload Threatens to Sue Universal Music Group

Kim Dotcom's Megaupload, a file uploading service, apparently convinced numerous music stars to provide their faces and voices for a music video that was posted to YouTube, but later was demanded by UMG to be taken down.

Megaupload and UMG are now tangled up in an argument who is right and who is wrong. Kim Schmitz is threatening UMG with legal action, which is an unusual position for Schmitz - not just because Megaupload has been branded by the movie and music industry as one of the world's leading rogue sites, but because Dotcom has had trouble staying out of legal trouble in the past: He is a convicted credit card fraudster and was convicted of insider trading. More recently, those convictions prevented him from settling in New Zealand and buying a $20 million mansion.

According to TorrentFreak, Megaupload is preparing a lawsuit against UMG, which the company considers an effort to sabotage Megauploads "viral campaign". The company also announced that it will support the movement against the Stop Online Piracy Act (SOPA): "We thank everyone for the massive support. Let’s join forces and fight for an Internet without censorship. Stand up and oppose new laws like SOPA and PIPA, which are being written this month in Washington," said Mega CEO David Robb in a statement provided to TorrentFreak.

On its website, Megaupload shows a video of its "Mega Song", which does not feature much on the lyrics side, but the faces of celebrities such as, P Diddy, Kanye West, Lil John, Jamie Foxx, Chris Brown, Ciara, Kim Kardashian and Kim Dotcom himself - all of which claim to be using and endorsing the service. Megaupload says it has 155 employees and has more than 180 million registered users. The company states that its server hold more than 12 billion unique files, which the RIAA and MPAA claim hold copyright violating material. A recently settled lawsuit between Megaupload and porn studio Perfect 10 over claims of copyright violations suggest that Megaupload may be fighting an uphill battle.