Tables Turned as Megaupload Sues Universal
Big copyright holders have always been wary of services such as Megaupload. Content providers have always claimed that file hosting sites do not do enough to combat piracy and do not comply with take down requests promptly. The rebuttal from sites like Megaupload has always been that due diligence must be exercised before content can be removed.
Universal Music Group (UMG) now find themselves embroiled in a lawsuit because they requested YouTube to remove content posted by Megaupload on the grounds of copyright infringement. The content in question is "The Mega Song", which is a short jingle featuring musicians such as Kanye West, Will.i.am and Alicia Keys expressing their approval of the file hoster. Megaupload however had already gotten release forms signed by the artists putting them in the clear.
As Megaupload owns all copyrights to the song and have violated no laws, they will be suing UMG for wrongful accusation. The lawsuit comes at an inconvenient time since Megaupload are planning on launching their Megabox service, which will be an iTunes Store competitor. Hopefully it does not cause a major disruption in Megauplaod's future plans.