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Megaupload fans flock to rival file-sharing services after FBI shuts down site and arrests founder
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- Instead of abandoning file-sharing, users flock to rival sites
- Huge surge in traffic to rivals such as Rapidshare
- One site, 4Share is twice the size Megaupload was before it shut down
Rivals to Megaupload have seen a huge rise in traffic after file-sharing site Megaupload was shut down by the FBI and its flamboyant founder arrested in a high-profile raid.
After the FBI shut down file-sharing site Megaupload and charged staff such as flamboyant founder Kim Dotcom - formerly Kim Schmitz - with copyright violations, users have flocked to rivals such as RapidShare, Hotfile and 4Shared.
If the American authorities hoped that the move would dent the popularity of such 'cyber-locker' sites which are mainly used for sharing music and video for free they have been very much mistaken.
Rapidshare, Hotfile and 4Shared, have reaped the rewards of the arrest of Megaupload's 'pirate captain' Kim Dotcom.
One site, 4Shared, which has 2.5bn page views per month, is now twice the size Megaupload was before it shut down and the others have seen the numbers using their services nearly doubled.
The high life: Dotcom, formerly known as Kim Schmitz and nicknamed 'Dr Evil', was arrested along with three other executives of Megauploads on Friday
Taken down: The Megaupload.com homepage boasted the endorsement of a string of high-profile celebrities
4Shared is currently the subject of legal action in New Jersey, with a firm, Modulo Security Solutions, seeking to reveal the identities of individuals who uploaded and shared confidential documents.
The 'cyberlocker' sites let users store large files and download them from anywhere.
MegaUpload, which the U.S. government shut down, was a Hong Kong-based ‘cyberlocker’ service that allegedly allowed users to download pirated films, TV shows, music and e-books with just a few clicks.
It is accused of costing copyright owners £322million in lost earnings and of making £113million by selling advertising and premium subscriptions.
A graphic created by web-monitoring firm Alexa showing the leap in traffic to 'cyberlocker' sites Hotfile, Uploaded.to, Depositfiles.com and Rapidshare.com
The traffic surge following Megaupload's closure is an embarrassment to many of the firms involved as it shines an unwelcome spotlight on how they operate.
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Such sites are keen to emphasise their legality in the wake of Megaupload's difficulties.
'This case has a great negative impact on file storage services and the Internet overall,' a 4Shared spokesman said.
'4shared has some of the most strict house rules among all other file storage services and there’s no need for any changes.'
Cyberlocker sites are legal, and operate in the same way as YouTube - in that they take down illegal files whenever told to by copyright holders.
As with YouTube, the volume of files means that every upload cannot be manually inspected.
Megaupload is accused of knowingly violating copyright.
Several Megaupload staff were arrested in New Zealand last week on copyright charges. The FBI also allege that the site was used for money-laundering.
Its founder, 'Kim Dotcom' - formerly Kim Schmitz - owned a £3million collection of 25 cars which was confiscated at the time of his arrest – mainly top-of-the range Mercedes with number plates such as ‘STONED’, ‘HACKER’ and ‘GUILTY’ but also including Maseratis, a vintage pink Cadillac and Dotcom’s runabout, a £300,000 Rolls-Royce Phantom with the number plate ‘GOD’.
Luxury: The property in Coatesville, near Auckland, New Zealand, which was raided today as part of the operation against the founder and executives of file-sharing site Megaupload.com
Lapping in luxury: Dotcom splashes out in the Virgin Islands with a mystery woman. Dotcom was also in a film posted online enjoying a 'crazy weekend' on a superyacht in Monaco said to have cost millions
Lavish: Dotcom also had a garish pink Cadillac in his collection of luxury cars, which was also seized by police
Confiscated: Others cars including a collection of Mercedes vehicles were removed from the Schmitz's home
Although music stars such as Kanye West and Alicia Keys have supported MegaUpload, film and record companies say the seven-year-old file-sharing site is making a fortune off their work without paying them a penny.
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Hollywood film companies have been the main victims of piracy. The seven accused MegaUpload executives – including two other Germans and a Dutchman also seized in New Zealand – are each charged with five counts of racketeering, copyright infringement and conspiracy, and could be jailed for up to 20 years.
In the dock: Megaupload executive Bram van der Kolk, left, Finn Batato, second from left, Mathias Ortmann and founder, former CEO and current chief innovation officer Kim Dotcom, right, appear in North Shore District Court in Auckland, New Zealand