Cyberlocker Ecosystem Shocked As Big Players Take Drastic Action

by Enigmax, TorrentFreak
Jan. 23, 2012

In the wake of last week’s Megaupload shutdown, some of the biggest names in the market are taking drastic action. During the last 48 hours many sites have completely withdrawn their systems for paying uploaders when their files are shared with others, but one of the most dramatic moves came first from Filesonic and today Fileserve. Both services now forbid people from downloading any files they didn’t upload themselves.

While the shutdown last week of Megaupload and the arrest of its founder and management team was certainly dramatic, a situation of perhaps even greater gravity is beginning to emerge.

Over the past 48 to 72 hours, the operators of many prominent cyberlocker services have been taking unprecedented actions that can not simply be explained away by mere coincidence. The details in the Megaupload indictment clearly have some players in the file-hosting world spooked.

One of the key allegations is that between 2005 and mid 2011, Megaupload ran a program that rewarded users for uploading infringing material. A cited internal email allegedly shows staff members discussing cash payments going to people uploading “full popular DVD rips” and “software with keygenerators (Warez)”.

Although Megaupload stopped paying out rewards in July 2011, that didn’t stop the site from getting raided. Other cyberlocker services are clearly hoping they will be more lucky.

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