Have you logged into your MegaUpload account lately?  You will notice a big fat graphic from the US government who seized the domain name in the US government's attempt to thwart copyright infringement laws.

Yet most people still haven't heard of MegaUpload or know what it is.  MU is a fast, easy way to store massive files and share them with your customers, your co-workers, your friends.. (and well everyone).  At one point, I believe MegaUpload was the 5th largest website in the world with the owner raking in over $60 million dollars through ad clicks!

Let's say I need to get a large video file over to my video department in Austin, TX.  I would easily upload it to MU's cloud and they provide a downline link that you share with the video department.  Very simple.

Problems with The Cloud and MegaUpload

There has and always will be people uploading unauthorized content to the cloud and passing it over to their friends.  The challenge is, “how do you download and review 100 million uploads per day..”  There is no possible way to review every single upload that every company and business uploads and check to make sure each upload doesn't infringe on copyright infringement laws.

With Every Great Challenge Comes Increased Opportunity

This challenge presents a unique opportunity for someone to solve these challenges and reap the rewards.  Remember Napster?   Napster presented an alternative form to downloading music that is now the model for iTunes.  iTunes solved the challenge and is now the number one company in the world.  People now can download each song, pay for it, and feel confident that they are safe from the government trying to sue a 6 year old or a grandma for clicking a download button.  With this new challenge comes a great opportunity for someone to come in, fix the problem, and create a winning distribution channel.

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Why the Government is Wrong to Shutdown MegaUpload

Kim Dotcom's Shack - Owner of MegaUpload

We come from a country where there is due process and people are innocent until proven guilty.  When MegaUpload owners get hauled in – their site shutdown – and a big notice put on their site saying that this domain name has been seized on suspicion of racketeering, and money laundering, and copyright infringement, and if I'm innocent and there is due process, shouldn't I go through the due process before you shut down my site and put a notice to all my users. Shouldn't I be guilty first before you take my website?   If I'm truly innocent, then I should be able to go about my business until the sentencing date occurs.  If I'm innocent beforehand, then why am I being treated like I'm guilty?

If I owned a skyscraper, and the departments on the 30th floor were suspected of illegal activity (but they brought in 10 percent of my revenue) and I knew about it.  And I procrastinated because it would take some time to brainstorm and find the solution, then the FBI wouldn't take a bulldozer and bulldoze the bottom floor (taking down the whole building).  The solution is to make changes to the 30th floor!

The FBI makes these general sweeps (with no regard to innovation) and no chance of making these changes ever.  That's wrong. I believe that companies and people who work hard but find out that they have a flaw somewhere in the system should be given a chance to correct the situation first.  This is still a business – people are working day and night to solve these challenges and correct situations.. the FBI and the govt need to wake up and realize that.

Is MegaUpload a Winning Distribution Channel

Here's why I think it's a winning distribution channel.  When content is being distributed though the channel and there is monetary value being exchanged, then you have a distribution channel where negotiations can be made.  When the music

Owner of MegaUpload Legally Changed His Name to Kim Dotcom

industry and the movie studios are demanding their head on a platter, I'm saying work something out monetarily.  We are willing to pay for each download – let's work it out.  If this distribution channel is making $100 million per year, then this might be a successful option for getting your content out there.  Just because the consumer is not clicking “charge my credit card” does not mean that money cannot be exchanged by the distributor and the copyright holder.

Building and maintaining the 5th largest website (or even the 50,000th largest website) takes a lot of hard work and consistency.  When the govt comes in and shuts it down without negotiating should be against the law.    And it has a chance to be changed.  The law is the collection of voices who shout the loudest and when PIPA and SOPA were under fire – who spoke the loudest?  WE DID!  From Wikipedia to Craigslist to Affiliates to Internet Marketers – we spoke the loudest!

And you know what?  It worked.

It worked because we had numbers.  When we have numbers and thousands of complaints are being logged PER HOUR then they HAVE to back down.  They have to drop measures that affect you and me.  They have to create measures that work and benefit all of us (not just the billion dollar companies who complain about a 1981 copy of Mermaid being uploaded to their site because some teenager wanted to share it)

The bottom line is this.

When building a business, everyday presents new challenges (every single day).  These challenges are fixed and some are ignored or put on the back burner.  When the owner says they are willing to negotiate terms because this is a new alternative distribution channel and the government is saying, “NOPE – LIFETIME JAIL SENTENCE!” Then that's wrong.  When the owners are wanting to brainstorm how to solve this challenge with the complainers and cut them in on the deal, but the government says, “NOPE – LIFETIME JAIL SENTENCE!” Then that's wrong.

For me – this country is in danger of being shutdown entirely of manufacturing and innovation because when innovation meets a closed minded government, business cannot thrive and survive.  Company owners cannot take risks or even open up a dialogue without having their business shut down entirely or worse, going to jail for life.  What are your thoughts of governments coming and pressing the OFF switch?  Leave your comment below..

I did find a solution called Filehost.  You can even join their affiliate program and get paid on 2 tiers!  Click the link below to signup, and don't forget to share this article if you liked it.

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