Anonymous strikes back after feds shut down piracy hub Megaupload

In one of the U.S. government's largest anti-piracy crackdowns ever, federal agents on Thursday arrested the leaders of and shut down Megaupload.com, a popular hub for illegal media downloads.

Hours later, Megaupload's fans turned the table on the feds. "Hacktivist" collective Anonymous said it set its sights on the U.S. Department of Justice and apparently knocked the agency's website offline.

"We are having website problems, but we're not sure what it's from," a DOJ spokeswoman told CNNMoney.

The DOJ website glitches came soon after various Twitter accounts associated with Anonymous took aim at the agency.

Anonymous's favorite weapon for these attacks is what's called a "distributed denial of service" (DDoS) attack, which directs a flood of traffic to a website and temporarily crashes it by overwhelming its servers. It doesn't actually involve any hacking or security breaches.

"One thing is certain: EXPECT US! #Megaupload" read one tweet from AnonOps that went out mid-afternoon.

One hour later, the same account tweeted a victory message: "Tango down! http://universalmusic.com & http://www.justice.gov// #Megaupload"

It was the largest attack ever by Anonymous, according to an Anonymous representative, with 5,635 people using a networking tool called a "low orbit ion cannon." A LOIC is software tool that aims a massive flood of traffic at a targeted site.

Universal Music's website also went down Thursday afternoon. The music company had been locked in a legal battle with Megaupload over a YouTube video that featured many of Universal Music's signed artists promoting Megaupload's site.

The websites of the Recording Industry Association of America and Motion Picture Association of America went down Thursday afternoon as well. On Twitter, AnonOps -- one of the main communications channels for the leaderless Anonymous collective -- took credit for the crashes.

An RIAA spokesman confirmed that the organization's website was intermittently offline. But he cast the attack as a minor hiccup.

"The fact that a couple of sites might have been taken down is really ancillary to the significant news today that the Justice Department brought down one of the world's most notorious file sharing hubs," he said.

A piracy crackdown: The Anonymous attack came soon after the DOJ announced the indictment of seven individuals connected to Megaupload for allegedly operating an "international organized criminal enterprise responsible for massive worldwide online piracy of copyrighted works."

Authorities said the operation had generated more than $175 million in illegal profits through advertising revenue and the sale of premium memberships.

According to the indictment, Megaupload, which launched in 2005, was once the 13th most visited website on the Internet, serving as a hub for distribution of copyrighted television shows, images, computer software and video games.

The site's popular MegaVideo subsidiary was widely known in tech circles for its copious selection of pirated content, including recent movies and episodes of hit TV shows.

Four of those indicted were arrested Thursday in Auckland, New Zealand, at the request of the U.S. Three others remain at large.

The individuals indicted are citizens of New Zealand, Germany, Slovakia and the Netherlands. No U.S. citizens were named. However, Megaupload has servers in Ashburn, Va., and Washington D.C., which prompted the Virginia-based investigation.

To shut down Megaupload, federal authorities executed 20 search warrants in eight countries, seizing 18 domain names and $50 million worth of assets, including servers located in Virginia, Washington, the Netherlands and Canada.

The news comes as lawmakers have turned their attention to anti-piracy legislation. Protests erupted both online and offline this week against two bills currently under consideration in Congress: the House's Stop Online Piracy Act (SOPA) and the Senate's Protect IP Act (PIPA).

The bills are aimed at cracking down on copyright infringement by restricting access to sites that host or facilitate the trading of pirated content. But the legislation has created a divide between tech giants, who say the language is too broad, and large media companies, who say they are losing millions each year to rampant online piracy.
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US Government Shuts Down MegaUpload.com, Arrests Four

And bam, MegaUpload.com is no more. The FBI has arrested four people behind the popular file-sharing website, and is looking for three more, in a worlwide investigation into the website. Apparently, the site is super-dangerous - the indictment behind the arrests minces no words. As a countermeasure, people claiming to be from Anonymous took down the websites of ViaCom and the Department of Justice. Update: Ars has analysed the indictment. It's pretty damning, but does have a few weird odds and ends. Update II: And more and more sites are falling by Anonymous' hands. Largest operation in their history.

According to the US government, MegaUpload.com is "a world-wide criminal organization whose members engaged in criminal copyright infringement and money laundering on a massive scale". I personally rarely use the site, although I did occasionally encounter download links to the site. It's one of those sites where you sigh when you encounter them - annoying ads, hard-to-find download buttons, and so on.

Furthermore, the US government claims MegaUpload.com offered incentives to uploaders, and that the four people who were arrested also uploaded content themselves. Money was brought in through advertising and subscriptions which offered faster download speeds and more frequent download opportunities.

What interests me most is that MegaUpload.com is a Hong Kong-based operation, and that none of the seven people mentioned in the indictment are citizens of the United States. It raises the same question I posed earlier this week: does this mean we can request the FBI arrest and extradite US politicians, like Rick Santorum, for making anti-homosexual remarks, which are illegal in The Netherlands? Or does this only go one way?

In any case, it honestly wouldn't surprise me if MegaUpload.com truly has dirty hands here that go well beyond letting users upload possibly infringing material. Sites like this have always had a certain air of shadiness around them. On the other hand, I've already received an email from an OSNews reader who hosts his own creations on MegaUpload.com, and who is now denied access to his content, further highlighting the problems with sweeping government actions like this.

In any case, I'm glad the US has its priorities straight. This is obviously way more important than dealing with the rampant corruption in US Congress or the gross financial misconduct on Wall Street which has cost the people of the US hundreds of millions, if not billions of dollars.

Also, didn't we need SOPA/PIPA for this?

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In SOPA, PIPA protest, Wikipedia to black out

Might want to get your Encyclopedia Britannica set out of storage: Wikipedia will go dark Wednesday, joining a growing number of popular websites staging an online revolt against two anti-piracy bills.
Founder Jimmy Wales made the announcement in tweets on Monday, telling followers his goal is to "melt phone systems in Washington" in opposition to the Stop Online Piracy Act in the House and the PROTECT IP Act in the Senate.

The online protest puts Wikipedia in the company of other websites such as Reddit and popular games such as Minecraft in leveraging its substantial size and clout to campaign against the bills. Wales suggested on Twitter the impact of the blackout could be significant, given that "comScore estimates the English Wikipedia receives 25 million average daily visitors globally."

The site began weeks ago soliciting input from users on whether to implement a full or partial blackout of Wikipedia. Wales said Monday that the protest will involve only the English site.

"Final details under consideration but consensus seems to be for 'full' rather than 'soft' blackout!," he tweeted.

More details are due later this evening, according to Wikipedia.

The debates over SOPA and PIPA are drawing even some of the most politically averse Internet companies into the Washington fray. They argue the bills would threaten the architecture of the Internet by giving copyright holders and federal law enforcement too much power to shut off access to foreign websites peddling movies, music and other illegal content.

Responding to overwhelming criticism, the leading authors of SOPA and PIPA — House Judiciary Chairman Lamar Smith (R-Texas) and Senate Judiciary head Patrick Leahy (D-Vt.) — abandoned provisions that would allow the feds to seek a court order to block domain names of such sites.

Senate Majority Leader Harry Reid (D-Nev.) has scheduled a critical Jan. 24 cloture vote on PIPA. And during an appearance on NBC's "Meet the Press" Sunday, Reid showed no sign of backing down, though he did call for opposing sides to compromise.

Internet companies say the removal of the domain name-blocking provisions isn't enough. Buoyed by a statement from the White House Saturday that criticized parts of the House and Senate bills without explicitly opposing the measures, Wikipedia vowed to join the online assault against SOPA and PIPA this week.

"Student warning! Do your homework early," Wales tweeted. "Wikipedia protesting bad law on Wednesday!"

This article first appeared on POLITICO Pro at 3:51 p.m. on January 16, 2012.
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