Government Attorney Suggests Hosting Companies Not Immune
In the battle over who is responsible for maintenance and upkeep on Megaupload's user data, a U.S. government attorney dropped a bombshell on all U.S hosting companies. For those not aware of Megaupload, it is the company that was raided and personnel arrested almost three months ago for “online piracy.”
The company that hosted Megaupload's business model, Carpathia, runs over 1,100 servers. Carpathia is in federal court arguing for someone else to pay the costs associated with maintaining the servers, around $9,000 per day.
So while Carpathia was in court, the company learned that it may become a target for litigation. The U.S. government attorney stated that Carpathia made $35 million from Megaupload and suggested that the company might be responsible for the online piracy. The government attorney went on to say that Megaupload's host may be partly liable for the copyright infringements that occurred through the cyberlocker and that Carpathia may become a target for a civil lawsuit.
Neither the Motion Picture Association of American nor Carpathia has made comments on the claims by the U.S. government attorney, but it's apparent that the U.S. government thinks that Carpathia is not totally innocent. Following the slippery slope of argument, if Carpathia is not immune in this instance, then is your hosting business immune?