Last January the Department of Justice charged the leaders of Megaupload with widespread online copyright infringement for “running an international organized criminal enterprise allegedly responsible for massive worldwide online piracy of numerous types of copyrighted works, through Megaupload.com and other related sites, generating more than $175 million in criminal proceeds and causing more than half a billion dollars in harm to copyright owners.”
By many accounts, the company’s chief has made a lot of money on this illegal enterprise and not one cent of it has gone to songwriters, artists or labels for the downloading of their music, which serves as the primary draw of Megaupload’s business model.
As one of the most notorious illegal distribution hubs in the world, Megaupload generates massive profits through the distribution of the stolen intellectual property of others. Its business model is to make as much money as possible as the 'go to' site for free and illegal music, movies and more. Megaupload deserves its reputation as one of the most egregious online hubs of copyright theft.
Screenshot of megaupload.com