There's been near nuclear fallout from federal prosecutors shuttering of Megaupload, the file-sharing service accused of costing the entertainment industry $500 million in lost revenues. It's estimated that shutting down Megaupload's family of websites, which are accused of hosting massive amounts of copyrighted files, affected 1% of all Internet traffic. The feds are seeking the forfeiture of $175 million from Megaupload's flamboyant founder, Kim Dotcom; sympathetic hacker coalition Anonymous has since launched online attacks against the RIAA, MPAA, and Justice Department; and file-sharing and cloud services from FileSonic to Dropbox are wondering what this could mean for the industry.
On Tuesday, we caught up with RapidShare attorney and spokesman Daniel Raimer. RapidShare is one of the world's most popular file-hosting sites, and many have wondered whether the site could be next on the feds' list of targets. In part one of our two-part interview, Raimer explains why if RapidShare is shut down like Megaupload, then Apple's iCloud, Microsoft's SkyDrive, Google's YouTube, and Dropbox deserve the same fate too.
FAST COMPANY: Do you think Megaupload was fairly or unfairly targeted?
DANIEL RAIMER: I guess that's up to a jury to decide. I'm not a judge, and I don't want to make any verdict. I've seen doing Megaupload doing things that we wouldn't do, and that we strongly discourage, such as their heavy rewards program. But I don't want to say that they're guilty. It's not up to us to decide that.
Do you think federal prosecutors will target RapidShare next?
I don't think so.
Why not?
Let me put it like this. The technology behind Megaupload and RapidShare may be similar, but this is also true for the technology of Microsoft's SkyDrive or Apple's iCloud, which is not too different from what RapidShare is. It's uploading a file, and accessing it over the Internet, or even sharing at certain times with friends. The business from an ethical standpoint is really similar. The main difference is, what exactly is your business model? Are you aiding piracy? Is your intent to make money by attracting pirates and getting attention from copyright pirates? Or do you want to have serious customers and long-time relationships with satisfied people from all over the world, who trust you? That's exactly what we do.
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