Site stops file sharing after Megaupload case

Published: 7:06PM Monday January 23, 2012 Source: Reuters

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FileSonic, a website providing online data storage, has disabled its file sharing services following a US-led crackdown on a rival website and amid heated debate over Washington's attempts to clamp down on online piracy.

New Zealand police and those in Europe have made a number of arrests in recent days related to an investigation led by the US Federal Bureau of Investigation of the Megaupload.com website.

The group have been accused of engaging in a scheme that took more than $500 million away from copyright holders and generated over $US175 million in proceeds from subscriptions and advertising. Megaupload's lawyers have said the company simply offered online storage.

FileSonic, which describes itself as the "Unlimited Storage Company", said in a statement on its website that it would only allow users to access their own files.

"All sharing functionality of FileSonic is now disabled. Our service can only be used to upload and retrieve files that you have uploaded personally."

The firm, which lists addresses in Britain and Hong Kong, did not immediately respond to an email sent requesting further comment on the move.

The Megaupload case is being heard as the debate over online piracy reaches fever pitch in Washington where Congress is trying to craft tougher legislation.

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