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To: FJB who wrote (466420)1/21/2012 12:48:45 PM
From: Tom Clarke4 Recommendations  Respond to of 793868
 
Power vs. People in the Digital Age
Jeffrey Tucker · January 20, 2012

The government seems determined to turn out the lights on the digital age. And this is with or without SOPA or the other bills that were only this week shouted down by the global digital community on Blackout Wednesday. The very next day, after support for that legislation collapsed after an impressive mass protest, the FBI and the Justice Department demonstrated that they don’t have to pay any attention to all this silly clamor. Congress, legislation, polling, debates, politicians, the will of the people — it’s all a sideshow to these people.

The FBI and Justice Department, on their own initiative, shut down megaupload.com, the biggest of thousands of file-sharing sites online, and arrested four of its top officials. The FBI is hunting down three others who seem to be on the lam. They all face extradition and 20 years in prison. As part of the sweep, the feds issued 20 search warrants and arrived at individual houses in helicopters. They cut their way into houses, threatened with guns, confiscated $50 million in assets and outright stole 18 domain names and many servers.

And what is the grave crime? The site is accused of abetting copyright infringement, that is permitting the creating of copies of ideas expressed in media. No violence, no fraud, no force, no victims (but plenty of corporate moguls who claim, without proof, that their profits are lower as a result of file sharing).

Megaupload had millions of happy users. It was the 71st-most-popular website in the world. Only 2% of its traffic came from search engines, which means that its customer base was loyal and collected through the hard work and entrepreneurship of site owners. For its users, it was a wholly legitimate service. For the owners, their profits were hard earned through advertising.

But the government saw it differently. And contrary to what many people believe, the already-existing law permits the government to do pretty much whatever it wants, as this case shows. The government relied on a 2008 law to make criminal, instead of civil, charges. A newly created IP task force is the one that worked with the foreign governments to seal the deal.

In the end, it was a presentation of exactly the nightmare scenario that anti-SOPA protesters said would happen if SOPA had passed. It turns out, as the deeper realms of the state already knew, that all of this was possible with no congressional action at all. Congress doesn’t need to do anything. We can watch the debates, go to the polls, elect people to represent us and perform all the rest of the rituals of the civic religion, but none of it matters. Power is here, active, oppressive, in charge and permanent, regardless of what you might believe.

Might it be that some of the users’ shared content on Megaupload was copyright protected? Absolutely. It is nearly impossible not to violate the law, as shown by SOPA sponsor Lamar Smith’s own campaign website, which used an unattributed background image in technical violation of the law. The leading opponent of piracy might himself be a pirate!

But the trendline with Megaupload was clearly toward using the space to launch new artists with new content — not piracy, but creativity. As Wired.co.uk wrote, this crackdown:

“came shortly after Megaupload announced music producer Swizz Beatz — married to Alicia Keys — as their CEO. They had rallied a whole host of musicians, including Will.i.am, P. Diddy, Kanye West and Jamie Foxx to endorse the cloud locker service. Megaupload was building a legitimate system for artists to make money and fans to get content.”

What‘s this all about? It is some powerful corporate lobbyists trying to prevent the emergence of an alternative system of art and music delivery, one powered by people, rather than merely the well connected.

The Internet’s great glory is its seemingly magical capacity for distributing information of all sorts universally unto infinity. The idea of the state’s regulations on information — instituted by legislators in the 19th century — is that this trait is deeply dangerous and must be stopped. So it is inevitable that the powers that be will try to shut it down; copyright enforcement is only the most-convenient Taser of choice.

This is the battle for whether the digital age is permitted to exist in an atmosphere of free speech, free association, free enterprise and real property rights or whether it will be controlled by government in conjunction with aging media moguls from monopolistic corporate oligarchies. The lines are clearly drawn, and the battle is taking place in real-time.

Example: Within minutes after the officials of Megaupload were arrested, a global hacker group called Anonymous shut down the Justice Department’s website and the sites of the Motion Picture Association of America, the Recording Industry Association of America, Universal music and BMI — the major lobbying forces in Washington for restriction and reaction against the Internet.

In another stage of the great battle over information freedom, the Supreme Court, on the very day of the SOPA protests, handed down a decision that could have a devastating effect in the months and years ahead. It permitted the re-copyrighting of works that are already in the public domain so that the domestic law accords with the international law. If that sounds like no big deal, consider that many local orchestras have already changed their season lineups to remove some major works from their repertoire because they can no longer handle the licensing fees.

It’s hard to know what to call this but cultural masochism.

Regardless of how the legal struggles turn out, a culture of rational and irrational fear has gripped the Web. I’ve noticed this growing over the last months, but just this week, it has become worse, to the point of paranoia, and even mania. The successful protests against SOPA ended up only causing the censors to redouble their efforts, and the message is getting out: Almost everything you want to do online could be illegal.

A small sample of what I mean… Just this morning, I received the following email: “BBC Four recently broadcast a stunningly beautiful documentary called God’s Composer (Tomás Luis de Victoria), hosted by Simon Russell Beale. A friend in Rome sent me a link to it, but I’m not sure I’m free to share it. Have you seen this documentary? It is stunning both visually and musically.”

Not free to share a link? What? To be sure, I don’t know whether he intended to send me to the BBC or some other site that is hosting an additional copy of it. Regardless, this is what it has come down to: a belief that every email is traced, every site is monitored, every act of individual volition on the Web could be a crime, every website is vulnerable to an overnight takedown, every domain owner could be subject to arrest and jail.

The battle between power and freedom dates to the beginning of recorded history, and we are seeing it play out right before our eyes in the digital age. It’s as if at the beginning of the Bronze Age, the leading tribal chieftain made smelting ore illegal; or if at the transition from iron to steel, the ruling elite put a cap on the temperature of refining ovens; or if at the beginning of flight, some despot declared the whole enterprise to be too risky and economically damaging to the industry that depended on land travel.

In the current version, the issue of “intellectual property” is at the forefront of this battle. The first most people heard of this was on Blackout Wednesday, when Wikipedia went black. This is a foretaste of the future in a world in which power achieves victory after victory, while the rest of the world cowers with fear in darkening times.

Jeffrey Tucker, publisher and executive editor of Laissez-Faire Books, is author of Bourbon for Breakfast: Living Outside the Statist Quo and It's a Jetsons World. You can write him directly here.

lfb.org



To: FJB who wrote (466420)1/21/2012 5:15:40 PM
From: FJB2 Recommendations  Read Replies (1) | Respond to of 793868
 
WELLINGTON (Reuters) - New Zealand police on Saturday revealed bizarre details of the arrest of the suspected kingpin of an Internet copyright theft case against the James Bond-like backdrop of a country mansion hideaway with electronic locks, a safe room and a pink Cadillac.


German national Kim Dotcom, also known as Kim Schmitz, was one of four men arrested on Friday, a day before his 38th birthday, in an investigation of the Megaupload.com website led by the U.S. Federal Bureau of Investigation.

The group was accused of engaging in a scheme that took more than $500 million away from copyright holders and generated over $175 million in proceeds from subscriptions and advertising.

A police official said dozens of officers, backed by helicopters, forced their way into the mansion, nestled in lush, rolling farmland, after Dotcom refused them entry, a scene more reminiscent of a high-octane spy drama than the usual policeman's lot in rural New Zealand.

"Despite our staff clearly identifying themselves, Mr Dotcom retreated into the house and activated a number of electronic-locking mechanisms," said Detective Inspector Grant Wormald from the Organised and Financial Crime Agency New Zealand.

Officers broke the locks and Dotcom barricaded himself into a safe room which officers had to cut their way through to gain access.

"Once they gained entry into this room, they found Mr Dotcom near a firearm which had the appearance of a shortened shotgun," he said. "It was definitely not as simple as knocking at the front door."


ROLLS-ROYCE PHANTOM

Two firearms were seized and a 55-year-old New Zealand man has since been charged with illegal possession of a pistol. Computers and documents were also retrieved and more than NZ$10 million ($8 million) was seized from financial institutions.

Television footage showed vehicles, including a pink Cadillac and a Rolls-Royce Phantom Drophead Coupe, being removed from the property.

The house where Dotcom was arrested was one of the largest and most expensive in the country, worth around NZ$30 million.

Located in hills northwest of New Zealand's largest city, the mansion is surrounded -- at suitably discreet distances -- by other substantial country homes and luxury lifestyle blocks complete with stables, swimming pools and tennis courts.

Dotcom leased the property after being blocked from buying it last year by the government after failing to meet a "good character" test for migrants, although he was granted residency in 2010.

Dotcom has previous convictions for insider trading and embezzlement from his time in Germany and Thailand, according immigration authorities, leading some opposition politicians to question why he was allowed to settle in the first place.

"New Zealand is under the radar, away from Interpol and a better lifestyle than Eastern Europe," Jeffrey Carr, an Internet security expert founder of Taia Global Inc, said of Dotcom's decision to settle in New Zealand.

"They obviously weren't aware how closely the FBI has been building its international relationships over the past few years."

The FBI said Dotcom personally made $42 million from Megaupload in 2010 alone.

Standing some 6'7" tall and reportedly weighing around 300 pounds (136 kg), Dotcom appeared to revel in his outlaw reputation.

Personalized number plates on some 20 vehicles seized from the site included KIMCOM, HACKER, STONED, GUILTY, MAFIA, GOD and POLICE, according to the indictment.

One video on YouTube shows him racing a Mercedes in the Gumball 3000 road rally and talking about bribing a Moroccan official.

Another clip shows a 2011 New Year's Eve fireworks display over Auckland organized and paid for by Dotcom to celebrate his family being granted residency. The display was reported to have cost $500,000.

PIRACY DEBATE

The arrests were made as the debate over online piracy reaches fever pitch in Washington where Congress is trying to craft tougher legislation.

Lawmakers stopped anti-piracy legislation on Friday, postponing a critical vote in a victory for Internet companies that staged a mass online protest against the fast-moving bills.

The movie and music industries want Congress to crack down on Internet piracy and content theft, but major Internet companies like Google and Facebook have complained that current drafts of the legislation would lead to censorship.

Dotcom and the other men made a brief court appearance on Friday will appear again on Monday. They face extradition and a trial in the United States.

On Friday, in a show of support, hackers attacked and temporarily disabled a number of government and entertainment company websites, including the U.S. Justice Department's website.

U.S. Justice Department officials have said that the estimate of $500 million in economic harm to copyright holders cited in a U.S. indictment was at the low end.

The allegations included copyright infringement as well as conspiracy to commit copyright infringement, conspiracy to commit money laundering and conspiracy to commit racketeering. Two of the offences carry a maximum penalty of 20 years.

The companies charged, Megaupload Ltd and Vestor Ltd, were both registered in Hong Kong and owned either in large part or solely by Dotcom.

Some 100 officers raided four premises in Hong Kong on Friday including luxury hotel rooms, seizing computer equipment and freezing HK$330 million ($42.5 million) in financial assets, according to Hong Kong Customs.

Megaupload has boasted of having more than 150 million registered users and 50 million daily visitors, according to the indictment. At one point, it was estimated to be the 13th most frequently visited website on the Internet.

Users could upload material to the company's sites which then would create a link that could be distributed. The sites, which included video, music and pornography, did not provide search capabilities but rather relied on others to publish the links, the U.S. indictment said.

Megaupload's U.S. lawyer said the company would "vigorously defend itself" and was trying to recover its servers and get back online.

The Megaupload group used more than 1,500 computer servers in Virginia, Washington D.C., France and the Netherlands to host its sites, according to the FBI.