FBI's Megaupload bust 'has done little to reduce internet piracy'



Putlocker, Rapidshare and Mediafire traffic has risen

Overall piracy has 'not decreased much in North America' says analyst

Trade had recovered within 24 hours

The FBI's recent seizure of Megaupload.com and its arrest of founder Kim Dotcom has done little to reduce piracy, says a web-traffic analyst.

In the hour after the bust, total internet trafffic around the world fell by two to three per cent - an indication of the scale of Megaupload, which hosted 34 per cent of file-sharing, according to analyst Deep Field Networks.



But just a day afterwards, the trade in shared music and films 'had not decreased much', says the analyst - it had just shifted to new services, and to new computer servers in Europe, rather than America.



Megaupload: At the time of the American move against the file-sharing site, the site represented 30 to 40 per cent of all file-sharing on the internet - global internet traffic fell by two to three per cent in the hour after the bust

Putlocker, MediaFire and Rapidshire were the big gainers in the 24 hours after Megaupload shut down.

DeepField Networks said that despite high-profile closures of file-sharing sites such as BTJunkie and sites such as FileSonic changing their rules, file-sharing was not significantly reduced.



'File sharing has not gone away. It did not even decrease much in North America,' says the web traffic analyst, who had conducted a three month study into file-sharing and the companies that host and deliver the files.



'On January 28, MegaVideo was clearly the king with 34% of all file sharing traffic. According to the indictment, the gigantic MegaUpload sprawled over more than 1000 servers and 25 petabytes of data in Carpathia facilities (with another 700 MegaUpload servers in Leaseweb hosting centers).'

Deep Field Networks says that the trade is still very much active, it has just changed location.



'The main impact of the MegaUpload takedown? Instead of terabytes of North America MegaUpload traffic going to US servers, most file sharing traffic now comes from Europe over transatlantic links.'

Kim 'Dotcom', MegaUpload's founder was refused bail in New Zealand for running the Megaupload 'digital locker' site.







Accused: Kim Dotcom at his bail hearing on January 25. The judge denied him bail, saying Dotcom's vast wealth meant he could flee the country if released from custody

The convicted hacker is currently in jail in New Zealand after being accused of masterminding a scheme that made more than $175million in a few short years by copying and distributing music, movies and other copyrighted content without authorisation.

Dotcom was denied bail last month when Prosecutor Anne Toohey argued at the bail hearing that Dotcom, also known as Kim Schmitz, was a flight risk 'at the extreme end of the scale' because it was believed he had access to funds, had multiple identities and had a history of fleeing criminal charges.

In an appeal hearing recently Dotcom told the Auckland court he would not flee New Zealand and wants to fight to get back his money, some of which authorities seized last month.

He told the court that with his assets frozen and business shut down he had no intention of trying to flee to his native Germany, where he would be safe from extradition.

Flying high: Kim Dotcom enjoyed a super-lavish lifestyle before he was taken into custody

'I will not run away. I want to fight these allegations on a level playing field. I have three little children. My wife is pregnant with twins. I just want to be with them,' he said in court.

At his bail hearing last month, his defence lawyer said the former hacker, who is reportedly 6ft 6in tall and weighs more than 20 stone (285lbs), was hardly likely to escape detection by New Zealand immigration.

'He is not the sort of person who will pass unnoticed through our customs and immigration lines and controls,' said lawyer, Paul Davison.

Kim Dotcom - nicknamed 'Dr Evil' - a German national, was renowned for his flamboyant lifestyle.

He owned a £3million collection of 25 cars which was confiscated at the time of his arrest – mainly top-of-the range Mercedes with number plates such as ‘STONED’, ‘HACKER’ and ‘GUILTY’ but also including Maseratis, a vintage pink Cadillac and Dotcom’s runabout, a £300,000 Rolls-Royce Phantom with the number plate ‘GOD’.

Although music stars such as Kanye West and Alicia Keys have supported MegaUpload, film and record companies say the seven-year-old file-sharing site is making a fortune off their work without paying them a penny.



