The main argument was that megaupload wasn't providing personal storage because seldomly downloaded files would be automatically deleted, and all the incentives were geared towards maximizing downloads where they would get ad revenue. Therefore their system was not a storage system, but a download system, and a download system that incentivized illegal downloads by making zero efforts into trying to curb piracy.
They had advanced and aggressive systems in place to remove CP that they could have used to curb piracy and they obviously didn't decide to use that technology.
It's a pretty weak case with _horrible_ execution, but given the magnitude and size of mega/rapidshare at the time, something had to be done because it was getting out of hand.
It's a pretty weak case with _horrible_ execution, but given the magnitude and size of mega/rapidshare at the time, something had to be done because it was getting out of hand.