Wikipedia wrote:
In Megaupload's case, the indictment asserts DMCA provisions were used for the appearance of legitimacy – the actual material was not removed, only some links to it were, takedowns agreement was approved based on business growth rather than infringement, and the parties themselves openly discussed their infringing activities. The indictment states that Megaupload executives:
"... are willfully infringing copyrights themselves on these systems; have actual knowledge that the materials on their systems are infringing (or alternatively know facts or circumstances that would make infringing material apparent); receive a financial benefit directly attributable to copyright-infringing activity where the provider can control that activity; and have not removed, or disabled access to, known copyright infringing material from servers they control."[48]
It looks like the government is arguing that they weren't complying with the standard I indicated earlier. If that's the case, they're clearly in violation. I'm going to assume that the government has solid evidence if they managed to get the cooperation of New Zealand in the arrests.
Your Pal,
Jubber