MPAA 'skeptical' of Megaupload founder's new service

The Motion Picture Association of America (MPAA) has cast a scrutinizing eye on the new cloud-based storage service that Megaupload founder Kim Dotcom reportedly plans to launch later this year.

Dotcom told Wired that he is set to launch a new online platform called Mega that lets people store and share large data files. Dotcom's announcement comes months after the Justice Department shut down Megaupload's website for copyright infringement in January, a move that was cheered by the MPAA and Recording Industry Association of America.

When asked for comment on the report, the MPAA says it's "skeptical" of the forthcoming online storage service given Dotcom's reputation with Megaupload.

"While we haven't seen how this alleged new project will operate, we do know that Kim Dotcom has built his career on stealing creative works," said MPAA spokesperson Kate Bedingfield. "He has undermined the people who work hard to produce the movies and TV shows audiences love, and has damaged the consumer experience by pushing stolen, illegitimate content into the marketplace."
 
"We'll reserve final judgment until we have a chance to analyze the new project, but, given Kim Dotcom's history, count us as skeptical," Bedingfield said.

While Mega is a cloud-based online storage service like Megaupload was, it's different in that it will encrypt a file that a person uploads to the platform and then give them a unique key to unscramble the encryption, according to Wired. Using this method, Mega will be unable to view uploaded files and the user has control over who has access to them.

Even the government would need the key in order to access a file on Mega's servers, Dotcom told Wired, raising questions over whether the new service is just a seizure-proof sequel to Megaupload. Dotcom contends that it will keep people's files better protected.

The Justice Department could not be immediately reached for comment on Mega.

After Megaupload was shutdown, federal authorities said that Dotcom and the site's other founders made more than $175 million in criminal proceeds from streaming illegal copies of movies, TV shows, music and other copyrighted content.