US government seems to inspire a number of pro-copyright organizations to pressure credit card companies, along with online payment services, to cut off sites like MegaUpload and similar, engaged in file-sharing and streaming. The first move was made towards cutting off Wikileaks, and now the US entertainment industry decided to try and get Mastercard and others to do the same. Critics suggest this can be part of an innovative strategy for the conglomerate organizations.
Reportedly, the Recording Industry Association of America, in cooperation with the Motion Picture Association of America, is discussing with MasterCard and others the option of cutting off file-sharing services and streaming websites. One of the main targets to cut is MegaUpload, a hosting service storing files too large for e-mail.
The representative of RIAA mentioned that MasterCard especially deserved credit for their approach to addressing rogue services engaged in duping consumers. The company is reported to have reached out to the entertainment industry to find out what they think would be a productive cooperation.
While sites like cyberlockers usually offer their services for free, they also provide premium services for increased bandwidth and charge for them. But at the same time MasterCard actually earns profits from different transactions that occur every day. This means that in case systems like Visa, Mastercard, and AmEx cut off their services to cyberlockers and streaming sites, they can simply switch to other payment methods, such as Flattr or any other smaller systems from abroad.
Moreover, a very interesting fact is that there’s very little difference between MegaUpload and YouTube, if you consider that MegaUpload possesses a system for deleting copyrighted content. In fact, MegaUpload already complies with the Digital Millennium Copyright Act, just like YouTube. The only thing that separates them is that MegaUpload hosts any kinds of files, while YouTube only streams videos. Meanwhile, both services earn money from files whether infringing or not, but YouTube just manages to create less negative image of itself than MegaUpload.
Considering all this, it becomes clear that the only sides to lose out on this deal would be payment services that agree to cut off file-sharing sites.
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