ValCom Sues Megaupload.com for Copyright Infringement
ValCom, Inc. (PINKSHEETS: VLCO) announced today that it has retained legal counsel and filed a copyright infringement suit to secure millions of dollars of funds seized by government authorities in a raid on the popular file sharing site Megaupload.com.
The government indictment alleges that Megaupload.com engaged in criminal copyright infringement, money laundering, racketeering and various other offenses and a shell company associated with the website caused an estimated half-billion dollars in copyright losses and made an estimated $175 million in proceeds. The website was established in 2005 and at one point ranked as the 13th most-visited website on the Internet throughout the world.
ValCom owned content was pirated on the Megaupload.com group of sites. So far $42 million in suspected criminal proceeds has been seized in the raids on Megaupload.com and its related entities. ValCom owns more than 6,000 audio and video titles and has discovered that a significant number of the Company's copyrights were illegally distributed via Megaupload.com. In cases of willful copyright infringement plaintiffs are awarded either actual damages or statutory damages ranging from $750 - $150,000 per copyright infringed.
Vince Vellardita, President and CEO of ValCom, stated, "Together with our friends at Microhits, Inc., we have implemented an aggressive initiative to acquire back-due royalties and compensation to assure that we receive all revenues that are due to the Company. Our suit regarding Megaupload.com is one of many situations we have identified where ValCom is due compensation. These are revenues that belong to ValCom and we're securing them for the benefit of the Company and to increase value for our shareholders."
Megaupload.com allowed users to download some content for free, but made money by charging subscriptions to people who wanted access to faster download speeds or extra content. The website, one of the most popular in the world, created additional streams of revenue by selling advertising on the site.
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