Sunday, December 26, 2010

MasterCard may cut off file sharing sites over piracy

File-sharing sites like Megaupload and RapidShare could find themselves cut off from MasterCard payments due to their users' propensity to use them for file-sharing. Though these sites have many legitimate users, as they provide a convenient way of transferring files too large to be conveniently sent by e-mail, they are also commonly used to distribute music, videos, and games without the permission of the rightsholders.

This piracy link means that the sites in question could fall foul of the proposed—but essentially dead—Combating Online Infringement and Counterfeits Act (COICA). COICA would allow judges to force service providers, including credit card companies, to block payments to websites "dedicated to infringing activities." However, the bill was blocked by Senator Ron Wyden (D-OR), who described it as a "bunker-busting cluster bomb," when what was needed was "a precision-guided missile."

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