The shutdown of MegaUpload and arrest of Kim Dotcom and several MegaUpload employees has been a big news item this week. The event demonstrates one thing: all you have to do is admit that your service can maybe, possibly be used to infringe on copyrights owned by members of the RIAA or MPAA for your company to be shut down, yourself arrested and all your assets seized.
The tactics of the RIAA/MPAA mafia ("essentially the cultural arm of the United States") are akin to suing the postal service and manufacturers of cardboard boxes for making it possible for people to receive counterfeit goods. The intimidation is aimed at all strata of online individuals and organizations: viewers of audio/video, hosting services, and software developers.
I have observed before that the actual business of the RIAA/MPAA members has nothing to do with audio or visual production, but is all about controlling distribution. The goal of the ongoing intimidation is to prevent innovation in distribution channels, and force viewers/hosts/developers to conform to the single distribution model authorized by RIAA/MPAA, regardless of whether any copyrights owned by members of the RIAA/MPAA are actually involved or not.
An interesting observation is that the RIAA/MPAA doesn't actually know what that distribution model is supposed to be. They are content to do business as usual selling plastic discs (all the while attempting to lock out smaller content producers and distributors with initiatives such as Macrovision, CGMS-A, CSS, ARccOS, SDMI, CPRM/CPPM, Sony rootkit CDs, AACS, Trusted Computing, UEFI (in an unholy alliance with Microsoft), PlaysForSure, HDCP, COPP, PMP, DVB-CPCM, FairPlay, OpenMG, etc.), and pretending that the ol' innertubes is a regional on-demand cable network (Netflix, Hulu, Spotify). Selling singles on iTunes (regionally restricted, of course) is about as innovative as the RIAA/MPAA members have dared to get in online distribution.
The arrest of Kim Dotcom has parallels to the 2004 arrest of Isamu Kaneko, author of the Winny file sharing program.
I am a card-carrying member of the Pirate Party of Canada. Given all the above observations and my previously expressed opinions on the futility and negative consequences of online copyright enforcement, I believe it's not safe for me to head up a project one of whose possible uses is to distribute files at the current time.
On the other hand, I have gotten really interested in research around F2F overlay networks and cryptographically-enabled online privacy, so expect me to write more about that.