New Zealand police, responding from a request from the US government, raided MegaUpload today, arresting founder and CEO Kim "Dotcom" Schmitz and three "associates." The service, which allowed users to upload files that were too big to email, claimed 150 million users. The entertainment industry alleged that the service was primarily intended to facilitate copyright infringement, since people could use it to illegally share music and movies, but the company claimed that while some users might infringe copyright with MegaUpload, others simply used it to share files that belonged to them. For example, I use a comparable service, YouSendIt, to exchange large MP3 files of my podcast with John Taylor Williams, the sound engineer who masters them. At other times, companies that wanted me to review their movies and music have uploaded them to a file locker and supplied me with the link and password to get them.
In response, a large denial-of-service attack ("OpMegaupload") has been launched against the US Department of Justice, the FBI, Universal Music and other entertainment and law-enforcement sites, by activists operating under the Anonymous banner.
MegaUpload has been waging an online campaign against Universal Music and US law enforcement and trade representatives, first releasing a video featuring famous artists singing an anthem in praise of MegaUpload, then suing Universal Music over false copyright claims that had the video removed from YouTube.