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Our legal system is not designed to cope with massive violations of the rules (we declare martial law when it hits the fan), and that is the biggest problem at this time. The issue is not individual damage done by one person downloading ebook, song or movie, the issue is cumulative effect.
From that standpoint, takedown of Megaupload has its own logic, it is attacking the infrastructure that makes it easy to abuse copyright. For individual persecution of violators to work as a defence of the system, the "noise" level has to come down first.
Which is easier said than done.
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