1. >>APMG 8119: DIGITAL ENTERPRISE REPORT PREPARED FOR: (Mariia, Deepthi, Alexi & Shriram) POSTGRADUATE DIPLOMA IN BUSINESS APMG 8119: DIGITAL ENTERPRISE 2015

2. >>APMG 8119: DIGITAL ENTERPRISE CONTENT Piracy In Numbers Explaining Kim Dotcom & MegauploadVK.ComNew Zealand Copyright LawWho Owns The Data?Implications on Apple CloudConclusion

3. >>APMG 8119: DIGITAL ENTERPRISE Piracy In Numbers

4. >>APMG 8119: DIGITAL ENTERPRISE Piracy In Numbers

5. >>APMG 8119: DIGITAL ENTERPRISE Explaining Kim Dotcom & Megaupload Case Kim Dotcom is a 6’ft 7”, 300 poundish German man. Original name was Kim Schmitz Founder of Megaupload a cloud-based file sharing website. Arrested for sharing? – FBI shut down Megaupload on 19 th January 2012 for allegedly enabling, encouraging and profiting from people using the site to illegally share copyrighted material. How big was his business? – 180 million registered users, 50 Million daily visitors, accounted for 4% of total internet traffic, earned $175Mn while authors were robbed for >$500Mn.

6. >>APMG 8119: DIGITAL ENTERPRISE Megaupload - How it Worked? Cyber Lockers File Size limit for free Subscription Premium Members upload larger files Files can be downloaded any number of times Cash reward based on downloads Delete files not downloaded >90 Days

7. >>APMG 8119: DIGITAL ENTERPRISE Charges -Megaupload was charged under 13 counts. Charges rely directly or indirectly on 2 criminal copyright status:13 counts  17 U.S.C. § 506(a)(1)(A) which outlines: “(a) Criminal Infringement – in general – any person who wilfully infringes a copyright shall be punished  18 U.S.C. § 2319(d)(2) The penalty provision  Cash rewards based on numbers of times content was downloaded by users  No accountability nor inspection of any files that were uploaded  Generated profits out of files stored on their server.  Deleted files that were not downloaded after 90 days  91% had never uploaded any personal or official documents.  90% of the upload and download was of infringing materials Megaupload was considered unlawful for following reasons

8. >>APMG 8119: DIGITAL ENTERPRISE VK.COM Largest European Social Network in Saint Petersburg Russia. Company was founded in 2004. Nov 2014 - 280Mn accounts - 70Mn daily users. Company was founded in 2004. Nov 2014 - 280Mn accounts - 70Mn daily users. Reason for its popularity - large digital library of unlicensed music Sony Music & Universal Music Russia & Warner Music UK filed legal proceedings in April 2014. They won the battle asking VK to implement new technologies which prevents illegal Copyright. RIAA placed VK on the US Trade Representative list of Pirate Websites. It had to pay fine of $178000 to SBA gala records.

9. >>APMG 8119: DIGITAL ENTERPRISE New Zealand Copyright Law Copyright Act was passed in 1994 and amended in 2011. According to Section 21 of the act person who authors the work is the copyright owner of the work. Section 37 – No individual other than the owner can make or import or possess or sell or let for hire or offer or expose for sale. Secondary Copyright infringement is a crime in both US and NZ

10. >>APMG 8119: DIGITAL ENTERPRISE Megaupload & VK Status as Per NZ Copyright Law Megaupload clearly provided means for its users to infringe content. Megaupload did not eliminate the account, contents or links which infringed Intellectual Property Law. Downloading audio files from VK in New Zealand is illegal and person can be prosecuted only if true owner complaints. VK tries to prevent illegal Copyright on its site & is not responsible. Secondary Copyright infringement is reason for Dotcom’s extradition in NZ. Person who’s name is on the internet bill, Universities, Schools or Café is responsible. Its guilty unless proven.

11. >>APMG 8119: DIGITAL ENTERPRISE Who Owns The Data? Megaupload policy states that the users have to keep a copy of files. VK also states that any legal content uploaded if copied, shared or downloaded it is users responsibility. Depends on the terms & conditions of cloud services that we use Where the data would be stored and how the country manage their data regulation All data on the cloud is encrypted however hosting services may not be compelled by law to hand over the encryption keys to your data. Select cloud provider comply with best-available international standards for security, availability, integrity, privacy and confidentiality. Still backup your data and seek legal advise.

12. >>APMG 8119: DIGITAL ENTERPRISE Implication on Apple Cloud Apple Cloud & other operators have taken precautionary measures by changing their policies. Apple Cloud has created a name with superior service Megaupload has created negative impact for cloud storage business. Megaupload too has comeback with more law proof version “Mega” After Megaupload was shut people did not opt out of cloud storage they choose the next best alternative.

13. >>APMG 8119: DIGITAL ENTERPRISE Conclusion  Criminal charges against Kim and 6 others is still pending  Highlights the gaps in legal framework of different countries  Ownership of data itself is emerging as a problem in this digitally connected world  People did not opt out of using cloud storage services.  People chose the next best alternative available  Piracy is still a big issue & root cause for which is attitude of web surfers.

14. >>APMG 8119: DIGITAL ENTERPRISE Global Trends in Retail Market Space

15. >>APMG 8119: DIGITAL ENTERPRISE BACK