How would one manage a file sharing site?

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Hey!
Today, I was thinking about Megaupload. How would one find offending files (that violate copyrights etc) without violating the users privacy? Could you state in the T's & C's that you will do that?
Sorry if I am being a little ignorant, I dont know too much about the law side of websites.
Any ideas?
Just curios.

There is no safe way to check if sites like megaupload invades your Privacy.

Best not to touch those things.

Didn't think so.
Must be a nightmare to run a file sharing site.

not really your are only going to be hosting files
i ran one untill the server and back up server got hacked all files lost

Yeah, but if people decide to use it for a piracy circle, what would you do to delete the files without violating privacy policies and what not?

you only have to deleat illegal files if they are reported to you.
its that way in the uk anyway

You don't.

Oh my god. What where Megaupload supposed to do? I guess nothing I suppose.
Like I said, I dont know much about these things.

DMCA safe harbor.

You can host just about anything your users upload as long as you remove files which violate local laws on request. And if you want to be very lazy you can just ignore user violation reports and only remove files requested to be deleted in paper form from lawyers of content copyright holders.

http://en.wikipedia.org/wiki/Digital_Mi ... yright_Act

Ah, I see. But Megaupload did that, did they not? Or didnt they?
I think the issue with MU is the fact that they allowed users to make money off of the files.

First line of Wiki page: "The Digital Millennium Copyright Act (DMCA) is a United States copyright law ..."

They say MegaUpload didn't take action (quickly enough or at all?) to DMCA complaints or other copyright complaints and they also say they on purpose attracted pirates to use the servers and semi-allowed pirated files and made loads of money off it.



They had servers in US or their servers used network located in US, also the root servers for .com and .net domain names are located in US so they have to obey laws of US because their servers and/or network is being used in US.
Eventhough MegaUpload was registered in Hong Kong and the owner of the company was living in New Zealand they still rushed in and kidnapped him to US for trials and seized his assets what they belive was gained by illegal activity.
And now the assets might get returned because of error by the police(?).

I don't know how but US seems to be able to just come and kidnap people who they believe commit crimes to US for trials and jail and they are in some cases claiming that they own the internet because so many root servers and services and datacenters there are in the US.
For example they wanted to and still wants to extract (incorrect word?) Gary McKinnon (link) to US from UK for trials and possibly jail for hacking into NASA several years ago (2002?).

So.. US can just come and kidnap (in some cases) or force local law authorizes to prosecute them at least if not possible to extract into US where every other country than US just noticeses local law enforcement about possible crimes and have no way of prosecute them as they live in other country so their own laws don't apply neither can their police/law enforcement can do a thing about it.