The Department of Justice’s decision to indict Megaupload for copyright infringement has caused an uproar due in part to the potential harm that could occur if legitimate users lose data they had stored with the firm in “the cloud.”  This may happen because Justice’s decision to freeze Megaupload’s funds has made it impossible for the company to pay its server costs.  If Justice prevails against Megaupload, this data loss might be seen as an unfortunate casualty in the war on infringement; if Justice loses, consumers likely will castigate it for bringing a costly case without merit. So what to think of the legal issues in this matter? That’s what Jennifer Garnick, general counsel of Worldstar Management LLC, tackles in an intriguing post  Megaupload: a Lot Less Guilty Than You Think. She details how this case is far from rock solid, in particular how this  indictment relies on novel intersections of copyright law and criminal liability. She examines for The Center for Internet and Society at Stanford Law School how DMCA safe harbor might play a big role in this case as well as the idea of secondary copyright liability and criminal law. For those that have yet not heard the Megaupload story, you can get caught up by watching Slate News Channel’s one-minute video.