So, MegaUpload.com has two links to a movie file, each created by a different user (user1 and user2). The copyright holder files a DMCA notice against the link created by user1.
Should MegaUpload.com remove the link for user2? The rights holder has not claimed that the second link is offending. It's possible that user2 has the right to distribute the file, but user1 does not.
Dicey indeed. They were playing very fast and loose with 17 USC 512(c)(1)(a)(ii), if not the takedown provisions themselves. The nature of their service makes no distinction between the recipients, regardless of link to the file, and the only difference is which uploader would get points (or whatever reward they had). Its really hard not to give the impression that there weren't just looking the other way. Sites like (IIRC) hotfile.com completly blacklist the md5, even preventing re-upload of files if the get a DMCA takedown.
If a trial goes forward, I expect to see some case law made clarifying this area.
Should MegaUpload.com remove the link for user2? The rights holder has not claimed that the second link is offending. It's possible that user2 has the right to distribute the file, but user1 does not.
It's a dicey issue.