NEW YORK TIMES: Federal prosecutors in Virginia say they have shut down one of the world’s largest Internet file-sharing sites, Megaupload.com, and charged its founder and others with violating piracy laws. An indictment accuses the company of costing copyright holders more than $500 million in lost revenue from pirated films and other content. The indictment was unsealed Thursday [and] says that at one point, Megaupload was the 13th most popular Web site in the world. MORE

RELATED: Spearheaded by CEO Swizz Beatz, Megaupload has issued a counter lawsuit against Universal Music Group to stop the record label from interfering with their promotional videos. Swizz Beatz teamed up with a few friends in music business including Diddy, Kanye West, Will.i.am, Chris Brown, The Game, Alicia Keys, and many more to create a promotional video for his Megaupload service. The 4 minute video got a few of his friends into trouble with Universal Music Group, namely Kanye West, Wil.i.am, and Diddy. UMG issued a “take-down” report to YouTube for the video claiming that the 3 previously mentioned artist’s performances were not authorized. Amidst all of the SOPA talk circulating around the web today, it was revealed that Swizz Beatz was the CEO of file uploading/sharing service Megaupload, and that he was taking action against Universal Music Group to prevent the label from interfering with his promotional Megaupload videos. MORE

MEGA UPLOAD SONG!!!! HTTP://OKFOC.US from OKFocus on Vimeo.

NEW YORK TIMES: When the powerful world of old media mobilized to win passage of an online antipiracy bill, it marshaled the reliable giants of K Street — the United States Chamber of Commerce, the Recording Industry Association of America and, of course, the motion picture lobby, with its new chairman, former Senator Christopher J. Dodd, the Connecticut Democrat and an insider’s insider. Yet on Wednesday this formidable old guard was forced to make way for the new as Web powerhouses backed by Internet activists rallied opposition to the legislation through Internet blackouts and cascading criticism, sending an unmistakable message to lawmakers grappling with new media issues: Don’t mess with the Internet.

As a result, the legislative battle over two once-obscure bills to combat the piracy of American movies, music, books and writing on the World Wide Web may prove to be a turning point for the way business is done in Washington. It represented a moment when the new economy rose up against the old. “I think it is an important moment in the Capitol,” said Representative Zoe Lofgren, Democrat of California and an important opponent of the legislation. “Too often, legislation is about competing business interests. This is way beyond that. This is individual citizens rising up.”

It appeared by Wednesday evening that Congress would follow Bank of America, Netflix and Verizon as the latest institution to change course in the face of a netizen revolt. Legislation that just weeks ago had overwhelming bipartisan support and had provoked little scrutiny generated a grass-roots coalition on the left and the right. Wikipedia made its English-language content unavailable, replaced with a warning: “Right now, the U.S. Congress is considering legislation that could fatally damage the free and open Internet.” Visitors to Reddit found the site offline in protest. Google’s home page was scarred by a black swatch that covered the search engine’s label.

Phone calls and e-mail messages poured in to Congressional offices against the Stop Online Piracy Act in the House and the Protect I.P. Act in the Senate. One by one, prominent backers of the bills dropped off.First, Senator Marco Rubio of Florida, a rising Republican star, took to Facebook, one of the vehicles for promoting opposition, to renounce a bill he had co-sponsored. Senator John Cornyn of Texas, who leads the G.O.P.’s Senate campaign efforts, used Facebook to urge his colleagues to slow the bill down. Senator Jim DeMint, Republican of South Carolina and a Tea Party favorite, announced his opposition on Twitter, which was already boiling over with anti-#SOPA and #PIPA fever.

Then trickle turned to flood — adding Senators Mark Kirk of Illinois and Roy Blunt of Missouri, and Representatives Lee Terry of Nebraska and Ben Quayle of Arizona. At least 10 senators and nearly twice that many House members announced their opposition. Late Wednesday, Senator Charles E. Grassley of Iowa, the senior Republican on the Senate Judiciary Committee, withdrew his support for a bill he helped write. The existing bill “needs more due diligence, analysis and substantial changes,” he said in a statement. MORE