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Closing Megaupload unlikely to even slow piracy down

The U.S. Department of Justice working in conjunction with New Zealand’s law enforcement agencies has taken down the popular file-storage and sharing site Megaupload. So, since Megaupload has been shut down, Internet piracy has gone down significantly, right? Right? Well, probably not, NPD market researcher Russ Crupnick said, “Only about 3 percent of the U.S. Internet audience relied on digital storage for legitimate purposes or piracy in the third quarter.”

So where is the file piracy going on? The same place it always has been: over BitTorrent and other peer-to-peer software powered networks. According to Crupnick, “Peer-to-peer systems like BitTorrent, which have little central coordination and are harder to stop, still have about three times as much usage among consumers as digital lockers.”

BitTorrent file sharing may account for far more than just 9% of Internet traffic. The latest research by Sandvine (PDF link), a broadband solution provider and analysis firm, shows that BitTorrent traffic took up 13.47% of all Internet traffic in the third quarter of 2011.

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