Torrentfreak says "What that means, in case the preceding paragraph wasn’t clear enough, is that UMG has a private outside-the-DMCA agreement with YouTube that it can take down other people’s content from YouTube even when it doesn’t infringe their copyrights."
ADDED the founder of Megaupload is a man named Kim Dotcom, who was busted for computer hacking in his native Germany in 1997. These days he lives in New Zealand, and had originally planned to use Gin Wigmore for the Megaupload Song, but her manager and label (Universal) nixed that idea after the recording session took place (at Neil Finn's Roundhead studios).
Gin was replaced by Macy Gray. The video has now had over 2.4 million views, which suggests that Gin may have missed out on some valuable international exposure, alongside the likes of Kanye West, Jamie Foxx, Will.I.Am of Black Eyed Peas. Read an interview with Kim Dotcom here.
ADDED: NY Times Media Decoder blog on the Youtube/Universal stoush is worth a read:
A YouTube takedown raises questions over media influence
ADDED: CMU: Universal has no special takedown privileges says YouTube.
CMU also reports that the original takedown notice from Universal was done as they claimed they were acting "against the song on behalf of one of its artists, Gin Wigmore, who said she was featured in the promo video without her permission." Except she isn't in it, according to Kim Dotcom.
ADDED Jan 20 2011 Megaupload has been shut down by US Federal prosecutors, who have charged its founder and others with violating piracy laws. Via NY Times
AP reports that founder Kim Dotcom and three others has been arrested in New Zealand at the request of US authorities. "The Justice Department said in a statement said that Kim Dotcom, formerly known as Kim Schmitz, and three others were arrested Thursday in New Zealand at the request of U.S. officials. Two other defendants are at large ... The Hong Kong-based company listed [hiphop producer] Swizz Beatz, a musician who married Alicia Keys in 2010, as its CEO."
ADDED Jan 27 MTV reports Kim Dotcom is releasing an album, produced by Printz Board.
ADDED Feb 8: Video - TV3's Campbell Live goes inside Kim Dotcoms's mansion with his bodyguard, sees panic room where he was Dotcom was hiding
ADDED Feb 11 - Printz Board - BEP and Kim Dotcom's producer (Megaupload Song) - talks to GeorgeFMs Nick D about the case. He's been hanging with PNC and Vince Harder while in NZ.
ADDED Feb 22: Kim Dotcom has been granted bail after new evidence came to light.
RELATED: Bail updates on Kim Dotcom