Copyright infringement charged against Megaupload

According to Adli Law Group,
The Internet-based company Megaupload has been the subject of a massive international criminal investigation involving sales of as much as $175 million from copyrighted materials valued at about $500 million in damages to those who own the copyrights to the pirated works.
Copyright infringement has become more and more of a serious problem because of the ease of sharing information over the Internet. According to the charges against the employees of Megaupload, the company used a rewards system as incentives to people who would anonymously upload popular programs, music and movies. In essence, the charges are that Megaupload rewarded people for disregarding copyright laws.
So was Megaupload a legitimate business, with a legitimate purpose and with customers who were not stealing movies or music? They are certainly disputing the charges right now, which makes sense because if the executives are convicted of copyright infringement they could be facing serious financial penalties and up to 20 years in prison. In the meantime, the website has been seized, and seven people have been charged with Internet piracy.
This will certainly be a very complicated copyright infringement case as it spans eight different countries and the fact that Megaupload is based in New Zealand. Questions of jurisdiction and whether the executives were knowledgeable about U.S. copyright law will have to be resolved. Because Megaupload used servers in Virginia and Washington to store some of its material, it is likely that the case can proceed on U.S. soil. This case will also be complicated by the fact that it will require cooperation among international law enforcement agencies.
Will the federal prosecution of copyright infringement — in what is one of the largest criminal copyright cases ever — stop the theft of copyrighted materials over the Internet? Probably