File-sharing sites in activity retreat

As the U.S. government pursues charges against file-sharing site Megaupload.com, other sites have changed their policies to avoid similar actions, analysts say. Rival file-sharing sites FilesSonic and Uploaded.to have significantly altered their services to avoid allegations of copyright infringement such as those brought against Megaupload, accused of storing and distributing unauthorized copies of movies, TV shows, music and other media. FileSonic has ceased all file-sharing activities, saying that "our services can only be used to upload and retrieve files that you have uploaded personally," while Uploaded.to has blocked U.S. traffic to its site although it remains accessible elsewhere in the world, Slash Gear reported Monday. The actions follow the arrests of MegaUpload Chief Executive Officer Kim Dotcom and other employees of the site. Dotcom, also known as Kim Schmitz, appeared in a court in New Zealand Monday following his arrest in that country at the request of the U.S. Justice Department, which is seeking his extradition to the United States. His lawyer said Dotcom was innocent and should be allowed bail, CNN reported. "Mr. Dotcom emphatically denies any criminal misconduct or wrongdoing and denies the existence of any 'mega-conspiracy,'" attorney Paul Davison said. If granted bail, Dotcom would be willing to submit to electronic surveillance, Cnet reported Davison as telling the court.