A question in case grellas or any other brilliant HN lawyers are reading this and care to comment -- assuming that Megaupload actually followed the DMCA as Kim claims and there was nothing illegal about their operations, what sort of remedies are available. I mean... it seems the company is dead. Can they sue for damages? And if so who pays? Do the courts recognize things like growth potential when they value lost da…
In such case, the government would pay (but not the individual prosecutors, as they are acting merely as agents of the government). Damages would be based on economic harm actually proved, i.e., lost business from cancelled customer contracts, lost ad revenue, etc. Future growth potential is not taken into account for damages purposes.
However, note that MegaUpload did not follow the DMCA. Its entire business plan was based on committing illegal activities, and was designed from the outset to maximize the revenue generated by such activities over the revenue generated by the potential legitimate uses of its services.
If you want a role model to follow in the media distribution market, look to BitTorrent.