Article quote: In court papers, Nomm agreed that the harm caused to copyright holders by the Mega Conspiracy’s criminal conduct exceeded $400 million. Poppycock. How is a computer programmer qualified to estimate the pecuniary value of “harm caused” by the shop they're working at? What about the harm caused to Justice by farces and show trials like this?
And of course the "harm caused to copyright holders" is a farcical concept to begin with. You can't just take, say, the total number of downloads and multiply that with some fictitious amount of lost revenue and then claim that as damage, yet that's exactly what the rights utilization industry has been doing for decades.
This concept is based on the idea of physical theft. If I steal a truckload of soap and then sell it myself, the damage I'm doing to the legitimate owner is equivalent to the volume I stole multiplied by the original selling price minus regular shrinkage (e.g. lost sales because of faulty products, damage during regular handling or natural expiry).
Digital goods don't work that way. The "theft" of digital goods does not result in you having less products to sell. Instead it's more similar to the damage done via the "theft" of trade secrets. If I steal the Coca Cola recipe and begin giving away knock-off cola for free, I arguably cause damages due to lost sales, but it'd be ridiculous to assume that every "sale" of my product is equivalent to one lost sale of the Coca Cola company.
In fact, MegaUpload didn't even "steal" anything. If we want to use physical crimes as metaphors, it's simply dealing with stolen goods -- or more precisely: giving stolen goods away for free. And if one million users downloaded the same illegal content, they didn't give one million stolen goods away, they merely gave the same stolen goods away a million times.
It's not that copyright violations can't cause damages, but the current system for valuation of those damages -- especially in the US -- is entirely ridiculous and only continues to exist because the courts are either too apathetic or too ignorant (or sometimes both) to dismiss it.