When it comes to Megaupload, Labian described Kim Dotcom and his organization as “shady” and said the $175 million in revenues the company made should give people pause. He noted that Megaupload’s structure gave users monetary rewards for uploading pirated content. Users of the service could upload without a cap but users who want to download a large file (or download it faster) would have to pay for it. Those who uploaded the best files would be given free account upgrades or even cash.

“Megaupload was making a ridiculous amount of money with a ridiculously bad service,” Labian said. “We frankly don’t see ourselves in the same space.”

But the MediaFire’s free file-sharing solution can also be used easily for sharing copyrighted files, especially music, with friends, relatives or anyone on the web. A Google search for a song name, an artist name and “MediaFire,” for example, will likely bring you to a copy of that file that can easily be downloaded from a MediaFire page.

Examples:

Blu-Ray http://tinyurl.com/7vex9k3

screenshot:

MP3 http://tinyurl.com/7yp8svg 

screenshot:

When asked about the Googling issue, Labian said that MediaFire is a “private service” and the only reason Google indexes a MediaFire page is when it has been shared without authorization by a user. He said MediaFire isn’t at fault for this and said Google should look into the issue.

“We try to steer clear of things that would attract scrutiny,” Labian said. “If people are pirating on our service, we don’t want those people to use it.”

Another reason Labian said he wasn’t worried about the government stepping in is because the company maintains a “good relationship” with various government bodies, including “Homeland Security, ICE, and the FBI.” Following DMCA protocols, whenever MediaFire is notified of a copyrighted file being shared inappropriately, the company immediately takes it down.

More:
http://venturebeat.com/2012/01/22/mediafire-megaupload-business-model-piracy/