> Convicting the megaupload people would've been a LOT harder if they hadn't been uploading and curating illegal content on their platform themselves.
This is just a gimmick to bamboozle judges and the public. The ploy is to claim that someone is guilty of serious offense A because you proved they committed less serious offense B, even though the offenses have different elements and penalties.
They use the ploy because any large organization by definition has a lot of people in it and copyright infringement is pretty common, so by the law of large numbers somebody in the company is probably doing it even if the company doesn't want them to and then the prosecutors want to claim that the company as a whole is doing something wrong and has to be shut down. Which doesn't make any sense when another company is just going to provide the same perfectly legal service and the users are going to use it for the exact same thing.
Moreover, the obvious way for companies to prevent this -- indeed, the thing Megaupload's replacement started doing after the original was shut down -- is to encrypt everything so their employees have no access to it. Which I have no objection to, but if courts and prosecutors like to be able to issue a subpoena and actually get something back, they might want to reconsider turning the ability of a company to access data into a liability.