Originally Posted by Ramayana
I just don't understand how the FBI has the power to shut down a Hong Kong based company.
I'll stop you right there.
Under criminal copyright law, "an unlawful reproduction" includes the act of a user downloading an unauthorized copyrighted work onto his computer.
Under international law, any country's law enforcement may prosecute a foreign national residing outside the country for a) conspiring to commit, or committing acts against citizens of that country which are criminal, or b) conspiring to induce, or inducing, citizens of that country to commit acts which are criminal.
Megaupload regularly induces US citizens to violate criminal copyright provisions.
So yes, the FBI can waltz into Megaupload and arrest everyone working there.