Megaupload Ltd, a leading internet cloud storage company, filed a lawsuit in the Northern District of California, to stop Universal Music Group (UMG) from sending alleged sham DMCA notices to YouTube and others. The Complaint alleges that UMG sent DMCA notices to YouTube and other similar internet services providers representing that the "Megaupload Video" was infringing on copyrights when the true facts are that the Megaupload Video was an original work owned by Megaupload.
According to the complaint the Megaupload Video includes appearances from multiple celebrities speaking or singing about Megaupload including: Will.i.am, P Diddy, Kim Kardashian, Chris Brown, Kanye West, Lil John, Jamie Foxx, Mary J Blige, Floyd Mayweather, and more. The complaint alleges that written agreements were signed by all those involved in the production or appearing in the video.
The complaint alleges that "...it appears as though UMG permits recording artists to exercise their views and free speech only when UMG agrees with such speech. The type of wrongful behavior alleged against UMG and Defendants herein is exactly the type of behavior that the DMCA Sec 512(f) was designed to remedy."
Megaupload is asking the court for injunctive relief to stop the alleged UMG misconduct and for damages according to proof. You can read a copy of the complaint here.
Here are news stories on the Megaupload Video - UMG litigation from the New York Times and Wired.