>It also posts the unencrypted hash of the file you uploaded to their server so that they can do DMCA takedowns
Why would they do that? It's not like anyone can send them DMCA notices: the act of verifying that the upload violates your copyright already removes the file from the service. And I don't see anything in the DMCA that requires them to search for offenders, they just have to act once they become aware?
> And I don't see anything in the DMCA that requires them to search for offenders, they just have to act once they become aware?
The Megaupload case sadly is a good example of what no one wants to repeat, as there this was exactly argued - that, once notified, the hoster has to ensure this file won't ever be uploaded again, and all other copies are removed, too.
Why would they do that? It's not like anyone can send them DMCA notices: the act of verifying that the upload violates your copyright already removes the file from the service. And I don't see anything in the DMCA that requires them to search for offenders, they just have to act once they become aware?