Megaupload Lawsuit Update: Parties Battle Over Future of Megaupload Server Files

File sharing and allegedly copyright infringing Web site Megaupload wants to reestablish its now-downed site in order for people to retrieve their files, but so far, the government won't allow it. Carpathia, a server company who hosted the Megaupload content is more or less stuck with the 25 petabytes (that's 25 million gigaybtes) of content because of the ongoing legal battle related to Megaupload's alleged piracy.

Now Carpathia has asked the judge in the case to intervene because the company is loosing thousands of dollars per day just hanging on to all those movies and videos in its rack space. No one else can realistically hold on to the files because of the lawsuit, and the Motion Picture Association of America has further asked the judge to retain those files for potential use in lawsuits. The MPAA has said it plans to sue Megaupload, but not individuals who used the Web site, Wired's Threat Level blog reported.

Start the slideshow to see a recap of the scandal so far. Tell us in the comments if you've been following along because you had a Megaupload account.