That they're being compared to a drug ring is rather unsettling, even if we assume that all the prosecutions claims are true.

The ongoing damage here, if any, is only economical and a much more narrowly construed seizure could still largely prevent further damage while safeguarding their legitimate customers.

It seems similar, but one significant difference is that, in a drug bust, it's pretty cut and dry as to whether the targets are doing something illegal. The mere presence of drugs automatically makes it so. That's not really the case here. A judge could very well determine that Megaupload never broke any laws.

That is my thinking. However, I think the proper analogy would be a drug bust where one of the drug ring's warehouses' lease was up. Now, the government is perfectly within its rights to go through the warehouse and log and dispose of any illicit drugs found, but I don't think the government is allowed to do a wholesale liquidation of all the materials found in the warehouse. The materials should be held in escrow until the end of the trial.