Governments exist to do what individuals and small organizations cannot. They are supposed to protect us from crime but things can go horribly wrong when governments extend their powers to the extent that they commit crimes (wars, intrusion into civil liberties, etc.).
That’s the case with MegaUpload. The US government has prosecuted MegaUpload for promoting violation of copyright and the resulting legal grid-lock has caused every user of MegaUpload to have data locked-up by the court. The prosecution eventually stated they had all the evidence they needed and means were set up to allow innocent parties to retrieve their data but now the government has told the court that some of the data on the servers is actually child pornography and cannot be released as contraband. So, conflicting legal reuirements leave everyone in a bind: the innocent parties cannot get their data, the owners of the servers have to keep their capital tied up and power bills being paid, and the courts are being choked with bloated legal processes while MegaUpload’s funds have been frozen.
We have the same effect as malware on IT. IT grinds to a halt because of irrelevant processes. If every server in the world that might have malware on it were seized, would IT operate at all?