Thing is, I'm not so certain that the Government will actually win this case. Courts are pretty strict on privacy and Rights of the individual in the US, and most other countries are realizing that all this running round screaming 'The Sky is falling! We must invade everyones' privacy to stop a few people pirating stuff!' is not only not working, but is actually causing a rift between them and their voters.
The thing is, the US are very much on a back-foot regarding the Megaupload debacle, they've been caught breaking laws and not following procedures all over the place by various courts. Each time they've tried to argue their way out of it using legalese, and so far they've had very little success.
It is indeed worrying that the lawyers for organisations such as the MPAA think that if stuff hits the cloud, it's no longer anyone's property, but I think that argument is actually shooting themselves in the foot, because they are by proxy arguing that any of their material that hits the cloud is now no longer subject to ownership laws.