The popular Germany-based file hosting service RapidShare has allegedly begun handing over user information to record labels looking to pursue illegal file-sharers. The labels appear to be making use of paragraph 101 of German copyright law, which allows content owners to seek a court order to force ISPs to identify users behind specific IP addresses. Though RapidShare does not make IP information public, the company appears to have given the information to at least one label, which took it to an ISP to have the user identified.

Read the rest of the article over at ArsTechnica.