Leeware,

Thanks for your input. However, I think that in your representation of the market place, you're not recognizing that consumers have more than one way to move the market, all of which are legitimate:

1. Don't buy the product at all.
2. Find alternatives to the product (e.g. Linux in lieu or Windows)
3. Find ways to get the product cheaper (car insurance 'location selection' e.g. saying you're in Edison, NJ when you're actually in NYC)
4. Altering the value proposition by increasing the value you get for the price you are willing to pay (e.g. cable descramblers while still paying the cable company for some of their servicies.)
5. Outright theft (shoplifting of the CD).

I would put music downloading in #4 while the record industry clearly puts in in #5. For years, the music industry (of which artists, producers, and distributers are all a part) have been socking fans. They have increased copyright protection limits (the original copyright law was for 20yrs which would make most Beatles songs copyright free now.) They offer singles cd's for $9 while the whole album costs $12-19 providing a horrible cost benefit ratio (from the consumer perspective). And, even Pearl Jam couldn't break out of the Ticketmaster fee structure despite a massive following.

Finally, music downloading via P2P balances the relationship. It allows a potential consumer to fully evaluate a product before they purchase it. In fact, its really no different from recording from the radio. My belief is that for many folks it has led to more prudent purchases (less buying of unworthy cd's and more buying of worthy ones.) That seems to me to be the real reason that CD sales have dropped by 20%. Before we had to buy a product we had no ability to evaluate and now we have choices.

I make a clear distinction between 4 and 5 b/c I don't play my computer music in my car or on my stereo. I buy CD's because I want to hear music in real audio quality. If I steal the CD, the store I steal it from never will receive the benefit of the purchase, but if I download a few songs (like a test drive of a car), then go out and buy the cd, the industry gets its dues. On the other hand, if I don't like the music, I delete it or don't listen to it. Either way, the music industry is no longer hosing me.

Ultimately, that's what the issue is about. Corporations getting frustrated that the consumers are finding a way to balance the relationship. SCO sues Linux. RIAA sues customers (and despite downloading, I guarantee EVERYONE they have sued has BOUGHT many cd's.)

I understand your appreciation of the 'legal' aspects of P2P. I value that as well, but I also value the balancing aspects of P2P that although not legal, still are right. It used to be illegal for blacks to vote. That didn't make it right.