Copying music is hurting the industry, but not because that 12 year old girl copied some of their material for her personal amusement, but because industry didnt want to adapt for the truth of rapid digital sharing. Thats because the truth equals dead RIAA. They no longer have ANY reason to exist, unless you are Britney. Lawyers and studios you can get from the free market, with competent prize tags.
One thing the computers still cant do themselfs is the music itself (for now that is) and that equals $$, for some artists, not for RIAA or Britney.
I just cant see the invidual copying of music as a theft. Its like if i find 5 bucks from the street and keep it, am i thief? Am i stealing from the person who is now 5 bucks short? He could be unhappy, but could he blame me for that?
I see music industry going down the toilet (thats where shi* belongs)eventually, big time. Thats because their retailer puppet strings were cut by p2p and people just ignored their outrageous (lets face it) prizes created by music TRUST, not by laws of competition. Now the valves for easy copying are open and it wont stop, unless they shut down network. Which they will try, trust me and sadly they even have chance of succeeding if they make their move before too many understands what the net is.
This market will crash and then change to something completely different, where the end "user" gets the recorded stuff for "free" (i mean, do you get the free TV channels for free?). The profits will be made some other way, possibly by living only with the ravenue that comes from radio plays. Good artists will be making their money from the live tours as they (to my understanding, Britney excluded) currently do. Its the RIAA that will be dying away and big monster creates a lot of havoc when it goes down. Yeah and the CD industry will go too, thats the truly sad aspect of it, theyre done nothing but their fair job. Its more easier now to get all your data via telephone line. Its the wonders of automation folks! Less people needed for same work.
What you are actually witnessing is the breakdown of monopolies, which are de facto created by branding ("Britney" or "Puff D", not "Sony"), brands which are forced to be successfull. I have nothing against brands per se, im not bothered by Nike selling shoes with double prizes, since they do it they way customers "want".
Now the Britney clones will have to start competing with eachothers. Only people who will still make big $$ are the ones with REAL talent, with 10:s of years of musical study (be it self study with bands or academic). I can have all the songs of Paco De Lucia on my HD and i still would pay big $$ to see him if he'd come to play near my area.
The same will happen to movie industry too, but later.