I think part of the problem with piracy/copyright is that the entertainment industry has been extremely slow to respond to consumer demand. Even with stuff like iTunes, it has taken them a very long time to remove the DRM. I'd speculate that for many it's become a habit to simply head over to the Pirate Bay because for a long time it wasn't worth bothering with alternative sources, in terms of the restrictions, or because the content in question wasn't available. Reversing such ingrained behaviours is not easy.
Even now, iTunes still has a lot of the more obscure music missing, whereas you can find it much more easily on bittorrent sites.
When it comes to copyright law, then if you have purchased a copy of something (or a license to view the content) then you should be able to freely transfer it in to whatever medium you want, and modify it for personal use as you see fit. If I buy a DVD for example, the ownership is of the copy of the content on the DVD, and the DVD is a means to an end to provide me with a copy. If I own that license, I should be free to obtain it in whatever medium I want by any means.
To use an example from above, I should be free to download Top Gear off bittorrent if have a right to that content with no legal repercussions (though people who do not have any right to the content would not be protected). Ideally the BBC would make Top Gear episodes downloadable for license players (instead of the crippling DRM on the license player which limits what you can do with it, and how long you keep the content for) and so people wouldn't need to resort to bittorrent. I would also distinguish between those using bittorrent to download something they want, which forces such users to share the content in return due to the tit-for-tat model, verses those making copies freely available to people who have no right to it of their own free will.
When it comes to sharing stuff though, that's very tricky; where do you draw the line. For example, I can invite a friend around to watch a DVD, or lend him that DVD myself so he can watch it as much as he wants. Is there really that much difference between that and giving him a digital copy to put on his hard drive to watch? The only fundamental difference I can think of is it allows 2 people separate use of 1 license. So providing you refused to watch the content whilst "lending" the license to a friend, and your friend instantly deleted the content upon revoking the license, nothing wrong would be done. Obviously enforcing this would be completely impractical.
One question I would like to ask everyone is where do you stand on film / game soundtracks, if you already own the film or game in question? In my mind, you've already paid for that content, though I am happy to provide additional support to certain artists on occasions. Also there's nothing to stop you from playing the appropriate part of the game, or watching the right part of the film to listen to the music you want. Having it in soundtrack form is really more a convenience than anything else.
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