As an American living in Belgium, I can provide some context. Here in Belgium, while it is illegal to distribute copyrighted material without consent of the author, it is ALREADY legal for people to ~download pirated content. IANAL, but my impression is that the laws just happened to be worded that way since before the internet boom. It is a similar to the situation in may states where some drugs are legal to possess and use, but not to sell. Because of this, and also because movies often take over a year to get subtitled and released legally here, piracy is rampant. EVERYONE here feels a bit guilty about pirating, but does it anyway.
I have no clue if this organization has any moral authority to seek royalties on behalf of artists, but I can assure you that the legal balance between the rights of artists and the rights of consumers is way out of wack here in Belgium. Part of this may have to do with the fact that Belgium recently set a record for years without a federal government.