The article (and most of the discussion) is about how the record company gives an artist a loan, makes that loan back by collecting 63% of every dollar they make on the album, while still requiring that the band pay back the full amount they loaned them out of the 37% and keeping the copyright over the works. If that's not a crooked scheme, I don't know what is.
I don't see it as a means to justify piracy, but I do see it as a means to question the RIAA when they push for draconian DRM & copyright laws in the name of "protecting the artists." Explain to me how purchasing an album legally helps the artist, if .63 for every dollar goes directly to the label, while the other 37 also goes to the label, except it's shuttled through the band's books first.
To put it in software terms, imagine a company that pays funds a group of employees to develop a software application. The company then turns around, sells it for $10mil, keeps $6.3mil off the top, and docks the pay of each of the employees that worked on it for promotion, expenses, sales channels, etc. PLUS docking them for the initial outlay of the cost of developing the software. And when it's all done, the employees don't get to keep the rights to redistribute or sell the software that they developed. Does that seem fair, even if the employees were dumb enough to sign a contract? Doesn't that seem like something labour laws were enacted to combat?