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We have copyright because the market price for digital art severely misrepresents its demand.
Well, that's blatantly WRONG. we have copyright for a large number of reasons, but I am certain that none of those reasons involves a technology that didn't exist when we acquired copyright laws. Also, your thoughts seem to stem from the concept that all people (or at least an overwhelming majority) are essentially greedy. That they will put forth the least work (in this case, represented by money+time+effort+risk) that they can to get the result (in this case, a copy of music) that they want. While I would like to argue that this is untrue, and humans are overwhelmingly good and value-oriented, etc, I can't in good faith say that. I don't believe it. What i do believe is that people will take the lowest work (money+time+effort+risk) to get the highest gain (music, or anything). If that's (cheap+less than a minute+next to none+none)(currently iTunes, in my mind), that is preferable to (free+2 hours+minimal+low)(torrents) AND preferable to (Expensive+a couple hours to a couple days, depending+some+none). We are the internet generation. Instant gratification takes too long.