That's a bit of an extreme position to take. After all, how is that kid going to make money when his stuff is pirated too?
Someone once said that trying to make bits that can't be copied is like trying to make water that's not wet. I think we have to accept that copies of recordings are created without cost or constraint and therefore have no value. It's a sea change, and things were very nice for a lot of people before this was the case, but it's reality. Sorry.
Lots of people, like Trent Reznor, for example, are making piles of money while still practically giving their music away. And to be fair, the idea of an economically "scarce" song is a modern invention. People have been making music long before the invention of the record player, and I reject the notion that people are going to stop making music just because they can't charge for a CD.
Concerts are always going to be scarce and desirable, and it's proven that they can support artists, especially when they're not burdened with the excesses of the recording industry.
The question is, how profitable is intellectual property? Yes, I know, information wants to be free. But does that mean that folks who want to make a living by creating intellectual property are just going to have to suck it up and make due? It's not a clear cut good vs. bad situation.
As someone who creates intellectual property for a living, I hear you loud and clear. I'm not advocating this information anarchy; just saying that it seems to be the direction we are headed. I do think, though, that the inclusion of some service component seems to be the best way to avoid piracy. Games like World of Warcraft are virtually immune to piracy; software as a service is still proving profitable, especially when combined with advertising. The bottom line, though, is that things that used to be scarce are no longer scarce. We need to identify the things that are desirable and still scarce and ensure that IP products contain them.
It's understandable to feel like it's the People vs. the Borg when the RIAA is brought into the discussion but in a larger sense, the RIAA isn't the issue.
The issue is the same thing that was discussed way back in 1994 by John Perry Barlow (co-founder of the EFF) in Wired magazine in an article titled "The Economy of Ideas".
"Throughout the time I've been groping around cyberspace, an immense, unsolved conundrum has remained at the root of nearly every legal, ethical, governmental, and social vexation to be found in the Virtual World. I refer to the problem of digitized property. The enigma is this: If our property can be infinitely reproduced and instantaneously distributed all over the planet without cost, without our knowledge, without its even leaving our possession, how can we protect it? How are we going to get paid for the work we do with our minds? And, if we can't get paid, what will assure the continued creation and distribution of such work?"
That's a great quote, and it really points to the central issue here. The bottom line is that the game has changed, but its implications haven't been fully thought through or even felt yet. Most industries are still in denial about it (see DRM). I will say, however, that it is much easier to hold profit-making entities to the rules of the IP game than individual consumers, so the creation of non-scarce products will still work in a b2b context. At the end of the day, though, if your business model involves selling non-scarce products to consumers, if you reach a point of critical mass where there is interest in pirating your work, you're going to get boned.
It definitely seems cruel, but I'm sure candlestick-makers felt the same way upon the invention of the lightbulb. Right or wrong, it's an adapt-or-die world.