One can see how this might be construed as violating intellectual copyright, and it is impossible to imagine any court letting it continue in its present form. When the irresistible forces of demand and technological change meet the immovable object of the law, stalemate might ensue for a while but eventually something has to give. As with prohibition and antiabortion laws, it is no use legislating against the grain of popular demand. The most you achieve is to drive the banned behavior underground. And, as the Luddites could testify, no matter how just one's short-term cause, technology always wins.
Nobody knows, but here are some predictions.
Napster-type will not survive. The market is too huge and too savvy to ignore. Prices may have to drop, revenues may have to be shared, but it is in everybody's interest here to reach an understanding. Then, maybe, law can catch up with reality. Please do not redistribute this mail without the author's permission.