The biggest problem is the lack of protection. If you look at the UK then piracy in the 'traditional markets' is reasonably well controlled. The answer is to ask governments to work together and harmonise protection in each territory. The recorded music industry is particularly concerned about cross-European implementation of provisions in the European Union's draft Copyright Directive relevant to delivery of material online. If the framework does not allow copyright owners to develop technologies to enforce copyright protection when material is delivered online, then we will not stay one step ahead of the hackers.
Performers deserve recognition for their work.
Record companies represent musicians. A lot of the arguments that the music business acts against the interests of consumers by restricting distribution is misconstrued, in that any content can be used by these software packages and this can damage anyone whose works are reproduced without consent. We are doing nothing different from other content owners. There is self-interest. But like anyone else who manufactures goods, you need a return to carry on running a successful business.