That's how to make a copyright law that clearly and accurately draws a line between what is socially acceptable and what is legally punishable. Without solving this, we create one more law that everyone violates daily, making us all criminals, and lowering respect for all laws. We have succeeded in doing this in other controversial areas, such as abortion. The society, the courts, and legislatures all interact over time to alter the boundaries between acceptable social behavior and acceptable legal behavior. The real social issue is how to create an economic model that pays artists for their creations, but also permits the unrestricted distribution of their work.
Many people think that sounds crazy or impossible, but it has been done.
The open source software community has solved that problem, to a large degree, though many people don't realize it. The Grateful Dead solved it too. But these business models are still in their infancy, with lots of quirks and challenges. It will take brave music publishers and musicians to adopt them. Still, we have clearly seen that comparable quality open source products drive out competition from closed products.