Teacher:You are given a passage. You need to construct a question about the information present in the passage. Construct a question in such a way that (i) it is unambiguous, (ii) its answer is the whole paragraph. Avoid creating questions that can be answered correctly without actually understanding the paragraph.
Teacher: Now, understand the problem? Solve this instance: The short answer is, yes, of course they are tracking IPs. The long answer to your other question follows.

It is a straight-forward, multistep process.

1. Encourage laws that require internet service and server providers to log IP addresses (9/11 pretty much nailed that one for them).
2. Collect proof of misdeeds for each particular P2P service that is allowing illegal file copying.
3. Sue the P2P service and demand they hand over IP addresses of offending users.
4. Trace IP addresses back to users. Remember, the businesses involved all have to keep records.

Also, some programs embed identifying information in them.

Pretty much any Microsoft program, at least one that uses OLE Structured Storage, creates these huge ID numbers in them called a GUID for each item in the file. Part of that ID number is their IP address or the unique hardware ID of their interface card, I forget which.

Also, the encoding process which generates an MP3 file from a CD can store some information in the file which can be used to piece together who created it. It may not be enough to find who did it but it is probably helpful in proving a given computer did it once they have that computer.

There is probably more going on but you get the idea. At each point along the way, from creating the song file, to transfering it to a service, and downloading it from a service, bits of information are accumulating.

The more times a person does each of these things, the easier it is to find them, prove it is them, and notice that they are doing a lot. And, just as important, more evidence is accumulating which is used in court as proof of a crime being committed and intent to commit a crime on the part of the peope being sued by the RIAA - or whoever.

So, either listen to: music you buy, public domain music, music from the radio - or compose/play your own.

You probably don't like it when you found out someone copied off your test at school. It makes them get a higher grade than they deserve and if the test is graded on a curve, your A- work can wind up being counted as a B+.

Well, songwriters composed that music and/or lyrics, musicians practiced and learned to play that song and paid to use a recording studio to perform it in. When people don't pay to hear that play, the musicians still have their expenses to pay but no royalty check to pay for it. They lose money doing what they love.

Even if someone cannot afford a whole album they can still afford to buy their favorite song for 99 cents.
Student:
how is the RIAA catching individuals downloading pirated music?