As far as file copying, CD ripping etc, the piggies are out of the barn. Most DRM systems can be defeated pretty easily, and when all else fails, anyone with a good soundcard can make a high quality digital copy via analog loopback of protected digital files.
So DRM is a joke. It only stops people the way a cheap bike lock does -- it deters the casual thief. Similarly, the legal pursuit of file sharers is doomed to failure. They can go after easy, stationary targets, but they'll never get the technical edge over the file sharers. We're only in the very early stages of what's possible with decentralized peer to peer software. The only way forward I can see for artists is this: 1. Give away lossy digital copies of your music, as promotion. 2. Emphasize the audio quality of the 'real thing' -- the paid for copy. 3. Make sure the physical object you're selling adds value over the digital copy -- either by adding tracks, attractive packaging, or some sort of unique value you don't get downloading it digitally. 4. Perform live, or DJ or do something where you're selling a unique event that can't be endlessly reproduced and distributed over the internet. I actually like #4 because it means that musicians have to actually be able to perform their art in front of audiences. For a long time -- starting when the Beatles announced they weren't going to tour again, up until the mid-90s -- live performance was an poor cousin of records and radio play. Now, a lot of musicians have found, of necessity, that a much larger percentage of their income will have to come from playing in front of people.
