Why File-Sharing Piracy Will Never Die

In response to the P2P onslaught, big media companies have adopted two main defenses: encryption of files to protect them against transfer, and partnerships with legitimate download conduits where they get a share of revenue.

Just two days after the Supreme Court ruling, Sony BMG and Mashboxx, one of the companies that could have been targeted by the ruling, announced a deal that will see them partnering to offer songs for 99 cents apiece.

For now, the volume of free file-transfer occurring on the Internet dwarfs the paid-for variety, suggesting it isn't just savvy users like James who are breaking the law. Attracting more people to above-board sites will take time.

"You'll always have kids with too much time to misappropriate music," says Jordan Edmiston Group managing director Tolman Geffs, an experienced Internet banker. Jeffs says that the piracy landscape will change for the better once illegal services are taken out and replaced with legal ones. "For the vast bulk of the market, convenience is the driver."