Piracy is not a problem that needs to be solved.
They’re overreacting to technology (again). This is genuine control freaking. They are freaking out so much that, not only do they spend their money ratcheting up control with the State and legislating AGAINST public interest (70% of Americans admit to piracy), worse still, they feel the need to spend BILLIONS pumping out propaganda to teach their version of morality (the version that overwhelmingly favours copyright holders — which is them), and simultaneously spitting in the face of an ENTIRE generation of young people who then lost all respect for copyright.
People need to get used to the idea that internet is just like home taping that came about in the 90s. The culture business never died (much less culture itself), in fact, it flourished.
Look around you! Visit Youtube! We are in a real cultural renaissance!
Studies on File-sharing show no negative effects on sales as a result of piracy. In fact it is showing that piracy increases sales: [Studies on File-Sharing][What Filesharing Studies Really Say – Conclusions and Links]