A host of reasons underscore the importance of studying this phenomenon and developing informed ways of addressing its growth. Theft of digital property over an Internet connection is easier and quicker than doing so from a retail establishment, where the chance of detection, apprehension, and prosecution is exponentially smaller. Nevertheless, both are activities prohibited by the law and induce similar harm. Music piracy, though, is often condoned in some circles as a victimless activity that does not befall tangible or noteworthy harm to any person or organization.
Such an argument can be refuted by a host of facts. For instance, the accumulated economic loss incurred is significant to the artist, recording company, and industry, and is said to approximate $4.3 billion worldwide (IFPI, 2002). Through piracy, these associated parties are seemingly preempted from receiving compensation for the creation, production, marketing, and distribution of their intellectual product. The desire to innovate and develop creative works may be stifled if the rewards are less than anticipated, and if persons are able to appropriate the product without paying for the good and service (Harris, 1969; Smith & Parr, 1989). Furthermore, the media- and entertainment-based economy is presumably deprived of investments and profit from their product, and must devote resources to research and develop copy-protection solutions, surveillance and tracking mechanisms, and punitive policies to discourage or thwart attempted theft. It may also reduce jobs in the industry as cutbacks are made to counterbalance the incurred financial losses.
Additionally, if disregard for intellectual property such as music continues unfettered, some conclude that in time, nothing posted on the Internet will be safe from misappropriation. The argument is that a Pandora's box will be ripped open, and articles, thoughts, ideas, graphics, art, sound files, animations, movies, software , and more may no longer be the property of their rightful owner(s), but will be free-rein for anyone to copy and use without regard. Indeed, this is already taking place in some respects due to the open and unregulated nature of cyberspace. What seems to be forgotten is this: intellectual property is still property, and is owned by its creator or the company that has purchased its rights. If one does not have the legal authority to reproduce and distribute a copyrighted work, but does so anyway, a crime has been committed. Criminal activity, then, is subject to prosecution, fines, and incarceration. Copyright infringement through unauthorized MP3s must be dealt with and not overlooked or minimized simply because of its nontraditional nature (as compared to crimes which attract more attention and criminal justice resources) or because of the unique "virtual" environment in which the activity occurs.