Any act or means that deprives the copyright owner(s) to earn legitimate money is stealing.
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a) A sale may not have happened because no one was interested in buying the product.
Since you make this sound like a law, here goes. If you are referring to an individual act of making an illegal copy of a song, how does the
individual act cause the sale from not happening. There is
no direct cause and effect linkage here. Yes, if someone distributed the song to millions of people, what you say is right. However, the person copying the song for their personal use is in no way causing a direct loss of sale.
By the way, the NFL is now preventing websites and news channels from reporting match scores. In the US, you cannot play the radio in a public establishment unless you pay radio royalties to ASCAP (i think). US companies are trying to patent stuff like Neem and Basmati. Man, soon you will be jailed if you accidentally break a neem twig and use it as daantun, or if you tell match scores to your friend. Jokes apart, I'm dead serious - you will actually be sued in the US if you play your radio too loud, especially if you happen to be running a shop. Similarly, the media companies and publishing houses have recently successfully lobbied governments across the world to get copyright expiration timelines extended by several years.
Please consider the hypothetical scenario - however unlikely; however remote. A small artist publishes a compilation of songs. They become very popular. Suddenly all over the internet torrents or rapidshare links appear that allow you to freely download these songs. This artist guy is now deprived of the income. Is he not being cheated out of his livelihood? Is this not theft? Else what do we call it then?
This is actually a fair point.
One thing you forget though: This starving artist that you are referring to - in the days before the internet, she/he would not have had a snowball's chance in hell to market themselves or to "get discovered". This is the primary reason why almost ALL artists (except movie and TV actors) down the ages lived and died in penury. The same evil technology (namely, the internet) that is depriving these artists of their hypothetical income is also causing these artists to become popular across the globe with zero marketing effort from the artists' side.
In fact, the record companies and media companies, which started off as "middle-men" between the artists and patrons, are getting their livelihoods threatened by this pervasive technology. As with all middle-men everywhere in every sphere of commerce, they are now realizing how little value they actually add to the whole commercial cycle, and are fighting tooth and nail to protect "their turf".
Yes, I know my comments have strayed far and wide from the original topic of "piracy" (shiver me timbers!). However, I digressed to talk about the root cause of the illegal downloads and torrents that enables this whole thing. Forget about the illegal bootleggers of yore - they were always marginal players, selling their camera prints to people who would not have spent money on media anyway. The real root cause is the internet.
We are all collectively trying to cope with the pervasiveness of this wonderful technology and the immense power and freedom it is bringing to people who didn't even know what they were missing.
There are companies an countries dealing with this in an evolved manner, and many others that are dealing with this in a completely clueless manner (example: countries that shut down entire sites because of some offensive content or erect firewalls etc.). The second party fears the freedom and information the internet brings.. after all they are in power precisely because they have been very very good at controlling those freedoms and curtailing information.
Nonetheless, take some cues from the software industry. How are so many software companies thriving despite rampant illegal usage? How are companies able to make money despite promoting "free and open source" software? Radiohead and Stephen King have been one of the first to conduct such online experiments, with honor based payments of their songs/books that you could download for free, legally, from their websites. Phish was famous for doing something similar even before the days of the internet.
Not saying that all of these experiments have been successful. However, some of them are proving to be successful, and in surprising ways. However, to take an overtly moralistic stance or on the other hand, an overtly immoral stance, are both missing the point. One is foolish, the other, illegal.