Famous CTO and ex-Netscape founder Marc Andreessen made the definitive market-based argument to why the entertainment industry has it's head up it's ass on the subject of copy-protection:
"If a computer can see it, display it and play it -- it can copy it...Digital media is the biggest opportunity the entertainment industry has ever seen...People are standing up in the tens of millions. They love MP3s, they love digital video, they love streaming. This is the kind of thing -- at the beginning of an industry -- you don't usually get."
RIAA and the MPAA are squandering a golden opportunity, and they are predictably too stupid to realize it. They could be increasing their profits dramatically, but instead they sue and harass their own consumers.