Swapping music is not illegal:

The record industry has blamed its current recession on what it calls Internet music piracy. CD shipments fell 9 percent in 2002 compared with 2001, while online CD sales have dropped about 20 percent in the past year, according to Comscore Networks, which tracks Internet use.

Music companies have moved aggressively in the courts to target illegal song-swappers. Earlier this month, the music industry sued four college students that it alleged were running illegal song-swapping Web sites.

Grokster and Morpheus argued that song trading is only one use for their file-sharing systems, which also host legal activities. Suits designed to protect copyright were instead harming useful and important technology, the defendants argued.

In yesterday's decision, Wilson invoked the landmark 1984 Sony Betamax case, ruling that the defendants are "not significantly different" from companies that sell VCRs and photocopiers. In essence, he ruled that product makers are not responsible for what consumers do with the products

Newspapers adapted to the internet and have survived. The music industry must adapt as well or fail.