My problem is with how the RIAA is their "double dipping" method - they want a person to pay for the songs based on the number of downloads and uploads. However, if a person pays for the uploading, why do they also get paid when it is downloaded too?
The issue is there are ways to quantify the value of the music distributed. For downloaded songs, most are available on iTunes for 0.99USD. For uploaded and shared songs, there are licensing fee structures based on the number of listeners to the broadcast. I believe you can recoup up to 3x value and legal costs in court.
Optionally, they could sue for copyright infringement - but the user violates this only each time they copy the file. When they are on Kazaa and someone requests it, two copies are not made - they are merely allowing someone access to their hard drive and that remote user is copying the file. Thus, there should be no upload violation fee, only download or disk transfer fee.
It is not a question of whether people should have the right to pirate works without consequence. Of course they should be sued - they are breaking the law! After all, when you go speeding in a car, you know that you might get caught and have to pay a fine and loose some points on your license. However, the punishment must fit the crime. No collecting lost income from the distributor AND the recipient (thus recouping your losses TWICE), no assessing new values for products that had an established value already (internet radio license fees that existed already versus asking a full value "per song" charge), and no activities that amount to extortion ("pay us 3000-5000USD or we'll sue you for millions").
That is my final point - it is extortion when you are trying to create outcomes to use as a pressure to get randomly accused users to pay up $3000-$5000 out of court (especially in cases with no evidence was gathered or from parents in cases against MINORS).