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P2P File Sharing
The MP3 format is a compressed format file - and does not contain all of the audio information that is included on a 44,000 samples/second digital sample that is published on the CD. In fact, some MP3 creation algorithms are better than others, even at the same bitrate, and your quality will differ even within this same format. Anyone who has listened to an hour of MP3's and then put in a CD will be able to detect the improved quality of the CD format. Yes, you can burn a CD from the MP3, but that original audio recording's fidelity is gone, and can never be recoved. This is why it's called 'lossy' compression.
Yes, but the radio station provides a payment for every song on their playlist that goes back to the artists. Until micropayments are integrated into the P2P file sharing, and those payments are regulated and collected by the right people, you are trouncing on the rights of those same people to collect those fees.
No it isn't - there's absolutely nothing illegal about filesharing, and BitTorrent and P2P network solutions are the Internet of tomorrow. P2P solutions offer bandwith to companies and individuals who cannot afford to pay for that bandwith when the files they wish to share are popular enough. What is wrong is sharing certain types of files with others, files that you do not have distribution rights for.