Copyright markets are -- and always have been -- broken. People make art because they have to, and there's always a middle-man ready to take advantage of the oversupply of willing creators to grab our rights and pay us peanuts.
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Evaluating Graduated Response, a new paper from Rebecca Giblin from the law school at Australia's Monash University, looks at the impact of "three strikes" and "graduated response" punishments for file-sharing. Countries including France, New Zealand, Taiwan, South Korea, the U.K., Ireland and the U.S. have adopted systems whereby people accused of file-sharing have their Internet access curtailed. This takes many forms, from losing access to YouTube and Facebook until subscribers complete a "copyright training course" designed by the entertainment industry to out-and-out disconnection from the Internet.
A good summary in IT News by Juha Saarinen discusses Giblin's findings from an in-depth survey of the file-sharing landscape before and after the introduction of three strikes rules: "There is no evidence demonstrating a causal connection between graduated response and reduced infringement. If 'effectiveness' means reducing infringement, then it is not effective."
Giblin is the author of 2011's Code Wars, an excellent book on the first ten years of file-sharing data. Read the rest