According to the Institute for Policy Innovation, the U.S. economy loses $12.5 billion from music piracy. The amount of lost corporate income tax is $131 million and personal income tax is more than twice as much, at $291 million, equaling a loss of $422 million in tax earnings loss at the local, state and federal level.
Ethics are rules of conduct that define what is right and wrong within a culture. Ethically, freely downloading copyrighted music is wrong because it hurts the artists and everyone who is involved in creating the work. For example, a car, just like music, is something that is created. If someone takes one off a lot without paying for it, it distresses the salesman, the auto dealer, manufacturer and auto workers financially. This affects their abilities to provide for their families, give to their communities and hinders their ability to do business.
Music piracy in the United States translates into 71,600 jobs being lost as a result. Almost 27,000 of those would have been in the recording industry, with more than 44,000 being in other related industries.
Downloading music illegally can affect the culture in that it sends a message that the music arts are not worth paying for. This could result in fewer people actually making music.
The biggest reason why music piracy is wrong is that it's against the law. It has, time and time again, been held up in courts that the downloading of copyrighted music equates to stealing. Copyright law explicitly states that those who want to use copyrighted material must pay the obligatory royalties to which the artists and their representatives are entitled. Other laws such as the Digital Performance Right in Sound Recording Act (DPRSRA), the NET (No Electronic Theft) ACT, and the Digital Music Copyright Act (DMCA) expand the law to protect creative artists and their work.