Wouldn't you love to see that case go to trial... or are only the fans eligible to be busted?!
Frankly, I think that a group of musicians should get together and openly defy the recording industry on this one -- trade each other's songs with fans, flaunt the law, and ask the music industry to kiss their rosy red arses.
The truth is, musicians don't lose money to file traders -- they lose money to a sick, outmoded industry that is trying to outlaw a newer, different kind of music industry and new technologies that will actually make most musicians a helluva lot more money than they make through releasing albums commercially. Even though there are certainly well-meaning lovers of music in the music industry, the industry, such as it is, is really little better than a parasite under the circumstances.
Ultimately, the industry should work for the musicians -- the musicians shouldn't work for the industry -- and the fans shouldn't be the victims.