I have to disagree with the idea that, just because both A and B are now in posession of item X that a theft has not occurred.
If A bought X from C and C got paid the royalties they are due, and then A copies X and gives it to B, and C does not get paid the royalties they are due, then yes: a theft has occurred.
The fact that nobody has been deprived of physical access to X is not the issue. The issue is that only C is allowed to redistribute X and thus gets to enjoy compensation for it, and in this scenario B is now enjoying the fruits of C's labor without C being compensated for it.
I do copies within the scope of fair use: copies of material I have bought and paid for for my own personal use. I do not give copies of things I have purchased to other people.
I do believe that the MPAA, the RIAA and the BSA vastly overstate losses due to piracy, but I also think it is wrong to wave the hand and state the problem does not exist. I also do not think that draconian DRM schemes are the solution because this is not, inherently, a technological problem.
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