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Another point, though:
If the economy is cutting into her sales (and I highly suspect it is), then piracy can't hurt her and could potentially help her in the long run. If people can't afford the CDs, period, then they're not going to buy the CDs - regardless of whether or not there are pirated versions floating around.
However, not everyone is going to be poor forever (or rather, if we are, she's in bigger trouble as are we all), and when the upturn kicks in, people will often buy legal versions of those pirated tunes once they have the cash flow to support the arts again.
[insert anecdata here]
Furthermore, it's also important to note that piracy is a fact of life. She's not going to be able to get rid of it. The best thing she can do at this point is make it clear to her fans - in a classy way - that she is struggling and that any extra help, Paypal tips, buying-cds-for-a-friend, etc. would be a major help at this point in her life. That's the sort of thing that fans WANT to know so that they can help.
[insert personal story about Heather Alexander here]
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