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The cost of enforcement is high, which is why there needs to be a very large fine to deter people from breaking the piracy law. If they only fined you the amount of economic harm you caused by stealing then everyone would pirate music...since the probability of getting caught is so low and if you do get caught you only get charged $1 per song. Thus they have to make the fines very steep to deter people from even thinking about pirating.
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