File-sharing has become synonym with the “digital economy” where large music conglomerates as

well as certain artist voice strong concern over the impact on their bottom line. This research analyzes

the music industry, which has been heavily impacted by a major technological shift i.e. the invention,

and rollout, of the Internet. We look to the technological shift that has enabled the downloading

phenomenon, as well as analyze the uniqueness of the music industries situation. By comparing the

book publishing industry as well as the software industry, which are arguably also influenced by

intellectual property rights and plagiarism, we try to find similarities as well as dissimilarities with the

music industry. We find that the music industry has used alliances as well as Mergers and Acquisitions

in order to consolidate their positions in an attempt to slow down change. There is no consensus on

the exact extent of ill effects of filesharing. We point to an unwillingness to achieve convergence of

purpose between the IT-community and the much of the music industry. Finally we point to the

historical fact that consumers always get what they want in the end, which should indicate a need to

find a viable e-commerce solution