Is there any potential solution to the problems posed by file-sharing of copyrighted works?
Maybe. Ultimately it is possible that file-sharing of copyrighted music may be legalized by imposing some type of mandatory licensing scheme under which file-sharing services pay fees that are used to compensate copyright owners for the distribution of their works through file-sharing. Theoretically at least, this could be similar to the licensing system that exists for performances of songs by radio stations. Radio stations pay annual blanket license fees to performance rights organizations (ASCAP, BMI and SESAC in the U.S.) which allow them to broadcast any music they want. The performance rights organizations monitor performances and pay copyright owners of songs (music publishers) and songwriters based on an estimate of the number of performances. In theory licensing may be a workable solution, but there are many issues that would need to be resolved (e.g., who pays, what should payment rates be based on, who collects and monitors, etc.) before such a system could be put in place.