The Merriam Webster Legal Dictionary defines:
Theft:
http://dictionary.reference.com/browse/theft
A criminal taking of the property or services of another without consent
Calling copyright violation and illegal downloading "theft" is sketchy at best, a individual music file is nobody's property or service, you haven't taken it away from the creator. It is not stealing if I make an exact copy of your car for my own use because you still have the car, what I may be doing is making an unauthorised copy of a copyrighted or patented construction.
"Fraud" is certainly applicable where the illegal copy is passed off as genuine, and if I make a copy of some music for my own use I am depriving someone of potential revenue, it still seems closer to fraud:
"Any act, expression, omission, or concealment calculated to deceive another to his or her disadvantage"
I omitted to pay for a copy thus that it's creator was disadvantaged... sounds like fraud to me.
Theft is quite an emotive word because it conjours up a sense of loss that any burglary victim will probably know well. I don't think personal copyright violation is in quite the same league, it's very minor crime and should be punished with a fine (paid to the creator) equal to the RRP of any copies found in the offender's possession plus a top up towards court costs. People who copy DVDs and sell them on for profit etc are guilty of larger scale fraud and should do time as well as heavy fines, but they are the minority here.
Having said that copyright violation is definitely a crime - the creators of works are entitled to profit from their hard work, be that an individual unsigned singer or a global corporation who employed people to do the creation. Just because the company is huge doesn't made defrauding them OK, they have to pay people who would otherwise be out of work and the shareholders are not just rich fat cats - many of the largest shareholders in all kinds of companies are pension funds who rely on the positive performance of their investments to increase their pots and meet obligations to the retiring people (including us one day). You aren't just hurting some knob-end in his Jaguar and vacuous pop stars, there are real normal people just like us who depend on the performance of large corporations for their salaries, pensions etc. It's just how the great money-circle works! Sure some people get undeservedly rich out of all this, but you need to get to them in better ways than fraud ;-)


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