swapping s/w, music and other files hideously

Saw an article in a News paper which reports that a s/w (yet another one that is) will be available very soon to copy files surreptiously. the Freenet chap behind this program proudly compares such swapping to

"If you are selling water in the desert and one day it starts to rain, what do you do?" he asked rhetorically. "Go to the government and get them to ban rain, or do you sell something else?"

He claims that, protected copyright are an infringement on capitalistic freedom, the fundemental principle behind modern economy.

For me, the desert comparision looks a little far fetched. Probably if

1. there had been considerable population involved in producing water
2. one producer's water differ's from the other
3. consumers have preference for certain kinds of rare and precious waters
   
4. if the rain is taking away the producer's water and distributing it for free
5. rain can be intervened by some means

::::::::
then the internet file swapping sounds slightly similar.

i guess the guy who asked this rhetorical question has got his basics weak.
every game is played under certain rules. and, there is a fair chance
for every one as long as every one plays mostly within the rules.
if it is in common good to have open file share policy, let the rules
be changed. but till then give the madonnas their due.

there is a catch here though :)
Who will lay the rules?