Honestly, the way I view it is that you really can't have defined law on the internet unless all the countries set up something like the UK except one that is more efficient for internet use.
What's legal to download in say Brazil isn't in the United States and such.
No matter what happens, there will ALWAYS be illegal activity on the internet.
Also certain Entertainment Corporations don't understand Fair Use if we're talking about the same thing here:
Fair Use sort of digested into basic terms:
QUOTE
1. Comment and Criticism
If you are commenting upon or critiquing a copyrighted work--for instance, writing a book review -- fair use principles allow you to reproduce some of the work to achieve your purposes. Some examples of commentary and criticism include:
* quoting a few lines from a Bob Dylan song in a music review
* summarizing and quoting from a medical article on prostate cancer in a news report
* copying a few paragraphs from a news article for use by a teacher or student in a lesson, or
* copying a portion of a Sports Illustrated magazine article for use in a related court case.
The underlying rationale of this rule is that the public benefits from your review, which is enhanced by including some of the copyrighted material. Additional examples of commentary or criticism are provided in the examples of fair use cases.
2. Parody
A parody is a work that ridicules another, usually well-known work, by imitating it in a comic way. Judges understand that by its nature, parody demands some taking from the original work being parodied. Unlike other forms of fair use, a fairly extensive use of the original work is permitted in a parody in order to "conjure up" the original.