Problems

Probably the most visited MP3 sites are the ones offering illegal MP3s. These sites may carry entire CDs in MP3 format, or other MP3s of bootlegged CDs. It may be difficult for novices to realize whether or not they are downloading an MP3 illegally, since these sites are prevalent and can often be found merely by searching for an artist on a search engine. The Recording Industry Association of America (RIAA) has been putting much effort into stopping the spread of music piracy via MP3s.

Artists whose music is being pirated claim that they are harmed by MP3s because they are not collecting the royalties for those copies. Large record companies claim they are being harmed by MP3s for the same reason. However, RIAA has not yet released any figures as to exactly how much is being lost due to online music piracy.

This statement comes from MP3.COM:

"Press releases have quoted losses in the billions due to MP3 piracy. If CD sales are lost due to piracy, many are sure to be made up by exposing people to more music who then buy CDs from bands they would not have ever heard otherwise. In reality, it's an impossible number to measure. The true impact of MP3 has yet to be felt on any grand scale."

Some have argued that the RIAA is opposed to the MP3 format because it allows artists to bypass the traditional music industry when distributing music.