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The judge does make some sense. There are people who download a song/CD that would have never purchased it to begin with so you can't say if there were 10,000 downloads of a CD that it equals 10,000 lost sales. It does mean lost sales, but it is almost impossible to say how many lost sales it means.
That said it also means there are still 10,000 people that now own the CD and didn't pay for it which I feel is wrong.
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