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Intellectual Property equaling Physical Property has its origins in US court decisions and attempted to protect the creative rights of the "artist". I'm surprised that there is so little exchange between your students and yourself and maybe there is and it's not shown in the video. I'm not a product of the school system indoctrination in the corporate ethos that your exposing but I do find that I share the sentiment that if I take something that I haven't "paid" for that I find this equivalent of stealing.
There is a segway in the discussion when you also understand that the US has moved from a manufacturing base to an information base to its economy and the percentage of wealth between the halves and have nots hasn't really changed since records have been available (5% control 95% + or -)
It appears that the justification to piracy is to balance out 'corporate plunder' where the corporations gain more than the inventor (or performer). However, in my mind (with a focus on stealing entertainment media) the corporations are the ones responsible for the performer's success. The performer knows that without a publisher s/he will not be known to the many, her/his talents will not be exposed except on a micro-sized scale, and her/his profits would be smaller without their help. Going to the corporation makes the difference between being a 127 room mansion owner and being a singer at the bar down the street.
Its a win win if the performer is up for it and has a worthwhile (talent/product) to sell. Sure they don't get the biggest G's but they still get more G's than without the corporation. Furthermore, the corporation puts more G's in to the equation than the performer does, and they then deserve a bigger return. Madonna can't complain when out of more than 500 people working on her concert she gets paid thousands of percent more than them.
Beyond that claiming that piracy is an expression of (good) Civil Disobedience is worth quite a laugh. If the performers feel that they are being wronged they can be disobedient, but why should we feel the need to be disobedient to the law? It effects us not in anyway.