“Mass downloading from unauthorized file sharing on the internet and the massive proliferation of CD burning continues to be a major cause of the fall in CD sales globally, states an April 9, 2003 press release from the International Federation of the Phonographic Industry (IFPI).” (Boorstin) The Recording Industry Association of America (RIAA) and the International Federation of the Phonographic Industry (IFPI) have sued hundreds of people all over the world for sharing copyrighted music. Both the RIAA and the IFPI, embody the interest of major recording companies on the idea that illegal file sharing has debilitated the sales of albums and singles both inside and outside the United States. These associations are convinced that downloading of free music via the internet has posed a threat towards future sales by recording artists. On the other hand, some small recording artists believe that free downloading actually increases album sales. There are even some people who argue that the decline of music sales are not due to the free downloading, they are in fact caused by a weak economy, quality of new music and many other factors. In this paper we shall look at statistical and theoretical arguments that coincide with both sides of the file sharing rivalry, and also discuss future file sharing aspects.