There will always be some piracy. Not a statement of right or wrong, but a simple statement of fact. Living next door to a third world country - Mexico - I can see they why - The products are advertised to a group of people who earn (on average) approx $70.00US a week. Some things cost less, but many things cost much more in Mexico. SO they see the advertising, they have little money for the product and someone comes along with a prated version. Are the going to spend 250 pesos, or get the pirate copy for 25 pesos ($2.00US)?
Another factor that drives piracy - The perceived value of the goods is far below the price of the goods. Don't want to pay that much for crap goods. OR - you buy the CD for $20.00US and there is only 1 good song and a bunch of crap songs as filler. No wonder teh 1 song was copied and shared. (probably less of a problem now that there are single song plans like iTunes out there)
A few years back a guy by the name of Phillippe Kahn (camera phone and Borland Turbo Pascal) wrote about piracy - related to Turbo Pascal - and admitted that there were many pirated copies of Turbo Pascal out there. And there were also many copies of Turbo Pascal that no one was using. He also believed in keeping the cost down so people COULD afford it and buy it. He delivered a product with a high perceived value and profited from doing that. Treat the customer well and he won't steal from you.
And another factor for piracy - Companies that treat their customers like crap. Customer no longer has any loyalty so he doesn't feel like he is hurting anyone, except for some screwed up company that just want to rip him off. Customers, like employees, are treated more like a liability than a asset. Companies that treat their customers properly will deal with less piracy. I don't want to rip off someone that delivers on their promise to me.