Glad to see you're aware of those aspects of Napster, Craig -- not everybody is.
I'll answer your question about "right or wrong" with how I try to approach things like this. In this case, I'd imagine myself asking the performing artist, or the songwriter, about whether or not they'd mind if I copied the song from Napster instead of buying the song from CD (I'm assuming it's available on CD). Then I'd let the degree of uncomfortableness I'd have in asking them, and my imagined response they'd give be my guide as to whether it's right or wrong to download the file for those purposes.
To me, that truly gets at the heart of the morality (not legality) of it all. It's sort of similar to what a wise landman (in the oil industry) told me once about how to approach fairness in unitizations agreements with various landowners. He said "Treat each landowner like you would your own mother -- would you tell your mom that this unitization is a good deal?".
I ask myself similar questions in other areas of life, too. Forgive just one example, if I may. If you've been to my website, you know I take a lot of concert pictures of The Wilkinsons. (I also take concert pictures of others, but don't bother creating a website for those - too much work). Legally, I have every right to do what I want with those pictures, including selling them for a profit. (Some of them make very nice 8x10's).
But I ask myself, would The Wilkinsons (and their management, etc.) really want me to do that? I have to answer that question with a "no", because I think that I'd be directly competing with their merchandising efforts, and I don't think that would be right of me (even though it'd be perfectly legal).
Therefore, I don't advertise any of those pictures for sale at all. Now, I do make exceptions every once in a while. If a fan emails me and asks about it (esp. if they ask for a specific picture or 2 that they really like), I will almost always agree to make them an 8x10. But I charge just enough to handle my shipping costs, plus the cost of making the print.
I have wrestled with that to some degree (I could always just say "I don't do that"). But I think I could stand before them and tell them what I'm doing, and they'd be OK with it. In fact, I've done that with The Wilkinsons themselves.
I certainly don't want to sound like I've never copied a song or software in my life. That's not true at all. So I can hardly stand in judgment of anybody for doing the same thing. All I can say is I try very hard not to make that a common practice in my life. And that the fact that I've done things wrong doesn't make it right. Not for me, nor for others.
I suppose it's hypocritical to ask others not to copy songs if I've done it before. But we've all lied before, too -- and yet we teach our children that it's wrong to lie. None of us is perfect, yet that doesn't mean we can't stand up and say "this is wrong, and that's right".
Sorry for rambling on.
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The Unofficial Photographer of The Wilkinsons