MIKA the better one wrote
... if i take a song (consider I buy it from itunes) I share it (copy) with 5 people, who in turn copy it for 2 more people. I feel this is currently acceptable in modern times considering the advancements in music.
I don't agree with that. I would say what you have there is a basic breach of contract.
When you pay itunes (or any other service) for a track, I believe you're not paying them for the file, nor are you paying them for the contents of the file. What you are paying for is the right to use the contents of the file as stipulated by the terms of sale/use, which you agreed to and signed when you signed up for the service. At the very basic, those terms for a non drm track might be that you can make as many cd's of it, copy to as many portable flash drives, mp3players, etc, etc, for your
own personal use. So once you start giving it out to friends, it's no longer your personal use, but theirs, and just by that action you would be in breach of the agreement you signed and Apple(or any other company), I think, would be well within their rights to take whatever action they think is neccessary for any loss they may have incurred because you decided to share the track with your friends, and your friends decided to share with their friends, etc.