Piracy is not going away anytime soon.
The only way to prevent it imo is to reduce the price of things and lessen restrictions.
For example, make music downloadable for £5 for a full album in MP3. People want MP3 as a format and the ability to burn it to disks to use on other computers or in the car.
Sell console games at a sensible price. If a brand new 360 game was £20-25 then people would not bother to copy as much. Also release games worldwide at the same time!!! I know no end of people who had ps2/xbox games up to 6 months earlier than in the UK as they downloaded (illegally of course) it in JAP or NTSC.
The music companies selling at £5 per album in mp3 format is much cheaper than they sell CDs for.......but £5 is better than £0 as the potential customer has torrented it.
Still wouldn't make a blind bit of difference.
If 5 Albums came out at Christmas (Best of, Compilations, etc) that's still £25 you've to fork out. If it's available for free, people will want it and put their money elsewhere.
Same as the games, there's a lot of us members (maybe you too) that can remember the Spectrum/Commodore64/Amstrad days and Mastertronic selling their games for £1.99.
MOST of them weren't very good I agree, but despite them being "crap" or "average" and at "pocket money" pricing, they were still heavily pirated.
Honestly can't think of any solution and don't think it will go away at all to be honest.
Seen many many attempts over the years, some good ideas such as a free download of an album but it being of lower quality, but no one is going to want to purchase a full album wih 128Bit digital encoding if they're only going to play it on their tinny earphones on the latest Sony Walkdude or Apple iPod shuffliedoo.
Although have heard recent discussions with a gaming company who are thinking of having emblems and adverts as part of the game to fund for any potential lost sales and offering the game at a discount price. Should the 'player' want a version without adverts or a sexy Lara Croft not wearing a spicey little number with "B&Q" on the back, they'll pay for the 'full none-advertisement' game.
Don't think anyone has really thought of any solution yet.