the problem is that there is no real limit to the definition of piracy. if lending games is illegal, and i understand the principal behind it, but its too imposing. they might as well make borrowing illegal, or lending sugar illegal. okay thats a bit OTT, but its such a tricky topic.
i mean, theres the issue that its up to each person if they want to do the 'right' thing, rather than impose it, but when it comes to something like computer games, im sure most users would rather get it for free/dirt cheap, than pay. piracy is definitely harmful for companies, but sooo many ppl do it, me included. dunno wat to say really, i guess nintendo's methods and to some extent sony's (ps2 is practically impossible to hav fully modded unless u solder a 40+ wire mod, something which certainly isnt too appealing for many)... but the internet, in its current state, is impossible to regulate. of course, within 10 years, there will likely be some integrated policing system, considering governments are already researching into it...although that really would defeat the point of the internet - most notably, the freedom of infomation....