Its nothing but building protectionist markets, the same ones most western nations have been fighting for the last hundred years because they entrap people, prevent competition, cause monopolies, and abuse customers. Its against the free markets, which (problems of market abuse aside) is getting money into developing economies and helping people. Its a great step backwards world economics and trade.
So hit them where it hurts, they are obviously scared of the new markets enough to try and outlaw them. Take 30 minutes out of your day to write a letter to a company and explain to them you are disgusted, they have lost a customer, and you will from now on buy counterfeit goods instead of theirs.
I will be doing my part by downloading all the mp3s I want, I'll go see the shows in person to make sure the artists get there dues, and I'll wait to see these middle men slowly fade... but I'm sure we are only about to see fireworks start, theres going to be some big noise as some of these guys go down.