The price isn't being destabilized. The reproduction cost of digital goods IS zero. The initial creation cost of that first version is quite significant however. Copyright laws are meant to protect that initial investment for a period of time so that huge creation cost plus a reasonable profit can be made. This limited monopoly is the incentive to create. In return for that government granted monopoly period, the copyrighted work then goes into the public domain where market forces and competition determine the new price of the good or service. This is the public's incentive to grant a temporary monopoly. Piracy is running rampant because the laws have been manipulated and skewed in favor of the content generators so their work get all the protections but no longer ever fall into the public domain. The collective public thus no longer have incentive to follow copyright laws and have quite a bit of incentive to violate and disregard them as totally and as quickly as possible.