The level of file-sharing has remained the same for two years despite 20,000 legal cases in 17 countries.
The International Federation of the Phonographic Industries (IFPI) said it was "containing" the problem and more people were connecting to broadband.
The global music industry trade body said sales of legal downloads were worth more than $1bn (£570m) in 2005.
Time for them to quit spinning their legal wheels in litigation mud and adjust their business model.
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