Above all, artists should not be beholden to the government for their income. Imagine some bureaucrat witholding royalties from a musician simply because he finds the music offensive. That wouldn't be censorship but it would be just as bad. The collection societies like ASCAP that are meant to collect royalties for artists often fail to get their clients paid, and there is no reason to expect any government to do a better job. The government's purpose is to collect taxes and to spend those funds on public works and social programs, not to redistribute them among the people based on aribtrary criteria about online filesharing trends.
The best way, if it's possible, is for musicians and filmakers to be paid by their customers directly.
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