Nice theory, but completely wrong. On the contrary, sales are up. What the copyright holders are arguing is that the sales should have been even more up. However, they’ve failed miserably in documenting that in any peer reviewed and replicable manner (which is the standard for all serious research). Again it’s the contrary. Serious research shows the opposite: Without “piracy”, the sales would be lower than they are.

In the long run file sharing will destroy the music labels in their current form, because the artists will become independent of their marketing service. However, going after a technology because it will make you obsolete is absurd. It’s like a horse breeder going after the automobile industry. An obsolete industry is supposed to go under. Not that I have anything against horses, mind you.

There will be a similar effect in movies and games, as independent developers and movie makers will have a much more level playing field. It’s unlikely to be to the same extent, though, since movies and games are much more complex productions. Still, there’s no doubt that they will have to make major adjustments to their business models.

It’s not completely impossible to sue the US Federal Government, though very nearly so. They have Governmental Immunity, a legacy from the autocratic monarchs, specifically the English Common Law.

Not authoritative or complete, but as usual a starting point if you want to know more:
http://en.wikipedia.org/wiki/Sovereign_immunity_in_the_United_States

Essentially, this means that you can’t sue the government, unless the government gives you permission. So, good luck with that…

It’s not entirely doom and gloom, though. There are already some permanent waivers in place, mainly through the Federal Tort Claims Act. If you can get the judge to agree that it applies in your case, you can sue.

Oh, yeah, state governments also have immunity.