Just because it's enforced doesn't make it any more credible. Seriously, this is the internet age. It doesn't matter how many arbitrary laws you make, people are going to upload and download material. And honestly I say it's good for business.
Do you have any idea how many songs and bands I've heard simply because I can download them for free? Bands that I would never buy a CD for, but because of downloads in some cases I have purchased the full CD, and also gone to concerts simply because someone emailed me a song that I ended up really liking.
And I'm sure I can't be the only person that's bought products or attended concerts as a result of something I've heard for free on the internet. Exposure is good for business whether your audience is paying for it up front or not is not necessarily the only determining factor.