French Attempt to Legalize File Sharing

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I was down at the sumptuous French National Assembly (A building that looks like a Greek temple from the outside and a livingroom overdosed with red velvet on the inside) yesterday because a group of latenight legislators this week amended a bill to include a global tax for people wishing to share files over the Internet.

Once a user (an "internaut" in French) has paid the fee, that internaut is free to share music or movies on the basis that they are for personal use only.

Result: Hey presto! Kazaa would suddenly be legal in France. What is considered piracy in other parts of the world would be available here in France.

Also: Artists would recieve payouts from the tax money raised (Systems for copyright taxation are not unusual in Europe. Germany, for example, imposes a 12 euro copyright levy on the sale of each personal computer purchased.)

Needless to say, the music and movie industry people were not terribly pleased.
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If this blog-ization of the article is not clear, check out the full IHT version here.

Which arguments have the most merit and can creative industries survive in the face of peer-to-peer?

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