[SauronOfMordor]

A song becomes known and a group gets known. It develops a following and a bankroll. Some concert promoter is willing to risk money to have them play in XUY town. Take out step one and two and ask yourself how likely it is that step 3 will take place.

You've got it backwards. What group gets NOTICED by the record company, without having already gone the route of playing locally and having developed a following? How else will the talent scout have heard of them?

Grokster & co lets 2nd-tier and 3rd-tier bands have access to a national/international distribution mechanism for their music. If they're any good, they will have fans e-mailing their music to all their friends in an exponential expansion. The ones that are good will then have loads of people wanting to come to their concerts

[xzins]

So, because they had to get known first, that means that stealing their music without paying is AOK?

I don't think so.