Economic view:
GRRRRREAT IDEA. Imagine:
1 CD bought -> Rip offs -> company lose money -> bankrupt -> no more music.
You're all dooming the music industry.
Their main source of income is from selling CD and you're all ripping away this line of profit.
Imagine year 2150, you're all listening to 2050 music because no one dares to go and start another music industry again since they know they will lose money.
Solution:
Force people to buy, not rip from Internet. ANY offenders will be banned from the Internet permanently, while reducing the music CD price. This is the only solution that I can come up with at this time since no-one will be scared when we only fine them.