EFF Activist Ren Bucholz has created a picture that easily beats a thousand words for explaining how a voluntary collective licensing system such as the one we propose might work. The best part is that it's meant to serve as a virtual whiteboard of sorts--courtesy of a Creative Commons license, you can feel free to wipe away bit and pieces, add others, and repost at will. Or as Staff Attorney Wendy Seltzer puts it, "Don't think sampling will work? Add a few 'bugs' to the picture. Like hardware levies? Add them in. Then, please share what you rip-mix-burn."
Have you mapped out your own vision for resolving the battle over peer-to-peer file sharing by ensuring that artists and copyright holders get paid? Do let us know.