Please explain ...
Plan A: I buy a CD, illegally rip it to my mp3 player and listen to it through headphones. The RIAA could sue me to bankruptcy and pay the musicians only the royalty on the CD (minus expenses) because the contract does not include revenue from fines (which would be completely eaten by legal fees anyway). Instead, the RIAA don't sue me because of the public outrage it would cause.
Plan B: I buy a CD, legally rip it to my mp3 player and listen to it through headphones. The RIAA do not sue me because I have not broken UK law, even though UK law is not consistent with EU law.
Plan C: I buy a CD, legally rip it to my mp3 player and listen to it through headphones. The government gives a contribution to some revenue distribution company as required by EU law. The distribution company sits on the money until they have spent it all on administration.
How have musicians lost out because I ripped my CD to an mp3 player, listened to it on headphones and the govenment did not pay the compensation required by EU law?