This story has been heavily covered online, so much so that Lily might actually become a household name in the States, where so far she's had limited exposure as a musician. She has a blog (which as I am writing, has no posts on it. She says she's putting down site since there has been too much abuse.) where she has been pontificating that illegal file sharing is bad. Other musicians have weighed in on this, including Elton John, who seems to be conflicted on the issue. Isn't she a little late to the table? Hasn't this been going on for years? Other artists like Amanda Palmer, Trent Reznor, Radiohead, etc have been embracing file sharing, twitter, the Internet, etc and having great results.
Techdirt points out that she may be an offender herself, worthy of a fine or being arrested. She has mixtapes posted on her website which contain free downloads of music other than her own. Her response to Techdirt: I made those mixtapes 5 years ago, i didn't have a knowledge of the workings of the music industry back then... There was plenty of time to take them down.