Eswar Prasad, a professor of trade policy at Cornell University, agrees with Paulson that the U.S. should work to help China establish a sound financial system instead of narrowly focusing on the exchange rate between the yuan and the dollar.

FORBES: China's Currency Problems

Some companies, like Lucent, are focusing on improving the quality of the sound, while others are devoting more energy to increasing the copyright protection.

CNN: Lucent's digital music player to challenge MP3

"I think if you've spent your life focusing on just how the music you make is going to sound and even how it's going to feel, you're going to get thrown when all these other people start adding what it is that they want it to look like and feel like, " he says.

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