My argument for why nothing should be excluded or censored, is that it isn't presently censored, and since fans of every type of music and media pay taxes, it should all be covered. And I'm certainly not suggesting politicians have any influence over that; I'm suggesting putting that in the hands of judges or arbitrators.
But, the whole idea is really to figure out a rough idea of what the artist would have earned under the "old" (present) market. That might be doable simply by tracking radio play, pop culture references, BitTorrent shares, downloads, how many remixes get made, sales numbers from concerts, Youtube views, etc. That would not be very invasive at all.
By the way, government courts are already frequently called in to assess how much one company owes another for something, or the market value of a service, etc. So the government already does this- however good it already does it, is probably the baseline on how good it would be implemented without any unusual data.