In the Internet age, it should be possible to have IP-based anything. One researcher's work into IP over Xylophones shows that this is true, although it's not exactly the quickest implementation. University of California Berkeley researcher R. Stuart Geiger's Xylophone-based IP experiment -- officially IPoXP -- provides a fully IP compliant connection between two PCs using two Arduino microcontrollers and two xylophones -- as well as two xylophone players.
That's where the data transfer speed problems -- and innate error problems come in -- as each Arduino sends a signal to an LED; that's the point at which the human player is meant to strike a key on the xylophone. They're issued one per second -- so this is technically a one baud network as long as no errors happen. Which they do; Geiger's ultimate conclusion is that
"Humans are really terrible interfaces."