Sony DRM and the New Digital Hole
expro writes "If the root kit scandal was not enough for Sony, Time Magazine reports that it is a delay in 'the release of copy-protection software required for the PS3's game and high-definition movie discs' giving Microsoft a serious advantage in the market place. Is there something Sony should be learning here about preoccupation copy control? With high definition writable media appearing already, will the price drop soon enough to help me overcome the real obstacle to backing up my exsisting commercial DVDs, cost of single media large enough to hold them that is playable in a player? Will the resulting new digital hole in copying existing DVD schemes to higher-density media replace the analog hole of VCRs in copying movies?"
It is obvious that in matters of IP, each individual has an incentive to pirate. After all, this means that every person gets something for free at the expense of the others (the payer). it's like pollution: if everybody else is 'clean' and you pollute (such that the total pollution is tiny), then the situation is fine. furthermore, since your polluting factory is cheaper to operate than a clean one, you make more money.
The problem is, that if everybody acts like this, you have mass pollution. therefore, the only reasonable alternative is to penalize people caught polluting.
And please don't even try the "but IP goods are nonrivalrous" bullshit (even if you knew what that meant). That is clearly not the case over the long term as is obvious to anybody who has looked at innovation and publishing rates in markets where strong IPR exists vs those where it does not.