Slashdot Mirror

← Back to Stories (view on slashdot.org)

Piracy Economics

Posted by kdawson on from the lawsuits-make-a-poor-marketing-strategy dept.

Reader Anonymous Coward the younger sends in a link to an article up at Mises.org on the market functions of piracy. The argument is that turning a blind eye to piracy can be a cheap way for a company to give away samples — one of the most time-proven tactics in marketing. The article also suggests that pirates creating knock-offs might just be offering companies market feedback that they ought to attend to. (Microsoft, are you listening?)

2 of 347 comments (clear)

  1. As I recall... by AKAImBatman · · Score: 5, Interesting

    ...wasn't there some sort of memo that was leaked from Microsoft that basically said the only reason why Windows 3.1 became popular was because it was the most pirated software ever?

    As it so happens, I used to sell a product which required a simple registration key to upgrade to the full version. (The free version never shut off, but it had fewer features.) After noticing a few Google searches for " crackz", I thought about seeding a few reg numbers to promote the product. Alas, I never got around to it, but it would have been a cool marketing trick.

    That being said, I don't agree with piracy in general. Only that it can fullfill certain market needs. If it gets too out of hand, though, it can become a serious problem to the producer. (e.g. Napster) Of course, you don't get in that position unless you're failing to meet your customer's needs in the first place. (e.g. lack of legal MP3s)

    --
    Javascript + Nintendo DSi = DSiCade
  2. Re:Piracy is marker of immature market by Khaed · · Score: 5, Interesting

    MS will get pirated until they have half a dozen or a dozen versions of their product. It would be practical for them to give away the low end version.

    They have quite a few versions of Vista.

    MS will always be pirated. If they give away the low end, people will pirate the high end because that's what they want. Paint is given away for free with every Windows computer, Gimp is free, yet Photoshop is probably one of the most pirated programs in existence, after Windows and possibly Office.

    While the car and book analogies make sense, Microsoft isn't actually hurt by people pirating Windows. Windows has always been pirated and they're a billion dollar company. One of the reasons for this is that you can pirate all you want at home, but if you're a business caught pirating, you are going to get screwed. In an uncomfortable place. (and not like in a station wagon)

    Short of giving all versions of Windows away, MS will be pirated. They might as well make the best of it and work it to their advantage.